The New Nation - Internet Edition

ADB to give $87m to improve basic services, infrastructure

BUSINESS REPORT

The Asian Development Bank (ADB) and the Government of Bangladesh yesterday signed a loan agreement of $87 million to improve the basic services and infrastructure in municipal towns of Bangladesh.

Musharraf Hossain Bhuiyan, Secretary for Economic Relations Division (ERD) signed for the Government while Paul J. Heytens, Country Director of ADB's Bangladesh Resident Mission, signed the loan agreement on behalf of ADB at a ceremony at ERD, Sher-e-Bangla Nagar, Dhaka.

As many as 3.8 million people are expected to benefit from the Second Urban Governance and Infrastructure Improvement (Sector) Project which will expand access to and delivery of water, sanitation, solid waste management and other urban services in an initial 35 targeted municipal towns, including slum areas. More towns will be included as the project is implemented. The project expects increases in income, employment, and land values in all participating towns by 2015, with 60% of residents in targeted slums to have access to improved services.

"The project will help improve service delivery and urban infrastructure through implementation of a proper incentive mechanism, putting in place a performance-based fund allocations system, increased citizen participation in urban planning and implementation, and adoption of a participatory approach to ensure transparency and accountability of the town officials and elected leaders," said Paul Heytens, Country Director for ADB's Bangladesh Resident Mission.

The loan, sourced from ADB's Special Funds, will be released in phases. The fund disbursements to each town are performance based and are linked to governance reform and improvement in urban services. The project draws on lessons from the ongoing Urban Governance and Infrastructure Improvement (Sector) Project which found that improvements to urban infrastructure and services are more effective and lasting when they are tied to governance reforms.

Services in urban areas currently fall well short of public requirements. Water, sewerage and solid waste collection are either minimal or non-existent and management is weak with little citizen participation, especially from women and the poor.

There is little or no planning for future developments. Bangladesh's urban dwellers are expected to double by 2035, making up 40% of the country's total population.

By linking financial help to governance change, ADB will be providing an incentive for town leaders to reform their governance procedures and engage people who were previously excluded from the decision-making process.

The amount of funds to be allocated to each town will depend on progress made on reforms.

Each participating town will have to use at least 5% of their allocated funds to improve basic services in slum areas, while gender action plans will be established to ensure that women are fully involved in governance and planning process.

German development institutions, Gesellschaft für Technische Zusammenarbeit (GTZ) and Kreditanstalt für Wiederaufbau (KfW), will provide cofinancing equivalent to $4.7 million and $36.1 million respectively. The government of Bangladesh will provide an additional $31.7 million. The towns involved in the project will supply the equivalent of $7.3 million, and the beneficiaries an additional $700,000.

The project will be carried out from 2009 to 2014 in three phases with the Government, ADB, GTZ and KfW jointly reviewing progress at least twice a year. Local Government Engineering Department under the Ministry of Local Government, Rural Development and Cooperatives will implement the project in cooperation with the participating pourashavas.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members - 48 from the region. In 2007, it approved $10.1 billion of loans, $673 million of grant projects, and technical assistance amounting to $243 million.

Premier Bank starts 'Home and Quick Delivery’ service

BUSINESS REPORT

Premier Bank has officially initiated home and quick delivery service of foreign remittance through postal service as the most convenient way to reach the nation.

To this effect a deal has been signed with Bangladesh Post Office under remittance disbursement arrangement at Dak Bhaban, Dhaka.

In the signing ceremony, Khondker Fazle Rashid, Managing Director of Premier Bank and M Mobasherur Rahman, Director General of Bangladesh Post Office signed the deal on behalf of their respective organisations.

The ceremony also witnessed a good number of dignitaries from both sides. Dewan Anwarul Latif, SEVP & Head of Corporate Marketing, Shafiuddin Ahmed, SVP and Head of ID from Premier Bank and Rafia Shaheen Ahmad, Additional Director General (Supply and Inspection), AKM Rafiqul Alam, Additional Director General (Postal Service), AKM Shafiur Rahman, Additional Director General (Planning) from Bangladesh Post Office were present.

Under the arrangement Bangladesh Post Office will provide home delivery service to the beneficiaries of Premier Bank by means of three different modes of postal delivery system widely known as Traditional Money Order System, Electronic Money Order System and Electronic Fund Transfer (EFT). Accordingly, cash payment of foreign remittance will be home delivered or disbursed over counter by sophisticated electronic message routed through Bank's Head Office to destination post office branches. It is a magnificent effort from a 3rd generation bank to ensure advanced mechanism and state-of-the-art technology in settling banking transaction.

Most recently Premier Bank has introduced "Drooti" of its own software, cutting edge remittance software designed to meet the demand of 21st century through Real Time Online Banking.

This has significantly reduced the transit period of remittance moving around the world between foreign source and doorway of beneficiaries in Bangladesh.

Two reverse faces in banking system need harmonization

BUSINESS REPORT

The country's banking is having two reverse faces, one is led by private banks rising depositors' interest putting at risks the central banks directives to reduce

lending rates, the spread and the cost of business.

The other one is the state owned commercial banks (SOCBs) which are roughly paying half as much of the interest to depositors on various schemes and also charging less on lending to business.

The two faces need harmonization to slowly come down closer to a meeting point; which may not be however possible in view of the less developed state of our economy and especially for banks in private sector, expert said.

A senior official of the finance ministry dealing with government owned banks said the SOCBs are not restricted from charging high rates or lower the same. These banks are being restructured under a corporatization scheme entrusting with decision making authority, he said.

But as leader of the country's banking system, they are also having corporate responsibility and they have to balance the whole thing in the greater business interest. The government is discouraging depositors pension scheme (DPS) as it claims higher interest, he said.

On highly differential interest rates charged by private banks as against the SOCBs, he said competition might reduce the gap in course of time.

Agrani Bank chairman and former finance secretary Siddiqur Rahman Chowdhury said the SOCBs are working to strike a critical balance between the borrowers and depositors interest.

Ananda Shipyard signs Tk133cr deal to build two vessels for German cos

BUSINESS REPORTER

Ananda Shipyard and Slipways Ltd has signed contracts to build two multipurpose cargo vessels for two German companies at a cost of Tk 133 crore.

According to the contract, the Bangladeshi shipbuilding company will deliver the vessels to Wessels Reederei GmbH and Komrowski Maritim by July 2010.

Afroja Bari, Managing Director, Ananda Shipyard and Slipways Ltd and the representative from buyer Walton Valadares Esilva jointly laid keels of the vessels at Meghnaghat, Sonargaon, Narayanganj on November 2.

The company has contracts worth 44.778 million euro and 316.64 million US dollars in hand for constructing 34 vessels.

To date, Ananda Shipyard has exported two vessels to the Maldives and one multipurpose cargo ship to Denmark. It has already received $39.13 million as advance payment.

The yard has already exported a 2900 DWT Multipurpose Cargo Vessel to Denmark. The company will export six vessels to Mozambique in this month.

Ananda Shipyard started its journey in 1983. Since 1999 the yard has successfully built and delivered different types of vessels.

Govt loses Tk 11 cr revenue monthly as 4 lakh cellphone sets enter illegally

BSS, Dhaka

The government is losing revenue of Taka 11 crore every month as about four lakh mobile phone sets enter into the country illegally during the period.The country's monthly demand for mobile phone is about eight lakh. Of which, four lakh sets are imported in legally, but the rest four lakh come in illegal way. As a result, the government is being deprived revenue of nearly Taka 11 crore every month, NSM Faruque, President of Bangladesh Mobile Phone Importers Association (BMPIA), told BSS yesterday.

He said, authorized importers have to pay a total tax of Taka 400, including duty and advanced income tax, on every mobile phone set, but the dishonest traders import the cell phone sets through illegal channel evading the government tax and duty.

"We are facing uneven competition in the market due to the import of mobile phone sets through illegal channel," the BMPIA president said.

Treasurer of BMPIA Mahbubul Alam said, most of the sets which enter into the country through illegal channel are fake and refurbished.

About 50 percent mobile phone sets sold through grey market and the customers are being cheated by purchasing these sets as there is no warranty on it, he said, adding, the countries like China and Thailand are the main source of these low-quality sets.

Meanwhile, Bangladesh Telecommunication Regulatory Commission (BTRC) has taken steps to check stop smuggling mobile phone sets into the country.

To this end, a meeting was held between BTRC and BMPIA on Monday where a decision was taken to form a committee comprising NBR, Customs, BTRC and BMPIA.

BTRC Chairman Major General (retd) Manzurul Alam said, the customers are being cheated frequently by purchasing counterfeit and refurbished mobile sets and the commission has taken strict measures to stop inflow of fake cell phone sets.

According to sources in the BTRC, there were more than 45 million subscribers of six mobile phone companies in Bangladesh till September this year, one of the fastest-growing countries in the cell phone sector.

Of the six operators, the sources said, Grameenphone(GP) is leading in terms of customer acquisition. Till September this year, the GP had 20.62 million subscribers followed by Banglalink 10.14 million, Aktel 7.63 million, Warid 3.86 million, Citycell 1.79 million and state-run Teletalk 0.9 million.

Bank Asia employees rewarded

BUSINESS REPORT

Syed Anisul Huq, President and Managing Director of Bank Asia, handed over cash rewards to seven employees of Bank Asia who have passed Banking Diploma Part-I and Part-II examinations held in May at a simple ceremony organized recently at the Corporate Office. The amount of cash rewards is Tk 25,000 and Tk 50,000 for passing Part-I and Part-II examination respectively in one sitting. Those who passed Part-I in more than one sitting got Tk 10,000 as cash reward and for Part-II, the amount of reward is Tk 20,000.

NBL's new premises of Mirpur Bazar Branch, Sunamganj opens

The new premises of Mirpur Bazar Branch of National Bank Ltd at Chand Ali Shopping Centre (lst floor), Jagannathpur Road, Sunamganj was inaugurated recently.

Md Abdur Rahman Sarker, Managing Director of the bank formally inaugurated the new premises.

To provide better services to the clients in better environment the bank has shifted its old premises, A B Kapan, Jagannathpur, Sunamganj to their new address. A discussion meeting was held on that occasion. Some valued clients and elites of the locality were also present and spoke on the occasion.

The function was presided over by Ziaus Shams Chowdhury, Executive Vice President and Regional Head, Sylhet and Mohammad Shahadat Hossain, Manager of Mirpur Bazar Branch, Sunamganj delivered his welcome speech.

'PRAN Frooto-Holy Cross 6th Inter-College Science Festival 2008' begins

BUSINESS REPORT

There is no alternative to build self-reliant Bangladesh other than learning of science. So we have to give highest importance to science education, said Nurul Islam, Chief HRM of PRAN RFL Group at the inauguration ceremony of 'PRAN Frooto-Holy Cross 6th Inter-College Science Festival 2008' at the Holy Cross College premises in the city.

He also said that the students would be more interactive in innovativeness and they would help to build promising Bangladesh.

Dr. M Kaykobad Professor, of Computer Science Department of BUET, Dr. Ali Asgar, Visiting Professor of East-West University, Mrs. Rina Das and Vice Principal of the college and Naima Haque, President of Holy Cross Science Club were also present on the occasion.

The festival remained open for all and continued till November 1 and closed followed by a closing ceremony.

Some 80 science projects from 12 educational institutions demonstrated in the festival. Besides demonstrating science projects there will be science related seminars, general knowledge competitions, science fiction movie show, fun-debate, science and mathematics Olympiad will be take place in the festival.

Bangladesh British Chamber delegation arrives Nov 9

BUSINESS REPORT

A 30-member delegation of Bangladesh British Chamber of Commerce (BBCC), UK, led by its chairman Shahgir Bakht Faruk, will arrive here on November 9 on a nine-day

visit to Bangladesh.

The delegation comprises BBCC senior vice-chairman and founder chairman of Saad Gazi Foundation ATMW Saad Gazi, BBCC northeast region president and chairman of Seamark International Iqbal Ahmed OBE, BBCC secretary general Absar M Waess, former chairman Moquim Ahmed, directors Monsob Ali, Jamal Uddin Mokoddus, Kabir Reza and Muhib Uddin Chowdhury.

Members of the delegation will attend a view exchange meeting on the proposed "Special Economic Zone at Sylhet" at Dhaka regency Hotel on November 11 at 11.30 am. On arrival at Dhaka, the delegation will address a press conference at Dhaka Regency Hotel at 7 pm.