[Tmac]

$12 billion investment proposal - worth mentioning!

Bangladesh, known as the ‘flood affected’, ‘corrupted’ country, is getting so many investment proposals from around the world now-a-days that it is news worthy.

Even few years back, we being the (un)fortunate bangladeshi used to think there’s no light at the end of the tunnel if you are living in bangladesh. Well, maybe that scenario is changing now. It’s been 35 years since our country was liberated. In this 35 years, this country has only crowned ‘bad titles’ for it. I think now is the time we concentrate on making the country a place where our ‘drained brains’ want to look forward to go back.

Here are the investment proposals:

1. India’s Tata Group wants to invest 2.5 billion to set up a giant steel mill, a 1000MW power plant and a fertilizer factory. UPDATE: This has already been implemented.

http://news.bbc.co.uk/2/hi/business/3741660.stm

2. Malaysia Telekom is investing $300 million in telecommunication and cell phone industry by 2006.

http://www.bangladeshjournal.com/telecom/index.php?ID=20&tim=24-4-2005

3. Singapore Telecom (SingTel) is joining with Citycell to invest in the CDMA cell phone industry.

http://www.thedailystar.net/2005/03/24/d50324050355.htm

4. The Kingdom group owned by Saudi prince Alwaleed Bin Talal is interested in the hospitality sector, such as hotels and tourism.

http://www.renard-international.com/news.asp?wid=1907

5. US billionaire, Microsoft’s co-founder Paul Allen is proposing to invest $1.6 billion building Bangladesh power and fertilizer plants.

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=8407152

These are just some of many investments that are proposed for our country. This is the right time to grab all these foreign investments to build a nation that we all dreamed of making.

 

[Tmac]

Bangladesh attracts global investment giants:-
Dhaka | May 03, 2005 3:40:11 PM IST

http://news.webindia123.com/news/showdetails.asp?id=80622&n_date=20050503&cat=Business


Dhaka, May 3 : Bangladesh has received investment proposals worth $12 billion from at least 10 global companies, including India's Tata group, in the last year and half.

Two thirds of the total investment proposed came in the last nine months, The Financial Express daily reported Tuesday, quoting Board of Investment (BoI) executive chairman Mahmudur Rahman.

Members of the Tata board of directors will arrive in Dhaka Sunday for preparatory meetings leading to final negotiations on proposed power, fertiliser and steel plants.

Tata has scaled up its investment proposal from $2 billion to $2.5 billion, the BoI chief said.

On the upward trend in investment from abroad, Rahman said: "There is a huge breakthrough. Even strong critics of the government these days remain silent because of the overall improvement in the country's investment climate."

On the meeting with Tata officials, he said: "It will be a preparatory meeting prior to the final negotiations scheduled end of May."

"Tata aims at concluding the negotiations, signing the final agreements and holding the ground-breaking ceremonies in December."

The newspaper reported that two Malaysian giants have visited the country. While Malaysia Metro wants to engage in real estate, P.K. Resources is interested in tourism and infrastructure.

ORASCOM, an Egyptian telecom company, has already taken over Sheba telecom and is operating under the name Banglalink.

Singapore Telecom is likely to join hands with Citycell shortly to expand its network. The Dhabi group and the Kingdom group are the two giants from the Middle-East with investment proposals in several areas.

The Kingdom group owned by Saudi prince Alwaleed Bin Talal is interested in the hospitality sector, such as hotels and tourism.

Talal wants to buy Sonargaon Hotel, one of the two five-star hotels in Bangladesh.

US firm Global Vulcan Energy Ltd may invest over $1 billion in the power and fertiliser sectors. Some of its executives are on a visit here.

 

[Tmac]

South Korean Company Plans $2 Billion Investment in Bangladesh

http://biz.yahoo.com/ap/050707/bangladesh_skorea_investment.html?.v=1

DHAKA, Bangladesh (AP) -- A South Korean company has signed an agreement with Bangladesh laying out plans to invest US$2 billion (euro1.49 billion) in a coal mine, a coal power plant and a fertilizer factory, officials announced Thursday.

The Seoul-based LUXON Global Co. Ltd. will complete a feasibility study in a year, and then plans to initially invest US$1 billion (euro745 million), a company executive said.

"We have a plan to invest up to US$2 billion in phases," Chief Executive Officer Lee Seung-youb told reporters after signing the agreement.

The plan envisages development of a coal mine in northern Bangladesh, a 350-megawatt power plant, and a factory with an annual production capacity of about 30,000 metric tons of fertilizer.

The agreement said the company will build roads, bridges and gas distribution pipelines.

"We will fix everything after negotiations with the government," company spokesman Manjur Qauium told The Associated Press.

He said the company is interested in a government arrangement that allows foreign investors to turn a profit from roads, bridges or terminals before turning control over to Dhaka.

Rich in gas and coal, Bangladesh has long been trying to attract foreign investment for power plants and fertilizer factories.

In 2004, Indian business conglomerate Tata Group signed a deal with Bangladesh to invest US$2 billion (euro1.49 billion) in steel, power and fertilizer plants, the government said.

 

[Tmac]

http://www.bangladesh-web.com/news/...&hidType=BAE&hidRecord=0000000000000000051606

Tata to get 2000 acres land, Dhaka to buy 500 MW power

UNB, DHAKA:The second round negotiation between the government and the Indian Tata Group on its proposed US$2.5 billion investment plan in Bangladesh ended here yesterday with both sides apparently having agreed on two major issues with regard to land allocation and power purchase.

Sources close to the meeting told reporters that Tata had in principle agreed to take nearly 2,000 acres of land offered by the government at Bheramara for their proposed steel mills.

They said the government on its part also agreed to purchase 500 megawatt of electricity from Tata's proposed power plant to be set up near Barapukuria coal mine.

"We've huge some good progress in last five days of talks... but nothing has been finalised. Some issues are very complicated and there are some differences on some fundamental issues. We have to sort them out," said Alan Rosling, the Executive Director of Tata Sons and leader of Tata negotiating team.

He was upbeat about the talks, saying, "We are going in the right direction... we're hopeful of resolving all issues."

Echoing the Tata official, Finance Secretary Zakir Ahmed Khan, who led the Bangladesh side, said the talks are still in a primary stage although the progress made so fare appeared to be satisfactory.

Sources said the two sides will have to work out the nitty-gritty of the land allocation as well as the issues of tariff and tenure for electricity purchase from Tata's planned power plant.

Other issues like price of gas and tenure of gas supply and the fiscal incentives for Tata's proposed investment were not discussed in the second round negotiation.

The third round negotiation will take place by the end of July where these issues will come up for discussion, Finance Secretary Zakir Khan said.

He also said the government would seek help from the International Finance Corporation (IFC), the World Bank's window for supporting private sector investment, for some infrastructure projects related to Tata's investment in Bangladesh.

The government has asked Tata Group to come up with their complete investment plan for scrutinising it thoroughly before taking decisions, it was learnt.

Meanwhile, the government has decided to appoint two international experts to determine the tariff of electricity and price of gas for the Tata projects.

 

[Tmac]

$1bn deal planned by Dhaka

http://www.gulf-daily-news.com/Story.asp?Article=119691&Sn=BUSI&IssueID=28151

DHAKA: Bangladesh Prime Minister Begum Khaleda Zia was expected to win more investment in Bangladesh's energy sector and sign a $1 billion textile deal on her third trip to China in less than four years. Khaleda left yesterday on a five-day trip, heading an 80-member delegation including Foreign Minister M Morshed Khan. China is Bangladesh's second largest trading partner after India. "Bangladeshi garment manufacturers are likely to benefit immediately as an accord to export garments worth $1bn is expected to be signed," said Mahmudur Rahman, chairman of the Bangladesh's Board of Investment.

Traders say China, itself a huge textile exporter, prefers cheaper Bangladeshi garments for its domestic markets. The $1bn accord is for one year, with a possibility of renewing the deal after review.

 

[Tmac]

Dhabi Group chief due in Dhaka on August 29 - multi-sector investment proposals worth $2 billion

http://www.bangladesh-web.com/news/...&hidType=BAE&hidRecord=0000000000000000057708

Dhaka on August 29 :Sheikh Nahayan Mabarak Al Nahayan, chairman of the Dhabi Group of the United Arab Emirates, is expected to arrive in Dhaka on August 29 to hold talks with the government on multi-sector investment proposals worth $2 billion.

Dhabi’s investment interests in Bangladesh range from telecommunications and tourism to infrastructure building, the executive chairman of the Board of Investment, Mahmudur Rahman, said confirming the planned visit of Dhabi Group chief, who is a close kin of the President of the Middle East country.

During the two-day visit, Al Nahayan is likely to meet the finance, foreign and telecom ministers. A call on meeting with the prime minister is also on the cards.

‘Since he (Al Nahayan) is coming, some of Dhabi’s investment proposals might take a better shape,’ Mahmud told New Age on Sunday.

The group has also expressed interests in becoming a strategic partner of the Rupali Bank, while an application for a licence for a mobile phone company has now been pending with the Bangladesh Telecommunications Regulatory Commission.

During the visit, the Dhabi group chief is also scheduled to inaugurate a branch of the Bank Al-Falah Limited, which had earlier taken over Shamil Bank in Bangladesh.

The group had reportedly shown interest in construction of a super-highway between Dhaka and Chittagong, a five-start hotel in Dhaka and a tourist resort in Cox’s Bazar as well as setting up of a 500-megawatt power plant and also a pharmaceutical unit.

A team of executives of the group, led by its chief executive officer Bashir Ahmed Tahir, during a tour in March, 2005, had held initial talks with ministers and top officials of the government.

 

[Tmac]

Dhabi Group signs MoU to invest $1b in Bangladesh
FE Report
9/2/2005

http://www.financialexpress-bd.com/index3.asp?cnd=9/2/2005&section_id=1&newsid=12737&spcl=no

Abu Dhabi Group, a United Arab Emirates business conglomerate, Thursday signed a memorandum of understanding (MoU) with the Board of Investment (BoI) to invest US $ 1 billion in cellular telephone, hotel and pharmaceutical projects in Bangladesh.
Roughly half of the amount will be invested in the cellular phone sector, $ 125-150 million in a five-star hotel in the capital and rest in the pharmaceutical project by the Middle East company.
This is the second largest investment proposal made by a foreign company in Bangladesh after the Tata Group that has already signed a MoU with the BoI to invest $ 2.5 billion in steel, power and fertiliser projects.
Omar Z Al Askari, member of the Abu Dhabi Consortium and Nazrul Islam, member of the BoI signed the MoU on behalf of their respective sides at a city state guest house.
Abu Dhabi Group chairman Sheikh Nahayan Mabarak Al Nahayan, foreign minister M Morshed Khan and BoI executive chairman Mahmudur Rahman were present at the signing ceremony.
"Investment opportunities have been created with the economic progress in Bangladesh," Al Nahayan told reporters after the signing ceremony.
Nahayan, who is leading 16-member delegation, also met with Prime Minister Khaleda Zia on the day and discussed about the country's economic progress.
Terming the economic progress of Bangladesh as "very good", Nahayan said his group wants to share the progress through the investment.
Morshed Khan said the investment proposal between the Dhabi Group and BoI is progressing very well.
"The investment would yield a win-win situation for both the sides," he said.
Mahmudur Rahman said apart from the investment in cellular phone, five-star hotel and the pharmaceutical infrastructure, the group has also shown keen interest to invest in the energy sector.
"We have talked about the establishment of a private refinery," he said.
Though the group wants to start their investment activities within a month, Rahman said it would take at least another three or four months.
The groups' cellular phone company --Warid Telecom -- that has already applied for a mobile telecom licence in Bangladesh hoped that the licence would be granted very soon.
The Warid Telecom acquired a mobile licence at the cost of $ 291 million in Pakistan in 2003.
The Dhabi Group owns major shares in Bank Alfalah, which bought the Bangladesh operation of Gulf-based Shamil Bank last year, and United Bank Limited in Pakistan.
The group has international investment in the telecom, finance, hospitality, property, oil exploration and supplies sector, and in the automobile industries.
The group officials said it wants to invest hugely in the pharmaceutical sector, as Bangladesh, being a least developed country, will enjoy certain benefit in medicine export under the Trade Related Intellectual Property (TRIP) till 2016.
The Dhabi Group is considering either setting up an independent plant or participating in a joint venture with a local company. Negotiation between the group and the local pharmaceutical giant - Square -- is going on, it is learnt.
The Groups' Neo Pharma LLC has big plant in the Untied Arab Emirates.
On the group's investment proposal to build a five-star hotel, the government of Bangladesh has identified Fairly House -- a shipping Ministry guest house in capital -- as suitable site for the purpose.
Agencies adds: Shaikh Nahayan Thursday called on President Iajuddin Ahmed at Bangabhaban.
During the meeting, the UAE Minister expressed his keen interest in investing in hotel development in Bangladesh, a Bangabhaban release said. He also agreed to look into the prospect of cooperation in education sector between the two countries.
The President referred to prevailing congenial atmosphere for investment in Bangladesh and invited UAE investments, especially in tourism, ICT and telecommunications sectors.
meanwhile, Prime Minister Khaleda Zia Thursday urged the United Arab Emirates (UAE) to invest massively in Bangladesh availing the opportunity of cheap labour and attractive package of incentives for investment, reports UNB.
She also called for importing more manpower and various goods including medicines, leather and leather products, and jute and jutegoods from Bangladesh.
Khaleda's call came when visiting UAE Education Minister and Dhabi Group chairman Shaikh Nahayan Mabarak Al Nahayan made a courtesy call on her at the PM's office in the afternoon.
Responding to the Prime Minister, Shaikh Nahayan showed keen interest in investing in the country.
According to an official, Dhabi Group currently wants to invest US$2 billion in Bangladesh in various sectors, including telecommunication, tourism and pharmaceuticals.
At present, nearly 400,000 Bangladehsis of various professions are working in the UAE.

 

[shaz]

dont forget the $3 billion from pakistan

 

[Zaki]

^^ I ve never heard of that. What are they investing in? can you give a bit more details about it? thanks.

 

[slerz]

Good for Bangladeshkay:

 

[UnitedPakistan]

Pakistan will probaly also sell the JF-17 or the Sino-Pak Joint Defence fighter.

 

[Tmac]

World's richest man keen to invest

http://thedailystar.net/2005/12/06/d5120601119.htm

Impressed with Bangladesh's progress and congenial investment atmosphere, Microsoft chief Bill Gates yesterday showed his interest in expanding investment in Bangladesh's nascent information technology sector.

Bill Gates, chairman and chief software architect of Microsoft Corporation, who arrived here yesterday morning on his maiden visit, showed the interest when he along with his wife Melinda called on Prime Minister Khaleda Zia at her office.


"We will come up in more areas and take advantage of prevailing investment atmosphere here," the Microsoft chief was quoted as saying at the meeting.


As Bill Gates wanted to know, Khaleda briefed him about her government's successful programmes in health, education, primary and women education in particular, reducing child mortality and ensuring safe drinking water.


Bill Gates said they didn't know much about Bangladesh and his visit has helped them know that the country has done a lot. He was impressed with the government's pragmatic policies, programmes and achievements in education, ICT and health sectors.


There is no publicity of the country's such achievements and progress, Gates said assuring the prime minister of support in reducing neonatal mortality rate in Bangladesh.


The Microsoft chief also appreciated the initiative to set up Asian Women University in Chittagong where the Bill & Melinda Gates Foundation provided financial support. He said they would also collaborate in ICT development in other universities.


Prime Minister's Principal Secretary Kamal Uddin Siddiqui, who was present at the meeting, briefed newsmen about the proceedings of the meeting.

Science and ICT Minister Dr Abdul Moyeen Khan and BNP Senior Joint Secretary General Tarique Rahman were also present.


On April 20 this year, Tarique Rahman visited Seattle in America at the invitation of Bill Gates Foundation. During his visit to Microsoft Office, Tarique formally invited Bill Gates to visit Bangladesh.

Gates to help Bangladesh narrow digital divide

Microsoft to train 200,000 students in three years

Microsoft Bangladesh signed a memorandum of understanding with the Ministry of Education on Monday to train over 10,000 teachers and over 2,00,000 students over the next three years in partnership with the ministry.
The partners-in-learning agreement was signed during the half-day official visit of Microsoft’s chairman, Bill Gates, to Dhaka on Monday.
All key ministers of the government and Bill Gates were present at the signing ceremony at the office of the Ministry of Education.
Feroz Mahmud, country manager of Microsoft Bangladesh, and Abdul Aziz, secretary of the education ministry, signed the three-year agreement aimed at providing computer education and narrowing the digital divide in the emerging market of Bangladesh.
Bangladesh is Bill Gates’ first stop in the week-long visit to this region. He will attend the summit of the Microsoft Government Leaders Forum which will be held on December 6 and 7 in New Delhi and will deal the theme ‘Leading in a Connected World’.
Before the signing ceremony, Gates met the prime minister, Khaleda Zia, other ministers and senior leaders of the business community.
The prime minister said, ‘It is our privilege to host Gates in Bangladesh today. Several topics were discussed, one of which was to explore how we can deliver technology to the community.’
‘We certainly look forward to Microsoft’s contribution to this effort to narrow down the digital divide,’ she said.
Commenting on his meeting, Bill Gates said, ‘I am pleased to see such progress in bridging the digital divide and ensuring growth of the software industry in an emerging market like Bangladesh. The results we are achieving here can only come through strong partnerships between industry and government, and I am encouraged by Begum Zia’s commitment to bring the benefits of technology to her country.’
In addition, alliances were also established and agreements were made with 10 of the leading universities in Bangladesh to deliver the Microsoft Developer Network Academic Alliance (MSDNAA) where teachers and students will have easier access and exposure to the latest software and technology at affordable prices.
The Microsoft learning programme comprises three courses: Partners in Learning Grants, Partners in Learning Fresh Start for Donated PCs, and Partners in Learning School Agreement.
Under this programme, Microsoft is providing technology access and skills-based training to primary and secondary school teachers and students in developing countries and under-served communities around the world.
Feroz Mahmud, country manager of Microsoft Bangladesh, said, ‘Access to technology is important. It is also equally important to be able to provide ICT skills training, tools and general guidance and advice to help people discover what technology can do for them, and what they can do with technology.’
Abdul Moyeen Khan, Minister for Science and Information and Communication Technology, said, ‘We are really looking forward to a long-term partnership with Microsoft in such efforts to help close the digital gap.’
‘Our partnership with Microsoft will help bring, and generate, innovative ways of using technology to our teachers and students. It will help to build capacity for the use of ICT by both educators and students,’ said Osman Farruk, Minister for Education.
Recently, Microsoft had also rolled out its Unlimited Potential programme, in partnership with Learn Foundation, which included $90,000 in cash grants, software, training curriculum and certifications for rural communities.
Eight existing rural telephone shops and ICT training facilities were converted to full Internet-enabled Community Technology Learning Centres.

 

[worldtraveler]

^^ I ve never heard of that. What are they investing in? can you give a bit more details about it? thanks.

Pakistani entrepreneursare investing In our textile sector. But the amount is a bit over 1 billion not 3 billion as said here..

 

[Tmac]

Kuwaiti investors eager to invest in Bangladesh

Kuwait is interested to import goods from Bangladesh while its investors are keen to invest here to avail of the incentives are on offer for foreign investors, reports UNB.

Newly appointed Kuwait Ambassador in Dhaka Abdullatif Ali Ibrahim Al Mawwash said this Tuesday when he made a courtesy call on Prime Minister Khaleda Zia at her office as the PM said Kuwait could invest in Bangladesh availing of the investment facilities and incentives offered by her government.

Begum Zia said the Gulf country could also take investment advantage of duty-free access of goods enjoying by LDCs, including Bangladesh.

Khaleda Zia also urged the Ambassador to recruit more manpower, including skilled and semiskilled ones, from Bangladesh.

Bangladeshis are the third largest group of people working in Kuwait after India and Egypt, according to an official.

Abdullatif responded positively saying he would try to take more people from Bangladesh.

He also showed his country’s interest to import goods from Bangladesh as the Prime Minister mentioned that Kuwait could import many quality products from here, particularly medicines, meat and fish.

Appreciating Begum Zia’s leadership and contributions, Abdullatif apprised the Prime Minister that she is regarded by their Emir as Bangladesh’s number one leader.

He expressed gratitude to Bangladesh for its support in rebuilding Kuwait after it was ravaged by the Gulf War.

Prime Minister Khaleda Zia wished good health of Kuwait Emir Sheikh Jabir al-Ahmad al-Jabir Al Sabah and conveyed greetings to him through the new envoy. She also expressed sympathy for the family members of Kuwait’s late Emir. PM’s Principal Secretary Dr Kamal Siddiqui was present.

http://www.bangladeshobserveronline.com/new/2006/03/15/economic.htm

 

[mirzazeehan]

BD among the next eleven

World Potential Economy
Bangladesh on Goldman Sachs 'Next Eleven' list
Jasim Uddin Khan

Goldman Sachs, a US-based investment banking and securities firm, in a report on world's potential economies has placed Bangladesh on its "Next Eleven" list as a key member.

The report said, "Bangladesh, the world's tiny economy with most corrupt brand, will power the global economy something of the magnitude of the BRICs economies."

The "Next Eleven" is the second term the Goldman Sachs has coined to describe economies with high growth potential, such as the "BRICs" economies encompassing Brazil, Russia, India and China.


Comparing the 22 economies of the G7, BRICs and Next Eleven, the report said Bangladesh will grow faster than predicted earlier. The main reason for the change in projection is the faster growth seen in 2000-05.


The criteria for the Next Eleven list included macroeconomic stability, political maturity, openness of trade and investment policies and quality of education.


The other countries on the list are Egypt, Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, the Philippines, Turkey and Vietnam.


In view of the present time that is largely regarded as an Asian Century, the new Goldman Sachs list has four other Asian nations--Iran, Indonesia, Vietnam and the Philippines in addition to the two South Asian countries.


"Investors, always on the lookout for the next big trend, are scouring Asia as the region is home to booming economies, swelling populations and fast-developing markets," an economist said.


Mahmudur Rahman, Board of Investment (BoI) executive chairman, said inclusion of Bangladesh on the Goldman Sachs list of potential economies has proved that the country has great possibilities ahead.


"Major corporate houses including the Tata Group, Dhabi Group, Global Vulcan Energy are showing interest in Bangladesh's economy," he added.


Rahman said world business magnates such as Bill Gates and Ted Turner have visited Bangladesh amid soaring militant activities, which also testify the potentials of the country.

source-http://www.thedailystar.net/2005/12/15/d5121501107.htm

 

[Tmac]

Tata plans to raise its investment to $ 3bln

May submit revised plan by mid-April, raise gas price, seek to import Bangladesh coal

India's leading industrial conglomerate Tata Group is expected to submit its revised investment plan this month to Bangladesh authorities indicating its intention to raise the investment target from earlier projected $2.6 billion to $ 3 billion, competent sources said yesterday.

In its revised plan likely to be submitted to the government before April 15, the Tata is also expected to propose its intention to export Bangladeshi coal to India through railway wagons which in return trip can also bring raw materials for its proposed steel and other plants in Bangladesh.

According to the sources, Tata is also expected to resolve the dispute over gas price by indicating its readiness to enhance the earlier offered gas price of one US dollar, which Bangladesh refused to accept.

Besides, Tata Group would like to have Barapukuria coal mine and its adjacent areas and also seek coal exploration licences for four blocks in Barapukuria and Phulbari mines to extract the fossil fuel for use in its proposed power plant and other purposes, said the sources close both to the Indian company as well as Bangladeshi authorities.

Tata’s Chief Executive in Bangladesh Manjer Hossain, who has gone to India for consultation, is expected to return to Dhaka on April 4 for submission of its much-talked-about revised investment plan to the government.

The revised $ 3 billion investment package, which will create job opportunities for 6,500 Bangladeshis, would be the final outcome of its six months of pre-feasibility study which began on May 8, 2005. It has also come at the end of Tata’s two-year long intense negotiations and meetings with Bangladeshi authorities on the multi-million dollar investment.

If the negotiations ends in striking a final deal, Tata will be Bangladesh’s highest single investor of its kind so far.

According to sources, the whole package after submission would be discussed by the high-powered committee headed by Principal Secretary to Prime Minister Dr Kamaluddin Siddiqui to coordinate the entire exercise. Another committee, headed by Industries Minister Maulana Matiur Rahman Nizami, will give policy directions on the proposal.

Earlier, Tata said it wanted to use coal as primary energy for its proposed power plant and steel mills in Bangladesh. However, the state-run Petrobangla suggested that Tata should come up with a joint venture proposal through which the Group can get entry into the Barapukuria coalfield after review of the proposal, sources said.

An official concerned, who preferred to remain unidentified, told The Independent yesterday that the government might provide a 15-year guarantee of uninterrupted gas supply to Tata instead of a 30-year period as sought by it. In its proposal, Tata had sought 2 TCF (trillion cubic feet) gas to run its future industrial units.

Similarly, the government is likely to provide Tata with 6 million tons of coal a year and allot land properties of 3,000 acres required for Tata's proposed project sites.

The official, closely involved in the negotiation process, said the two committees constituted for conducting negotiations with Tata have agreed to give their positive nod to the proposal for linking up one of Tata's three project sites with Ishwardi railway track.

According to their revised proposal, they want to discuss issues relating to cross-border trade facilities, gas pricing, transit facilities and infrastructure facilities.
To materialise the whole investment projects, Tata has already asked exploration licence from Bangladesh to explore hydrocarbon potential at Barapukuria coalmine area as it felt that there is a huge potential of coal in these unexplored areas. They asked the energy ministry to soon allow them to explore a total of 4,200 acres of land in Barapukuria coal mine and adjoining areas.

According to the Tata’s presentation, Barapukuria coal mine and its adjoining area was divided into seven blocks. Of these, Tata is interested to extract coal from four blocks using the open-cut mining technology.

But of the proposed four blocks, only one has been developed where the Chinese operator CMEC was appointed to extract coal under an agreement with the government.

After expiry of the agreement with CMEC in 2011, Tata wants to take over the operation of this particular coal mine block along with three other blocks.

The Indian industrial conglomerate also claimed that the open-cut mining technology is the most modern method in coal mining through which 90 per cent extraction of coal is possible.

Sources said Tata also wanted coal exploration licences for four blocks in Barapukuria and Phulbari coal fields, but the government said it could give Tata only two blocks, the first and the second, as the third and the fourth ones have already been awarded to other companies.

Tata’s new plan will pave the way for using coal as feedstock in two of its proposed projects: the US $ 700 million power plant and the US $700 million steel mill. Tata is going ahead with its US$3 billion investment plan in Bangladesh, billed as the highest in the history of the country's inflow of foreign direct investment (FDI).

Earlier, the Tata group submitted a proposal to the Energy Ministry about its plan to invest $ 2.6 billion for setting up a power plant, a steel mill and a fertiliser factory in Bangladesh.

http://independent-bangladesh.com/news/apr/02/02042006ts.htm#A1

 

[Tmac]

Malaysians keen to relocate industrial units to Bangladesh

Malaysian entrepreneurs have shown their interest to relocate some of their industrial units to Bangladesh in the face of labour shortage.

The entrepreneurs also showed interest to invest in SME (Small and Medium Enterprise) sector in Bangladesh.

"We are facing shortage of labour in the industrial sector of Malaysia, as the availability of foreign workers is decreasing following restrictions imposed by Malaysian government," Tan Sri Dato Soong Siew Hoong, chairman of the visiting 11-member delegation of Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), told a meeting with FBCCI in Dhaka yesterday.

He said some of Malaysian entrepreneurs are planing to relocate their units such as washing machine manufacturing plants and agriculture product manufacturing plants to Bangladesh.

Hoong said Malaysian investors are planing to invest in SME sector to produce various products to meet Bangladesh's domestic demand.

He said the investment may come in the form of joint ventures in Bangladesh.

However, Hoong said the investment and relocation process will proceed if Malaysian entrepreneurs find reasonable investment partners and business environment in Bangladesh.

Replying to a question, Hoong said, "At this moment, I don't know how much money will be invested by Malaysian entrepreneurs."

As manpower export from Bangladesh to Malaysia is totally stopped now, FBCCI (Federation of Bangladesh Chambers of Commerce and Industry) President Mir Nasir Hossain urged the delegates to discuss the issue with Malaysian government to solve the problem.

Mir Nasir said Bangladeshi workers contributed a lot to Malaysian economy in last few years.

During the period July-December of the current fiscal year, Bangladesh imported different goods worth $163.66 million from Malaysia, while it exported goods valued at only $6.15 million.

http://www.thedailystar.net/2006/04/04/d60404050147.htm

 

[Tmac]

Bangladesh-Malaysia jv planned in LCD products

Commercial operations expected in September

A Bangladesh-Malaysia joint venture company is likely to start manufacturing thin film Liquid Crystal Display products in Bangladesh in September.
TFT Display of Malaysia and BS Communications Limited, an information technology company in Bangladesh, have agreed to set up a factory in Dhaka to assemble LCD monitors, LCD television and other technology products, top officials of the companies said.
The two companies signed a memorandum of understanding in Malaysian capital Kuala Lumpur on April 19, 2006.
‘If everything goes well, we’ll sign the joint-venture agreement in three months and go for production in September in Bangladesh,’ Michael Wong, chief executive officer of TFT Display, told New Age at his office in northern Malaysian state of Penang recently.
The joint-venture, to be known as TFT (Dhaka) Limited, would involve over $4 million investment, including $1 million in foreign direct investment, said Mojibul Hoq, the chief executive officer of the BS Communication.
Asked why he has chosen Bangladesh for the venture, Michael Wong said Bangladesh’s huge potentials have encouraged him to plan the joint venture.
He said Bangladesh could be used as gateway for exporting hi-tech products to India, the Middle East and a number of European countries. His company has already gained foothold in Indonesia, Australia, the United Kingdom, South Korea and Taiwan.
The Penang-based company, the first-ever company that started producing LCD monitors in 2002 in Malaysia, now has production capacity of 100 StartTron LCD monitors everyday.
In Bangladesh, the TFT would initially provide technological supports for setting up the unit. ‘Specialists from Bangladesh would be brought in to Malaysia for training,’ Wong said.
Asked about initial production capacity in Bangladesh, Mojibul Hoq said according to plan the initial production capacity of the factory would be 5,000 pieces of LCD monitors per month. The capacity will gradually be increased to 10,000, he said.
The TFT Malaysia will support the TDL with technology transfer, certification conformity, manufacturing setup and process approval. It will also supply components certified and fit for manufacturing so that the final manufactured products will have minimal warranty defects.
The company expects that it would rake in $8.9 million revenue in the first year of its operation, according to a statement issued during the signing of the MoU.

http://www.newagebd.com/busi.html

 

[magestom]

I think this might be the same Korean company that will invest $12 billion in India. Is it Posco?? Anyway. Bangladesh will have great Future. Especially since Indias economy is doing good, Indians want to make lots of investments in bangladesh. Then there are more buyers to sell too. South Asia Boom!

South Korean Company Plans $2 Billion Investment in Bangladesh

http://biz.yahoo.com/ap/050707/bangladesh_skorea_investment.html?.v=1

DHAKA, Bangladesh (AP) -- A South Korean company has signed an agreement with Bangladesh laying out plans to invest US$2 billion (euro1.49 billion) in a coal mine, a coal power plant and a fertilizer factory, officials announced Thursday.

The Seoul-based LUXON Global Co. Ltd. will complete a feasibility study in a year, and then plans to initially invest US$1 billion (euro745 million), a company executive said.

"We have a plan to invest up to US$2 billion in phases," Chief Executive Officer Lee Seung-youb told reporters after signing the agreement.

The plan envisages development of a coal mine in northern Bangladesh, a 350-megawatt power plant, and a factory with an annual production capacity of about 30,000 metric tons of fertilizer.

The agreement said the company will build roads, bridges and gas distribution pipelines.

"We will fix everything after negotiations with the government," company spokesman Manjur Qauium told The Associated Press.

He said the company is interested in a government arrangement that allows foreign investors to turn a profit from roads, bridges or terminals before turning control over to Dhaka.

Rich in gas and coal, Bangladesh has long been trying to attract foreign investment for power plants and fertilizer factories.

In 2004, Indian business conglomerate Tata Group signed a deal with Bangladesh to invest US$2 billion (euro1.49 billion) in steel, power and fertilizer plants, the government said.

 

[mirzazeehan]

Tata proposes 10pc govt ownership of its projects

GAS PRICING FORMULA REVISED,

TATA SHARE TO BE FLOATED ON LOCAL MARKET
Khawaza Main Uddin
The Tata Group has come up with revised proposals on its $3 billion investment, offering the government 10 per cent ownership of each of the four projects and unveiling a new plan to float shares on the local market for raising funds.
Regarding the crux of its bargaining with the Bangladesh government — the pricing of natural gas — the Tata authorities have offered prices varying between $2 per unit (thousand cubic feet) and a maximum of $4 per unit with a minimum of $1.5 per unit for the initial 5-6 years.
Categorically, Tata offered current prices standing at $3.1 per unit for the proposed fertiliser plant, higher than $2.45 per unit for joint venture KAFCO, and $2.60 per unit for the steel plant.
The prices should be flexible and adjusted with international prices of various commodities. The Tata Group defined it as ‘product-linked pricing formula’.
The Indian conglomerate, after submitting its ‘minimum offers’ to the Board of Investment on Sunday, requested the government to finalise a decision by next June and sign an agreement within another two months for commissioning the steel, fertiliser and power plants and exploration of the coalmine. The total cost of these projects is expected to exceed $3 billion.
‘This is a genuine attempt to make an investment here…We hope the government will now consider the proposals in a positive light and very soon sign a deal,’ Alan Roseling, the executive director of Tata and Sons, accompanied by some top executives of the group, told journalists at the investment board’s office.
He also brushed aside as ‘wrong’ the various reservations expressed publicly about Tata’s investment and described the projects as very significant for job creation and foreign exchange earning. He added that the conglomerate would enter into complex negotiations with the multilateral lending agencies and reputed banks and financial institutions for financing the project once the deal is struck.
The group, in the latest proposals, has sought a guarantee of uninterrupted supply of gas during the loan repayment period, spanning 10-14 years, instead of the 25 or 20 years it had demanded earlier. Roseling claimed it to be a ‘huge concession’ from his side.
But the Tata Group’s demands for fiscal incentives such as tax holiday have remained the same.
The Tata Group says it will launch social welfare programmes in the vicinity of the projects’ sites. These include construction of two hospitals of 100 beds and 50 beds each and two training centres for building quality manpower for industrial units, apart from development of townships, replicating the model of Jamshedpur in India’s Jharkhand state.
Generally appreciating the Tata Group’s increased offers, the finance and planning minister, M Saifur Rahman, said the price of gas in the international markets would rise in response to the price hikes of petroleum. ‘We have to analyse all the realities based on the international gas price and Tata’s proposals,’ he told newsmen after the Tata team met and briefed him.
The executive chairman of the investment board, Mahmudur Rahman, cautiously welcomed the modified Tata proposals, terming the group’s changed position a victory of the government’s negotiating team that had upheld national interests to the maximum extent.
‘This has also proved the improvement in the investment climate in Bangladesh and set an example of maintaining the highest level of transparency in the negotiation process,’ he said, and along with Alan Roseling he reckoned the new proposals to be win-win formulae.
Mahmud, also the energy advisor, believes that Tata’s offer for floating initial public offering (IPO) from the first day of the operation of its companies would instil a lot of confidence in the capital market.
He has kept a second line of defence: evaluation of the Tata proposals by the national committee headed by the industries minister and the negotiation committee led by the communications secretary, besides another thorough analysis by noted economist Wahiduddin Mahmud who, by his independent assessment report, changed the entire equation of Tata’s investment move.
Tacitly admitting Professor Wahiduddin’s criticism of the projections by the Economist Intelligence Unit on gross domestic product growth, Roseling still pointed out that the investment would bring a lot of benefits to the country

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