The export sector within Bangladesh has grown to become an increasingly significant component of national trade, and has involved significant private sector investment over the last decade. The connection of production networks commonly involving small-scale producers, and traditional market and distribution systems, to supply raw materials for products meeting international standards, offers particular management and logistic challenges.To emphasis export Bangladesh Bank has doubled the export development fund (EDF) to $300 million (Tk 30 crore) on Tuesday to offset export losses from global recession. which was previously $150 Million.

We’ve relaxed the rules and regulations relating to EDF loans to add an impetus to the country’s export performances,” a senior official of the Bangladesh Bank (BB)

“The EDF has been doubled to cover the losses of the exporters due to global recession,” governor Atiur Rahman told .

Exporters will benefit from the fund, he said.

The central bank, which manages the EDF, provides loans from the fund to exporters in foreign currencies. The EDF size was $ 150 million or Tk 15 crore before.

The textile owners under the BTMA, who did not get any loan from the fund, will
now get loans to import yarn on condition that clothes made from it must have to be exported, said Rahman.

A circular, issued on Tuesday, was sent to the chief executives of all banks.

From Jan 1 next year, the banks will take loan from EDF at London Interbank Offered Rate (LIBOR) plus 1 percent interest and will extend credit to the exporters at LIBOR rate plus 2.50 percent interest.

Until now, they used to borrow from EDF at the LIBOR rate and gave loan at LIBOR rate plus 2.50 percent interest to the exporters.

The previous process will become void on December 31 of the current year, said the circular.

More Power news
Bibiyana power plant WB conditionalities may delay bidder selection
World Bank (WB) wants further evaluation through its own mechanism to select a qualified bidder for the installation of 330MW–450MW Bibiyana Power Plant in Habiganj.

A delegation of WB has conveyed this during a meeting with power division secretary Abul Kalam Azad yesterday.

The Power Cell, a relevant organisation of power division is the only authority to select lowest bidder through tender process, sources said. The Power Cell has already selected four power producing companies for installation of 330MW – 450MW Power Plant at Bibiyana in Habiganj.

The Power Cell sent four short-listed names of companies to the Ministry of Power and Energy in September last.

The four power producing companies are: The companies which submitted the pre qualification statements are YTL Power International Berhad of Malaysia, Summit Industrial and Mercantile Corporation (Ptv) Limited and GE Energy LLC, Bangladesh, Joint venture of China National Machinery and Equipment Import and Export Corporation (CMEC), Shenwan Power Gas Turbine Engineering Technique Com. Ltd (NSRD) and Asian Entech Power Corporation Ltd (AEPC) and OTOBI Ltd (OTOBI), and MPC Consortium of Meiya Power Company (Hong Kong) and Shasha Denis Ltd of Bangladesh.

The Power Cell has asked the four elected companies to submit their proper documents to install the power plants. The companies have already submitted the documents.

“Selection process might be delayed again following the World Bank’s new proposal regarding the installation of Bibyana power plant,” a senior official of the ministry said.

The selection process has already delayed already eight months due to intervention of the World Bank for installation of the power plant.

Power Division Secretary Abul Kalam Azad told The New Nation that the World Bank delegation discussed about the power plant.

Earlier, World Bank said that it would provide soft loan to install the power plant if the Power Division appoints a World Bank consultant for the project to avoid any dispute over the evaluation. During the period, the Power Cell has completed the pre-qualification of the plant without World Bank following the directive of Prime Minister Sheikh Hasina, it may be recalled.

Seven power producing companies have submitted pre -qualification statements in April 23 to get the work permit to install the power plant.

Earlier, the IFC has worked as consultant to the Power Cell for the previously invited tender for the same power plant. But that tender was finally cancelled by the immediate-past caretaker government on the plea of receiving a single bid. Malaysia’s Powertek Consortium was the only bidder for the Plant.

Powertek quoted 4.399 cents per kilowatt-hour of sales against its previous offer of 4.53 cents, sources said.

A total of Tk 2,700 crore is needed to install the power plant, according to sources

This is pride for Bangladesh that the Secretary-General of United Nations (UN) has appointed Ameerah Haq of Bangladesh as Under-Secretary-General and Special Representative for Timor-Leste and Head of the United Nations Integrated Mission in Timor-Leste (UNMIT). Ms. Haq is the highest ranking UN staff from Bangladesh and the first woman from Bangladesh to reach this level.

Ms. Haq had her childhood schooling in Shillong, Assam. She completed her Senior Cambridge (O) level from Viqarun Nisa Noon School in 1965 and did her Intermediate of Arts degree from Holy Cross College, Dhaka (1966-68). She holds Master’s degrees in Community Organization and Planning and in Business Administration from Columbia University and New York University, respectively. She completed a Bachelor of Arts at Western College in Oxford, Ohio.

She is the youngest daughter of late Mr. A.R.M Inamul Haq, a respected engineer and the first person in Bangladesh who donated his eyes and late Mrs. Nazera Begum. Her two older sisters are Ameenah Ahmed and Taheerah Haq and her two younger brothers are Rizwanul Haq and Ihsanul Haq. She has a son, Sheehan Perera and a daughter Nadina Perera.

Ms. Haq most recently served as Deputy Special Representative of the Secretary-General for Sudan, and prior to that, as Deputy Special Representative for Afghanistan. In both cases, she also held the position of UN Resident Coordinator and Humanitarian Coordinator and Resident Representative of UNDP. Her broad management experience in supporting complex mission deployment activities is expected to greatly contribute to her new role at UNMIT.

She was formerly the Deputy Assistant Administrator and Deputy Director of the Bureau for Crisis Prevention and Recovery at United Nations Development Programme (UNDP) Headquarters in New York. She served as the United Nations Resident Coordinator and UNDP Resident Representative in Malaysia from 1994 to 1997 and in the same capacity in Laos from 1991 to 1994.

Ms. Haq worked in the Regional Bureau for Asia and the Pacific at UNDP Headquarters in various capacities from 1980-1990, which included responsibilities for aid coordination mechanisms and as Desk Officer for Thailand, Myanmar and Bhutan. She also had an assignment with the United Nations Development Fund for Women (UNIFEM) from 1985 to 1987. She started her career in 1976 as a Junior Professional Officer in Jakarta, Indonesia and was transferred to Afghanistan as Assistant Resident Representative in 1978.
Ameerah Haq will take up her appointment in Dili, Timor-Leste on 5 January.

To direct the banking policy according to the vision of Banking security and toemphasis invest the The central bank of Bangladesh on Tuesday rationalized bank charges, fees and commissions to protect interests of depositors, investors and clients.

The Bangladesh Bank (BB), the country’s central bank, issued a master circular on schedule of changes on the day for both lending and deposits that would come into effect from January 1, 2010.

“We’ve taken the decision in consultation with the Association of Banks, Bangladesh (ABB),” a BB senior official told , adding that the central bank has taken the latest move after detecting inconsistencies in the charges, fees and commissions for maintaining saving accounts with the commercial banks.

“The central bank will rationalize the charges in consolation with stockholders time to time to facilitate the country’s business activities,” the BB official added.

The central bank asked the banks not to realize four types of charges — incidental charge, minimum balance fee, ledger fee and service charge.

“The banks will have to send its list of the charges and fees on a half yearly basis — in July and January to the central bank,” the BB said in its circular, adding that in case of any change in charges and fees, banks have to inform the related department of the central bank about it and post information on banks’ websites.

Different trade bodies, including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufactures and Exporters Association (BKMEA) earlier requested the central bank governor for taking necessary measures to bring down the banks’ commissions and service charges to a reasonable level

Evaded import duties to the value of 50 million Euros are to be recovered following three through investigations.

Into importations of textiles that the European Anti-Fraud Office (OLAF) has recently concluded. The products, in particular jeans and t-shirts, originated in the far-east, mainly China, but were introduced into the EU with forged documents showing Bangladesh as their country of origin.

During the investigations, thousands of documents, such as certificates of origin, bills of lading, customs export documents, delivery receipts and invoices presented to customs in EU Member States and to the competent Bangladesh authorities, the Export Promotion Bureau (EPB), were found to be forged by third parties. The fraudsters aimed to evade EU import duties on textile consignments originating in the far-east, mainly in the PR of China. Forged or unduly obtained certificates of origin (Form A) falsely showing Bangladesh as the country of origin gave the importers of the textiles, in particular t-shirts and jeans, unrestricted and duty-free access to the European markets.

Co-ordinated investigations of the EU Member States’ authorities, together with OLAF and the Bangladesh Export Promotion Bureau, uncovered the scheme that was run at the expense of the EU taxpayer. Following the results of three verification missions of administrative cooperation to Bangladesh in 2007, 2008 and 2009, OLAF together with the EU Member States concerned have established a customs debt of around 50 million Euros. For this amount, recovery orders to the importers will be issued by the customs administrations in almost all EU Member States.

Investigations in several Member States and follow-up activities such as court proceedings are still ongoing.

Within the framework of these investigations, the Commission also published a notice to importers on 15 February 2008 informing the public and economic operators concerned of the serious doubts which existed in relation to importations of textiles allegedly originating in Bangladesh. By this means, OLAF and the Commission were able to raise the awareness of economic operators and to prevent further loss to the EU taxpayer.