sources :Tender for the $2.4 billion Padma Multi-purpose Bridge are likely to be invited late this month or in early April, sources in the Economic Relations Division said.

The communications ministry in cooperation with a donor group led by the World Bank almost completed chalking out bidders’ pre-qualification criteria for building the bridge that will have both road and rail ways linking the south-western region of the country with the east.

Earlier this week, WB appreciated the government, in particular the communications ministry, and Bangladesh Bridge Authority for moving expeditiously with the preparatory work for the tender, and reiterated the donors’ firm commitment for providing assistance.

Communications Minister Syed Abul Hossain told The Daily Star on Monday that the document containing bidders’ pre-qualification criteria will be sent to WB for final clearance within this week.

“We are hoping to float the tender any time now,” he said.

The World Bank is now waiting for receiving the minutes of a meeting between the donors and the finance ministry where key decisions were taken regarding the design of the bridge, and the procurement methods for its construction.

The decisions include that the proposed Padma Bridge will comprise rail and road ways; the rail track and related viaducts, and other facilities will be built linked with a project for extending the railway to the country’s southwest region; and the contract for constructing the main bridge will be awarded through a single international competitive bidding.

There will be two stages to the bidding process, with a limited first stage based on the design prepared by design consultants.

According to the communications ministry’s proposal, the bridge will be 6.15 km long, and will be constructed by December 2013. The bridge will connect 19 districts of the south-western part of the country with the eastern part including the capital, and it will be linked with the Asian Highway.

Of the $2.4 billion financing, different development partners have agreed to co-finance about $2.2 billion, of which the WB will provide $1.2 billion, Asian Development Bank $550 million, Islamic Development Bank $130 million, Japan International Cooperation Agency $300 million, and Abudhabi Fund $31.4 million.

Back story Thursday, 25 June 2009 )6.15km Long Padma Bridge Suggested
Consultants have suggested a 6.15 km-long bridge over the river Padma rather than a 5.58 km one proposed earlier in a feasibility report.

Engineering group Maunsell AECOM in its primary design for the Padma bridge proposed a two-level ’superstructure’ with traffic communication in the upper level and railway in the lower.

The group based in the Asia-Pacific region presented the Interim Scheme Design Report on Thursday. It was chosen as the consultants for the long-awaited Padma bridge on Jan 19 this year.

Construction of the bridge would cost more than US $ 800 million, according to the consultants.

It said a two-level bridge would require 150-metre wide spans (columns) which would push the total cost to $ 816 million while a single-level bridge with traffic and railway communication would need 180-metre wide span.

“In that case the cost would be around $ 887 million,” said Ken Wheeler, project manager for Maunsell AECOM.

The bridge, with a proposed 13.6 km approach road, would also have provisions for gas transmission lines, he added.

Communication minister Syed Abul Hossain, speaking as the chief guest, slammed the previous BNP-led government for delaying the project.

“Prime minister Sheikh Hasina laid the foundation [of the bridge] at the Mawa point at the end of her last (1996-2001) term.”

He urged local and foreign expert panels to provide feedbacks on the report quickly to finalise the scheme design by next month.

Hossain affirmed the government’s ’strong commitment’ to finish the bridge by 2013. However, on Wednesday, Hossain that completion of the Padma bridge at Mawa, 50 km south of Dhaka, may not be possible within the tenure of the current administration.

The Awami League-led government is expected to leave office in December 2013.

“The project would be delayed if tenders for construction work had to wait until after loan agreements have been secured with donors,” he told reporters after a farewell with departing World Bank country director Xian Zhu.

Feb 7 (g): A red carpet was rolled out to greet Prime Minister Sheikh Hasina as she landed at Kuwait International Airport on Sunday afternoon to begin a three-day state visit to the Gulf country. Adviser to the Kuwaiti Prime Minister Dr Sheikh Rafah al Sabah al Jaber received Sheikh Hasina at the tarmac as a special airplane carrying her flew into the airport at 6.0pm (local time). The Prime Minister was given a guard of honour by a smartly turned-out contingent. Bangladesh Ambassador to

Kuwait Shahed Reza was present.

Later, the Prime Minister drove to Bayan Palace in a ceremonial motorcade.

Sheikh Hasina will visit the Bangladesh Bhaban in the capital of the Gulf state this evening and have her dinner. The Prime Minister will hold official talks with her Kuwaiti counterpart Sheikh Nasser Al-Mohammad Al-Ahmad Al-Sabah tomorrow (Monday) on a wide range of matters of bilateral cooperation, encompassing development assistance, investment and labour issues. Earlier, the special plane sent by Emir of Kuwait Sabah Al-Ahmad Al-Jaber Al-Sabah, carrying the Prime Minister and the members of her entourage, took off from Zia International Airport at 2:07 pm.

“At the talks, Bangladesh will seek assistance for development of communications infrastructures, including the mega-project of Padma Bridge, and support for the country’s energy sector,” one official told the news agency.

Prime Minister Sheikh Hasina Sunday invited sister of Kuwait Emir, Anthal Al Ahmed Al Jaber Al Babah, to visit Bangladesh for having a look regarding the adverse effect of climate change in the most vulnerable countries (MVCs) like Bangladesh.

She made the invitation when Anthal Al Ahmed Al Jaber Al Sabah called on the Prime Minister at her suite at Bayan Palace Sunday evening.

Anthal, who is also an environment activist, accepted the Prime Minister’s invitation and expressed her desire to visit Bangladesh at her convenient time.

Younger sister of the Prime Minister Sheikh Rehana, Foreign Minister Dr Dipu Moni, State Minister for Environment and Forest Dr Hasan Mahmud, Bangladesh Ambassador in Kuwait Shahed Reza and Press Secretary to the Prime Minister Abul Kalam Azad were present, among others, during the meeting.

The Prime Minister during the meeting expressed her deep concern regarding the adverse effect of climate change and expressed her desire to work together with Anthal Al Ahmed Al Jaber Al Sabah.

Important issues :
Prime minister Sheikh Hasina sought to secure more jobs for Bangladeshis and greater investment for the country in talks with Kuwaiti leaders on Monday.

She said her government will provide all possible assistance to Kuwaiti investors and also invited them to import high quality garments, ceramics and pharmaceuticals from Bangladesh.

Hasina, in the Gulf state on a three-day official visit, suggested that Kuwaiti businesses can invest in sectors like power, telecommunications, infrastructure development, pharmaceuticals, textiles, ICT, gas and energy, furniture and agro based industries.

Kuwait’s prime minister Nasser Al-Mohammad Al-Ahmad Al-Sabah formally received Hasina at the Baydan Palace in the morning.

Hasina then had an audience with Kuwait’s Emir Sabah Al-Ahmad Al-Jaber Al-Sabah at Sief Palace where she discussed matters of mutual interest.

“Manpower export from Bangladesh, river dredging and Kuwaiti investment in Bangladesh’s development sector figured prominently during the meetings,” The prime minister’s press secretary Abul Kalam Azad told reporters after the talks.

At a luncheon, hosted by Kuwait Chamber of Commerce later in the day, Hasina invited Kuwaiti businessmen to come forward with investments in Bangladesh.

The prime minister said the investment would not only bring benefits to Kuwati businesses but also help further strengthen existing bilateral relations. “There is huge scope to diversify and enhance trade between the two countries,” she said.

She said her government had been successful in creating an attractive environment for investment with liberal fiscal and financial policies including tax holiday, avoidance of double taxation and unrestricted exit policy.

Besides, Bangladesh has a huge domestic market of 150 million people, abundant skilled labour that will help to attract foreign investors, she said.

“We only need to work together to identify areas of cooperation to harness the existing potentials,” she said.
Hasina urges investment from Kuwaitis
Prime Minister Sheikh Hasina has urged Kuwaiti business leaders and entrepreneurs to import products from Bangladesh and make investment in the country’s promising sectors under an attractive package of incentives.

“In fact, there is ample scope for diversifying and increasing our two-way trade. We only need to work together to identify areas of cooperation to harness the existing potential,” she told the audience at a luncheon meeting hosted by Kuwait Chamber of Commerce in her honour yesterday.

Hasina arrived here Sunday on a three-day state visit to the oil-rich Gulf state with a wide range of matters of bilateral cooperation on her agenda, especially development assistance, investment and labour issues.

Chairman of the apex trade body Ali Mohammad Thunayan Al-Ganim delivered his welcome address.

The prime minister said Kuwait could import from Bangladesh high-quality garments, ceramics and pharmaceuticals.

The other items she put on offer, which also have equal recognition in an increasingly environment-conscious world, are finished leather and leather products, furniture, handicrafts, and, particularly, jute and jute products.

Hasina said another important area of immense possibility is investment by Kuwait in Bangladesh. “Our government has been successful in creating an attractive investment climate with liberal fiscal and financial policies.”

She listed some of the significant facilities offered to the investors, which include tax holiday, concessionary duty on imported machinery, avoidance of double taxation, remittance of royalty, technical know-how, technical assistance fee, allowing 100 percent foreign equity, unrestricted exit policy, and full repatriation of capital and capital gains in the event of exit.

A huge domestic market of 150 million people, abundant skilled labour, the presence of homegrown entrepreneur class, supportive legal regime, and, above all, commitment of the government are added attractions for foreign investors, the PM told the leading Kuwaiti businesspeople.

She said Kuwaiti investors could seriously consider investing in power, telecommunications, infrastructure development, pharmaceutical, textiles, ICT, real estate, gas and energy, leather, furniture and agro-based industry sectors.

She assured the Kuwaiti entrepreneurs that her government would provide all possible assistance and cooperation in doing business.

“With your cooperation in the fields of trade, commerce and investment, both the State of Kuwait and Bangladesh would mutually be benefited bringing greater prosperity to our countries and peoples,” Hasina hoped.

At present, the balance of trade is very much in favour of Kuwait.

During 2007 to 2008, Bangladesh’s exports to Kuwait stood at $9.69 million, while the corresponding import figure was many times higher.

The Kuwaiti chamber chief stressed a better communication toward cooperation in the fields of trade and investments in the interests of both Kuwait and Bangladesh.

Labour and Expatriate Welfare Minister Mosharraf Hossain, Foreign Minister Dipu Moni, State Minister for Environment Hasan Mahmud and Principal Secretary MA Karim were also present on the occasion.

The prime minister will return home on Wednesday.

Continuous eletricity/energy supply  can ensure a real development -Bangladesh is trying to attract foreign investors to a string of major energy infrastructure projects, aiming to narrow a widening energy deficit, but it could be a hard sell.

It is offering, in Singapore, London and New York roadshows, a range of sweeteners, including 15-year tax breaks and sovereign guarantees on payments to attract up $10 billion worth of foreign money over the next seven years.

But with the flood-prone country among those most affected by climate change, Bangladesh’s volatile political history, the lingering effects of the global credit crunch and competing investment needs from giant neighbors India and China, investors may be hard to find.

It has previously been successful in roping in international majors like Chevron Corp. (CVX) and ConocoPhillips (COP) into its oil and gas sector.

By 2017, it plans to add about 1,000 megawatts of generation capacity annually and related infrastructure to tackle a power deficit that’s burgeoning even though just half of its 150 million-strong population is connected to the grid.

It hopes to attract funds to build half a dozen conventional power plants, an LNG import terminal and several solar and wind energy projects.

“In terms of power generation, we want to stay ahead of the curve so that we lead economic growth, instead of dragging it from behind,” Tawfiq-e-Elahi Chowdhury, energy advisor to the prime minister, told Dow Jones Newswires Monday.

Bangladesh officials, speaking at the Singapore roadshow, said the country had proven to be investor-friendly even in turbulent times of political instability.

Several potential investors at the event acknowledged the country had a fairly good track record for foreign companies, but added that Bangladesh needed to do more to improve the local infrastructure and cut red tape.

In the new drive, investors must arrange all the equity and debt financing, and organize fuel supplies, with the government for its part providing land, expedited licensing procedures and assisting in arranging funds or fuel agreements.

“We think the best way to go is to give the freedom to the operator to work his supply chain and funding and assure him a good rate of return on his investment,” he said.

The government plans to arrange a bidding process for all the projects this year, Chowdhury said, “to show investors that we are serious and very committed.”

Its next event will be in New York on Jan. 28-29.

Bangladesh has a relative good record on carbon emissions due to around 84% of its electricity being produced from domestically produced natural gas.

But with its gas reserves dwindling, the new projects, which mark a determination to develop the renewables sector, will also involve burning much larger amounts of imported coal and fuel oil than is now the case.

But gas will remain central to the energy mix, which is why a 3.5-million-ton LNG import terminal is also on offer. A government delegation will soon visit Qatar to start negotiations for LNG supplies, he said.

The government also plans to harness locally available cash to fund power generating and distribution networks, he said.

Talks are being held with the central bank to relax some statutory liquidity requirements for financial institutions so that huge amounts of idle money could be used to finance energy projects, he said.

Also, a Power and Energy Fund to utilize dollar remittances and government funds to leverage additional money into energy investments is to be set up, he said.

Boosting political relation between India and Bangladesh opening the hub of economy and trade .Indian Merchants’ Chamber (IMC) has signed a Memorandum of Understanding (MoU) with Chittagong Chamber of Commerce & Industry (CCCI) of Bangladesh for co-operation between the two Chambers aimed at promoting business tie-up between their member units.

IMC President Mr Gul Kripalani and Mr Mohammed Abdus Salam, CCCI’s Senior Vice President and Head of the Asia Group, signed the document on behalf of their respective Chambers here.

The agreement came about following a meeting held in honour of an eight-member Bangladesh delegation, headed by Mr Salam, at the IMC premises a day before. The delegation also included Mr S M Memhmbubul Islam (Tuku), Director of CCCI, Mr Fahim Ahmed Faruk Chowdhury, Director of CCCI and International Business forum of Bangladesh, Mr Syed Ahsanul Haque (Shameem), MD of FAC Eastern Enterprises Ltd, Mr Mohammed Emdadul Haque Chaudhury (Emdad), CMD of Lucky Group, and others.

‘We had a very useful and constructive discussion and arrived at some concrete measures for implementation by both the Chambers to promote two-way trade and to strengthen economic relations between the India and Bangladesh,’ Mr Kripalani said.

Quoting a global study by Goldman Sachs, Mr Mohammed Abdus Salam said that Bangladesh was one of the 11 developing nations that, in the long run, would emulate the success of China, India, Brazil and Russia.

Bangladesh had successfully come out of the impacts of the global crisis, improved its macro-economic stability factors, and developed potentials to attract more foreign investment, Mr Salam said.

He said Bangladesh posted an average growth over 6 per cent GDP growth in the past decade, resulting in raising the level of per-capita income to over USD 690 at present.

According to Mr Salam, the following sectors offered great development potential for foreign investors: textiles, leather & leather gods, electrical & electrical goods, light engineering, ceramics, information technology, shipbuilding, steel industry, agro-based and processed foods, power & energy. ‘Bangladesh today offers lucrative business prospects, congenial trade and investment environment to overseas investors,’ he asserted.

He said the CCCI’s MoU with IMC would help promote the development of bilateral economic relations by providing a platform for businessmen to meet, discuss and explore business opportunities in trade, investments, transfer of technology, services and other industrial sectors.

Both the Chambers would endeavour to develop strong institutional, trade and business relations between them and their members in order to establish a sustainable mechanism of dialogue and platform for discussions, he said.

About Chittagong Chamber

The basic objective of Chittagong Chamber is to promote and protect the trade, commerce & industry of Bangladesh in general and those of Chittagong in particular, and also to enable the government and other authorities to perform these functions by rendering assistance, information and advice.

Asian Development Bank (ADB) has suggested operating Chittagong port based on a ‘landlord’ concept in order to utilise the port facilities more efficiently, the Financial Express reported.

‘Landlord’ concept means that all port services will be managed by private firms but the infrastructure will either belong to the port authority itself or leased to any other organisation. In that case, the port authority, as owner, will receive only levies paid by the private firms. This is the most popular model in the world.

It will have direct control of all navigational matters in addition to the implementation of port health and safety, security and environmental issues.

The ADB report said the Chittagong Port Authority (CPA) would be responsible for the maintenance of good relationships with all those engaged in shipping business under the concept.

It was alleged that in recent months the Chittagong port’s efficiency has declined significantly from the condition that prevailed during the caretaker government due to intervention of local politicians and labour leaders.

The manila-based lender, ADB, said the working situation in the port that existed in the port before January 2007 and the fundamental reasons that promoted that situation, must not be allowed to return.

About cChittagong Port

The political status of Chittagong during the early days is rather sketchy. However, from the available records, it appears that in 151 A. D. the war Lord of Magadha named Chandra Surya occupied Chittagong and Arakan and established his Kingdom in the region and the same dynasty ruled up to 5th century A. D. In the 6th Century A. D. Chittagong was annexed by the king of Samatata and ruled by the Khargaraj dynasty for about 100 years. In the 8th century Dharmapal ruled Chittagong for a short period. In the 10th century A. D. Chittagong was annexed by Arakan kingdom. In the last part of 10th centaury, Chang Thump the king of Tripura conquered Chittagong. In the 11-12th century Chittagong was a part of Paga kingdom. King Damadar Dev ruled Chittagong during the 1st part of 13th century. From the writings of European traveller Marco Polo, it appears that in 1273 chittagong was conquered by the Tatar Khans. In the beginning of 14th century A. D. Chittagong was again annexed by Arakan kingdom. In 1340 Fakharuddin Mubarak Shah, the ruler of Sonargaon conquered Chittagong.

From that time up to the emergence of the Pathan rule in the 16th century but with certain brief intervals, Chittagong was ruled by the sultans of Gour. During the year 1538-39 Sher Shah’s General Noazish occupied Chittagong and till 1580 it was ruled by the Afgans. Though the Afghans left Bengal in 1575, Jamal Khan panni ruled Chittagong up to 1580. In 1580 she was re-captured by the Arakans and remained under the occupation till 1665, when Moghul General Shaestha Khan expelled Arakanese from Chittagong and the area from the south of the Feni river to the south of Shankha river was under the occupation of Moghuls. In 1756 Moghul General Adhu Khan of Dohazari Fort occupied the southern part of the river Shankha upto the north of Naf river from the Arakans.

In 1760 the Nawab of Bengal Mir Kashem gave away the ruler ship of this region to the East India Company through a mandate. From that time Chittagong was a part of India under the British rule till the partition of India. In 1971, the then East Pakistan emerged as an independent country known as Bangladesh and Chittagong became the major port of the country.

See more about Chittagong port:

http://www.cpa.gov.bd/

Bangladesh and India renewed the Protocol on Inland Water Transit and Travel for two years .The renewal of the prevailing water transit agreement will have the same terms as before. The protocol was first signed in 1972 and it is being renewed after every two years.

Analysis : The agreement has been in force for many years, but it has to be updated and modernised if Bangladesh is to reap further benefits from the arrangement,

Bangladesh receives levy of 20 million taka (about 285,714 U.S. dollars) annually from India for allowing Indian goods ship to use Bangladesh’s waterways.

    During the negotiations here Bangladesh proposed to increase the levy to 50 million taka (about 714,285 U.S. dollars) annually. It was agreed that a technical committee will study it and give report within next four months