Dhaka, Riyadh sign double taxation avoidance deal

http://www.thedailystar.net/newDesign/news-details.php?nid=168781
Dhaka, Riyadh sign double taxation avoidance deal
Unb, Riyadh
Bangladesh and Saudi Arabia yesterday signed a deal on avoidance of double taxation.
Commerce Minister Faruk Khan and Vice-Minister of Finance of the kingdom Hamad S Al-Bazai inked the agreement at the Ministry of Finance in Riyadh. Bangladesh Ambassador M Shahidul Islam was also present.
Khan said the opportunity of signing such a deal is another milestone in the relations Bangladesh enjoys with Saudi Arabia. “It will facilitate further cooperation,” he said.
The Saudi finance minister also expressed his happiness on the new deal.
A business delegation accompanied Khan in Riyadh. He met Saudi business leaders in the Riyadh Chambers of Commerce as part of his five-day official visit to the kingdom.
He briefed the Saudi chamber leaders and businessmen about the investment climate in Bangladesh.
Khan highlighted the qualities of medicines, ceramic products, jute and jute products, frozen fish and leather and leather goods that may be exported to Saudi Arabia. The Saudi business leaders expressed interest in importing the commodities.
The delegation includes Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association; and Sheikh Farook Hossain, chairman of Bangladesh Jute Association.

85,917 tonnes of aromatic rice produced in Rangpur zone

http://www.thefinancialexpress-bd.com/more.php?news_id=121792&date=2011-01-04
85,917 tonnes of aromatic rice produced in Rangpur zone

RANGPUR, Jan 3 (BSS): The farmers produced an all-time record quantity of 85,917 tonnes aromatic rice in eight districts under Rangpur Agriculture Zone (RAZ) during the just ended T-Aman season, officials said today.
Officials of the Department of Agriculture Extension (DAE) said the farmers had brought record 46,816 hectares under aromatic rice farming this time and they cultivated the same on only 29,498 hectares last season in the zone.
The enthusiastic farmers cultivated aromatic rice this time on more land as its farming has been gaining increased popularity because of huge demand and lucrative market prices.
The DAE, Bangladesh Rice Research Institute (BRRI), Bangladesh Institute of Nuclear Agriculture (BINA), research organisations and some NGOs have also been effectively working to popularise and expand the farming of aromatic rice.
The officials expected brighter prospects of increased aromatic rice farming and its exports in future, as the farmers are being provided with the quality seeds, inputs and latest technologies.
DAE’s additional director of RAZ Mohsin Ali told the news agency that the farmers have produced 85,917 tonnes of aromatic rice from 46,816 hectares and got an average yield rate of 1.835 tonnes of aromatic rice per hectare this season.
The farmers cultivated aromatic variety BRRI Dhan 34 on 26,995 hectares, Kataribhog on 14,117, Badshabhog on 2,354, Kalijira on 2,065, Nenia on 1,072 and Bolder variety aromatic rice on 800 hectares land this season in the zone.
They also cultivated Basmati on 570 hectares, Chinigura on 498, Dhekibhog on 370, Tilkapur on 524, Zirashail on 215, Begunbichi on 172 and Rasulbhog, Uknimadhu, Dulabhog varieties on more 190 hectares, he said.
Rice scientist Dr MA Mazid predicted enormous prospects for all varieties of aromatic rice and added that the medium low- land is suitable for its large-scale and commercial production through making necessary seeds easily available.
He urged for an increased cultivation of high yielding varieties aromatic rice suitable for the topographic and climatic conditions in the region as the Basmati, Chinigura, Kalijira and BRRI Dhan 34 being produced here are of international standards.

$165.7m project for expanding city’s sanitation services

http://www.thefinancialexpress-bd.com/more.php?news_id=121833&date=2011-01-04
$165.7m project for expanding city’s sanitation services
The government has decided to undertake the Dhaka Water Supply and Sanitation Project (DWSSP) at a cost of US$165.7 million, aiming to expand sustainable drainage and sanitation services in the capital city, Dhaka, reports UNB.
Of the total project cost, the World Bank will provide US$149 million, while the government will provide the remaining, a World Bank press release said.
The project aims to rehabilitate and expand the drainage, sewerage and water supply and sanitation infrastructure within the areas of responsibility of the DWASA (Dhaka Water Supply and Sewerage Authority).
DWASA has initiated the rehabilitation of the first batch of selected canals in the city. This is expected to be completed by the end of 2011. Canal improvement works will continue with restoration of a number of additional drainage channels.
DWASA is engaged in procuring the key infrastructure works and other services funded under the project. This includes the installation of two major storm water pumping stations at the Rampura and Kamlapur areas of Dhaka. Once completed, these are expected to improve drainage and minimize urban flooding, particularly in the eastern part of Dhaka.
DWASA has also engaged expert services to prepare a master plan for wastewater management in the Dhaka City. This will lead to the rehabilitation, repair and expansion of priority sections of the city’ s sewerage network. Treatment plants set up under this initiative will improve the urban environment.
Most of the city’s natural channels and wetlands, which help in coping with storm water flows, have been filled in with unchecked expansion of settlement and accumulation of domestic and industrial wastes.
Dumping of industrial wastes and untreated sewage into the Buriganga, Balu, Turag and Shitalakhya rivers continues to strain an already overburdened sewerage network and worsen the water quality of the surrounding water bodies.
Currently, the Dhaka Water Supply and Sewerage Authority supplies water to about 70 per cent of the population of the Dhaka City Corporation (DCC) and its suburbs, the Dhaka Metropolitan Area (DMA).

Bangladeshi rice millers find Cambodian offer lucrative

Kazi Azizul Islam
Bangladeshi analysts and rice millers appreciated Cambodia’s offer to set up milling units in that rice surplus country which could help rice supply to the local market as well as open up business opportunities for local businessmen.
They said that apart from an investment opportunity in Cambodia, it would ensure supply of milled rice to the home country.
The rice millers and experts suggested the government should actively follow up on the Cambodian proposal and establish long-term business and investment relations with that country.
The proposal was forwarded by Cambodian Foreign Minister Hor Namhong to his Bangladeshi counterpart Dipu Moni, who ended her two-day Cambodia visit on Monday.
‘We have a surplus in rice although we don’t have the required number of rice mills [to process it]… so we want Bangladesh to invest in setting up rice mills. Because we do not have the rice mills our farmers are forced to sell their rice to Vietnam and Thailand,’ Namhong was quoted to have told Dipu Moni.
Dipu Moni’s visit was designed to arrange import of at least two lakh tonnes of Cambodian rice as the government here is worried at the rising price of rice, the country’s staple food.
‘The Cambodian proposal for setting up rice mills there by Bangladeshi entrepreneurs has huge potentials for Bangladesh,’ said Mahabub Hossain, executive director of BRAC.
Hossain, a respected economist, observed that Bangladeshi private sector millers have attained much expertise to set up units aboard and yield profits.
The government should actively follow up on the Cambodian proposal that augers well for Bangladesh, said Hossain. ‘The government should link Bangladeshi private sector millers with Cambodian stakeholders,’ he added.
He however advised that before local rice millers set up units in Cambodia, there should be an accord that Bangladesh would have privilege in getting supply of rice from that country.
Hossian hoped that Cambodian rice yield might also increase further if Bangladesh shares its successful experience in extension of irrigation.
With eight million tonnes of rice output, Cambodia has nearly four million tonnes of surplus for export.
But, due to poor capacity of milling facilities in Cambodia, they sell more than three-fourth of the unhusked rice stocks to millers and importers from Thailand, Vietnam, the Philippines and Indonesia at a relatively low price.
Hafez Belal, a rice miller of Bogra also thought the Cambodian offer was very much worthwhile.
‘Many Bangladeshi rice millers have enough technical and financial expertise to set up plants aboard and bring benefits back to their country,’ Belal said.
He suggested that government should help develop relations between Bangladeshi private sector rice importers and millers with the potential stakeholders in Cambodia.
Despite Bangladesh produces more than 30 million tones of paddy a year, declining arable lands due to growing urbanization and industrialization slowed down the growth of rice production in the country.
Moreover, even partial damage in rice crop by drought, floods and storm forces Bangladesh to import one to three million tonnes of milled rice in the event of such calamity.
Bangladesh for years has been relying on India for rice import procurements but trouble intensified as India for the last two or three years has been restricting export of grains.

RMG boost in US market

Staff Correspondent
Bangladesh has edged past Mexico and Indonesia taking the third position in exporting apparels to the US market.
Until August 2010, the country was ranked fifth, trailing behind China, Vietnam, Indonesia and Mexico.
In September, the country exported apparel products worth $358 million, overtaking Mexico with $325 million in garment exports, said Bangladesh Embassy in Washington in a statement on Thursday.
The next month Bangladesh’s export volume of clothing items reached $374 million which was higher than Indonesia’s, said the commerce wing of the embassy. Indonesia in October sold products worth $365 million to the world’s largest economy.
Bangladesh exported about $1.44 billion worth of readymade garments to the USA between July and October in 2010, posting 20.37 percent growth on the corresponding period in 2009.
In terms of growth of garment exports, Bangladesh is just behind China with 21.15 percent growth, while ahead of Vietnam with 17.26 percent, Indonesia 16.17 percent, Mexico 13.49 percent and India with 13.25 percent growth.
If the same growth trend continues, the country will overtake Vietnam in the near future, said the embassy statement, calling for concerted efforts from all stakeholders and asking them to avoid labour related problems in the RMG sector.
In the first five months of the current fiscal year, the country’s overseas apparel sales grew by 36.36 percent compared with the same period last fiscal year.
Knitwear exports were up by 36.56 percent to $3.6 billion, while exports of woven garments grew by 35.83 percent to $2.89 billion.
The RMG sector, which employs over 30 lakh workers, mostly women, has targeted to reach $20 billion export volume by the next three years from over $12 billion in the last fiscal year.

Four global state-owned cos seek gas tie-ups with Bapex

JVs to produce gas at 4 gas fields and conduct drilling in CHT
M. Azizur Rahman
Top state-owned global oil giants have lined up to tie up with Bapex to develop four Bangladeshi gas fields and explore hydrocarbon in the Chittagong Hill Tracts region, officials said Saturday.
The firms — Chinese Cnooc and Sinopac Shingli, Thai PTTEP and Russian Gazprom -are interested to strike joint venture deals with the lone Bangladeshi state-owned exploration company to make a foothold in the country.
“Bapex made the invitation to the companies and they have already responded positively as they are convinced of the prospects of the four gas fields and potentials for new discoveries in the CHT,” an official said.
Bapex officials said some executives of the companies have visited the country and held primary negotiations. “We hope we can conclude talks as soon as possible and start exploration and development work,” he said.
The four companies are cash rich and won’t be shy of exploring gas in the restive CHT region where a slow-burning insurgency left 2,500 people killed since 1980s, another official said.
Although the government has signed a peace treaty with the main rebel group in 1997, private energy firms scouring oil and gas in the country have largely stayed out of the region for security region.
“Unlike the private firms, the state-owned companies won’t be sensitive to conducting exploration in the CHT. We can avoid time-consuming tender procedures if we strike deals with them,” the official added.
Top officials from Russian Gazprom and Thai PTTEP have recently visited the country and held talks with Petrobangla and state-owned Bapex over scopes to strike joint venture deals.
The visit follows after Bapex formally sent invitation letters to the state- owned firms to develop and produce natural gas from four potential onshore gas structures and the CHT region.
Malaysia’s state-owned Petronas, India’s Oil and Natural Gas Corporation (ONGC), Chinese CNPC are also among the firms invited for the joint venture talks.
The four gas fields that Bapex put up for joint venture deals are Kotia, Joldi, Kafalong, Shitapara – all situated in gas block number 22 in greater Chittagong region. It spans over 13,900 square kilometers area.
Officials said the planned tie-ups will strengthen the country’s sole oil and gas exploration firm, which produces only 58 million cubic feet of gas daily (mmcfd) contributing less than three per cent of the national gas output.
In the past two decades since its inception in 1989, Bapex could produce gas from only three fields. Its exploration activities largely remained frozen earlier last decade due to lack of rigs.
Bapex has now only one joint venture with Canadian Niko Resources. Together, they developed Feni gas field but production remained suspended because of payment dispute. They also made some drilling work in Chhatak.

Simplified market access to EU cheers export industry

Kazi Azizul Islam
The export industry is upbeat about the EU, the largest market destination for Bangladesh, simplifying market access to the LDCs from January 1.
For Bangladesh’s apparel industry, simplification of market access would mean attires made of imported fabrics or less of value addition would get duty free access to Europe.
More than two thirds of Bangladesh’s export shipments are destined to European countries and they imported $5.72 billion worth of Bangladeshi goods out of $8.3 billion, the entire exports in five months of the current fiscal in November.
Until now, more than 90 per cent of Bangladeshi knitwear shipments enjoyed duty-free access to EU but around one third of the shipments of woven or cut and sewn apparels did not enjoy the facility.
With the Europeans leaning to diversify imports from Bangladesh and buy high value apparels from it due to costing, some in the industry, however, are for raising the prices for the Europe bound shipments for the development of the industry and its workers.
Zillul Hye Razi trade adviser to the delegation of the European Commission in Dhaka described the EU decision to simplify the import regime from the LDCs as the beginning of a new chapter.
He called it a liberal market access for Bangladesh and other LDCs to the European market.
Razi said new EU trade regime would provide duty free market access to non-textile exports as well.
Sayeeful Islam, chairman of the Concorde Garments Group, a leading exporter of shirts, said that simplified market access created a new opportunity to export to Europe high value products.
He, however, advised that the exporters need to remain rationally aware that the EU measure aimed at the development and welfare of the industry and workers in the LDCs.
He said explaining that if a shirt made in Bangladesh cost a European buyer $5.65 with 13 per cent duty earlier, from January 1 it would cost $5.
He said that the industry needed to develop negotiating skills if wanted justify why wanted to increase the price of export products.
The Centre for Policy Dialogue executive director, Professor Mustafizur Rahman, described the new EU trade regime as a ‘golden opportunity’ for Bangladesh.
‘It would,’ he said, ‘open up newer opportunities for the export of apparels, especially of woven and high value knitwear and outerwear as well as non-textile products.’
But he cautioned that the scope to import fabrics and yarns, it would create, could take away the competitive edge of the domestic backward linkage textile industries.
He, therefore, advised the government to provide cash incentives and other support measures to encourage the use of local fabrics and yarns.
Professor Mustafiz also advised the government to enhance trade facilitation service to the exporters so that they could overcome all non-tariff barriers to exploit the diverse high value marketing opportunities in the EU.