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Bangladesh Newsflash April 2017 Bangladesh Newsflash Edition 67, April 2017 Newsflash Bangladesh is a publication by the give us your comments; please feel free to send a Embassy of the Kingdom of the Netherlands in message to [email protected] For further Dhaka. The newsflash provides an update in terms practical economic information about Bangladesh, of economic developments, the most important please refer to the Netherlands Bangladesh tenders and a selection of other relevant business Business Platform – www.nbbp.org developed by news related to Bangladesh. This newsflash is the Embassy of the Kingdom of the Netherlands in shared with a distinctive group of Dutch businesses Bangladesh in collaboration with Dutch Business with special interests in Bangladesh. It is put University Nyenrode for the Dutch-Bangladeshi together on the basis of publicly available business community. The platform bundles information from various sources such as news information on all that is relevant for doing business articles, press releases, and third party information. in Bangladesh, providing targeted sector analysis, The Embassy of the Kingdom of the Netherlands in insights into risks and opportunities of doing Dhaka is not responsible for the accuracy of the business, including concrete advice on good published information. If you do not wish to receive business practices, an overview of the most relevant the Newsflash Bangladesh, or would like to add a government policies for intending investors and person to the distribution list, or if you would like to much more. Highlights Government reviewing UN conventions’ ratification required for EU GSP Plus facility. BM Energy, a Dutch-Bangla JV firm, gets LPG license. Company aims to install 400 filling stations across the country. Central Bank eases rules to help lift software exports to achieve the target of US$5.0 billion software exports by 2021. Government moves to revise Ganges barrage project. Existing project in Rajbari abandoned. Dairy farms to get a boost. Government to set up a dairy development board ADB projects 6.9 percent GDP growth for this fiscal. Slower domestic demand, falling remittances. Two Bangladeshi youth have made the list of "Forbes 30 Under 30 Asia: Social Entrepreneurs" for their work aimed at providing education for the rural poor and helping youth with disabilities in Bangladesh. 1 Newsflash April 2017 Political update The 136th Assembly of the Inter-Parliamentary Union was held in Dhaka from 1-5 April 2017. It was attended by 1,500 guests from around the globe, including a Dutch delegation from both the Senate and the House of Representatives. Prime Minister Sheikh Hasina went on a four day state visit to India from 7-10 April. During the visit, a total of 22 agreements and Memoranda of Understanding (MoU) were signed in the field of defense, economic and development cooperation. Prime Minister Sheikh Hasina also paid a three day state visit to Bhutan from 18-20 April and signed 6 agreements and MoUs, furthering regional ties in hydroelectric power, connectivity. Leaders welcomed the proposed trilateral MoU between Bangladesh, Bhutan and India for regional cooperation. Throughout April the Counter Terrorism and Transnational Crime (CTTC) Unit of the Bangladesh police conducted several operations at different locations aimed at militant dens across the country. Textile and Ready Made Garments (RMG) Better Work forum applauds progress, calls for products on time and meet demand for finer more actions (The Daily Star) The Better Work products from global retailers and brands. Some Bangladesh programme held its second local fabrics manufacturers have even gone one stakeholder and buyer forum in Dhaka on 4 April step further, as they are using robotic technology where experts lauded its impact on the garment and machinery. Envoy Textiles Ltd (ETL) is one sector and also called for stepping up efforts to such denim improve working conditions and increase fabrics factories' competitiveness. Some 300 national manufacture and international garment sector representatives r which is attended the forum, including partners from the using robotic government, employer associations and unions, machinery to as well as 80 members from international raise output brands, according to a statement of the and improve International Labour Organisation (ILO). “We are the quality of products. The world's first here to unite diverse stakeholders, promote platinum rated LEED (Leadership in Energy and decent work for all and help the garment Environmental Design) certified denim factory, industry in Bangladesh thrive,” said Louis ETL installed the robotic machinery in its Vanegas, programme manager of the Better spinning section in October last year to bring Work Bangladesh programme, in the statement. sophistication to yarn production. The company, The Better Work Bangladesh programme is a set up in 2008 in Bhaluka, produces four million partnership between ILO and the International yards of denim fabrics a month and employs Finance Corporation. It aims to contribute to 2,400 people. Apart from using many other latest improving the life of workers, their families and machinery for spinning and weaving, ETL has their communities, and increase the employed 14 robotic autoconers in spinning and competitiveness of the ready-made garment rotor at its Bhaluka factory to produce 55 tonnes sector in Bangladesh. of denim yarn per day. The company exports yarn and fabrics to more than 10 countries such Envoy embraces robotic tech to raise standards, as Egypt, Sri Lanka, India, Germany, Indonesia, output (The Daily Star) Bangladesh's apparel Kenya, China, Turkey, Cambodia and Nepal. manufacturers are increasing the use of modern technologies to boost productivity, deliver 2 Newsflash April 2017 Over 70pc factories fix problems: Alliance - still, but arms (EBA). Bangladesh will lose the benefit 142 units faced music (The Financial Express) in the EU market, destination of more than 60 Factories under Alliance for Bangladesh Worker percent of the country’s export goods, once it Safety have completed a total of 73 percent will graduate from the LDC category. The remediation work, which is expected to be country, however, will get GSP facility for doubled in the next few months. This was another three years for Gov’t reviewing UN revealed by Alliance Country Director in conventions’ ratification required for EU GSP Bangladesh James Moriarty at a press Plus facility. conference held on 11 April. Speaking at the programme, Mr. Moriarty said 71 Alliance factories had substantially completed required Infrastructure repairs, but 142 factories were suspended for failing to make adequate progress in remediation WB okays US$507m for infrastructure projects work. Terming workers' training a key (The Daily Star) The World Bank has approved a component of Alliance's mission to build a safer US$507 million fund for two projects in garment industry, he said that the platform has Bangladesh to provide long-term financing to provided training to nearly 1.3 million workers in private sector-led infrastructure projects and protecting themselves during emergencies. modernization of land ports. On 8 April, the Alliance has retrained around 85 percent of its World Bank Board approved the Investment workforce about fire safety while around 25,000 Promotion and security guards have received training in Financing workers' evacuation during emergency, he Facility (IPFF) II added. Alliance, a platform of 28-North American Project, which retailers and brands for factory inspection and is built on the remediation in Bangladesh, will function in the success of a country up to June 2018. predecessor project IPFF. Government reviewing UN conventions’ The project will help participating local financial ratification required for EU GSP Plus facility institutions to extend long-term credits for (The New Age) Commerce ministry has taken an building infrastructure beyond the usual lending initiative to review the current status of period of five to seven years, the World Bank ratification of 27 UN conventions required for said in a statement. The infrastructure will be getting GSP Plus benefit to the markets of the built for waste management, water treatment, European Union. The ministry has recently energy saving equipment, container terminals, sought opinions of stakeholders, including land ports and bridges, the multilateral lender government ministries, divisions and agencies, said. The projects will be funded by the World trade bodies and business associations, on the Bank's concessionary arm, International 27 conventions related to human and labour Development Association. The Regional rights, environmental protection and good Connectivity Project 1 will receive US$150 million governance. According to the Least Developed zero-interest IDA credits with a 38-year term, Countries Report 2016 of the United Nations including a six-year grace period, and a service Conference on Trade and Development charge of 0.75 percent. The IPFF II will receive (UNCTAD), Bangladesh is expected to graduate US$357 million financing, including US$257 from LDC category to developing country by million zero-interest credit with a 38-year term 2024 as the country’s pre-eligibility for and a six-year grace period, and US$100 million graduation will be completed in 2018 and the scale-up facility with a 30-year term with a nine- country will become fully eligible for graduation year grace period. In addition, the project will by meeting all three criteria in 2021. As an LDC
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