Newsflash Edition 80, May 2018

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Highlights

• Bangladesh overtook China and in ethical compliance in the apparel segment due to improved workplace safety following pressure from international inspection and remediation agencies, according to a new survey. • The government has decided to allow labour inspection in conformity with the labour law in factories located in Bangladesh's eight export processing zones to ensure workers’ rights. • The Bangladesh Railway signed a contract with a Korean company to procure 10 meter-gauge locomotives for its fleet at a cost of US$37 million. • Bangladesh struck a 10-year deal with Oman to import 1 million tonnes of liquefied natural gas annually. • The second unit of Summit power plant in Gazipur has started supplying electricity to the national grid commercially. • Shrimp sector launches e-traceability system in Khulna to improve consumers' acceptance of Bangladesh shrimp export. • Bangladesh entered the space era with the launch of Bangabandhu-1 satellite. • Dutch Development Bank FMO signed 5-year Term Loan deal for US$80 million, largest syndication with ONE bank.

1 Newsflash May 2018

Political update

• Bangladesh law enforcement agencies launched an aggressive war on drugs to prevent the surging trade in yaba. According to media reports, more than 120 alleged drug dealers have been killed since the operation began. • Prime Minister paid a two day visit to India from 25-26 May. The visit saw meetings with Indian Prime Minister Narendra Modi and Chief Minister of West Bengal Mamata Banerjee, discussing sbilateral issues including the Teesta Water Sharing deal and the Rohingya crisis. • Princess Maha Chakri Sirindhorn of Thailand paid a four-day visit to Bangladesh from 28-31 May. She lead an 11-member high-profile government delegation and met with Prime Minister Sheikh Hasina and Foreign Minister Mahmood Ali.

Textile and Ready Made Garments (RMG)

Denim makers cut use of water (The Daily Star) Garment Manufacturers and Exporters Association Water consumption by denim fabric makers has (BGMEA) and the Bangladesh Knitwear fallen dramatically over the last few years thanks to Manufacturers and Exporters Association (BKMEA) adoption of the latest technologies in production. will get an extended foreign currency loan facility Previously, denim fabric makers in Bangladesh used from the Bangladesh Bank’s (BB) export 270 litres of water for washing a kilogramme of development fund. A central bank circular issued in denim fabrics, for which the ground water level in its regard said that the members who have mills of Dhaka and its BGMEA and BKMEA would get up to US$25 million adjacent areas in loan finance from the EDF instead of the previous has been limit of US$20 million. The BB in phases had depleting at increased the limit to US$20 million from US$12 three metres million following demands from the members of the every year. associations. Under the existing provision, the EDF The global financing is allowed for input procurements against standard for back-to-back import letters of credit or inland back- washing a to-back LCs in foreign exchange by manufactures kilogramme of denim fabrics is 70 litres. Some of the producing final output for direct export and also by companies in Bangladesh can produce a kilogramme producers of local deliveries to manufacturers of the of denim fabrics with only 15 to 16 litres of water on final export. an average, said Jordi Juani, director for the Asia Division of Jeanologia, a Spanish garment finishing Survey on Ethical Compliance in Apparel- machinery manufacturer. Such low levels of water Bangladesh tops China, India (The Daily Star) consumption were enabled by Jeanologia's state-of- Bangladesh overtook China and India in ethical the-art technology, which not only cuts down on compliance in apparel segment on the back of water consumption but also the time needed. “We improved workplace safety following pressure from are replacing the traditional stone wash method international inspection and remediation agencies, that requires a lot of water.” “But the number of according to a new survey. “In particular, ethical such companies is still low,” he said at the eighth scores in Bangladesh rose by an average of 15 edition of the Bangladesh Denim Expo in Dhaka. percent during the past 12 months,” said Jeanologia supplies the technologies and also AsiaInspection in its first quarterly report of 2018 provides consultation to denim fabric makers of released last month. This was likely reflecting the about 150 factories out of the 2,000 that continuous pressure put on Bangladesh's textile and manufacture denim. apparel manufacturers by the industry groups to improve, formed after the Rana Plaza collapse. Hong Bangladesh Bank raises EDF loan limit for apparel Kong-based AsiaInspection is a global leading quality businesses (New Age) Members of the Bangladesh control and compliance service provider that 2 Newsflash May 2018 partners with brands, retailers, and importers Board of Development and economic zones and around the world to secure, manage and optimise Board of Investment of Thailand. “We have a good their supply chain. Particularly, after the collapse, scope to participate in these big infrastructure there is no scope to run businesses without ensuring projects,” he told reporters after a meeting with the quality and ethics, said Mahmud Hasan Khan, vice officials of Bangladesh Economic Zones Authority president of Bangladesh Garment Manufacturers (Beza) in Dhaka. A high profile 32-member and Exporters Association, while commenting on delegation led by Pootrakool arrived in Dhaka on a the survey. three-day visit to explore trade and investment opportunities. As Bangladesh's economy and its Government to allow inspection in EPZs by DIFE consumer base are growing steadily, the Thai (The Financial Express) The government recently minister sees scopes for investments in renewable decided to allow labour inspection in conformity energy, household equipment, electronics and with the labour law in factories located in automobiles. Bangladesh's eight export processing zones (EPZs) to ensure workers’ rights. The workers' representation Korean company to supply 10 MG locomotives to requirement for trade union registration is also set BR (The Financial Express) The Bangladesh Railway to be reduced to 20 per cent from the existing 30 (BR) signed a contract with a Korean company on percent for factories both in and outside the EPZs. Thursday to procure 10 metre-gauge (MG) The move came to meet International Labour locomotives for its fleet at a cost of US$37 million Organisation (ILO)'s recommendation that included (Tk 2.97 billion). bringing the draft of Export Processing Zones Labour As per the deal, Act in line with the ILO conventions to provide equal Hyundai Rotem rights of freedom of association to all workers and Company will bring the EPZs within the purview of the labour supply 10 MG inspectorate. The government is currently working diesel electric for further amendment of the Bangladesh Labour engines in the Act (BLA) as well as to improve the draft EPZ Labour next two years. Act, State Minister for Labour and Employment Additional Mujibul Haque Chunnu said on Tuesday. "We Director General of Bangladesh Railway Mohammad recently decided to incorporate the provisions for Shamsuzzaman and Director, Global Rail Group 2 labour inspection in the EPZs by the Inspector (Asia) of Hyundai Rotem, Kwang-Kyun Yoon signed General along with other Inspectors under the the agreement at a ceremony at Rail Bhaban. BR will Bangladesh Labour Act, 2006 with the existing soon procure 70 locomotives from the same robust inspection system of BEPZA," he added. company, as the cabinet committee on government Currently, inspection in EPZ factories is carried out purchase approved the supplier's credit proposal. by BEPZA. Once amended, the EPZ Labour Act will The 10 locomotives are being procured with the allow inspection by Department of Inspection for financial assistance from Asian Development Bank. Factories and Establishments (DIFE) inspectors. Lone bidder set to bag work on metro-rail’s Package-7 (The Financial Express) A Japanese- Infrastructure Indian joint-venture (JV) firm is set to get the job of implementing the last component of Dhaka's metro- Thailand keen to invest in large infrastructure rail project, as it has emerged the lone bidder for the projects (The Daily Star) Thailand wants to invest in Package-7. The state-owned Dhaka Mass Transit Bangladesh's large infrastructure projects as part of Company Limited (DMTC) has set June 3 as the date efforts to boost bilateral trade and economic ties, for signing a contract after its board approved the Kobsak Pootrakool, a minister attached to Thai firm's bid on May 10. However, pre-contract Prime Minister's Office said. Bangladesh needs more negotiation with the company is yet to end. The power plants, water treatment plants, highways, consortium comprising of Marubeni Corporation of seaports, airports and new terminals, he said. and L and T of India has finally emerged lone Pootrakool looks after economic reforms, National bidder for the Package 7. The component involves 3 Newsflash May 2018 electrical and management system development for shares using their respective terminals in the Mass Rapid Transit Line-6 (MRT-6). The DMTC, Moheshkhali and pump it into the national network. dedicated for the metro-rail construction, invited The Excelerate terminal is almost ready for tenders in March 2015. Tender documents were operations while Summit's one is expected to be purchased by 31 companies, but only four were complete in October. Last month, the cabinet shortlisted. Finally, the Japanese-Indian joint committee on purchase approved the draft contract venture firm emerged unrivalled, as other with Oman. According to the draft contract, LNG companies did not submit their proposals. from Oman would be supplied at 11.9 percent of the three-month average price of Brent oil plus US$0.4 48 PPP projects to bring US$12.6b investments- constant per million British thermal unit, a measure Prime Minister for undertaking more such projects of the heat content of fuels or energy sources. (The Financial Express) Prime Minister Sheikh Deal signed with Chinese firm for 1,320MW plant Hasina encouraged implementation of the Public Bangladesh Power Development Private Partnership (PPP) projects on the basis of the (The Daily Star) Board (BPDB) signed a joint venture agreement with government-to-government (G2G) partnership with China Huadian Hong Kong Company Ltd (CHDHK) to different countries. She also gave directives to the construct a 1,320-megawatt (MW) coal-fired power authorities concerned to undertake such more plant in projects. The directives came at the second meeting Maheshkhali, of the Board of Governors of PPP authority, held at Cox's Bazar at the Prime Minister's Office (PMO) with Prime a potential Minister Sheikh Hasina in the chair. A total of 48 cost of US$2 projects were undertaken to implement on the PPP billion. Under policy. Of the projects, agreements were signed the deal, a with private partners to implement 10 projects, joint venture while agreements will be signed with private will be set up within a month to start the partners soon to implement two other projects. If construction. Each party holds equal share and the the 48 PPP projects are implemented, the amount joint venture will get 48 months to complete the of investment will stand at some US$12.6 billion. project. Nasrul Hamid, state minister for power, The PPP Authority in June 2017 took a 'Policy for energy and mineral resources, said Maheshkhali Implementing PPP Projects through Government to would be transformed into an energy hub by the Government (G2G) Partnership, 2017' (the G2G next three to four years. CHDHK President Fang Partnership Policy) to build on strong bilateral Zheng said this was an important project for them relationships with other governments to develop as it was the company's first investment in and upgrade large public infrastructure assets in Bangladesh. partnership with other countries and deliver essential public services. Following the policy, Russian firm gets Rooppur's supervision job (The Bangladesh signed agreements with Japan in June Financial Express) The Cabinet Committee on Public 2017 and Singapore in March 2018 over Purchase received a total of 10 proposals including implementation of the PPP projects through G2G one to appoint Russian state regulatory partnership. Rostekhnadzor as security and supervision consultant of the Rooppur Nuclear Power Plant Oil, Gas & Energy project. The committee gave the approval to the proposals at a meeting with Finance Minister AMA Government inks LNG deal with Oman (The Daily Muhith in the chair. As per the proposal placed by Star) Bangladesh struck a 10-year deal with Oman to the Science and Technology Ministry, import 1 million tonnes of liquefied natural gas Rostekhnadzor, the Russian Federal Service for (LNG) every year to meet its growing energy Ecological, Technological and Nuclear Supervision, demand. State-run Petrobangla, and Oman Trading will work as consultant for 11 years at a cost of Tk International, signed the agreement at the 13.54 billion. Russian state nuclear agency Rosatom Petrobangla headquarters. Excelerate Energy and has been engaged in building the 2400 MW power Summit Corporation will regasify the LNG in equal plant at a cost of US$12.65 billion. The committee

4 Newsflash May 2018 approved a proposal of the Power Division to award companies in Bangladesh - Khulna Ltd, contract to a consortium of Unique Hotel and Resort Western Marine Shipyard Ltd, Ananda Shipyard ltd, Ltd, Strategic Finance Limited and its partner to set Chittagong Dry Dock Ltd, FMC Dockyard Ltd, up 600 MW combined cycle power plant in Karnaphuli Shipyard Ltd, and Ready Point Shipyard Narayanganj on build-own-operate (boo) basis. The Ltd. Two - Western Marine and Ananda - plant will run by gas or R-LNG and the government have been leading the export market. According to will purchase electricity from the plant at Tk 2.95 per the EPB data, the two shipbuilders have exported 40 unit in gas and Tk 5.45 per unit in R-LNG over a ships comprising both small and medium sized period of 22 years. vessels worth US$170 million to 14 countries from 2009 to 2017. Of the two, Western Marine Shipyard Summit’s Gazipur plant starts supplying power to has earned 89 percent of the export earnings, The second national grid (The Financial Express) around US$150 million, by exporting 31 ships to unit of Summit power plant in Gazipur has started , , Ecuador, , , supplying electricity to the national grid , Gambia, Dubai, , , India, commercially. The 300-megawatt (MW) furnace-oil and . Ananda Shipyard has fetched US$20 fired power plant is owned by the consortium of million in earnings by exporting nine ships to Summit Corporation Ltd and Summit Power Ltd Denmark, Mozambique, and Maldives. having the stakes of 80 percent and 20 percent respectively. The '100 hour Agriculture/Fisheries Reliability run test' as well as Mango exports from Rajshahi to European markets 'dependable rising (The Financial Express) Rajshahi mangoes are capacity test' being exported to a number of countries. To were produce pesticide-free and quality mangoes, completed. The farmers of the power purchase agreement and implementation area are using deal were signed with the government for a period ‘fruit bagging of 15 years on December 10, 2017. This is, however, process’ to the only furnace oil-fired power plant under the save the fruit fast-track project that came online within the from the pest stipulated timeframe of nine months. Summit's total attack and power generation reached 1,800 MW with the keep the initiation of supply from its Gazipur power plant, texture of the consolidating its position as the leading private fruit fresh and natural. The fruit bagging process in sector electricity producer. mango is gradually becoming popular among mango farmers of Bagha upazila, a major mango producing Water/Maritime upazila of the district. Upazila administration of Bagha was also regularly supervising the mango US$30.12m export earnings from in 10 orchards to ensure production of quality mangoes months (Dhaka Tribune) Export earnings from the there. The mangoes of Bagha being very good in thriving shipbuilding industry in the first ten months taste, texture and quality, those were now being of the current fiscal year 2017-18 was US$30.12 exported to various countries including England, The million, according to latest data from the Export Netherlands, , Norway, Portugal, France and Promotion Bureau (EPB). The data showed Russia. The export of mangoes started through joint Bangladesh made the earnings exporting ships, venture of Hotex Foundation and DAE of Bagha boats, and floating structures in the period from July under the supervision of the World Health 2017 to March 2018. According to sector insiders, Organisation. The fruit bagging process keeps the growing shipbuilding industry of Bangladesh has mangoes fresh, free from insects, rain and hot- great potential, as demand in the domestic market sunshine. The mango produced through fruit is expanding. Orders from international buyers have also picked up. There are seven shipbuilding 5 Newsflash May 2018 bagging process being free from insecticide, it has a export will improve and the country will be able to good demand among the importers. brand its products more effectively in international market and fetch higher per unit value for the Aztec wonder herb - Nutrient rich chia to be grown shrimp shipment. A successful introduction of the e- in Bangladesh for first time (The Daily Star) traceability system will also improve quality of Scientists at Bangladesh Agricultural University products in the domestic market and help ensure (BAU) in Mymensingh have grown chia on the food safety. The government has identified campus. The herb from the mint family, native to introduction of a dependable e-traceability system southern Mexico and Guatemala, was given as for the shrimp sector in Bangladesh as an important tribute by the people to their rulers in many priority so that the origin of the shrimp produced in provincial Aztec states. In more recent years, chia the country can be traced from the grassroots seeds have become a common food ingredient production level up to the buyers. Such a traceability throughout Latin America, as well as in the United system focused States and Europe. Now scientists at BAU are on each point confident that chia farming has good prospects of the shrimp here. “I collected chia seeds from Mexico in 2010,” value chain says Dr Md Alamgir Hossain, the professor from the including university's crop botany department who led the hatcheries, research team. “For four years we adapted the plant ponds, to suit local conditions. After that we completed collection field trials. Finally, this year, the BAU Chia-1 variety centres and is ready for farming.” With 67 percent omega-3 fatty processing plant will enable to ensure product acids, which are essential for good health, chia safety and detection of any problems at any point of offers a better alternative to harmful cholesterol in the value chain compromising the quality of the people's diets, according to Dr Hossain. products.

DCCI opens agro service desk (Dhaka Tribune) For Private seed sector steadies growth - Market size the development of Bangladesh’s agriculture sector expands by 10-11pc (The Financial Express) With and to assist the stakeholders and entrepreneurs, the demand for hybrid seeds rising, the private seed Dhaka Chamber of Commerce and Industry (DCCI) sector has witnessed a steady growth in the country has opened an “Agro Service Desk” at its office. DCCI over a decade. Private companies and traders now Senior Vice President Kamrul Islam FCA inaugurated meet over 90 percent of the demand for hybrid the desk. DCCI has established the desk with the seeds of maize, vegetables and spices. The private support of USAID’s Agriculture Value Chain (AVC) seed companies claimed to have witnessed a 10-11 Project. From ‘DCCI Agro Service Desk’ procedures percent market growth annually, up from 4-5 of getting Global Good Agriculture Practice (GAP) percent a decade ago. Presently, the local seed license and certificate, diversification of agro- market is worth about Tk 30 billion (Tk 3,000 crore). products, technological assistance, export market The seed market started expanding after the private exploration, sharing of Global GAP standard and sector was allowed to import and sell hybrid seeds practice, and information regarding Global GAP will in 1998 amid the growing demand for quality seeds. be provided. According to the Bangladesh Seed Association (BSA), a trade body of 180 members, 85 percent of hybrid Shrimp sector launches e-traceability system (The paddy seeds are supplied by the country's public and Financial Express) A prototype of a planned e- private sectors. traceability system for shrimps was launched recently in Khulna. Md Raisul Alam Mondal, Secretary, Ministry of Fisheries and Livestock Other news (MOFL), officially launched the system. Industry insiders said if Bangladesh succeeds in introducing Bangladesh to get five more hi-tech parks (The and scaling up of the e-traceability system, the Daily Star) Bangladesh is on the way to get five more consumers' acceptance of Bangladesh shrimp hi-tech parks as top officials of the Bangladesh Hi-

6 Newsflash May 2018

Tech Park Authority and the World Bank sit in Cox's Bangabandhu-1 satellite on its way to orbit after Bazar today to negotiate an estimated US$122 launch into space (The Daily Star) The historic event million fund. With this, the number of government took place when the country's first geostationary hi-tech, software and IT parks will rise to 33. Officials communication satellite started its voyage towards said the park authority was primarily mulling orbit from the Kennedy Space Centre in Florida, the locations in five districts: Madaripur's Shibchar USA after launching on May 10. A Bangladesh upazila, Chandpur's Matlab, Joypurhat's Kalai, delegation, led by Prime Minister's ICT Affairs Manikganj's Paturia and either Sirajganj sadar or its Adviser Sajeeb Wazed Joy, witnessed the launching Kazipur upazila. The authority has also started of the satellite, which was visible for around seven conducting a feasibility study on the new parks and minutes in the Florida's clear sky. Thousands of hopes to start the development work soon while people across the giving priority to environmental issues and world witnessed preserving original landscapes. The government's the launching, target is to boost the initiative to earn US$5 billion which was from the ICT sector by generating jobs for 20 lakh telecasted by youths by 2021. different television

Dhaka to see six new luxury hotels (The Daily Star) channels and was Dhaka is set to welcome half a dozen international webcasted by the SpaceX. "Bangladesh entered the hotel chains over the next couple of years, brought space era, with this perfect and successful launching about by the growing influx of business travellers to of the satellite" said Prime Minister's ICT Affairs Bangladesh. The Bengal Group of Industries is Adviser Sajeeb Wazed Joy. By sending the constructing a 370-room hotel in the capital's Bangabandhu-I to the orbit, Bangladesh has become Niketan area for an estimated Tk 600 crore. The the 57th country to launch a geostationary property will be managed by Swiss hotel chain communication satellite. Bangabandhu-1 Satellite is Swissôtel Hotels and Resorts. New business to establish Bangladesh's own stake on the space opportunities have come up for construction of opening up enormous opportunities providing three large infrastructure projects such as the Padma types of advantages involving fields of field of bridge, Rooppur nuclear power plant, metro rail and information and communication technology (ICT) LNG terminals. At the same time, the flow of and broadcasting industry alongside brightening business travellers related to the export-oriented Bangladesh image. garment industry is set to get bigger as the apparel makers chase an export target of US$50 billion in bKash app launched (The Daily Star) bKash, the 2021. Altogether, the new hotels are expected to country's leading mobile financial service provider, bring forth investment of about Tk 5,400 crore, has rolled out a mobile app to make transactions according to industry insiders and a banker. Marium through the platform more simple and cost- Group is establishing a 200-room hotel in Hatirjheel effective. Through the app, bKash's 3 crore users can area for about Tk 1,500 crore. The property will be send money, buy airtime, withdraw cash and make christened the Holiday Inn Dhaka City Centre and is payments. A remittance service will be added in the expected to open its doors to guests by the end of future. The MFS provider is offering discounts this year. Jamuna Group has struck a deal with temporarily to popularise the app, which can be Marriott International, the American luxury downloaded from the Google Play Store. To make hospitality chain, to set up the 700-room JW withdrawals using the app, the fee will be Tk 15 for Marriott Dhaka. The hotel will be located at Jamuna Tk 1,000. The fee is Tk 18.50 when using the USSD Future Park in Progoti Sarani. Premier Group is (Unstructured Supplementary Service Data) building JW Marriott's sister brand Courtyard by channel. Moreover, person-to-person transaction Marriot in the capital's Gulshan area. Unique Group, through the bKash app is free. The charge is Tk 5 per the parent company of Westin Dhaka, is establishing transaction when using the USSD channel. The use Sheraton Dhaka in Banani, while Lakeshore Hotels of the mobile app will make transactions cheaper as has teamed up with Thai hospitality group Dusit bKash will not have to share 7 percent of its revenue International to set up a business hotel in Uttara for with the mobile operators for using their service. Tk 150 crore. 7 Newsflash May 2018

DSE signs strategic partnership agreement with Asian Paints to set up 2nd plant at Mirsharai EZ Chinese consortium (Dhaka Tribune) The Dhaka (The Financial Express) Asian Paints, a multinational Stock Exchange (DSE) on Monday agreed to sell 25% paint manufacturer, is planning to set up a modern of its ordinary shares to a Chinese consortium paint manufacturing facility at Mirsharai Economic comprised of the Shanghai Stock Exchange (SSE) and Zone in Chittagong. The construction of the state-of- Shenzhen Stock Exchange (SZSE). The share the-art plant will start by December this year and purchase agreement (SPA) was signed with Finance once completed, this will be Asian Paint's second Minister AMA manufacturing facility in Bangladesh. Asian Paints Muhith in has already signed a lease agreement with attendance as Bangladesh Economic Zone Authority in this regard the chief guest. and the construction of the plant will start by Wang Jianjun, December. Asian Paints is committed to invest president and around US$25 million to US$30 million in phase one CEO of SZSE, and of this scheme. Asian Paints, which currently has the Pan Xuexian, chair of the SSE Supervisory Board, second largest share in this growing market, usually signed the agreement on behalf of the Chinese supply its products from its sole manufacturing consortium, while DSE Managing Director KAM plant in the country located in Gazipur. The planned Majedur Rahman signed the agreement on behalf of Mirsharai plant will be substantially bigger than our his organization. The consortium will hold 25 Gazipur plant and one of the biggest paint percent of DSE in order to partner with the bourse. manufacturing facilities in the country. The Chinese consortium will not only enhance the Akij Group gets US$38m for acquisition of two image of DSE but also ensure good governance and Malaysian companies- ethical practice. They will also improve the Financial closing of deal Akij Group, one of the institutional investors' base, attract good companies held (The Financial Express) leading business conglomerates in the country has and foreign portfolio investment as well as upgrade availed US$38 million financing facility from two the technology. foreign banks for its acquisition of two Malaysian FMO's largest syndication deal with BD bank (The companies. Under the agreement, Akij will get Financial Express) ONE Bank Limited (OBL) has US$24.5 million financing from German recently inked a 5-year Term Loan deal for US$80 development finance institution Deutsche million with a consortium of European DFIs Investitions- und Entwicklungsgesellschaft (DEG) (Development Financial Institutions) through a and another US$13.5 million financing from consortium led by FMO, the Dutch Development Standard Chartered Malaysia. Earlier, Akij also got Bank. It is participated by Proparco, OeEB and approval from Bangladesh Bank for outward capital Norfund- French, Austrian and Norwegian DFIs. This remittance to acquire two Malaysian companies, is FMO's largest syndication deal with a Bangladeshi Robin Resources and Robina Flooring. The total bank. RSA Advisory Limited was the Advisor and Co- worth of the acquisition deal is around US$78 Arranger to the transaction. The Fund will be utilized million. Green Delta Capital Limited was the through ONE Bank's Offshore Banking Unit (OBU) for mandated lead arranger and adviser to the Green, SME and Corporate finances. An estimated transaction. It also performed as the independent year and half ago a similar consortium, led by FMO valuer of the target companies. This is a landmark and participated by OeEB and OFID - the OPEC fund deal as this is the first time a Bangladeshi company for Economic Development, had lent US$44 million is acquiring any foreign companies. to OBL. DFIs play a crucial role in the international impact investment setting, promoting economic Government approves ‘Gold Policy-2018’ (The The government approved the development in underserved regions. And OBL has Financial Express) 'Gold Policy-2018' to ease the import and export of adopted global environmental and social standards the precious metal as well as ensure transparency in with the support from the DFIs which is a prime its trade inside the country. The approval came at a focus area of Bangladesh Government and meeting of the Cabinet Committee on Economic Bangladesh Bank. Affairs (CCEA) at the cabinet division in the secretariat with Finance Minister AMA Muhith in the

8 Newsflash May 2018 chair. Under the policy, the government will provide all sorts of supports, including cash incentive and land in the special economic zones, to the gold importer and exporter. The Bangladesh Bank will appoint dealers for importing gold bars to meet the country's requirement. The dealers will be allowed to import gold through bonds, but for that they will have to get bond licenses in line with the existing law.

9 Newsflash May 2018

Events

Bangladesh Power Summit is going to be held on Jun 26-27, 2018 at the Pan Pacific Sonargaon Dhaka Hotel, Bangladesh. The Summit will bring together 200 senior representatives from the government agencies, power utilities, IPPs EPCs, financial institutions, solution providers and academics to discuss the latest development of Bangladesh's power market and share best practice and knowledge in power generation, plant operation, transmission and distribution, solar power and smart grid sectors. For details, please visit: https://10times.com/bps-as Bangladesh Leather and Footwear Expo is going to be held on Jul 26-28, 2018 at the International Convention City Bashundhara (ICCB) in Dhaka, Bangladesh. The expo will be a high profile launching pad created for chemicals, accessories & allied products manufacturers and distributors, international and domestic machinery to come up with their innovations and their latest products and services to the tanning & ginished leather, footwear and leather goods manufacturing industries in Bangladesh in the leather & leather products industry. For details, please visit: https://10times.com/bangladesh-leather- footwear-expo Tenders Invitation for International Tender Bangladesh Power Development Board under the Ministry of Power, Energy and Mineral Resources issued a tender for procurement of (a) MCCB of Different Current Rating (b) Fuse Link (33 KV) & (c) Fuse Link (11KV). Tender was issued on 10 May 2018, closing on 25 June 2018 at 11:00am BST. For details, please contact: Sayeed Akram Ullah, Director, Directorate of Purchase, BPDB, Dhaka, WAPDA Building (9th floor), Motijheel C/A, Dhaka, Phone: +88029550532. Fax: +88027126151.

Invitation for International Tender TSP Complex Limited (an enterprise of BCIC) under the Ministry of Industries issued a tender for Procurement of 10,000MT ± 05% Phosphoric Acid (P₂Oƽ: 52-54%) Tender was issued on 9 May 2018, closing on 26 June 2018 at 11:00am BST. For details, please contact: Engr. Md. Mafizur Rahman, Managing Director, TSPCL, TSP Complex Limited, North Patenga, Chittagong. Phone: +880312500455-6, 2500545. Fax: +880312500457. Email: [email protected]

Invitation for International Tender Bangladesh Power Development Board under the Ministry of Power, Energy and Mineral Resources issued a tender for procurement of Twist Tight (TT) Bar/QR-Coded Seal. Tender was issued on 14 May 2018, closing on 26 June 2018 at 11:00am BST. For details, please contact: Sayeed Akram Ullah, Director, Directorate of Purchase, BPDB, Dhaka, WAPDA Building (9th floor), Motijheel C/A, Dhaka, Phone: +88029550532. Fax: +88027126151.

Invitation for International Tender Bangladesh Power Development Board under the Ministry of Power, Energy and Mineral Resources issued a tender for procurement of REB500 BU 03 Relay and Other Spares for 230KV Bus-bar Protection System of Barapukuria Coal Fired Thermal Power Station, BPDB, Dinajpur, Bangladesh. Tender was issued on 15 May 2018, closing on 2 July 2018 at 11:00am BST. For details, please contact: Sayeed Akram Ullah, Director, Directorate of Purchase, BPDB, Dhaka, WAPDA Building (9th floor), Motijheel C/A, Dhaka, Phone: +88029550532. www.bpdb.alltender.com

Please remain updated on these and future tenders at the following website: http://www.cptu.gov.bd/Notices.aspx More information

The Embassy always welcomes your comments on, and suggestions for the Newsflash. We also encourage interested Dutch and Bangladeshi companies to place an article or message in our newsflash. For more information please contact our economic department at the Embassy in Dhaka through email [email protected], or by phone (00882)10 9842715 -18 Newsflash May 2018