UPDATE----------APRIL 30, 2010 FRIDAY
BANGLADESH-------BUSINESS TODAY
EXCLUSIVE
Only 3.2pc Bangladeshi exports find market in SAARC region
Only 3.2 per cent of Bangladesh’s exports find market in the SAARC countries, a recent report of the Export Promotion Bureau revealed.
The latest country-wise export performance report, made on shipments in July-December of the current fiscal year, said that Bangladeshi exporters shipped $234 million worth of products to SAARC countries. According to the report, the country’s overall exports amounted worth $7274 million.
‘While much has been talked about exploring markets in neighboring states, Bangladesh’s tiny export shipment to SAARC markets is really disappointing,’ a senor official of the national export promotion agency admitted.
He argued that Bangladeshi exporters have been concentrating for years on European and US markets as they find consistent procurements by the importers there.
The EU provides very lucrative duty-free and hassle-free market access to made-in-Bangladesh goods, he cited, to be the factor to market success there.
The EPB report showed that Bangladesh’s exports to India in the period amounted $181 million, Pakistan $32 million, Sri Lanka $13 million, Nepal $4 million, Maldives 0.3 million, Bhutan 0.8 million and Afghanistan $1.2 million.
Annisul Huq president of the Federation of Bangladesh Chambers of Commerce and Industry says Bangladesh exporters have just started setting sight on the SAARC markets. ‘After having faced the global recession local exporters now understand that western markets are not perpetually reliable.’
Closed-door mindset still prevails in every South Asian country, so Bangladeshi exporters will have a long way to go, said Annis, who is also the president of the SAARC Chamber of Commerce and Industry.
The Export Promotion Bureau report also showed that only 0.14 per cent of Bangladesh’s apparel shipments go to the SAARC countries.
In July-December period, Bangladesh shipped $5,595 million worth of readymade garments across the global markets. But apparel shipments to SAARC countries amounted worth $8.3 million.
‘It is true that like that in EU or USA the apparel market is not too big in SAARC countries. But in India and Sri Lanka it is growing and Bangladesh should get a market share there,’ said Anwar Ul Alam Chowdhury Parvez, chairman of Evince Group of Industries.
‘If our exports face no restriction and hassle in India, Bangladesh’s apparel shipments there should cross half a billion dollar mark just within a couple of years,’ he said.
According to EPB report, raw-jute and tea are the products which are consumed mostly by the SAARC markets. Bangladesh’s tea exports amounted $3.2 million in July-December with Pakistan’s procurement worth $2.8 million and Afghanistan $0.35 million.
Raw-jute exports to SAARC countries during the period amounted worth $96 million.
According to report, jute goods, frozen Hilsha fish, agro-processed foods and fertilizer are among the significant Indian imports from Bangladesh.
Pakistan imported betel leaves, Sri Lanka fertilizers, while Nepal imported Bangladeshi automobile batteries and fertilizers.
The latest country-wise export performance report, made on shipments in July-December of the current fiscal year, said that Bangladeshi exporters shipped $234 million worth of products to SAARC countries. According to the report, the country’s overall exports amounted worth $7274 million.
‘While much has been talked about exploring markets in neighboring states, Bangladesh’s tiny export shipment to SAARC markets is really disappointing,’ a senor official of the national export promotion agency admitted.
He argued that Bangladeshi exporters have been concentrating for years on European and US markets as they find consistent procurements by the importers there.
The EU provides very lucrative duty-free and hassle-free market access to made-in-Bangladesh goods, he cited, to be the factor to market success there.
The EPB report showed that Bangladesh’s exports to India in the period amounted $181 million, Pakistan $32 million, Sri Lanka $13 million, Nepal $4 million, Maldives 0.3 million, Bhutan 0.8 million and Afghanistan $1.2 million.
Annisul Huq president of the Federation of Bangladesh Chambers of Commerce and Industry says Bangladesh exporters have just started setting sight on the SAARC markets. ‘After having faced the global recession local exporters now understand that western markets are not perpetually reliable.’
Closed-door mindset still prevails in every South Asian country, so Bangladeshi exporters will have a long way to go, said Annis, who is also the president of the SAARC Chamber of Commerce and Industry.
The Export Promotion Bureau report also showed that only 0.14 per cent of Bangladesh’s apparel shipments go to the SAARC countries.
In July-December period, Bangladesh shipped $5,595 million worth of readymade garments across the global markets. But apparel shipments to SAARC countries amounted worth $8.3 million.
‘It is true that like that in EU or USA the apparel market is not too big in SAARC countries. But in India and Sri Lanka it is growing and Bangladesh should get a market share there,’ said Anwar Ul Alam Chowdhury Parvez, chairman of Evince Group of Industries.
‘If our exports face no restriction and hassle in India, Bangladesh’s apparel shipments there should cross half a billion dollar mark just within a couple of years,’ he said.
According to EPB report, raw-jute and tea are the products which are consumed mostly by the SAARC markets. Bangladesh’s tea exports amounted $3.2 million in July-December with Pakistan’s procurement worth $2.8 million and Afghanistan $0.35 million.
Raw-jute exports to SAARC countries during the period amounted worth $96 million.
According to report, jute goods, frozen Hilsha fish, agro-processed foods and fertilizer are among the significant Indian imports from Bangladesh.
Pakistan imported betel leaves, Sri Lanka fertilizers, while Nepal imported Bangladeshi automobile batteries and fertilizers.
NEWS IN FOCUS
The Bangladesh Bank has restricted credit facilities for purchasing luxury cars in a desperate bid to stop money flow to unproductive sectors and contain rising inflation.
The central bank sources said they have asked the commercial banks not to sanction loans more than Tk 50,00,000 for purchasing luxury car by any individual company and above Tk 35,00,000 to directors and high officials of a company.
BB, however, did not impose any restriction on credit facility for the purchase of low priced cars as many commercials banks in the country are offering credit amounting to less than Tk 10,00,000 as personal loans to buy reconditioned vehicles.
The central bank was forced to put restrictions on credit facilities for purchasing costly cars to contain the run away inflation which stood at 9.06 per cent in February 2010.
The government is worried as the low income groups in both rural and urban areas are suffering due to inflation caused rising food price.
According to Bangladesh Bureau of Statistics, the food price induced inflation last February recorded 10.34 per cent rise in rural and 12.34 per cent increase in urban areas.
This was the second directive by BB that on Tuesday imposed a restriction on the commercial banks against credit facilities for purchase of land.
In its latest quarterly report, the BB said the inflated prices of land and easy bank loans for car purchase were the elements which might escalate inflation in the near future.
Bangladesh Institute of Development Studies executive director MK Mujeri told New Age that the central bank should have imposed such restrictions much earlier.
He pointed that the BB should enhance monitoring on credit facilities for unproductive sectors which pushed up inflation and hampered the country’s economic growth.
The BB officials said credit facilities by the commercial banks for purchasing land were leading to exorbitant rise in land prices. They calculated that loans on land stood over Tk 400 crore from Tk 290 crore in 2008, recording a rise of more than 100 crore in one year.
Bangladesh Road Transport Authority officials said sales of cars, microbuses, station wagons and jeeps jumped by 30 per cent alone in Dhaka in one year as 24,457 vehicles were registered in 2009 against 18,826 in 2008.
Former president of Bangladesh Reconditioned Vehicles Importers and Dealers Association Abdul Haque observed that affordability of city dwellers in purchasing cars enhanced because of easy bank loans.
Experts said money flow to such unproductive sectors was putting adverse impacts on the country's economy by pushing up the inflation.
They observed that many took loans from banks and purchased land, the value of which has been rising every year because of high demand.
The central bank sources said they have asked the commercial banks not to sanction loans more than Tk 50,00,000 for purchasing luxury car by any individual company and above Tk 35,00,000 to directors and high officials of a company.
BB, however, did not impose any restriction on credit facility for the purchase of low priced cars as many commercials banks in the country are offering credit amounting to less than Tk 10,00,000 as personal loans to buy reconditioned vehicles.
The central bank was forced to put restrictions on credit facilities for purchasing costly cars to contain the run away inflation which stood at 9.06 per cent in February 2010.
The government is worried as the low income groups in both rural and urban areas are suffering due to inflation caused rising food price.
According to Bangladesh Bureau of Statistics, the food price induced inflation last February recorded 10.34 per cent rise in rural and 12.34 per cent increase in urban areas.
This was the second directive by BB that on Tuesday imposed a restriction on the commercial banks against credit facilities for purchase of land.
In its latest quarterly report, the BB said the inflated prices of land and easy bank loans for car purchase were the elements which might escalate inflation in the near future.
Bangladesh Institute of Development Studies executive director MK Mujeri told New Age that the central bank should have imposed such restrictions much earlier.
He pointed that the BB should enhance monitoring on credit facilities for unproductive sectors which pushed up inflation and hampered the country’s economic growth.
The BB officials said credit facilities by the commercial banks for purchasing land were leading to exorbitant rise in land prices. They calculated that loans on land stood over Tk 400 crore from Tk 290 crore in 2008, recording a rise of more than 100 crore in one year.
Bangladesh Road Transport Authority officials said sales of cars, microbuses, station wagons and jeeps jumped by 30 per cent alone in Dhaka in one year as 24,457 vehicles were registered in 2009 against 18,826 in 2008.
Former president of Bangladesh Reconditioned Vehicles Importers and Dealers Association Abdul Haque observed that affordability of city dwellers in purchasing cars enhanced because of easy bank loans.
Experts said money flow to such unproductive sectors was putting adverse impacts on the country's economy by pushing up the inflation.
They observed that many took loans from banks and purchased land, the value of which has been rising every year because of high demand.
DEVELOPING NEWS
The Power Development Board on Thursday initialed agreements for three more unsolicited agreements with two local companies for installation of three 100MW furnace oil-based rental power plants by nine months.
The PDB and Summit Group initialed agreements for installation of a 105MW furnace oil-based plant at Khulna and a 103MW plant at Madanganj without any tender.
A concern of the Summit Group, the Khulna Power Company Ltd, which operates a 100MW independent power
plant at Khulna, will install the 105MW plant adjacent to the existing plant after the Cabinet committee on purchase approves the deal.
Another concern of the group, Summit Power Ltd, will install the Madanganj plant which will also be run by furnace oil.
The Summit Group is mostly owned by Md Aziz Khan, a brother of commerce minister Faruk Khan.
The PDB and another local company, Integrated Power Ltd, a concern of the Orion Group, initialed another agreement for installation of a 100MW plant at Kodda in Gazipur.
The price of the electricity from these plants might be between Tk 7 and Tk 8 per unit, said PDB officials.
The PDB, which had earlier initialed two agreements with two other companies — UK-based Aggreko and local Desh Energy — for installation of three 100MW diesel-fired plants, fixed the prices through negotiation.
The Cabinet’s purchase committee on Thursday approved the selection of Aggreko for two 100MW plants at Khulna and Ghorashal, and of Desh Energy for a 100MW plant at Siddhirganj.
The six new power plants will add around 600MW of electricity to the national grid within the next four to nine months, said officials.
The government decided to go for unsolicited power plants after it
failed to complete the
tender procedures for a number of power plants in time.
Many PDB officials alleged that the tender procedures were intentionally delayed in some cases to push through unsolicited deals.
The country currently faces a shortage of around 1500MW of load shedding during evening peak
hours.
The PDB generates around 4,00MW of electricity against the demand of 5,500-6,000MW.
The PDB and Summit Group initialed agreements for installation of a 105MW furnace oil-based plant at Khulna and a 103MW plant at Madanganj without any tender.
A concern of the Summit Group, the Khulna Power Company Ltd, which operates a 100MW independent power
plant at Khulna, will install the 105MW plant adjacent to the existing plant after the Cabinet committee on purchase approves the deal.
Another concern of the group, Summit Power Ltd, will install the Madanganj plant which will also be run by furnace oil.
The Summit Group is mostly owned by Md Aziz Khan, a brother of commerce minister Faruk Khan.
The PDB and another local company, Integrated Power Ltd, a concern of the Orion Group, initialed another agreement for installation of a 100MW plant at Kodda in Gazipur.
The price of the electricity from these plants might be between Tk 7 and Tk 8 per unit, said PDB officials.
The PDB, which had earlier initialed two agreements with two other companies — UK-based Aggreko and local Desh Energy — for installation of three 100MW diesel-fired plants, fixed the prices through negotiation.
The Cabinet’s purchase committee on Thursday approved the selection of Aggreko for two 100MW plants at Khulna and Ghorashal, and of Desh Energy for a 100MW plant at Siddhirganj.
The six new power plants will add around 600MW of electricity to the national grid within the next four to nine months, said officials.
The government decided to go for unsolicited power plants after it
failed to complete the
tender procedures for a number of power plants in time.
Many PDB officials alleged that the tender procedures were intentionally delayed in some cases to push through unsolicited deals.
The country currently faces a shortage of around 1500MW of load shedding during evening peak
hours.
The PDB generates around 4,00MW of electricity against the demand of 5,500-6,000MW.
NEWS
Cabinet body Okays 3 unsolicited power plants
Govt has to give Tk 200cr in subsidy a month for 300MW
The Cabinet Committee on Purchase, for the first time, on Thursday approved the Power Division’s proposal to award contracts without any tender to two companies for three ‘quickly built rental power plants’ in order to purchase, by four months, 300MW of high-cost electricity for three years.
The Power Division on Wednesday sent the proposal to the committee, headed by finance minister Abul Maal Abdul Muhith, to purchase electricity from the three unsolicited plants, although the prices asked by two plants are higher than those of two recently tendered rental power plants. The committee swiftly approved the unprecedented proposal.
In its proposal the division said that the government would have to give the Power Development Board around Tk 200 crore in subsidy per month for buying electricity from these diesel-based plants.
The committee approved the division’s proposal to award a contract to local company Desh Energy Ltd, which is partially owned by an influential business leader, for installation of a 100MW diesel-fired plant at Siddhirganj or any other place in the country.
The company, which will install a 50MW plant in the first phase by three and a half month and the other plant by four months, has set the price of electricity at Tk 13.32 per unit.
This company had earlier failed to install in time a 10MW plant in Sylhet.
The committee also approved selection of the UK-based Aggreko International Ltd for installation of two 100MW diesel-fired plants at Khulna and Ghorashal. The company’s asking price for electricity is Tk 14.39 per unit.
The PDB recently signed three-year agreements with two other companies for installation of a 110MW diesel-fired rental plant at Bheramara with the price of electricity set at Tk 12.58 per unit and a 50MW plant in Thakurgaon with the price set at Tk 13.74 per unit.
Both these companies were selected through competitive bidding, whereas a committee, headed by power secretary M Abul Kalam Azad, finalised the prices of electricity for the unsolicited deals through negotiations.
Aggreko, which was earlier selected for installation of a 40MW rental power plant in Khulna through tender, is selling electricity to PDB from the plant at a rate of Tk 14.78 per unit, which is higher than the proposed price for power from the Khulna and Ghorashal plants, claimed PDB officials.
The division in its proposal said that the government would have to provide PDB Tk 140 crore in subsidies per month for the unsolicited Khulna and Ghorashal plants and Tk 64 crore for the Siddhirganj plant.
The division started to negotiate with various companies for unsolicited deals after Prime Minister Sheikh Hasina, in the first week of April, gave the go-ahead to its plan for allowing installation of power plants without bidding to ‘add around 500MW of electricity on an emergency basis’.
The division claimed that it took time to complete the tender process and that the Public Procurement Act 2006 had a provision for emergency procurement through ‘direct purchase’ without any bidding.
The division completed the negotiations and sent the proposal for the unsolicited plants to the purchase committee within three weeks although it has not completed the tender procedure for a large 450MW independent power plant in Bibiyana in more than 15 months.
‘Many PDB and division officials are more interested in going for unsolicited deals than tendered deals,’ observed an official, adding that unsolicited deals give more scope for underhand dealings.
The Power Division on Wednesday sent the proposal to the committee, headed by finance minister Abul Maal Abdul Muhith, to purchase electricity from the three unsolicited plants, although the prices asked by two plants are higher than those of two recently tendered rental power plants. The committee swiftly approved the unprecedented proposal.
In its proposal the division said that the government would have to give the Power Development Board around Tk 200 crore in subsidy per month for buying electricity from these diesel-based plants.
The committee approved the division’s proposal to award a contract to local company Desh Energy Ltd, which is partially owned by an influential business leader, for installation of a 100MW diesel-fired plant at Siddhirganj or any other place in the country.
The company, which will install a 50MW plant in the first phase by three and a half month and the other plant by four months, has set the price of electricity at Tk 13.32 per unit.
This company had earlier failed to install in time a 10MW plant in Sylhet.
The committee also approved selection of the UK-based Aggreko International Ltd for installation of two 100MW diesel-fired plants at Khulna and Ghorashal. The company’s asking price for electricity is Tk 14.39 per unit.
The PDB recently signed three-year agreements with two other companies for installation of a 110MW diesel-fired rental plant at Bheramara with the price of electricity set at Tk 12.58 per unit and a 50MW plant in Thakurgaon with the price set at Tk 13.74 per unit.
Both these companies were selected through competitive bidding, whereas a committee, headed by power secretary M Abul Kalam Azad, finalised the prices of electricity for the unsolicited deals through negotiations.
Aggreko, which was earlier selected for installation of a 40MW rental power plant in Khulna through tender, is selling electricity to PDB from the plant at a rate of Tk 14.78 per unit, which is higher than the proposed price for power from the Khulna and Ghorashal plants, claimed PDB officials.
The division in its proposal said that the government would have to provide PDB Tk 140 crore in subsidies per month for the unsolicited Khulna and Ghorashal plants and Tk 64 crore for the Siddhirganj plant.
The division started to negotiate with various companies for unsolicited deals after Prime Minister Sheikh Hasina, in the first week of April, gave the go-ahead to its plan for allowing installation of power plants without bidding to ‘add around 500MW of electricity on an emergency basis’.
The division claimed that it took time to complete the tender process and that the Public Procurement Act 2006 had a provision for emergency procurement through ‘direct purchase’ without any bidding.
The division completed the negotiations and sent the proposal for the unsolicited plants to the purchase committee within three weeks although it has not completed the tender procedure for a large 450MW independent power plant in Bibiyana in more than 15 months.
‘Many PDB and division officials are more interested in going for unsolicited deals than tendered deals,’ observed an official, adding that unsolicited deals give more scope for underhand dealings.
STOCK MARKET
DSE finishes week flat
Dhaka stocks finished the week flat with the DSE general index losing 0.96 points on Thursday, the last trading day of the week.
The general index of Dhaka Stock Exchange shed 0.01 per cent to close at 5,654.87 points, while DSE all share price index lost 3.14 points, or 0.06 per cents, to close at 4,641.53 points.
Turnover at the DSE, however, increased by Tk 23.93 crore to Tk 1,359.42 crore from Wednesday’s Tk 1,365.48 crore.
Of the total 250 issues traded, 89 advanced, 159 declined, and two remained unchanged.
Beximco topped the turnover leaders with a total transaction of Tk 146.58 crore.
The general index of Dhaka Stock Exchange shed 0.01 per cent to close at 5,654.87 points, while DSE all share price index lost 3.14 points, or 0.06 per cents, to close at 4,641.53 points.
Turnover at the DSE, however, increased by Tk 23.93 crore to Tk 1,359.42 crore from Wednesday’s Tk 1,365.48 crore.
Of the total 250 issues traded, 89 advanced, 159 declined, and two remained unchanged.
Beximco topped the turnover leaders with a total transaction of Tk 146.58 crore.
NATIONAL NEWS
The Afil Jute Mills Limited in the Atra industrial belt in Khulna on Thursday announced lay-off at the mill’s loom section for a month, effective from Thursday morning.
The laborers’ said the lay-off had been announced because of an abnormal increase in raw jute and frequent power outages that were forcing the mill to incur losses.
The mill’s director Beg Abdur Razzak Raj said lay-off had been announced only at the mill’s loom section for a month as the production cost went up more than the sales price because of raw jute price increase and frequent power outages.
He said the mill had 1,450 laborers’ and only 152 laborers’ had come under the lay-off and they will get the lay-off benefits soon.
The laborers’ said the lay-off had been announced because of an abnormal increase in raw jute and frequent power outages that were forcing the mill to incur losses.
The mill’s director Beg Abdur Razzak Raj said lay-off had been announced only at the mill’s loom section for a month as the production cost went up more than the sales price because of raw jute price increase and frequent power outages.
He said the mill had 1,450 laborers’ and only 152 laborers’ had come under the lay-off and they will get the lay-off benefits soon.
STOCK NEWS
BOC Bangladesh
The Company has informed that the 37th annual general meeting of the company will be held on May 13 at 10:30am at the Officers’ Club at Baily Road in Dhaka.
Ambee Pharma
The board of directors has recommended 30 per cent cash dividend (Tk 3 per share of Tk 10 each) for the year 2009. The AGM of the company will be held on June 29 at 10:00am at House No 1, Road No 71, Gulshan Avenue in Dhaka. Record date will be on May 25.
Pragati Insurance
Mohammad Abdul Awwal, one the of sponsors/directors of the company reported his intention to sell 5,000 shares out of his total holdings of 89,362 shares of the company at prevailing market price through the stock exchange within next 30 working days.
Dhaka Insurance
The board of directors has recommended 15 per cent cash dividend for the year 2009. The AGM of the company will be held on June 28 at 10:30am at the Officers Club in Dhaka. Record date will be on May 10.
Eastern Insurance
The board of directors has recommended 20 per cent stock dividend (one bonus share for every five shares held) for the year 2009. The board has also taken a special resolution to offer one right share for every one share at an issue price of Tk 300 each (including a premium of Tk 200 each) subject to the approval of shareholders in the EGM and regulatory authorities. The board has also decided to increase authorized capital of the company from Tk 25 crore to Tk 100 crore and accordingly, memorandum and articles of association of the company will be amended subject to approval of shareholders in the EGM and regulatory authorities. The EGM and the AGM will be held on July 7 at 11:00am and 11:30am respectively at the Spectra Convention Centre in Dhaka. Another record date for entitlement of the proposed rights share will be notified later after obtaining approval from the SEC.
Aramit Cement
The board of directors has recommend 12 per cent cash dividend (Tk 12 per share of Tk 100 each) for the year 2009. The AGM of the company will be held on June 26 at 1:00pm at the Peninsula on the Nizam Road in Chittagong. Record date will be on May 19.
Aramit
The board of directors has recommended 15 per cent cash dividend (Tk 1.50 per share of Tk 10 each) and 50 per cent stock dividend (one share for two shares held) for the year 2009. The AGM of the company will be held on June 26 at 12:15pm at the Peninsula on the Nizam Road in Chittagong. Record date will be on May 10.
Standard Insurance
The board of directors has recommended 10 per cent stock dividend for the year 2009. The AGM of the company will be held on June 27 at 10:30am at the Spectra Convention Centre in Dhaka. Record date will be on May 12.
Nitol Insurance
The board of directors has recommended 12 per cent stock dividend for the year 2009. The AGM of the company will be held on June 24 at 11:00am at the Trust Milanayatan in Dhaka. Record date will be on May 11.
BGIC
The board of directors has recommended 10 per cent stock dividend for the year 2009. The board has also decided to hold an EGM to increase authorized capital of the company from Tk 50 crore to Tk 100 crore subject to the approval of shareholders and regulatory authorities. The AGM and the EGM will be held on June 29 at 5:00pm and 5:45pm respectively at the Dhaka Ladies Club on Eskaton Garden Road. Record date for the AGM and EGM will be on May 9.
Ambee Pharma
The board of directors has recommended 30 per cent cash dividend (Tk 3 per share of Tk 10 each) for the year 2009. The AGM of the company will be held on June 29 at 10:00am at House No 1, Road No 71, Gulshan Avenue in Dhaka. Record date will be on May 25.
Pragati Insurance
Mohammad Abdul Awwal, one the of sponsors/directors of the company reported his intention to sell 5,000 shares out of his total holdings of 89,362 shares of the company at prevailing market price through the stock exchange within next 30 working days.
Dhaka Insurance
The board of directors has recommended 15 per cent cash dividend for the year 2009. The AGM of the company will be held on June 28 at 10:30am at the Officers Club in Dhaka. Record date will be on May 10.
Eastern Insurance
The board of directors has recommended 20 per cent stock dividend (one bonus share for every five shares held) for the year 2009. The board has also taken a special resolution to offer one right share for every one share at an issue price of Tk 300 each (including a premium of Tk 200 each) subject to the approval of shareholders in the EGM and regulatory authorities. The board has also decided to increase authorized capital of the company from Tk 25 crore to Tk 100 crore and accordingly, memorandum and articles of association of the company will be amended subject to approval of shareholders in the EGM and regulatory authorities. The EGM and the AGM will be held on July 7 at 11:00am and 11:30am respectively at the Spectra Convention Centre in Dhaka. Another record date for entitlement of the proposed rights share will be notified later after obtaining approval from the SEC.
Aramit Cement
The board of directors has recommend 12 per cent cash dividend (Tk 12 per share of Tk 100 each) for the year 2009. The AGM of the company will be held on June 26 at 1:00pm at the Peninsula on the Nizam Road in Chittagong. Record date will be on May 19.
Aramit
The board of directors has recommended 15 per cent cash dividend (Tk 1.50 per share of Tk 10 each) and 50 per cent stock dividend (one share for two shares held) for the year 2009. The AGM of the company will be held on June 26 at 12:15pm at the Peninsula on the Nizam Road in Chittagong. Record date will be on May 10.
Standard Insurance
The board of directors has recommended 10 per cent stock dividend for the year 2009. The AGM of the company will be held on June 27 at 10:30am at the Spectra Convention Centre in Dhaka. Record date will be on May 12.
Nitol Insurance
The board of directors has recommended 12 per cent stock dividend for the year 2009. The AGM of the company will be held on June 24 at 11:00am at the Trust Milanayatan in Dhaka. Record date will be on May 11.
BGIC
The board of directors has recommended 10 per cent stock dividend for the year 2009. The board has also decided to hold an EGM to increase authorized capital of the company from Tk 50 crore to Tk 100 crore subject to the approval of shareholders and regulatory authorities. The AGM and the EGM will be held on June 29 at 5:00pm and 5:45pm respectively at the Dhaka Ladies Club on Eskaton Garden Road. Record date for the AGM and EGM will be on May 9.
UPDATE------APRIL 29, 2010 THURSDAY
BANGLADESH-------NEWS REVIEW
DEVELOPING NEWS
UNSOLICITED RENTAL POWER PLANT DEALS
Purchase body to decide today 3 proposals to add 300MW
Purchase body to decide today 3 proposals to add 300MW
The Cabinet committee on purchase is likely to decide today, in response to a proposal by the Power Division, to award contracts for three ‘quickly built rental power plants’ to two companies without any tender, in order to purchase by four months 300MW of high-cost electricity for three years.
The division on Wednesday sent the proposal to the committee, headed by finance minister Abul Maal Abdul Muhith, to purchase electricity from the three unsolicited plants, although the prices asked by two plants are higher than that of two recently tendered rental power plants.
The division placed the proposal before the committee on Wednesday but the committee decided to make a decision today.
In its proposal the division said that the government would have to give the Power Development Board around Tk 200 crore in subsidy per month for purchasing electricity from these diesel-based plants.
The division recommended selection of local company Desh Energy Ltd, which is partially owned by an influential business leader, for installation of a 100MW diesel-fired plant at Siddhirganj or any other place in the country.
The company has set the price of electricity, which the PDB will buy, at Tk 13.32 per unit.
The division also recommended selection of the UK-based Aggreko International Ltd for installation of two 100MW diesel-fired plants at Khulna and Ghorashal. The company’s asking price for electricity is Tk 14.39 per unit for three years.
The PDB recently signed three-year agreements with two other companies for installation of a 110MW diesel-fired rental plant at Bheramara with the price of electricity set at Tk 12.58 per unit and a 50MW plant in Thakurgaon with the price set at Tk 13.74 per unit.
Both the companies were selected through competitive bidding, whereas a committee, headed by the power secretary, M Abul Kalam Azad, finalised the prices of electricity for the unsolicited deals through negotiations.
Aggreko, which was earlier selected for installation of a 40MW rental power plant in Khulna through tender, is selling electricity to PDB from the plant at a rate of Tk 14.78 per unit, which is higher than the proposed price for Khulna and Ghorashal power plants, claimed PDB officials.
The division started to negotiate with various companies for unsolicited deals after Prime Minister Sheikh Hasina, in the first week of April, gave the go-ahead to its plan for allowing installation of power plants without bidding to ‘add around 500MW of electricity on an emergency basis’.
The division claimed that it took time to complete the tender process and that the Public Procurement Act 2006 had a provision for emergency purchase through ‘direct purchase’ without any bidding.
The economic affairs committee, headed by Muhith, last week authorized the Power Division to directly purchase electricity from emergency power plants.
This is the first time that the government is set to strike unsolicited power plant deals.
The division on Wednesday sent the proposal to the committee, headed by finance minister Abul Maal Abdul Muhith, to purchase electricity from the three unsolicited plants, although the prices asked by two plants are higher than that of two recently tendered rental power plants.
The division placed the proposal before the committee on Wednesday but the committee decided to make a decision today.
In its proposal the division said that the government would have to give the Power Development Board around Tk 200 crore in subsidy per month for purchasing electricity from these diesel-based plants.
The division recommended selection of local company Desh Energy Ltd, which is partially owned by an influential business leader, for installation of a 100MW diesel-fired plant at Siddhirganj or any other place in the country.
The company has set the price of electricity, which the PDB will buy, at Tk 13.32 per unit.
The division also recommended selection of the UK-based Aggreko International Ltd for installation of two 100MW diesel-fired plants at Khulna and Ghorashal. The company’s asking price for electricity is Tk 14.39 per unit for three years.
The PDB recently signed three-year agreements with two other companies for installation of a 110MW diesel-fired rental plant at Bheramara with the price of electricity set at Tk 12.58 per unit and a 50MW plant in Thakurgaon with the price set at Tk 13.74 per unit.
Both the companies were selected through competitive bidding, whereas a committee, headed by the power secretary, M Abul Kalam Azad, finalised the prices of electricity for the unsolicited deals through negotiations.
Aggreko, which was earlier selected for installation of a 40MW rental power plant in Khulna through tender, is selling electricity to PDB from the plant at a rate of Tk 14.78 per unit, which is higher than the proposed price for Khulna and Ghorashal power plants, claimed PDB officials.
The division started to negotiate with various companies for unsolicited deals after Prime Minister Sheikh Hasina, in the first week of April, gave the go-ahead to its plan for allowing installation of power plants without bidding to ‘add around 500MW of electricity on an emergency basis’.
The division claimed that it took time to complete the tender process and that the Public Procurement Act 2006 had a provision for emergency purchase through ‘direct purchase’ without any bidding.
The economic affairs committee, headed by Muhith, last week authorized the Power Division to directly purchase electricity from emergency power plants.
This is the first time that the government is set to strike unsolicited power plant deals.
NEWS IN FOCUS
Govt to amend foreign exchange regulation act to attract FDI
The government has decided to amend the foreign exchange regulation act 1947 for attracting more foreign investments into the country, official sources said.
It will also amend the Bankers’ Book Evidence Act 1891 for making it time-befitting.
To this end, the finance ministry on Tuesday formed a five-member committee headed by the executive director of foreign exchange policy department of Bangladesh Bank.
Other members of the committee are deputy secretary of the law and parliamentary affair ministry (Bank and financial institutions division), general managers of the FEPD and banking regulation and policy department of Bangladesh Bank.
The committee would submit its report to the authorities concerned within two months while the Bangladesh Bank would provide the committee secretarial assistance.
‘The government wants to attract more foreign investments by making the act time-befitting for the foreign investors,’ said a senior official of the finance ministry.
The official pointed out that capital account is still not transferable under the existing foreign exchange regulation act.
The committee would give suggestions after examining the provisions of foreign exchange regulation act 1947 in comparison with that of neighboring countries.
But some Bangladesh Bank sources claimed that Bangladesh’s foreign exchange regulation act is more liberal compared to that of India and Pakistan.
They pointed out that people are transferring up to $ 5,000 from the country for medical and education purposes.
‘The country’s capital account is not still transferable but the current account is liberal,’ one of the officials said.
Executive director of D-Net Ananya Raihan told New Age that the country’s foreign exchange act is of old days compared to that of India.
‘The local investor does not invest in foreign countries as there is a bar under the country’s foreign exchange act,’ he said.
Raihan said that local people are not yet transferring their money through online channels, abiding by the foreign exchange rules.
‘Indian people are already transferring their money through online channels under its foreign exchange act,’ he added.
Former chairman of Regulatory Reforms Commission Akbar Ali Khan said that the government should conduct a thorough research into the probable changes to the foreign exchange regulatory acts.
It will also amend the Bankers’ Book Evidence Act 1891 for making it time-befitting.
To this end, the finance ministry on Tuesday formed a five-member committee headed by the executive director of foreign exchange policy department of Bangladesh Bank.
Other members of the committee are deputy secretary of the law and parliamentary affair ministry (Bank and financial institutions division), general managers of the FEPD and banking regulation and policy department of Bangladesh Bank.
The committee would submit its report to the authorities concerned within two months while the Bangladesh Bank would provide the committee secretarial assistance.
‘The government wants to attract more foreign investments by making the act time-befitting for the foreign investors,’ said a senior official of the finance ministry.
The official pointed out that capital account is still not transferable under the existing foreign exchange regulation act.
The committee would give suggestions after examining the provisions of foreign exchange regulation act 1947 in comparison with that of neighboring countries.
But some Bangladesh Bank sources claimed that Bangladesh’s foreign exchange regulation act is more liberal compared to that of India and Pakistan.
They pointed out that people are transferring up to $ 5,000 from the country for medical and education purposes.
‘The country’s capital account is not still transferable but the current account is liberal,’ one of the officials said.
Executive director of D-Net Ananya Raihan told New Age that the country’s foreign exchange act is of old days compared to that of India.
‘The local investor does not invest in foreign countries as there is a bar under the country’s foreign exchange act,’ he said.
Raihan said that local people are not yet transferring their money through online channels, abiding by the foreign exchange rules.
‘Indian people are already transferring their money through online channels under its foreign exchange act,’ he added.
Former chairman of Regulatory Reforms Commission Akbar Ali Khan said that the government should conduct a thorough research into the probable changes to the foreign exchange regulatory acts.
SAARC SUMMIT UPDATE
Sri Lanka may import ceramics, medicine from Bangladesh
Sri Lanka is considering importing good quality ceramics, pharmaceuticals, plastic-wares, CI sheets and construction materials from Bangladesh.
Sri Lankan president Mahinda Rajapakse expressed his interest to import the products when Prime Minister Sheikh Hasina called on him at Sri Lanka House in the SAARC village on Wednesday.
During the meeting, they discussed wide range of bilateral issues including increasing Sri Lankan investment to Bangladesh and expansion of trade and business between the two SAARC countries.
After the meeting, prime minister’s press secretary Abul Kalam Azad briefed the newsmen.
The Bangladesh Premier said there are huge demand of Bangladeshi pharmaceuticals, ceramic, leather and leather goods and plastic wares in different countries across the world.
She said Sri Lanka can import these products for the benefit of the two people.
Besides, the Sri Lankan government and private sectors entrepreneurs can invest more in the country’s RMG, textile and banking sectors considering their prospects and taking the advantage of government’s investment-friendly investment policy.
Foreign minister Dipu Moni, state minister for environment and forest Hasan Mahmud, ambassador at large M Ziauddin and principal secretary MA Karim and press Secretary Abul Kalam Azad were present on the occasion.
Sri Lankan president Mahinda Rajapakse expressed his interest to import the products when Prime Minister Sheikh Hasina called on him at Sri Lanka House in the SAARC village on Wednesday.
During the meeting, they discussed wide range of bilateral issues including increasing Sri Lankan investment to Bangladesh and expansion of trade and business between the two SAARC countries.
After the meeting, prime minister’s press secretary Abul Kalam Azad briefed the newsmen.
The Bangladesh Premier said there are huge demand of Bangladeshi pharmaceuticals, ceramic, leather and leather goods and plastic wares in different countries across the world.
She said Sri Lanka can import these products for the benefit of the two people.
Besides, the Sri Lankan government and private sectors entrepreneurs can invest more in the country’s RMG, textile and banking sectors considering their prospects and taking the advantage of government’s investment-friendly investment policy.
Foreign minister Dipu Moni, state minister for environment and forest Hasan Mahmud, ambassador at large M Ziauddin and principal secretary MA Karim and press Secretary Abul Kalam Azad were present on the occasion.
STOCK MARKET
DSE gains on bank stocks
Dhaka stocks gained on Wednesday, led by bank and non-bank financial institutions.
Market operators said the finance minister’s comments on face value of shares in the previous day gave a positive signal to the market.
Finance minister Abul Maal Abdul Muhith on Tuesday said the finance ministry would consider a proposal of the Securities and Exchange Commission to allow companies issue shares at a minimum face value of Tk 10.
DSE general index on Wednesday gained 11.64 points, or 0.20 per cent, to close at 5,655.83 points, while DSE all share price index rose by 6 points, or 0.12 per cents, to close at 4,644.67 points.
Turnover at the DSE increased to Tk 1,365.48 crore from Tuesday’s Tk 1,172.25 crore.
Of the total 252 issues traded, 128 advanced, 121 declined, and three remained unchanged.
Beximco topped the turnover leaders with a total transaction of Tk 76.51 crore.
Exim Bank, Summit Power, Social Islami Bank, Southeast Bank, LankaBangla Finance, Titas Gas, Premier Bank, DESCO, and Beximco Pharmaceuticals were the rest of the top 10 turnover leaders on the day.
Market operators said the finance minister’s comments on face value of shares in the previous day gave a positive signal to the market.
Finance minister Abul Maal Abdul Muhith on Tuesday said the finance ministry would consider a proposal of the Securities and Exchange Commission to allow companies issue shares at a minimum face value of Tk 10.
DSE general index on Wednesday gained 11.64 points, or 0.20 per cent, to close at 5,655.83 points, while DSE all share price index rose by 6 points, or 0.12 per cents, to close at 4,644.67 points.
Turnover at the DSE increased to Tk 1,365.48 crore from Tuesday’s Tk 1,172.25 crore.
Of the total 252 issues traded, 128 advanced, 121 declined, and three remained unchanged.
Beximco topped the turnover leaders with a total transaction of Tk 76.51 crore.
Exim Bank, Summit Power, Social Islami Bank, Southeast Bank, LankaBangla Finance, Titas Gas, Premier Bank, DESCO, and Beximco Pharmaceuticals were the rest of the top 10 turnover leaders on the day.
SAARC SUMMIT
Nepal, Bhutan could export hydro-power to Bangladesh: PM
Prime minister Sheikh Hasina on Wednesday said Nepal and Bhutan could generate more hydro-electricity by using the water resources and export those to Bangladesh for
the benefit of the three countries.
The Himalayan mountains state Nepal has ample opportunity to produce more hydro-electricity due to its geographical location and can export to Bangladesh, she said when the prime minister of Nepal Madhav Kumar Nepal paid a call on her at Bangladesh House in SAARC village.
During the meeting, they discussed wide range of bilateral issues including expansion of trade and business between the two countries, establishing inter-country road connectivity and the possibility of using land and sea ports of Bangladesh by Nepal for the economic benefit of both the countries.
Describing poverty as a common enemy in the South Asian region, Sheikh Hasina underlined the need for taking concerted efforts to eradicate poverty from the region. In this context, she said it is high time to fight against poverty unitedly as all countries in the region now have democratic governments.
The Nepalese prime minister expressed his government’s firm commitment to work together with Bangladesh and with other Asian countries to economic benefit of the people in the region.
the benefit of the three countries.
The Himalayan mountains state Nepal has ample opportunity to produce more hydro-electricity due to its geographical location and can export to Bangladesh, she said when the prime minister of Nepal Madhav Kumar Nepal paid a call on her at Bangladesh House in SAARC village.
During the meeting, they discussed wide range of bilateral issues including expansion of trade and business between the two countries, establishing inter-country road connectivity and the possibility of using land and sea ports of Bangladesh by Nepal for the economic benefit of both the countries.
Describing poverty as a common enemy in the South Asian region, Sheikh Hasina underlined the need for taking concerted efforts to eradicate poverty from the region. In this context, she said it is high time to fight against poverty unitedly as all countries in the region now have democratic governments.
The Nepalese prime minister expressed his government’s firm commitment to work together with Bangladesh and with other Asian countries to economic benefit of the people in the region.
STOCK MARKET
Market Disclosures
Fu Wang Food
Chang Yu Shun, one of the sponsors/directors of the company, has reported his intention to sell 2,30,000 shares out of his total holdings of 2,30,650 shares of the company at prevailing market price through the stock exchange within April 29.
Asia Pacific General Insurance Co
Moynul Haque Siddiqui, one of the sponsors/directors of the company, has reported his intention to sell 11,550 shares out of his total holdings of 66,550 shares of the company at prevailing market price through the stock exchange within next 30 working days.
NCC Bank
SM Abu Mohsin and Monowara Begum, both are sponsors/directors of the bank, have reported their intention to sell 1,00,000 and 25,000 shares out of their total holdings of 2,17,237 and 1,17,141 shares respectively at prevailing market price through the stock exchange within next 30 working days.
Jamuna Bank
The bank has informed that the board of directors of the bank has decided in principle to change the denomination of shares of the bank from Tk 100 to Tk 10 each and determined the market lot of shares from 50 to 250 shares per lot subject to approva1 from regulatory bodies and by the shareholders in the 10th EGM of the bank which will be held on June 13 at 11:00am as announced earlier to adopt special resolution to amend the related clause of the memorandum of association and articles of association of the bank.
Global Insurance
The board of directors has recommended 10 per cent stock dividend for the year 2009 subject to approval by the respective authorities. The AGM of the company will be held on July 17 at 11:00am at Institution of Diploma Engineers, Bangladesh in Dhaka. Record date will be on May 16.
BD Thai Aluminum
The board of directors has recommended 5 per cent cash dividend and 20 per cent stock dividend (one bonus share for every five shares held) for the year 2009. The AGM of the company will be May 29 at 11:30 am at the factory premises at Kaliakoir in Gazipur. Record date will be on May 9.
Aziz Pipes
The board of directors did not recommend any dividend for the year 2009. The AGM of the company will be held on June 10 at 10:00am at Trust Milanayatan at Dhaka Cantonment in Dhaka. Record date will be on May 18. The board has also decided to revalue the assets of the company and appointed BUET for the work of revaluation.
Chang Yu Shun, one of the sponsors/directors of the company, has reported his intention to sell 2,30,000 shares out of his total holdings of 2,30,650 shares of the company at prevailing market price through the stock exchange within April 29.
Asia Pacific General Insurance Co
Moynul Haque Siddiqui, one of the sponsors/directors of the company, has reported his intention to sell 11,550 shares out of his total holdings of 66,550 shares of the company at prevailing market price through the stock exchange within next 30 working days.
NCC Bank
SM Abu Mohsin and Monowara Begum, both are sponsors/directors of the bank, have reported their intention to sell 1,00,000 and 25,000 shares out of their total holdings of 2,17,237 and 1,17,141 shares respectively at prevailing market price through the stock exchange within next 30 working days.
Jamuna Bank
The bank has informed that the board of directors of the bank has decided in principle to change the denomination of shares of the bank from Tk 100 to Tk 10 each and determined the market lot of shares from 50 to 250 shares per lot subject to approva1 from regulatory bodies and by the shareholders in the 10th EGM of the bank which will be held on June 13 at 11:00am as announced earlier to adopt special resolution to amend the related clause of the memorandum of association and articles of association of the bank.
Global Insurance
The board of directors has recommended 10 per cent stock dividend for the year 2009 subject to approval by the respective authorities. The AGM of the company will be held on July 17 at 11:00am at Institution of Diploma Engineers, Bangladesh in Dhaka. Record date will be on May 16.
BD Thai Aluminum
The board of directors has recommended 5 per cent cash dividend and 20 per cent stock dividend (one bonus share for every five shares held) for the year 2009. The AGM of the company will be May 29 at 11:30 am at the factory premises at Kaliakoir in Gazipur. Record date will be on May 9.
Aziz Pipes
The board of directors did not recommend any dividend for the year 2009. The AGM of the company will be held on June 10 at 10:00am at Trust Milanayatan at Dhaka Cantonment in Dhaka. Record date will be on May 18. The board has also decided to revalue the assets of the company and appointed BUET for the work of revaluation.
Singer shareholders to get 90pc dividend
Singer Bangladesh Limited held its 30th annual general meeting in Dhaka on Wednesday.
Members present at the meeting, presided over by its chairman Mahbub Jamil, approved 30 per cent final dividend in addition to payment of 60 per cent interim dividend, making 90 per cent for the year 2009 which is 200 per cent higher than that of last year, said a news release.
The meeting was told that the company contributed Tk 109.8 crore to the national exchequer in the form of corporate tax, customs duty and VAT.
Members present at the meeting, presided over by its chairman Mahbub Jamil, approved 30 per cent final dividend in addition to payment of 60 per cent interim dividend, making 90 per cent for the year 2009 which is 200 per cent higher than that of last year, said a news release.
The meeting was told that the company contributed Tk 109.8 crore to the national exchequer in the form of corporate tax, customs duty and VAT.
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