Weekly News Clippings (June 27, 2013)

Govt floats tender for Padma’s main work (The Financial Express, June 27, 2013)

The government has finally floated an international tender for the main work of the much-expected Padma Bridge project. It has invited four international companies to submit bids for the construction work of the bridge. The Padma Multipurpose Bridge project was the present government's election pledge set to be completed by 2014, but its progress came to a halt over the issue of 'corruption conspiracy' raised by the World Bank after the bidding process began in 2010.

BGMEA probe accuses building, factory owners (Dhaka Tribune, June 26, 2013)

The Rana Plaza collapsed as rules were broken in every step of the way, the BGMEA found in its study. According to an investigation commissioned by the Bangladesh Garment Manufacturers’ and Exporters’ Association (BGMEA) the building was constructed using substandard materials, which were unable to bear the load of the six heavy-weight generators placed on the rooftop. Though the authorities concerned approved the construction of six floors on the swampy land, the building’s owner, Sohel Rana, added three more floors. The layout also permitted only two generators at the top of the building. Rana Plaza collapsed on April 24, killing more than 1,100 people and injuring thousands.

 

Gas shock halts life (The Daily Star, June 24, 2013)

Every home and factories that rely on gas supply experienced a steep fall in gas supplies on June 23 as a major gas field, Bibiyana, had to be shut down for emergency repair. Its US operator Chevron had noticed a leaking gasket in its gas processing plant that needed urgent repair. At present, the country consumes around 2,250 million cubic feet of gas per day — leaving a short supply of 500 mmcf. The Bibiyana field meets about one-third of the country’s daily demand for gas.

NBR loses Tk 40cr in a day of hartal (New Age, June 23, 2013)

A day’s hartal causes the government to lose Tk 39.90 crore in revenue from the international trade. According to a recent study conducted by the National Board of Revenue, in 10 days of hartal in March, the NBR lost a total of Tk 399 crore in duties from import and export businesses. The research and statistics wing finalised the study report based on the findings of its 14 field offices of customs and VAT and placed the report before NBR chairman Ghulam Hussain last week. Officials of the revenue board said that the total loss due to the hartals would have been higher if losses of value-added tax and income taxes were taken into consideration.

Govt borrowing from scheduled banks soars to Tk 24,189cr (New Age, June 22, 2013)

The government is borrowing heavily at the last stage of its tenure to meet its budgetary allocation. According to the latest Bangladesh Bank data, the government borrowing from the scheduled banks stood at Tk 24,188.82 crore as of June 12, 2013. A BB official said that the government had successfully contained the bank borrowing in the first 10 months of the current financial year, but it had to borrow a significant amount between May and June. If the government borrowing increases in the remaining days in June, the commercial banks might plunge into a liquidity crisis.

Canada investors pressure cos to sign Bangladesh safety accord (New Age, June 21, 2013)

A group of Canadian investors representing $44 billion in assets wants corporations to support the new Bangladesh safety accord, a broad agreement between factories, workers unions and garment companies launched after more than 1,100 workers died when a factory complex collapsed in April. The investors — which include the Public Service Alliance of Canada and Canadian Labour Congress — released a statement pressing for ‘timely and effective action to ensure respect for the fundamental human rights of workers in the supply chains of the companies in which they invest.’