Weekly News Clippings (August 29, 2013)

ICT ministry to give people outsourcing training (The Financial Express, August 29, 2013)

The ministry of information and communication technology (MoICT) has initiated a move to impart training on outsourcing to make people self-reliant. The budget management committee of the ministry has proposed a project to the ministry concerned that will help people earn their livelihood by staying at their respective homes. The training will start from October and the estimated total cost of the training of the project is Tk 98.8 million. Trainees in 175 batches will take part in the two-day training programme and they are expected to help a total of 7 0,000 women to participate in the outsourcing training. Each batch will have minimum 40 participants. The training programme will continue till 2015.

SME credit disbursement increases (Dhaka Tribune, August 28, 2013)
The credit flow to small and medium sized enterprises during the second quarter of the current calendar year increased 16% from the first quarter, Bangladesh Bank sources said. According to central bank data, the total loan disbursement to SME sector rose to Tk225bn in the April-June from Tk194bn in the January-March. In total, the SME sector received a total of Tk419bn during the first half of the year. While SME credit flow has grown significantly, the private sector credit growth is appearing disappointing.

Fonterra products free of botulism, says New Zealand (BBC News, August 28, 2013)
New Zealand has said that Fonterra products at the centre of a global contamination scare did not contain botulism-causing bacteria. Earlier this month, Fonterra had said that some of its products were contaminated by a dirty pipe at one of its processing plants. The discovery led to inquiries into the contamination and triggered concerns over the impact on New Zealand’s dairy sector. Fonterra is the biggest dairy firm in New Zealand, which is the world’s largest exporter of dairy products. Meanwhile, Bangladesh customs authorities have restricted the import of more than 600 metric tonnes of powdered milk from Fonterra on Tuesday.  (See Bangladesh restricts Fonterra dairy products for details)

Govt, BGMEA seek to be part of factory inspection team (The Daily Star, August 28, 2013)
The government and garment exporters are disappointment to have been excluded from a core inspection committee by IndustriALL, a global trade union. The committee will inspect Bangladeshi factories under an accord signed by 85 global retailers and brands next month. According to an official of IndustriALL, the Bangladesh sides were barred from the panel as it fear that they could influence the inspection. Eight-five retailers and brands will pay $12.5 million each in the next five years for the inspection and as compensation to workers, but the Bangladesh government and the garment manufacturers will have no such contribution. The IndustriALL Global Union initiated the accord to inspect 800 factories after the deadliest Rana Plaza building collapse in Savar that claimed 1,132 lives in April.

GP to invest $345m in network expansion (Dhaka Tribune, August 28, 2013)
Grameenphone is set to receive $345 million funds from the International Finance Corporation (IFC), the private sector arm of the World Bank Group, to expand its coverage in the rural areas. Currently one of the largest private sector financing packages in Bangladesh, it is intends to increase access to telecom services for both voice and data, help smaller businesses create employment and support both public and private sectors to better deliver education, health and other basic services using mobile technology. IFC’s own investment in the package is $150 million, while the remainder came from a consortium of lenders that include Standard Chartered Bank.


GE gas turbines for Bhola power plant (The Daily Star, August 26, 2013)
General Electric (GE) will supply two gas turbine-generators to a power plant in Bhola, Bangladesh. The new plant is supporting a plan to increase electricity capacity nationwide from 8 to 20 gigawatts (GW) over the course of eight years, as it adds exports and prevents load shedding. China Chengda Engineering is an international contractor on the project ordering the two GE 6F gas turbines. Commercial energy consumption in Bangladesh is around 66 percent on gas-fired power. Bangladesh is reported to have very large natural gas resources, producing 2000 millions of cubic feet of gas per day (MMCFD) as of 2011, however, natural gas reserves are expected to be depleted by 2020.

Bangladesh Airlines to go public in 2016 (eTN, August 26, 2013)
Biman Bangladesh Airlines, the country’s flag carrier, is set to become profitable by 2015, after breaking even in the current fiscal year ending June 2014. According to a high official, the airline is also planning an initial public offering (IPO) in three years. The airline has already improved its on-time performance from 40 to 65 percent, reducing delays in flight operations. The airline carried 1.6 million passengers last year and is on course for a 30 percent growth this year. In order to improve yields, Biman is also focusing on increased business class passengers but only after improving its performance, reducing bottlenecks and offering a much better experience on board.

Rice revolution (The Daily Star, August 25, 2013)
The National Seed Board (NSB), the authority to approve new crop varieties, is due to give its approval of the country’s first biologically fortified rice variety. According to the agriculture ministry, the hi-zinc rice will also be the most early-mature variety to be grown in Aman season (another rice-growing season during November and December). Rice varieties, being cultivated in different countries of the world, have a maximum average zinc content of 14 to 16 parts per million (ppm), while the one bred by the BRRI scientists has 20 to 22 ppm.

Govt set to take $132m China hard loan for power plant (New Age, August 24, 2013)
A government committee on non-concessional loan is likely to approve a Power Division proposal to take $132 million in buyers’ credit from two banks of China with an interest rate of around 4 per cent for setting up a 150-mega watt power plant. The Economic Relations Division will place the Power Division’s proposal before the committee, headed by finance minister AMA Muhith, to take the loan from the Export Import Bank of China and Industrial and Commercial Bank of China.

Bangladesh to lead Asia Pacific’s telecom forum (The Daily Star, August 23, 2013) Bangladesh has been elected to lead the Asia Pacific Telecommunity and ICT Development Forum (ADF) which comprises 38 countries, for the next two years. Md Giasuddin Ahmed, vice chairman of Bangladesh Telecommunication Regulatory Commission (BTRC), will chair the forum. The forum works to bring together policymakers, regulators and other relevant officials from the region on issues of common concern with special attention on the rural areas in the developing countries.