Important Business News Extracts – February 09 2017
Economic affairs body approves deep sea gas exploration deal
The Cabinet Economic Affairs Committee on Wednesday in principle approved proposal to sign the final deal with South Korean company for oil and gas exploration in the deep sea block DS-12, reports UNB. According to the Energy Division’s proposal the final deal will be signed with South Korean Posco Daewoo International Corporation. Officials said state-owned Petrobangla earlier signed an initial deal with South Korean company Posco Daewoo for the block DS-12 on December 7 last year.
Bangladesh to get 2nd submarine cable connection on February 21
Bangladesh is going to connect with the second submarine cable on February 21 to get another 1500 gbps bandwidth, as the SEA-ME-WE 5 consortium is set to launch its global operation on this day, reports BSS. The South East Asia-Middle East-Western Europe 5 (SEA-ME-WE 5), a consortium of 15 leading telecom operators from 17 countries, would announce its operation at a ceremony in Turkish city of Istanbul, said officials.
Businesses will be exempt from depositing advance amounts of VAT for goods and services from July 01 next. The exemption will come into effect following enforcement of the new VAT law. Officials said the revenue board will abolish the provision of ‘account current register’ in the new VAT and Supplementary Duty Act 2012, up for taking effect on the first day of the next fiscal year. All businesses will be required to pay VAT at the time of submission of VAT returns every month instead of advance payment of the tax.
Bangladesh can become 28th largest economy by 2030: PwC
Bangladesh has the potential to become the world’s 23rd largest economy by 2050, overtaking countries such as Netherlands, Australia, Spain, Thailand and Malaysia, according to PricewaterhouseCoopers. PwC also predicted that Bangladesh would be the 28th largest economy by 2030, up from 31st in 2016. But this lift will depend largely on how the country moves to create jobs for the growing young people, said the report — ‘The Long View: how will the global economic order change by 2050?’ The report ranked 32 countries that altogether account for about 85.0% of the world’s GDP measured on a purchasing power parity basis. PPP is a method of currency valuation based on the premise that two identical goods in different countries should eventually cost the same. On a PPP basis, Bangladesh’s GDP would stand at USD 3064.0 billion in 2050, up from just USD 628.0 billion in 2016.
160km grid line to supply power from Pyra coal-fired plant
The government will install a 160-kilometre 400-kilovolt (kv) high-voltage power grid from Patuakhali to Gopalganj for carrying electricity from the proposed 1,320-megawatt (MW) coal-fired power plant, officials said Wednesday. Power Division officials said the Power Grid Company of Bangladesh (PGCB) has already undertaken the project to construct the power grid for supplying uninterrupted electricity from the upcoming 1320MW thermal power plant at Pyra. The PGCB has taken up the project at a cost of BDT 33.2 billion. PGCB has sent the project proposal to the Planning Commission (PC) for getting its approval.
Bangladesh expects disbursement of loans by the Asian Development Bank (ADB) at current rate as the country received USD 813.0 million last year from the lender. Finance Minister AMA Muhith made the observation while talking to newsmen after his meeting with a delegation led by ADB vice-president Wencai Zhang at his secretariat office Wednesday.
Cabinet body okays Japan consultancy for building rail bridge over Jamuna
Japanese Oriental Consultants Global Company Ltd will provide consultancy for the construction of dual- gauge railway tracks over the river Jamuna. The cabinet committee on public purchase gave its approval to the proposal on Wednesday at its regular meeting held at the Bangladesh Secretariat with finance minister AMA Muhith in the chair. The total cost of the railway project is estimated at over BDT 97.3 billion.
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