Five more sectors may get incentives under PPP
Projects under five more sectors are likely to be made eligible for government incentives under the public-private partnership (PPP) initiative. The finance minister has recently asked the authority concerned to take necessary steps in response to a proposal put forward by the PPP Authority (PPPA) under the Prime Minister’s Office (PMO) in this regard. The new sectors including, urban development, utilities, multi-modal transport hub, logistics and health, may get incentives like existing 14 other sectors. The waiver has been offered to PPP projects, including national highways or expressways and related service roads, flyovers, elevated and at-grade expressways, river-bridges, tunnels, river ports, seaports, airports, subways, monorails, railways, bus terminals, bus depots and elderly care homes. Foreign technicians in the PPP projects will enjoy income-tax waiver at the rate of 50 per cent of total applicable tax for three years of his/her appointment. Currently, a total of 52 projects are being implemented in various sectors including railway, telecommunication and power under the PPP in the country, according to the PPPA. The government earmarks Tk 20-30 billion for PPP projects every fiscal year. But funds are not used fully due to lack of private sector investors. In his 2009 budget when the PPP initiative was introduced, the finance minister said the PPP initiatives were taken as the country needed Tk 390 billion each year for infrastructure development.
Rajuk to build another satellite town at Basila
The Rajdhani Unnayan Kartripakkha (Rajuk) is planning to build a mega, modern satellite town at Keraniganj to house thousands of families on the outskirts of the capital. The Rajuk, under the project, seeks to acquire 1,084 acres of land opposite Basila Bridge on the Buriganga for the township, said officials on Monday. The city developer has undertaken a Tk 66.70-billion satellite town project aimed at easing pressure on Dhaka, the world’s densest city. The Rajuk will build 200 multi-storey buildings, roads, car parks, lakes, playgrounds, mosques, educational institutions and other facilities on the proposed site. It will build 20-storey 200 buildings on that would accommodate some 23,000 families. The state-agency will develop nearly 5,000 residential plots, each of five and three kathas, for allocating among the people at the model town. It will be Rajuk’s fourth township after Uttara, Jhilmil (Keraniganj) and Purbachal around Dhaka city. It will also develop some 5,000 plots on nearly 31 per cent of the land on the proposed site. In addition, roads will cover some 24 per cent of the area inside the model town. Some 8.0 per cent area will be used for citizen facilities, 5.0 per cent for business and commerce, 3.0 per cent for entertainment and 6.0 per cent for lakes and lakeside parks. They are scrutinising the project before placing it to the Executive Committee for the National Economic Council for its approval.
Net foreign fund in stocks rebounds after five months
The overseas investors bought shares worth Tk 2.47 billion and sold stocks of Tk 2.12 billion, to take their net investment to Tk 0.35 billion in September, according to statistics from the Dhaka Stock Exchange (DSE). In August, the overseas investors collected shares worth Tk 1.76 billion, but sold shares worth Tk 1.82 billion, resulting in their net position negative by Tk 57 million, the DSE data shows. In nine months from January to September, the foreign investors bought shares worth Tk 36.41 billion and sold stocks worth Tk 39.10 billion, taking their net position negative Tk 2.69 billion. DSEX, the prime index of the DSE, eroded more than 876 points or 14 per cent in nine months from January to September. And the DSEX lost 232 points alone in September. Also known as portfolio investment, foreign investment accounts for less than 2.0 per cent of the premier bourse’s total market capitalisation, which stood at Tk 3,873 billion as of Monday.
EBL, Summit Group fix $71.25m interest rate SWAP deal
Eastern Bank Limited (EBL) and Summit Group have fixed an interest rate SWAP derivative deal worth $71.25 million for two power plant projects. They are: Barisal Power Limited and Summit Narayanganj Power Unit II Limited. Interest rate SWAP works as insurance to protect the buyer from adverse price movement. Interest rate SWAP enables corporate entities to arrest cost of long-term financing cost against market volatility. Interest rate Swap is becoming increasingly popular among all major global producers and traders on back of growing volatility in the market. These two power plants of Summit Group were financed by External Commercial Borrowing, with USD 3 Months LIBOR rate. Since USD 3 Months LIBOR is floating in nature and is exposed to market risk, EBL has structured an interest rate SWAP transaction to hedge the market risk. The deal will help Summit protection against adverse upward price movement of USD 3 Months LIBOR, which might adversely increase the cost of financing of the project. With the recent hike in USD LIBOR rates, this deal has enabled these two power plants to have better visibility in their cost of long-term financing.
BSEC to organise investors’ week October 07-11
The securities regulator will organise the ‘World Investors Week 2018′ during October 7-11 to create awareness among the general investors. The week will be observed in accordance with the declaration of International Organisation of Securities Commissions (IOSCO), a global cooperative of securities regulatory bodies. The securities regulator is working on creating awareness among the investors. The programmes of the investors’ week will help create the awareness.
IGLOO ‘most trusted global brand’
IGLOO Ice Cream, produced by Abdul Monem Ltd., a leading conglomerate of the country, has been selected to win the ‘Most Trusted Global Brands Award 2018’ under the category of Rising Brands. Most Trusted Global Brands is a research based listing of remarkable brands that have the power to create business value and impact much more than revenues and profit margins. Kamrul Hassan was also selected as the ‘Best CEO’ in FMCG Category (Food and Beverage) to receive the ‘South Asian Partnership Summit & Business Excellence Award 2017’
Separate unit to manage MNC tax
The national revenue authorities have decided to open a dedicated unit to handle tax files of the multinational companies (MNCs) operating in Bangladesh. The International Tax Unit (ITU) at the National Board of Revenue (NBR) has been proposed to administer hassle-free services to the multinationals. All the foreign companies, including small and medium enterprises (SMEs), will be brought under the unit. Foreign Investors’ Chamber of Commerce and Industry (FICCI) taxation subcommittee convener. Effective tax rate goes up by 10 per cent for arbitrarily disallowance of genuine expenditure. According to FICCI statistics, some 200 of the foreign companies have tax files here. Some 1,000 foreign companies, liaison, branch and representation offices included, are operating in Bangladesh. Bangladesh and the EU started the business climate dialogue to discuss issues of broad mutual interest in consideration of their longstanding partnership.
Massive pest attack worries T-Aman cultivators
T-Aman paddy farmers in the district are worried due to massive pest attack. Officials of the Department of Agriculture Extension (DAE) and also the peasants are working hard in this connection. They are trying to ensure over 0.9 million tonnes of fresh output this season. The farmers are to spend over Tk 600 to Tk 1200 to save the crops from merciless attack of pest for each bigha of land. Some 51,740 hectares of land have been brought under Aman cultivation exceeding the target of 48,900 hectares with a production target of 1, 35,828 metric tonnes. there is nothing to be worried for the Aman growers as the croplands could be easily protected with the balanced use of pesticides and fertiliser. The pest invasion is unlikely to affect their harvest as they are giving suggestions how to deal with the problem and use pesticides.
GE wins order to develop 600MW power plant at Meghnaghat
GE Power announced on Monday that local Unique Group selected the company to develop a 600-megawatt (MW) natural gas-based combined cycle power plant at Meghnaghat near the capital. Unique Meghnaghat Power Limited (UMPL) will be executing the project. The power plant will produce power equivalent to the electricity needed to supply to about 700,000 homes in the region. The order value is approximately $350 million as per the contract. These gas turbines are recognised for powering the world’s most efficient power plants in both 50hz and 60hz energy segments – achieving 62.22 per cent combined cycle net efficiency and 63.08 per cent combined cycle gross efficiency respectively. GE will be developing the project on a turnkey basis which includes one 9HA.01 gas turbine, one heat recovery steam generator (HRSG), one steam turbine generator, condensers and associated systems.
Opec oil output boost in Sep limited by Iran losses
Opec delivered only a limited increase in oil production in September, a Reuters survey has found, as a cut in Iranian shipments due to US sanctions offset higher output in Libya, Saudi Arabia and Angola. The 15-member Organization of the Petroleum Exporting Countries pumped 32.85 million barrels per day in September, the survey on Monday found, up 90,000 bpd from August’s revised level and the highest this year. But the 12 Opec members bound by a supply-limiting agreement actually cut output by 70,000 bpd because of declines in Iran and Venezuela, boosting compliance with supply targets to 128 percent from a revised 122 percent in August, the survey found. Oil prices have extended a rally this year on expectations the sanctions on Iran will test Opec’s ability to replace the shortfall, despite the group agreeing in June to pump more after pressure from US President Donald Trump. Oil LCOc1 on Monday reached $83.32 a barrel, the highest since 2014.
New MD for Shahjalal Islami Bank
Shahjalal Islami Bank Ltd yesterday saw M Shahidul Islam, previously additional managing director, take charge as managing director and CEO. Earlier he was the additional managing director of United Commercial Bank Ltd. Islam started off as a probationary officer at National Bank in 1984. He obtained his postgraduate degree with honours in management from the University of Chittagong, the Shahjalal said in a statement.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX|| 5,369.91286 || ↓49.32|| ↓0.59%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 73.57||↑0.32||↑0.44%|
|Crude Oil (Brent)||$ 83.20||↑0.47||↑0.57%|
|Gold Spot||$ 1,189.10||↓1.78||↓0.15%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.9685|
|GBP 1||BDT 109.4026|
|EUR 1||BDT 97.3531|
|INR 1||BDT 1.1561|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.