Category Archives: Bangladesh

Maritime Sector of Bangladesh to Elevate Economic Growth

Mr. Abdul Hamid
Bangladesh President- Mr. Abdul Ham

Honoured as the Chief Guest at the Indian Ocean Naval Symposium Multilateral Maritime Search and Rescue Exercise Forum (IMMSAREX)-2017, Bangladesh President Mr. Abdul Hamid, upheld the need to build robust bridges along the Indian Ocean shoreline for security and safety measures.

Addressing the inauguration at Cox Bazar’s hotel Royal Tulip, he highlighted Bangladesh’s undeterred commitment in maintaining peaceful bilateral relations with the neighbouring countries. Bangladesh’s capabilities in overcoming maritime disputes in an affable manner were brought to light too.

Realising the sheer importance of maritime sector for the economy of Bangladesh, Indian Ocean Naval Symposium (IONS) was formed in 2008 with 23 countries of the Indian Ocean, to facilitate maritime trade and commercial activities, and also to promote better and viable livelihood opportunities, ensuring job sustainability and economic growth. Thus, maritime sector’s security from criminal propensities and untoward element was emphasized at the forum.

While stressing on the significance of generating sustainable value and economic benefits from ocean resources, he alluded to the concept of Blue Economy and expressed “We all are aware of the fact that Indian Ocean in contemporary times has the greatest strategic and economic value. It carries huge prospects and potentials to facilitate maritime trade and commerce.”

For the first time, multiple military drills of the forum were showcased in the Bay of Bengal. These exercises ranged from rescue and firefighting operations to discovery of missing fishing trawlers and bringing the accidental ships back to the harbour. Efforts to protect the lives of the people at sea was specifically communicated with the responsibility being shared regionally. Twentythree countries comprising France, Indonesia, Oman, Pakistan, Australia, Bangladesh,Iran, Kenya, the Maldives, Mauritius, Mozambique, Myanmar, Saudi Arabia, Sicilia, Singapore, South Africa, Sri Lanka, Tanzania, Thailand, Timur Leseth, the United Arab Emirates and the United Kingdom participated at the forum. Apart from this, nine countries were felicitated as observer countries – China, Germany, Italy, Japan, Madagascar, Malaysia, the Netherlands, Russia and Spain.

The forum was attended by IONS Chairman Admiral Mr. Nizamuddin Ahmed,Bangladesh Army Chief General Mr. Abu Belal Muhammad Shafiul Huq, Bangladesh Air Force Chief Marshal Mr. Abu Esrar, Malaysian Naval Chief Admiral Mr. Kamarulzaman, Myanmar Naval Chief Admiral Mr.Tin Aung San ,and naval and maritime experts. It also had participation of the naval fleets from India, China, Bangladesh, Indonesia and Iran

While congratulating Bangladesh as a peace-loving country, Mr.Hamid remarked,“Being one of the highest troops contributing nations in the UN peacekeeping operations for the last two decades is a true manifestation of our commitment towards world peace.”

India and Bangladesh to Construct a Bridge Over Khawthlangtuipui River

Bridge Khawthlangtuipui River

To ensure enhancement in trade and ease in the connectivity of the two neighboring countries; India and Bangladesh, the decision to construct a bridge over Mizoram’s Khawthlangtuipui River has been given a green signal.

Karnaphuli River
Karnaphuli River

With Bangladesh, India shares the largest international land boundary; 4096 km, most with any of its neighbors.

Ms Sheikh Hasina
The Prime Minister of Bangladesh, Ms. Sheikh Hasina

Rowshan Ara Khanam, an official from Bangladesh shared, “The proposed bridge would be an important linkage between India and Bangladesh. The Bangladesh government has taken a number of steps to make it a reality. The Prime Minister of Bangladesh, Ms. Sheikh Hasina has given the approval to construct the bridge and link roads.”

It has been suggested to construct the bridge nearest to the land customs station in Bangladesh. The effort aspires to strengthen ties between the working of both the countries; hassle-free road connectivity and smooth communications.

The meeting to roll out this decision was arranged at the Tlabung town, Mamit district in Mizoram which lies in close proximity to the Khagrachari district of Bangladesh.

World’s First Floating LNG Terminal to be Constructed in Bangladesh

Floating Terminal

The Moheshkhali Floating LNG project will be Bangladesh’s first LNG import terminal, located off Moheshkhali Island in the Bay of Bengal. The project’s purpose is to meet clean energy demands of the country by generating natural gas in enhanced capacities; by up to 20%.

US$ 179.5m has been secured by IFC (International Finance Corporation) and Excelerate (Excelerate Energy Bangladesh) to fund the project.

Excelerate’s Chief Financial Officer, Mr. Nick Bedford, believes, “Excelerate takes great pride in helping bring sustainable energy solutions to countries with high energy demand, and we expect this project to have a great impact on the wider Bangladeshi economy.”

On implementation, the project anticipates an increase in the natural gas supplies of the state-owned energy company – Petrobangla, by up to 3,000MW.

The construction of the terminal has been slated to begin in the later months of 2017 and shall be put to practice in the succeeding year of 2018. Excelerate shall be responsible for the project in its entirety; development, designing, construction, installation, finance, and operations. The Moheshkhali Floating LNG terminal is being regarded as the first fully integrated turnkey floating LNG terminal of the world.

Excelerate Chief Executive Officer, Mr. Rob Bryngelson remarked, “Excelerate is the only FSRU provider capable of delivering a comprehensive end-to-end floating LNG import solution and we look forward to a long and productive relationship with Petrobangla in Bangladesh.

Post 15 years of providing its services, the project’s ownership shall be transferred from Excelerate to Petrobangla.

The structure of the terminal shall encompass Excelerate’s Floating Storage and Regasification Units (FSRU), port service vessels and subsea buoy system.

The development of the LNG terminal seeks to strengthen and support the power industry by tapping into diverse sources of natural gas reserves present in the global market. This may enable utilization of domestic natural gas reserves in a manner more efficient and sustainable and also aid in elevating economic growth levels through the creation of job opportunities and infrastructure in the region while shielding the Bangladeshi economy from the drastic impacts of climate change.

China to Bolster Bangladesh’s Development Projects

Bangladesh Map

To accelerate business and bilateral relations between China and Bangladesh, an Investment Forum highlighting the business climate of Bangladesh underscoring potential investment sectors, policy regulations, trade opportunities and expansion possibilities, will take place in the last quarter of August.

Sponsored by Bangladesh’s leading bank- The City Bank Limited and the Standard Chartered Bank, and organized by one of the most premier financial publications across the globe – Euromoney, the China-Bangladesh Investment Forum will be an attractive and a promising business crusade, bringing together institutional investors, portfolio managers, multilateral financiers , government officials, and global asset managers to explore potential business opportunities in Bangladesh and bolster the ChinaBangladesh trade relations as an outcome of China’s Belt and Road Initiative.

The Chief Executive Officer of Standard Chartered Bank Bangladesh Mr. Abrar A. Anwar shares his view with regards to Bangladesh’s massive economic capacity, “There are a lot of investment opportunities coming out in Bangladesh, Asia and also around the globe. China is a major economy, so we believe that private sectors in China would be looking at opportunities outside China.”

Bangladesh plans to promote itself as an avid investment destination and welcome China’s investment interests while acknowledging China’s continued business cooperation with them.

An informative podium engaged with discussions pertaining to capital and financial markets, Foreign Direct Investment (FDI), infrastructure and the like are anticipated. It has been highlighted that participation by Chinese private business companies will considerably push Bangladesh’s development strategy. However, to increase and ensure continued Chinese investments in Bangladesh, incentive generation and elimination of procedural bottlenecks have been insisted upon.

This forum is monumental in attracting investments from China, which is being credited as the world’s largest source of FDI. This economic conference also aspires to deepen economic cooperation between the two countries, fueling long-term business impact and bilateral relationship.

BHEL bags Rs 10,000 Crore contract from Bangladesh


Bharat Heavy Electricals Limited (BHEL) has bagged its largest-ever export order which is valued at Rs. 10,000 crore. This order is for setting up a thermal power project in Bangladesh. The Indian company was able to win this contract in spite of very hard and competitive bidding. The order has been secured from Bangladesh-India Friendship Power Company Limited (BIFPCL) which is a 50:50 joint venture between NTPC and Bangladesh Power Development Board (BPDB). BHEL is India’s largest power equipment manufacturer. The company has arranged debt financing for the project from Exim bank for which loan agreement between Exim bank and BIFPCL was signed in March 2017.

BHEL’s scope of work in the project includes design, engineering, manufacture, supply, construction, erection, testing and commissioning of the 1320 MW thermal sets with ultra-supercritical parameters on turnkey basis. It will also set up a jetty and a river-water intake system. The main equipment to be used by the project will be manufactured at BHEL’s Trichy, Haridwar, Hyderabad, Ranipet, Bhopal, Bangalore and Jhansi plants. The responsibility for the construction and installation activities at site will lie upon the company’s power sector construction division. BHEL has done some projects in Bangladesh earlier as well which include 100 MW Baghabari Gas Turbine Power Project and 2×120 MW Siddhirganj in Bangladesh. It has also set up 220 KV Baghabari & Ishurdi substations.

Bangladesh hopes speedier implementation of India-Aided Projects

Mr. AbulMaal A. Muhith
Bangladesh’s Finance Minister Mr. AbulMaal A. Muhith

Bangladesh is hopeful that the Indiaassisted developmental projects in the country will be implemented quickly. “The hope has risen after the Indian Government announced a fresh US $4.5 billion aid package”, stated Mr. AbulMaal A. Muhith who is the Finance Minister of Bangladesh.

IFM Arun Jaitley
Indian Finance Minister Mr. Arun Jaitley

The announcement for this line of concessional credit was announced by India’s Prime Minister Mr. Narendra Modi during Bangladesh’s Prime Minister Ms. Sheikh Hasina’s visit to India in April 2017. India previously promised financial aid of US $1.5 billion and adding this new amount it takes the total to US $6 billion. Mr. Muhit said that the implementation of projects under the previous assistance package took longer than expected but he hopes that this time these projects will be implemented quickly.

The bilateral aid package and projects associated with it were discussed in a bilateral meeting with visiting Indian Finance Minister Mr. Arun Jaitley. This meeting was led by Mr. Muhith and various important issues and topics were discussed in detail. Mr. Muhit said that Bangladesh getting a US $6 billion credit line from India is quite a remarkable event. He further stated that even though the financial aid from China is much more and amounts to US $ 22 billion but Indian projects are time oriented and implemented quickly while there is no such timeline for Chinese aid. He also expressed his happiness at seeing that Indian private sector investment is now flowing into Bangladesh.



The Damodar Valley Corporation (DVC) is eyeing to sell at least 500 MW power to Bangladesh. DVC is a three-way joint venture of the West Bengal, Jharkhand and Indian governments. Officials from the corporation have stated that at present selling power to Bangladesh is offering better returns than the Indian power market. A proposal has already been sent to the Government of Bangladesh by the corporation. DVC currently has a power surplus of 1200 MW and additionally its new unit in Bokaro, Madhya Pradesh is also going to get commissioned soon. Bangladesh first expressed interest in importing power from India in the year 2013. At that time DVC was not in the picture and the bidding was done by National Thermal Power Corporation (NTPC) and the West Bengal Power Development Corporation (WBPDC).

At present India is already supplying 500 MW of power to Bangladesh through the Berhampur-Bheramara grid link. DVC believes that another 500 MW can easily be supplied through the same link and this power will prove to be much cheaper as compared to other alternatives for Bangladesh as well. Bangladesh is deeply interested in importing power from India to meet the existing wide gap between the demand and supply of electricity. The country also wants to get rid of its expensive and highly polluting diesel-fueled power generation units and replace their output with the power obtained from India instead.DVC is currently facing a debt crisis which has halted its plans to become a 10,000 MW power company. The coming to fruition of DVC’s plans will be a win-win for both parties as the corporation will get an opportunity to earn some revenue while Bangladesh will be able to lessen its power deficit at a cheap price.



Bangladesh’s Central Bank received a big jolt when some hackers succeeded in using stolen bank credentials to steal
US $ 81 from its account at the New York Federal Reserve in February 2016. Hackers used the stolen information with hopes to try to steal US $ 1 billion by sending three dozen SWIFT messages. All of their attempts were not successful but they still succeeded in transferring US $ 81 million to four accounts at Rizal Commercial Banking Corp. in Manila. Most of this money has already been laundered through the casinos located in Manila, Philippines. However, US $ 30 million out of this amount remains frozen at Rizal Commercial Banking Corp.


This case was brought up in the Philippines’ Supreme Court and it has already been proved that the transferred amount of US $ 81 million belongs to Bangladesh Bank. A team from Bangladesh was to visit Philippines in October, 2016 in order to get the process of getting back the frozen US $ 30 million back but the tour was canceled due to some internal reasons. On November 11, 2016 Philippine authorities began the process of handing over $ 15.25 million to Bangladesh. The Deputy Governor of Bangladesh Bank, Mr. Abu Hena Mohammad Razee Hassan, who also heads the bank’s Financial Intelligence Unit has stated that he is hopeful in getting back the full US $ 30 million which was frozen before it could be laundered.


World Bank’s International Development Association (IDA) and the Government of Bangladesh have signed an agreement to upgrade a unit in the Ghorashal power station. As per this agreement Bangladesh will receive US $217 million from World Bank which will enable it to more than double the Ghorashal unit’s existing electricity generation capacity. Currently this unit is generating 170 MW and when completed, this project will increase this capacity to 409 MW. The improvements will involve transforming a gas-fired steamunit which will increase the plant’s overall efficiency from 30% to 54%. The specific fuel consumption per gigawatt hour will be reduced by 44% and the emission of greenhouse gases will also be considerably lowered. Along with financial aid, capacity building and institutional support will also be provided to the Bangladesh Power Development Board.

World Bank’s Acting Country Director for Bangladesh, Mr. Rajashree Paralkar has stated that improvement in the power sector will help Bangladesh immensely asreliable, low-cost electricity is one of the main requirements for this country’s economy to grow steadily at a healthy rate. This credit from IDA has a 38-year term, including a six-year grace period, and a service charge of 0.75 percent. Including this aid of US $ 217 million, World Bank’s total support to the Bangladesh’s power sector till date is around US $1.7 billion. In the fiscal year 2016, the World Bank has committed over US $773 million in new financing in Bangladesh.


As per an announcement made by India’s Petroleum Minister Mr. Dharmendra Pradhan, India will continue to supply high speed diesel to Bangladesh. The announcement was made in Dhaka on April 17, 2016 during Mr. Pradhan’s three day visit to Bangladesh. India supplies 2200 MT high speed diesel from Siliguri marketing terminal of Numaligarh Refinery Ltd. (NRL) to Parbatipur depot of Bangladesh Petroleum Corporation (BPC). During this visit he met Bangladesh’s Prime Minister Ms. Sheikh Hasina and shared the details about Indian hydrocarbon infrastructure project proposals in Bangladesh. The most important of these proposed projects is setting up of LPG import terminal at Chittagong by Indian Oil Corporation (IOC).


India supplies 2200 MT high speed diesel from Siliguri marketing terminal of Numaligarh Refinery Ltd. (NRL) to Parbatipur, depot of Bangladesh Petroleum Corporation ( BPC)

IOC and BPC are going to sign a memorandum or understanding on broad aspects of cooperation in downstream oil and gas sector opportunities in Bangladesh. During his talks with Ms. Hasina, Mr. Pradhan also discussed the prospects of the “Indo-Bangla Friendship Pipeline”. He also met Bangladeshi Power Minister Mr. Nasrul Hamid and Ms. Hasina’s adviser on energy, power and mineral resources Mr. Tawfiq-e-Elahi Chowdhury to discuss various important matters. Later on April 19, 2016 he also visited Chittagong to witness award of contract by Eastern Refineries Ltd. to Engineers India Limited (EIL) as project management and consultant for its three MMTPA refinery expansion project