Price of power should be increased to cut govt subsidy: PDB chairman

News Report
 The price of power should be increased in Bangladesh to cut government subsidy in the sector and strengthen capacity building of the Power Development Board.
Chairman of the Power Development ASM Alamgir Kabir expressed this view while speaking as the chief at the  luncheon meeting on “The Impact of Power & Gas Crisis on the Export- oriented Manufacturing sector” organized by the  Dutch-Bangla Chamber of Commerce and Industries (DBCCI) at the Pan Pacific Sonargaon Hotel on Thursday.
The price of power is half in Bangladesh compared to the cost at the suppliers’ end, and the government can’t sustain huge subsidy in the long run.
Kabir said government subsidy should be increased in the education and health sectors and infrastructure development.
He said the government in the short term measure to ease power crisis has decided to set rental power plants.
While presenting a keynote paper at the seminar , Prof. Ijaz Hossain, Department of Chemical Engineering of BUET, said that power crisis causes the national economy 16.6 billion US dollars loss a year, said Ijaj Hossain, professor of the department of chemical engineering sector of the Bangladesh University of Engineering and Technology.
He said the present power generation capacity is nearly 4500 megawatt as against its requirement of 6,000 megawatt, making a shortfall of 1,500 megawatt per day.  The load-shedding increases 1000 megawatt during Boro season.
Differing with the idea of setting up nuclear power plant to ease power crisis, he said that the cost of power generated by merchant nuclear power plant will be expansive than that of imported-coal based power plant.
He also raised the issue of high risk in setting up nuclear power plant as Bangladesh is a highly densely populated country and it would not able to manage the situation if any accident occurs.   
Suggesting short –and medium term  strategy to ease power crisis in the country, he said Bangladesh in the short-term up to 2020 should meet energy by producing  electricity with gas, coal and oil.
He suggested  gas-based power plants will produce  40 per cent of the total power, coal-based power plants 40 per cent, oil-based power plants 10 per cent, solar power plants  2.00 per cent. Nearly 8.00 per cent of the power demand will be met by importing power, he added.
He told the seminar that Bangladesh exploit its coal use to the extend of 80 per cent by resorting to open pit policy.  
President of the DBCCI, Rakesh Mohan, presented a brief scenario on the power consumption and energy crisis and its impact on Bangladesh.
To overcome the environmental degradation, he suggested tree planting by all walks of life can improve the situation.
The guest of honor, Dutch Ambassador Hennekens, offered Dutch cooperation in the energy sector
The special guest, BKMEA president Fazlul Haque, said that export-oriented garment industry is the worst victims of power crisis and urged the government to show its courage by taking a positive decision on the open pit policy      
As the tenure of the present government has passed one and half years, it should   take a un-popular decision on the open-pit policy much before the next parliament election.
He said as China, the top supplier of textile products in the world market, is adjusting its currency against greenback, it also gives an opportunity to Bangladesh in the international market to raise its share.
He said, however, lamented that Bangladesh is unlikely to cash in on the situation, unless power situation improves in the country. He added that  Bangladesh’s competitors like Pakistan, India, China and Laos will exploit the situation if China adjusts its currency against greenback. 
He strongly recommended for immediate solution of the power crisis and urged the government to ensure regular supply of gas to the industrial Sector.
The Joint Secretary General of DBCCI, Sarafat Chowdhury, and the Vice President of DBCCI, Hassan Khaled, also spoke on the occasion.

Nearly 1000 people become self reliant with BSCIC support

CHITAGONG, June 24: Nearly one thousand jobless people in the district have changed their lot and become self-reliant economically by financial and other technical supports from Bangladesh Small and Cottage Industries Corporation (BSCIC) in the out going financial year, reports BSS.
A top official of BSCIC told the news agency that a total of 992 unemployed people and low- income group entrepreneurs have become self-reliant through establishment of various types of small and cottage industries by receiving proper training and logistic supports from the BSCIC.
The authorities have provided them with soft- term loan from its own fund, training and loan facilities from commercial banks in the country, the source added.
The high official BSCIC Chittagong region said that a total of 602 jobless people out of 993 trainees under BSCIC received soft loans from its own fund and successfully set up their industries in rural areas in the district.
Besides, the BCSIC also disbursed Tk 12 crore as soft loans to 1600 jobless people in their 22 BCSIC industrial area in Chittagong region, the source added.
BSCIC source said, the authority has identified nearly 2000 entrepreneurs during the first 11 months of the outgoing fiscal year who individually or jointly want to establish various types of small and cottage industries in the district. After examining their activities, the BSCIC authorities expanded logistic supports to the entrepreneurs and 993 jobless people received training during the first 11 months of the financial year under its poverty alleviation programme, the source added.
Apart from providing loan and adequate logistic facilities to the new entrepreneurs, the authorities also gave such facilities to the people who are unable to run their on-going businesses for want of money and technical knowledge.
Mohammad Abdul Bashed, Regional Director (RD) of BSCIC told the agency that the BSCIC gave priority to the jobless and distressed people of rural areas to supplement the government endeavours for improving their economic status.
He informed that most of the beneficiaries who received loan and necessary training have achieved economic self-sufficiency through various income generating occupations.

Barriers to Bangladesh-India trade to go by next year: Faruk Khan

Commerce Minister Lt Col (retd) Faruk Khan today said necessary steps would be taken to remove tariff and non-tariff trade barriers to the Bangladesh-India trade within the next one year.
Building confidence and understanding are important for removing any barrier to trade, he said while talking to a delegation of Indian businessmen at his office here.
The 29-member business delegation of Federation of Indian Export Organization (FIEO), Kolkata, is now in Dhaka to explore business opportunities. Chairman of FIEO Ramesh Kr Agarwal is leading the team.
FIEO Deputy Director PT Srinath and Debasish Saha are in the delegation.
About the decisions in the India-Bangladesh joint communiqué, Faruk said it is unfortunate that not a single step was taken to start implementation of the decisions although six months have passed.
He suggested the businessmen to talk with their government about implementation of the decisions.
Bangladesh’s investment is protected by laws and secure, the minister said and listed power, health, education, communications, infrastructure and textile as the areas of cooperation.
Ramesh Agarwal said they had a fruitful discussion and agreed to take measures to expedite implementation process of the joint communique.
Various issues related to power, healthcare and education also came up for discussion, he said, adding that the visit was aimed at expanding bilateral cooperation further.
Tariff and non-tariff barriers and infrastructural problems in handling goods at land customs stations, setting up an Indian export processing zone in Bangladesh were also discussed during the meeting.

DCC-JICA seminar on city waste disposal held

The government of Japan is helping Dhaka City Corporation (DCC) with a financial grant and 100 low carbon emission waste collection vehicles to help the city authority with environment friendly cleaning system, reports BSS.
It also aims at creating awareness to combat the adverse impact of global warming by developing public awareness about how to live with global warming and its ever larger impact on the life of city population.
Under the aid, DCC and JICA (Japan International Cooperation Agency) jointly held a seminar in the city’s Bangabandhu International Conference Center mainly focusing on technique about how to improve solid waste collection and its environment friendly transportation disposal system.
More than 120 participants took part in the event.
The event is parts of the JICA funded technical cooperation project “Strengthening of Solid Waste Management in Dhaka” by reducing emission of green house gas. The project will cover the period 2007-11.
The programme also aims at creating greater awareness in ward commissioners and community leaders to better understand the problem and deal with climate change and environmental issues sustainable in local condition.
DCC chief executive engineer Abul Kalam Azad was present in today’s seminar as chief guest. Ms Saeda Makimoto from JICA Bangladesh office and three councilors were present.

DCC-JICA seminar on city waste disposal held

The government of Japan is helping Dhaka City Corporation (DCC) with a financial grant and 100 low carbon emission waste collection vehicles to help the city authority with environment friendly cleaning system, reports BSS.
It also aims at creating awareness to combat the adverse impact of global warming by developing public awareness about how to live with global warming and its ever larger impact on the life of city population.
Under the aid, DCC and JICA (Japan International Cooperation Agency) jointly held a seminar in the city’s Bangabandhu International Conference Center mainly focusing on technique about how to improve solid waste collection and its environment friendly transportation disposal system.
More than 120 participants took part in the event.
The event is parts of the JICA funded technical cooperation project “Strengthening of Solid Waste Management in Dhaka” by reducing emission of green house gas. The project will cover the period 2007-11.
The programme also aims at creating greater awareness in ward commissioners and community leaders to better understand the problem and deal with climate change and environmental issues sustainable in local condition.
DCC chief executive engineer Abul Kalam Azad was present in today’s seminar as chief guest. Ms Saeda Makimoto from JICA Bangladesh office and three councilors were present.

With over $9b, India tops WB''s loan list

New Delhi, June 24: The country has become the largest recipient of the World Bank loans with over USD 9 billion worth assistance this fiscal ending June 2010, up fourfold over the previous fiscal, reports AFP.
The Washington-based multilateral lender had extended only USD 2.2 billion loan to the country for the year ended June 2009.
India''s share among the various recipients of the Bank is 15 per cent in terms of loans, followed by Mexico with 11 per cent and South Africa with 7 per cent as of June 20, 2010.
As of June 20, the Bank has lent USD 9.26 billion to India and is expected to provide another USD 0.04 billion in the remaining period of June. The Bank follows a fiscal year from July to June.
The Bank''s total lending to India will touch USD 9.3 billion by the end of June and a similar amount is expected in the next financial year beginning July 2010.
"We are working on a number of projects, which if you add them up, would roughly amount to the same amount of lending (in the next fiscal)," World Bank country director for India Roberto Zagha said after announcing the 2009- 10 numbers in the Capital today.
The support would be for transformative projects, including the Kosi flood recovery project and cleaning up the Ganges. Besides, the Bank also expects huge funding opportunity in the infrastructure sector, including the proposed dedicated freight corridor project.
During this fiscal, the Bank has given aid of about USD 3 billion to the infrastructure sector, he added. The total expected lending this year includes USD 2.6 billion as interest-free credits from the International Development Association and USD 6.7 billion in the form of long-term, low interest loans from the International Bank of Reconstruction and Development, he further said.
As part of the overall lending, the Bank also has earmarked USD 3 billion to support the country''s domestic response to the global financial crisis. This included a USD 2-billion package for government of India to provide capital to some of the public sector banks so that they could maintain their credit expansion and prevent a shortfall of capital from affecting the economy in the wake of the global economic crisis, he said.
Last September, the Bank had also enhanced the lending amount for two major infrastructure projects by providing an additional USD 400 million to PowerGrid and USD 600 million to the Indian Infrastructure Finance Corporation to help them maintain their planned investments during the global financial meltdown.

Asian stocks mixed on Rudd resignation, poor US data

HONG KONG, June 24: Asian markets were mixed today after Australia''s prime minister resigned, raising hopes that a planned tax on resource companies'' profits may be softened, reports AFP.
But the news was tempered by a US Federal Reserve statement that suggested the European debt crisis was taking a toll on recovery in the world''s biggest economy, where fresh data also showed new home sales had hit a record low.
Prime Minister Kevin Rudd on Thursday stood down following a shock leadership challenge amid concerns within his party about plummeting ratings.
He has been succeeded by Julia Gillard, whom investors hope will take a softer line on the proposed 40 percent tax on resource companies'' "super profits", which the industry had been fighting.
Soon after Gillard was sworn in, mining giant BHP Billiton said it would pull a series of anti-tax advertisements, after the new prime minister pleaded for a truce.
BHP rose 0.51 percent, Rio Tinto added 1.19 percent and Newcrest mining gained 0.27 percent.
However, the broader Sydney market edged 6.4 points lower to end at 4,479.7 on profit-taking from earlier gains and on news that well-liked finance minister Lindsay Tanner had resigned.
"There''s only one story today," Southern Cross Equities Director Charlie Aitken told Dow Jones Newswires.
Patersons Senior Private Client Adviser, Chris Blair, said:
"As you would expect after Rudd''s departure, resources stocks are outperforming.... Obviously it''s giving people some hope that the resources super profits tax will be altered."
Tokyo edged up 4.64 points to end at 9,928.34 and Singapore rose 0.13 percent.
Hong Kong was flat by the break and Shanghai rose 0.21 percent.
The euro rose to 1.2337 dollars in Tokyo morning trade from 1.2320 in New York late Wednesday, and to 110.81 yen from 110.62.
The greenback was quoted at 89.81 yen, slightly down from 89.88.
China''s central bank left its yuan exchange rate basically unchanged Thursday following its recent vow to let the currency trade more freely amid mounting US pressure.
The People''s Bank of China set the central parity rate -- the centre point of the currency''s allowed trading band -- at 6.8100 to the dollar, only slightly stronger than Tuesday''s 6.8102.
Sentiment was subdued, however, after the US central bank suggested after a two-day policy meeting on Wednesday that the eurozone debt crisis was weighing on the economy.
After leaving interest rates at record low levels, the Fed said economic conditions were likely to warrant keeping "exceptionally low" rates "for an extended period," repeating the language of previous statements.
"The pace of economic recovery is likely to be moderate for a time," said the panel headed by Fed chairman Ben Bernanke.
But it added that "financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad" -- probably referring to the eurozone sovereign crisis.
The debt woes of eurozone countries including Greece and Spain have caused concern globally that the problems could spill into other economies and lead to another downturn.
Sentiment was also strained by news that sales of new one-family homes in the United States had plunged 32.7 percent month-on-month in May to 300,000. The pace was the slowest since records started in January 1963.
Oil was lower. New York''s main contract, light sweet crude for August delivery, eased three cents to 76.32 dollars a barrel in afternoon trade after hitting an intra-day low of 75.93 dollars.


Brent North Sea crude for August delivery was off four cents at 76.23 dollars a barrel.
Gold opened at 1,234.00-1,235.00 US dollars an ounce in Hong Kong, down from Wednesday''s close of 1,241.00-1,242.00 dollars.
In other markets:
-- Seoul closed 0.81 percent, or 14.05 points, higher at 1,739.87.
-- Taipei rose 0.10 percent, or 7.74 points, to 7,589.89.
Chinatrust Financials rose 1.99 percent to 17.95 Taiwan dollars while Taiwan Semiconductor Manufacturing Company was 0.17 percent lower at 62.0.
-- Manila closed 0.27 percent, or nine points, lower at 3,333.97.
Digital Telecommunications fell 6.98 percent to 1.60 pesos, while Energy Development was off 3.19 percent at 4.55 pesos.
-- Wellington closed 0.16 percent, or 4.82 points, lower at 3,049.47.
Fletcher Building lost 1.9 percent to 7.97 New Zealand dollars although Telecom was up one percent at 1.97.

G20 to warn of ''uneven and fragile'' recovery

TORONTO, Canada, June 24: Canada yesterday welcomed the first arrivals for the G8 and G20 talks as a leaked draft communique said leaders will warn that the economic recovery remains "uneven and fragile," reports AFP.
The leaders, as well as throngs of journalists, protesters and 20,000 police providing security, will be in Toronto for a June 26-27 G20 summit and a G8 gathering the day before in Huntsville, north of the Canadian city.
The leaked document obtained by environmental activist group Greenpeace noted a still patchy recovery from the worst economic crisis in a generation.
"While growth is returning in many countries, the recovery is uneven and fragile, and unemployment remains at unacceptable levels," the text said.
Skirting a contentious issue that has divided Europe and the United States, leaders are to say stimulus spending had helped stabilize the global economy.
Washington has urged Europe not to cut government spending before the recovery is assured, for fear of plunging a swathe of the world -- including the United States -- into a double-dip recession.
European nations, led by Germany, France and Britain, argue drastic cuts are needed to put their books in order and create a firm basis for future growth.
"Fiscal and monetary stimulus has helped restore private demand and lending, and we have taken strong steps toward increasing the stability of our financial systems," said the largely incomplete text.
Several G20 nations are expected to fast-track consolidation.
Leaders will also ask trade ministers to move toward the "endgame" of much-delayed World Trade Organization negotiations.
"We instruct our trade ministers to prepare a full assessment of the state of the negotiations and a plan of the way forward for our consideration at the Seoul G20 summit in November of this year."
Host Canada warned this week that pockets of protectionism are hurting the global recovery.
Most G20 countries have held firm on their commitments made at last year''s summit in Pittsburgh not to impose new trade barriers, Canadian Trade Minister Peter Van Loan said.
"Overall, we haven''t had a wave of protectionism that was feared," he said. "But there have been some elements of backsliding," he added, pointing to China, Russia and the United
States.
In Toronto, G20 countries "will be called to account for what they''ve done, and (Canada) will try to keep countries focused on the right path for the future," said the minister.
British Prime Minister David Cameron''s spokesperson told reporters: "We need to see structural reform and we need to see sustainable growth in the world economy and we need to see action on things like trade."
Leaders will also push forward a "voluntary" plan for "identifying inefficient fossil fuel subsidies that encourage wasteful consumption."
"We agree to continue working to develop voluntary, member-specific approaches for the rationalization and phase out of such measures," said the communique.
Agreement on proposed bank levies, favored by Europe and the United States, but opposed by Canada and emerging economies, is unlikely.
Changes to bank capital rules have been shifted to the next G20 meeting in Seoul in November.
China''s President Hu Jintao arrived in Ottawa on Wednesday for a three-day state visit before heading to the summits. Hu could face new pressure over Beijing''s currency controls and world efforts to rein in ally North Korea.
A senior US official said US President Barack Obama will meet Hu, South Korean President Lee Myung-Bak, new Japanese Prime Minister Naoto Kan and Indonesian President Susilo Bambang Yudhoyono on the sidelines of the summit.
Indian Prime Minister Manmohan Singh will also meet with Canadian Prime Minister Stephen Harper immediately following the summit, in Ottawa.
G8 talks will focus mainly on international development issues and reducing maternal and child mortality in developing countries, as well as security threats such as the Afghanistan conflict, and nuclear threats.
Canada has invited the leaders of Algeria, Egypt, Ethiopia, Malawi, Nigeria, Senegal and South Africa to participate in "G8 outreach sessions" on development goals.
Colombia, Haiti and Jamaica heads are also coming to talk about transnational crime, terrorism and policing with the G8.
As leaders began to arrive, a rare 5.0 earthquake shook
Ottawa, Montreal and Toronto on Wednesday, forcing office workers out onto downtown streets in Canada''s capital.
Canadian police, meanwhile, are being extra vigilant in the runup to the back-to-back June 25-27 summits. Four Canadians have been arrested in recent days in two separate plots against the G20.

Obama hopes for firm recovery blueprint at Canada summits

WASHINGTON, June 24: US President Barack Obama hopes to return from the Group of Eight and Group of 20 meetings in Canada with new evidence that key powers will fulfill pledges to heal the global economy, reports AFP.
At the G8 "rich nations club" Friday and Saturday in the Muskoka vacation area, north of Toronto, Obama will also meet two new leaders, British Prime Minister David Cameron and Japanese Prime Minister Naoto Kan.
When he goes back to Toronto for the wider G20 of developed and developing nations on Saturday, Obama will also have a flurry of bilateral meetings, which will be used to advance foreign policy goals after six months with little overseas travel.
"These summits give President Obama an opportunity to build on the work that''s been done domestically, economically in terms of restoring growth, (and) renewing our financial system," a senior US official said.
Obama will compare notes on global financial reform efforts, as his own package nears completion in Congress, and talk about cleansing finance with stress tests, recapitalization and cleaning balance sheets, an aide said.
Though the United States is experiencing more robust growth than some European nations -- likely at 3.5 percent this year according to Federal Reserve figures Wednesday -- unemployment is high at around 10 percent.
Some 8.5 million US jobs were lost during the 2008-2009 recession, and analysts remain wary of the country''s economic rebound, and also fear the impact of the Eurozone crisis on future growth numbers.
Obama will also look to Asia, with meetings planned with five key regional leaders, including Chinese President Hu Jintao.
For months, Obama has complained in veiled terms about China''s monetary strategy that favors a weak yuan.
China has already eased summit tensions by saying it will let its currency trade more freely against the dollar.
The announcement was widely seen as a bid to head off an ugly
spat at the G20 summit, amid mounting accusations from the United States and others that China''s currency policy gives its exporters an unfair advantage.
China however warned that its yuan exchange rate would be off-limits at the summit, and urged critics of its currency policy to stop "playing the blame game."
Obama, who since taking office in January 2009 has launched a massive 787 billion dollar stimulus program, will also quiz European leaders on their own economic problems and the debt crises in Greece, Spain and even in Britain.
The last time both the G8 and the G20 met "there was quite a bit of consensus," said Fariborz Ghadar, an analyst at the Center of Strategic and International Studies (CSIS) think tank in Washington.
"The economy of the world was in trouble and they all had to do something. They were going to stimulate it, so there was much more consensus than there is this time," he said.
Obama on Friday acknowledged the ballooning US debt, but warned against ending stimulus spending too quickly. The Obama administration especially fears a period of economic stagnation if the economy is not revived.
The US president on Tuesday said the economy was not growing as quickly as US officials would like to see. Earlier, Treasury Secretary Timothy Geithner said that the US economy was going through an especially difficult period.
"The Europeans would like very much to create a global bank levy to pay for future bank crises and bailouts," said Heather Conley, a Europe expert at the CSIS.
"That''s a no-go for the US, Canada and Japan," she said.
Treasury Secretary Timothy Geithner and White House economic advisor Lawrence Summers have been pressing G20 allies to take care of short-term economic growth before tackling long-standing budget shortfalls. Facing the prospect of a double-dip recession in a mid-term election year, the White House had already urged European and other nations not to curb spending.


"Europe is in the mood for austerity and fiscal consolidation, understandably for its debt crisis. In fact, the Germans have sort of created a preemptive austerity plan, and that is causing some discord," said Conley.
Coordinating how countries exit their stimulus packages "will be very important," Conley said.

Japan export growth slows as Eurozone fears weigh

Tokyo, June 24:Japan logged a smaller-than-expected rise in its May trade surplus as the slowest export growth in five months signalled that a trade-dependent recovery may be losing steam, data showed today, reports AFP.
Exports for the world''s second largest economy rose 32.1 percent to 5.31 trillion yen (59 billion dollars), the sixth consecutive monthly rise, but the increase was below market expectations of 37 percent.
Shipments of cars, steel and electronic components surged in May but the overall increase in exports was below the increase of more than 40 percent registered in each of the previous four months.
The trade surplus reached 324.2 billion yen in May, the 12th straight month of improvement on year-earlier levels but below economists'' forecasts of more than 450 billion yen.
Booming demand for automobiles, high tech products and factory parts have combined with a stimulus-driven domestic picture, helping Japan''s biggest companies return to profit and drive a tentative recovery.
However, there are anxieties over both the impact of global stimulus withdrawal and European debt on exports, with Japan facing a knock-on effect from falling demand for Chinese goods, analysts say.
"It had been expected that (recent) sharp rebounds in exports would slow," after picking up from the lows seen during the financial crisis, said Hiroshi Watanabe, economist at Daiwa Institute of Research.
But shipments "of Chinese-made products to Europe are
slowing due to the weaker euro, which results in lower exports of parts from Japan to China," he said.
"If you look at Japan-EU figures alone, you hardly see an impact of the euro''s fall but it is affecting Japanese exports indirectly."
Watanabe added that Japan''s exports to China had also slowed due to Beijing''s financial tightening as it looks to rein in its economy.
Japan''s trade deficit with China ballooned to 58.3 billion yen from 1.9 billion yen a year earlier.
The surplus with the European Union climbed 51.9 percent to 127.3 billion yen, with export growth slowing to 17.4 percent from a 19.9 percent rise in April.
Exporters have eyed Europe cautiously, with the safe-haven yen soaring in recent months on European debt worries, which if sustained will dent exporters'' repatriated profits and make their goods more expensive overseas.
Japan''s exports have been driven by improving automobile demand following the financial crisis, but a smaller rise in May auto exports "may show German cars are becoming more competitive thanks to the lower euro", Watanabe said.
However, Shinko Research Institute economist Norio Miyagawa told Dow Jones Newswires that May data confirmed exports remained the leading driver of economic growth for Japan. "There''s no need to worry about the outlook much."
Imports increased 33.4 percent to 4.99 trillion yen, for the fifth consecutive monthly rise, on higher energy prices.
Japan plunged into a deep recession after the 2008 global financial crisis hit its exports hard. But gross domestic product in the January-March period grew at an annualised 5.0 percent for a fourth straight quarter of expansion.

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