ADB approves additional $110m for Bangladesh urban health services

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The Asian Development Bank has approved $110 million in additional loans for a project to improve access to urban primary healthcare services in Bangladesh through public-private partnerships.

“ADB’s support to the government-led Urban Primary Health Care Services Delivery Project approved in 2012 has been filling a vacuum created by the lack of urban public primary healthcare by increasing access to quality services, especially for poor households,” ADB Social Sector Specialist Brian Chin said in a statement on Tuesday.

“The new financing will focus on strengthening the service delivery system, building on the results of the 2012 project and two previous projects, to meet unmet demands and develop self-reliance in the running of the system.”

The project is recognised as an innovative model of partnership between the government, which contracts out health service delivery, and service providers (mainly nongovernment organisations).

As originally financed in 2012 with a $50 million ADB loan and $20 million cofinancing, it is one of the largest public private partnership projects for primary healthcare delivery in South Asia, according to the statement.

Previously, ADB provided a $40 million loan and $4.5 million cofinancing for a first project to support health services in four cities during 1998–2005.

A second project followed in 2005-2012 backed by a $30 million loan, $10 million grant, and $30 million cofinancing widening the support to six cities and five municipalities.

As originally envisaged, the 2012 project covers 10 cities and four municipalities representing about 17 percent of the total 57 million urban population.

According to a review in 2015, the project has been providing services to more than 23 million clients, of whom 74 percent were female, and has constructed a network of 180 health facilities and 224 satellite clinics.

The project is also building experience in the management and contracting of health service delivery, as well as monitoring and evaluation systems.

The review concluded that the project merits continuation and expansion to ensure that the growing demand for healthcare in urban areas is met.

The additional financing will cover the cost of a five-year extension to assist the government to strengthen local health systems and continue to expand the PPP system of contracting to service providers, ADB said.

It expands coverage to an additional city and 10 municipalities, and will build eight additional reproductive healthcare centres and 24 primary healthcare centres.

The sustainability of health services will be ensured through a series of management, institutional, and staffing reforms. The new financing will build on previous efforts toward climate change mitigation by adopting solar panels, rainwater harvesting systems, and flood drainage.

The Urban Climate Change Resilience Trust Fund, financed by the Rockefeller Foundation and the governments of Switzerland and the United Kingdom, will provide a $2 million grant, to be administered by ADB.

The Bangladesh government will contribute $30 million toward the cost of the additional financing, while the United Nations Population Fund will provide $1.5 million in-kind technical support. The project completion date is March 2023.

Source:https://bdnews24.com/economy/2018/09/19/adb-approves-additional-110m-for-bangladesh-urban-health-services

World Bank vice president arrives in Dhaka on Sunday

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World Bank Vice President for the South Asia Region Hartwig Schafer will arrive in Dhaka on Monday for talks on the Rohingya crisis and deepening Bangladesh’s connections to the international organisation.

Monday’s visit is the first since Schafer took up the post in July.

“Bangladesh has a remarkable story of cutting extreme poverty to half in record time. Other countries can learn from Bangladesh’s many development innovations and successes. I look forward to meet our partners and see first-hand the country’s journey to economic growth,” said Schafer.

“Despite its own challenges, Bangladesh has shown great generosity by sheltering nearly one million Rohingya people. The World Bank is working closely with the government to help address the needs of the Rohingya until their safe return to Myanmar and help build the country’s capacity to deal with the crisis.”

Schafer plans to visit the Rohingya refugee camps and meet with local officials and representatives from NGOs and civil society during a visit to Cox’s Bazar.

The World Bank has given Bangladesh a $400 million grant to help with the crisis.

It has also approved one of two operations – adding up to $75 million – to provide health services and education to the refugees.

Schafer is also scheduled to meet with government officials, including the finance minister and water resources minister, as well as private sector and civil society leaders.

He will also take part in the launch of a World Bank report titled ‘South Asia’s Hotspots: The Impact of Temperature and Precipitation Changes on Living Standards and visit the World Bank-supported Ghorashal power station project.

Prior to joining the South Asia region, Schafer was the vice president for global themes and as vice president for operations policy and country services and also served as World Bank’s country director for Djibouti, Egypt, and Yemen.

Source:https://bdnews24.com/economy/2018/09/22/world-bank-vice-president-arrives-in-dhakaon-sunday

KOICA ready to help Bangladesh become a developed country

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Interacting with journalists on Tuesday, Joe Hyun-Gue Country Director of South Korea’s development agency, KOICA, said Bangladesh was a “priority” country when it came to development cooperation.
KOICA supports Bangladesh through grants, soft loans and technical cooperation and the ongoing country strategy, 2016 to 2020, is mostly focused on health, education, transportation and ICT.

The country director invited suggestions to support in other areas in need.

He said they are ready to continue to work with its partners in Bangladesh to help the country achieve the SDGs and other development goals.

One of Bangladesh’s strong development partners, Korea opened its embassy in Dhaka in early 1975, more than a year after the establishment of diplomatic relations in 1973.

Later, Korean entrepreneurs came to Bangladesh to set up garment factories, many of whom are still active.

A World Bank development report said the boom of Bangladesh’s readymade garment industry that wheels its economy is because of initial training from Korean Daewoo Corporation in 1979 when Bangladesh had no modern industry.

The corporation teamed up with Bangladesh’s Desh Ltd and trained up its 130 newly recruited and educated employees who later left Desh to start their own clothing businesses for the industry to flourish.

The readymade clothes are now the largest export earners of Bangladesh.

KOICA was established in 1991 with an aim “to fight global poverty” and started working in Bangladesh in the same year.

But the office was opened two years later in 1993 when it dispatched a group of volunteers.

So far it has completed 24 development projects that include the first-ever cyber crimes investigation capabilities centre. It is currently building Bangladesh’s first-ever super-specialised hospital in Dhaka.

Development Specialist of KOICA Bangladesh Office Biswajit Kumar Sarkar presented the details of the partnership strategy with Bangladesh during the interaction.

He said KOICA wants to be a “champion” in contributing to achieve SDGs and promoting Bangladesh to a developed country by 2041.

Their annual budget is over $14 million, he said. The country partnership strategy outlines how Korea’s comparative advantage, financing and consulting services can support Bangladesh achieve SDGs.

Some of the ongoing projects include modernization of training institute for chemical industries, establishment of the first-of-its-kind national institute for nursing, establishment of the e-government master plan for digital Bangladesh and illicit drug eradication and advanced management through IT.

KOICA Deputy Country Director Go Ahreum, and principal programme officer Md Khalid Hossain were also present during the interaction.

Source:https://bdnews24.com/economy/2018/09/26/koica-ready-to-help-bangladesh-become-a-developed-country

South-East Asia’s future looks prosperous but illiberal

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THE young woman with the microphone cajoles, hectors and wheedles customers with the breathless enthusiasm of a livestock auctioneer at a county fair. She is standing behind a table stacked high with blue jeans; most of the milling crowd is dressed in lungyis, Myanmar’s skirt-like national dress. The fancy mall around them is anchored by a huge department store, dotted with banks and mobile-phone stalls and topped by a cinema and video arcade.

Myanmar has been growing so fast—by an average of 7.5% a year for the past five years—that the boom is reverberating in Mae Sot, just across the border in Thailand. Two years ago, says a longtime resident, the site of the mall was a swamp, and Mae Sot was a poky little border town with two small grocery stores. Today huge supermarkets, car dealers, electronics outlets and farm-equipment showrooms line the wide new road from the border into town, patronised by a steady stream of Burmese shoppers. Skeletons of future apartment blocks loom; the Thai government is building a new international airport. The Asian Development Bank (ADB) forecasts that Myanmar’s growth will hit 8% next year.

Source:https://www.economist.com/asia/2017/07/22/south-east-asias-future-looks-prosperous-but-illiberal?zid=306&ah=1b164dbd43b0cb27ba0d4c3b12a5e227

In dirt-poor Myanmar, smartphones are transforming finance

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MYANMAR’S democratic transition sometimes seems marked as much by continuity as by change. Depressingly, the army continues its bloody persecution of Rohingya Muslims in the west, for example (see article). But elsewhere moves to open the country’s markets, started by the preceding military regimes, have gathered pace. New commercial and financial services are springing up.

Take Khin Hlaing, who owns Global Mobile Shop, a small store surrounded by tarpaulin-covered stalls selling fresh fruit in Hlaing Tharyar, an industrial area outside Yangon, the biggest city. He is one of almost 12,000 agents for Wave Money, Myanmar’s largest mobile-money transfer platform. Most days about 20 people use his shop to send funds to friends or family elsewhere in the country. One customer, who walks in wearing a long red longyi and delicately beaded top, says she was at first nervous about Wave. A clothesmaker, she now sends earnings through it twice a month at a cost of 500 kyat ($0.37) a go. She says Wave’s appeal is its “convenience”.

Souce:https://www.economist.com/finance-and-economics/2017/10/12/in-dirt-poor-myanmar-smartphones-are-transforming-finance?zid=306&ah=1b164dbd43b0cb27ba0d4c3b12a5e227

Japanese cars enjoy an afterlife in Myanmar, but not for much longer

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THE Japanese make cars that last but replace them relatively quickly. The average car in Japan is three years younger than in America. This combination of durable manufacturing and dutiful consumption of a prized national product works out well for the rest of the world; many countries import older Japanese cars in bulk. Secondhand vehicles fill vast parking lots in Japan’s port cities, awaiting shipment to New Zealand, the United Arab Emirates and elsewhere.

The third-most-popular destination is Myanmar, which imported over 80,000 used Japanese vehicles in the first nine months of this year, according to Japan’s International Auto Trade Association. Drivers believe that Toyotas, Hondas and Nissans can stand up to the country’s pockmarked roads, a faith not yet shown in South Korean and Chinese cars.

Source:https://www.economist.com/business/2017/11/04/japanese-cars-enjoy-an-afterlife-in-myanmar-but-not-for-much-longer?zid=306&ah=1b164dbd43b0cb27ba0d4c3b12a5e227

Myanmar has one of the lowest tax takes in the world

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That makes it hard for the new, democratic government to offer decent public services

INSIDE a noodle house in central Yangon, business is buzzing. Customers huddle over tables, slurping down chicken soup or gobbling dumplings. Everyone pays in cash. Few customers ask for receipts. When your correspondent does so, one is handed over, complete with government-issued stickers. But the cost of the meal goes up. On the vast majority of the restaurant’s sales, it seems, no one is paying any tax.

Over the past decade the Burmese economy has boomed. Last year it grew by 5.9%. In the medium term growth is expected to average 7.1% a year, according to the World Bank, making the country one of the peppiest in the region. Poverty, though still stark, has fallen.

Source:https://www.economist.com/asia/2017/11/16/myanmar-has-one-of-the-lowest-tax-takes-in-the-world?zid=306&ah=1b164dbd43b0cb27ba0d4c3b12a5e227

Bangladesh plastic sector yet to be global player despite potentials

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Bangladesh has the potential to become a large global player in plastic industry, although it has not yet emerged as a global player in the segment.

The country, at present, has a share of 0.01 percent of the global plastic market that measures up to $599 billion, a recent report of the Center of Policy Dialogue (CPD) shows suggesting that the country can expand its share globally but the reasons for failing to take benefit from advantageous market conditions are the supply constraints and unskilled workforce in the sector.

An ESCAP report projected that Bangladesh’s market size would reach $2 billion in 2015 and $4 billion in 2020 if the country could improve its infrastructure, enhance skills development, and address waste management issues.

The plastic industry in Bangladesh began on a small scale in the 1960s where handmade mould was used to make plastic toys, photo frames, and plastic spare parts.

In the following decade, plastic jugs and plates were added to the product list by virtue of introducing automatic manufacturing machines.

However, it was in the 1980s when the industrial growth of Bangladesh’s plastic sector began with the establishment of injection grade and film grade plastic industries which were eventually used to make products such as plastic bags, plastic apparel hangers, and bottle crates. It was during this time where the plastic sector started contributing significantly to the national economy and growing at a rapid pace.

As a result of the increased industrialised production, there are 3,000 plastic manufacturing units in the country, mostly SME, that employ around 1-2 million people.

Around 65 percent of these factories are located in Dhaka, 20 percent in Chittagong, and 10 percent at Narayanganj. The remaining 5 percent are in Khulna, Comilla, Bogra, and Rajshahi districts.
Out of the available manufacturing units, 65 percent belong to small enterprises while 33 percent belong to medium ones.
The remaining 2 percent consists of the largest plastic manufacturing companies that sell their products both locally and abroad. Manufactured products include PVC pipes, shopping bags, injection molding products, PET/PE bottles, rubber gloves, toys, electronic switches, computer and electronic accessories, and various other household items.

The popularity of plastic has been growing each year with plastic product consumption amounting to 750,000 tonnes in 2013, almost 5 kg per capita, showing an increase from the 2 kg per capita in 2007.

The domestic market size for plastic production was estimated to be worth approximately $890 million in 2012. The plastic sector also contributed to around 1.2 percent of the country’s GDP, up from a mere 0.4 percent in 2004. While the GDP share might not be as robust as the apparel and leather industries, the ESCAP has projected a 10 percent annual growth in plastic production in Bangladesh.

According to the Bangladesh Manufacturers and Exporters Association (BPGMEA), Bangladesh imports over 150,000 tonnes of plastic raw materials annually, and this figure has experienced a consistent annual increase.
Raw materials import has significantly increased due to growing domestic demand. Furthermore, in order to make plastic, hydrocarbon raw materials are required to be extracted from crude oils and natural gas.

While Bangladesh has good reserves of natural gas and are exploring its use for manufacturing plastic, it cannot sustain current levels of production due to lack of modern technologies and limited capital resources compared to developed nations. The machinery used to produce plastic too had to be imported from countries such as Thailand or India.

Exports are moderately smaller to imports because their still-developing technologies are not at a world standard yet and thereby are unable to achieve comparatively high quality finished goods as other developed nations.
BPGMEA reports that export of plastic products amounts to $340 million in 2013. From this figure, $85 million is from direct exports while the rest of $255 million is from indirect (deemed) exports. Indirect exports refer mainly to plastic products as accessories to apparel. Bangladesh’s most exported destinations are China, India, USA, UK, and UAE, etc.

Major challenges in the Bangladesh’s plastic industry are power shortage, skill lacking, waste management and environmental concerns. Even with all the challenges that the plastic industry faces, there remains tremendous level of benefits for Bangladesh to be reaped. Revamping infrastructure issues with foreign assistance has stated and recycling rates continue to rise leading to improved environmental welfare and increased profits from use of more recycled material.

With Bangladesh’s plastic consumption at 5 kg per capita and world consumption at 30 kg per capita, there is substantial room for domestic growth. The availability of low cost labor provides further return for increased export earnings.

The BPGMEA leaders say, it would be possible to earn $1 billion from exporting plastic and plastic products. With the right government incentive and compliance, the sector would be able to receive investment in expensive technologies and machineries in plastic manufacturing.
That will allow Bangladesh to take advantage of low cost plastic productions, similar to India and China, allowing the country to grab a larger stake in the global plastic demand.

Source:https://www.bangla-expo.com/ipf/newsDetail.asp?serno=589

Australia wants more trade, investment collaboration with Bangladesh

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Australian High Commissioner to Bangladesh Julia Niblett on Sunday said reliable energy supply is crucial to attract both domestic and foreign investment and enable higher economic growth needed for providing employment with higher income.

“Australian companies have significant expertise in mining and energy; and well-placed to further help Bangladesh develop its mining and energy sectors,” she said.

The High Commissioner welcomed the government of Bangladesh’s initiatives to address energy needs in Bangladesh. “This is an ambitious and impressive essential focus of policy to support Bangladesh’s economic growth.”

High Commissioner Niblett was addressing a discussion on ‘Bilateral Business and Trade Opportunities Between Australia and Bangladesh’ organized by the Australia Bangladesh Chamber of Commerce and Industry (ABCCI) in a city hotel.

Prime Minister’s International Affairs Adviser Dr Gowher Rizvi spoke as the chief guest while Executive Chairman of Bangladesh Investment Development Authority (BIDA) Kazi M Aminul Islam and President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Md Shafiul Islam Mohiuddin spoke as special guests with ABCCI President Obaidur Rahman in the chair.

ABCCI Vice President M Khan made a presentation on Bangladesh-Australia trade and investment opportunities.

High Commissioner Niblett said oil, gas and coal extraction, power generation, transport, trade and infrastructure and skill development – there are lots of areas for collaboration between the two countries.

“We’ll continue to work energetically and closely with all of you to take Bangladesh-Australia trade and investment relations forward,” said the High Commissioner.

Niblett said Australia and Bangladesh have enjoyed a longstanding and mutually beneficial trade relationship that has grown significantly in the last five years.

The bilateral trade grew to over AUD 2.3 billion dollars in 2017, reflecting Bangladesh’s economic growth and the complementary strengths of two economies.

“Despite the trade surplus in Australia’s favour, bilateral trade is relatively balanced, and as such benefits both our countries,” she said.

The High Commissioner laid emphasis on diversification of economic relations into other fields that can be crucial for Bangladesh’s further progress. “There’re lots of scopes for collaboration.”

Dr Rizvi invited the Australian investors to come and invest in Bangladesh taking the advantage of “stable political system” availability of workers and fast growing market inside Bangladesh and re-export to other countries. “So the investors who will come here you can come and there will not be any change.”

He said Bangladesh has a stable society with political stability and growing maturity of democratic institutions. “We’ll continue to have the stable society… democratic continuity will continue. There is no doubt about it.”

Kazi Aminul of BIDA said Australia is a tested friend of Bangladesh and the two countries can achieve a lot together.

He said under the leadership of Prime Minister Sheikh Hasina they are working to further improve investment and business climate in the country. “We can take the relations to historically higher level.”

FBCCI President Mohiuddin said the government has ensured the culture of peace in the country and hoped that Australian investors will invest more in Bangladesh.

“We don’t see any more destructive politics. We always love peace that exists. We hope more collaboration,” he added.

Business leaders from the FBCCI, other associations and members of other bilateral Chambers were also present.

Established in 2004, the ABCCI provides a range of services to its members based in both Australia and Bangladesh, and it has been a leading voice of businesses in both countries.UNB.

Source:http://www.theindependentbd.com/post/166623

China to develop Bangladesh industrial zone as part of South Asia push

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China is developing a 750-acre industrial park in Bangladesh which will largely be used by Chinese manufacturing firms, a Chinese official said on Wednesday, part of its push to expand links with South Asia and beyond.

State-run China Harbour Engineering Company will hold a 70 percent share in a joint venture being formed for the park with the Bangladesh Special Economic Zone Authority (BSEZA), Li Guangjun, the economic and commercial counsellor at the Chinese embassy in Dhaka, said.

“This is for the first time China has received such a facility from the Bangladesh government where Chinese investors will be able to set up industries, mainly manufacturing firms,” Li told Reuters.

China is investing billions of dollars in building ports, power stations and roads in Sri Lanka, Bangladesh, Nepal and Pakistan as part of its Belt and Road Initiative to build trade and transport corridors across Asia and beyond.

The industrial park will be in Bangladesh’s main port city of Chittagong and will take five years to become fully operational.

Li said Chinese investment in Bangladesh would soon reach $10 billion, mainly focused on power, road and infrastructure projects.

Most financing for Chinese investment in Bangladesh comes through soft Chinese loans, with interest rates of 2 percent and repayment periods of 20 years.

In Sri Lanka, China has faced criticism for tough loan conditions which critics say has pushed the island nation into debt and forced it to hand over majority control of Hambantota port to China in an equity for debt swap.

Li said the land acquisition process needed to be faster in Bangladesh for projects to reach completion.

Source:https://www.thedailystar.net/business/china-develop-bangladesh-industrial-zone-part-south-asia-push-1558339