Mottama completes structure of Myanmar’s first high-rise steel building

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YANGON — Mottama Holdings said on Tuesday it has completed the structure of Myanmar’s first high-rise steel building, a US$80 million office tower in Yangon called M Tower that the company is building through a joint venture with a Hong Kong investor.

The 26-storey project on Yangon’s Pyay Road is being built by Mottama subsidiary Min Dhama Steel Structure using locally manufactured steel structure and is expected to be finished by 2020, after which 300,000 square feet will be leased as office space. The 0.97 acre site is owned by Mottama chairman U Yang Ho, company director U Tin Maung Htun told Frontier on Tuesday.

He said the investor, M Tower Company, is a joint venture between Mottama, which holds a 51 percent share and a Hong Kong-based company, which holds 49 percent, and that the project is funded through company revenues and shareholder loans.

M Tower was originally known as AMC Tower before Mottama changed its name from Asia Metal Company in 2013 after it was sanctioned by the United States Treasury Department for building work at a Tatmadaw factory at which US officials said about 30 North Koreans were working. The sanctions were lifted in October 2016 when the Burma sanctions program was terminated.

The group was founded in 1997 as a steel materials trading and services company, before its expansion into construction, manufacturing, trading, hospitality, property development and logistics. With 23 subsidiaries, and regional offices in Singapore and Hong Kong, the group has built over 50 infrastructure projects, 40 commercial buildings and 40 “national projects” it said in a statement Tuesday.

In 2016 Mottama was a founding member of Grand Yangon Public Company, a 12-member consortium that Tin Maung Htun said intends to build infrastructure across the Yangon Region. He said the company has completed a pre-feasibility study for a Yangon outer circular expressway.

Documents seen by Frontier show the $2.18 billion project would be built with Shandong Hi-Speed Qingdao Development Company. Tin Maung Htun said the company was working with a Chinese investor that was partly state-owned.

“We have completed a pre-feasibility study [for the road] which the Myanmar Investment Commission has approved,” he said. “Now the Ministry of Construction is taking care of the process and sooner or later they will call an EOI [expression of interest] to find a consultant and funding.”

The group is involved in another major infrastructure project in Yangon: in February, its subsidiary Min Dhama was selected as a preferred bidder for the Yangon Central Railway Station redevelopment, which has an estimated $2.5 billion price tag.

The consortium, comprising Min Dhama, Singapore’s Oxley Holdings and Shenzhen-listed Sino Great Wall, was selected ahead of a consortium comprising Singapore-listed Yoma Strategic Holdings and Myanmar-listed First Myanmar Investment, both companies connected to businessman Mr Serge Pun.

The long-delayed tender for the 63-acre site in the heart of downtown Yangon was first announced in 2014.

Tin Maung Htun said the group was now preparing a draft concession agreement with Myanma Railways, under the Ministry of Transport and Communications, which owns the 25.7 hectares, or 63.5 acre project site in downtown Yangon.

Once a draft concession agreement has been signed, it will be submitted for review to the Union government, including the Attorney General’s Office. Tin Maung Htun said the project will also require Myanmar Investment Commission approval. “Because this is a national size project there are a lot of stakeholders involved, maybe six to 10 different authorities … there are so many steps,” he said.

https://frontiermyanmar.net/en/mottama-completes-structure-of-myanmars-first-high-rise-steel-building

Chinese low-cost airline launches flights from Yangon to Guangzhou

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YANGON — Chinese low-cost airline 9 Air on Sunday launched direct flights between Yangon and Guangzhou in southern China, less than a month after the carrier launched its first international flight, to Mandalay, on October 2.

9 Air, central and southern China’s first low-cost carrier, began operations in 2014 from its base in Guangzhou, the capital of Guangdong province. A subsidiary of Juneyao Airlines, it now operates over 40 domestic routes with a fleet of 16 Boeing 737-800 planes.

The airline has regional expansion plans: by 2025 it aims to operate 80 aircraft with services to destinations including Kalibo in the Philippines, Bangkok in Thailand, Da Nang in Vietnam and “popular cities in Japan” according to a statement by Yangon Aerodrome Company, the operator of Yangon International Airport.

The statement said flights from Guangzhou to Yangon would run four times each week, with low-fare options starting at less than US$100. “This new route will substantially meet the needs of business travelers, family visits and general tourism,” it said.

9 Air will compete on this route against China Southern Airlines and Myanmar Airways International, which is 80 percent owned by Kanbawza Group and is the only private airline in Myanmar to operate international flights.

There were 452 flights last year between Guangzhou and Yangon, which transported some 40,000 people, according to Ministry of Hotels and Tourism data, with an average seat occupancy rate of 63 percent.

The number of Chinese visitors to Myanmar has increased exponentially over the past five years, from 70,805 in 2012, to 212,642 in 2017, ministry data shows, accounting last year for some 15 percent of total international visitors.

Source:https://frontiermyanmar.net/en/chinese-low-cost-airline-launches-flights-from-yangon-to-guangzhou

Good time to book, switch to new retail premises: Colliers

It’s now a good time for retailers in Yangon to keep a look out for better premises from which to do business, given that rental rates are still manageable and ahead of anticipated demand, according to recent intelligence from property research firm Colliers.

With several new and modern shopping malls scheduled to come onstream and backed by a spike in the number of young people plying these developments, rental rates are expected to gradually increase in the coming quarters. As such, now is the time for retailers to book a good location to open shop so that they are better positioned to ride the emerging trend.

“The introduction of more quality malls means that rents may further trend upwards in the succeeding years. The continuous entry of foreign brands, particularly food and beverage chains, is likely to reinforce uphill pressure on rents,” Colliers analyst Paul Ryan Cuevas wrote in a November 6 report.

Before the end of the year, new retail space at Kantharyar Shopping Mall by Asia Myanmar Shining Star Investment Co Ltd, The Central Boulevard by Marga Landmark Development Co Ltd and Space @ Yankin by Crown Roofing Co Ltd – all situated within Yangon – are expected to become available.

Next year, additional space at Central Boulevard, Fortune Plaza by Excellent Fortune Development Group and Yadanar Mall by Crown Advanced Construction Co totalling more than 150,000 sq metres will come onstream.

However, aside from Inno City by Inno Co Ltd, Yoma Central by Yoma Strategic Holdings and The Garden by Kajima Corporation, which are some of the sizeable shopping malls set to debutbetween 2020 and 2021, additional supply of retail space scheduled for those years is limited.

Rental rates

Against that backdrop, Colliers is advising retailers to take advantage of the current opportunity, when choice is still available and rental rates are still low, to move into more modern and better quality premises as competition is expected to intensify in the coming years.

Already, there’s been a recent spike in interest in modern developments such as Junction City, St. John City Mall and Myanmar Plaza.

Currently, the average rental rate is around US$33 per sq m per month, which is an increase of 3 percent from the same period last year. “The introduction of more quality malls means that rents may further trend upwards in the succeeding years” according to Mr Cuevas.

He added that the continuous entry of foreign brands, particularly F&B chains, is likely to reinforce uphill pressure on rents. This year, for example, foreign brands such as Aunty Anne’s, Krispy Kreme and Coffee Bean and Tea Leaf have already entered Myanmar with grand plans to roll out more outlets.

Curated offerings

For developers, Colliers advise is to focus on more lifestyle-oriented hubs, regional shopping centres and destination malls. “In the meantime, we advise developers to push for a well-curated tenancy mix. Adding more distinctive tenants such as food halls, amusement parks, movie theaters, arcades, bowling alleys, event gathering spaces and fitness centers to shopping malls is a direct response within the industry to accommodate changing shopping behaviours and new preferences,” Mr Cuevas wrote.

These days, consumers, particularly teenagers and young adults, which represent close to half the Myanmar population, are showing heightened focus on experience, personalisation, and social engagement, which must be considered when developing new projects to increase foot traffic and value.

“Adopting these initiatives will drive value enhancement as well as help leverage over competition going forward,” Mr Cuevas wrote in his report.

https://www.mmtimes.com/news/good-time-book-switch-new-retail-premises-colliers.html

Myanmar’s first dry port opens for business

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KM Terminal & Logistics Ltd (KM) and Resource Group (RG) officially opened two separate dry port projects in Ywar Thar Gyi, Yangon yesterday.

A dry port is an inland intermodal terminal directly connected by road or rail.

Freight trains will run from Ywar Thargyi to a second dry port in Myit Nge, Mandalay, which KM will also own and operate. The company said it invested over US$50 million (K78 billion) in both ports.

KM is joint venture company that is 70 percent owned by Kerry Logistics and 30pc owned by Mother Logistics, its local partner.

Meanwhile, Myanmar-owned RG has invested US$40 million in a similar project under which freight trains will run from its Ywar Thar Gyi dry port in Yangon to its Myit Nge dry port in Mandalay, according to RG.

The two projects are expected to help improve Myanmar’s logistics network. “Because our logistics system is not good, costs are high across the transport value chain. As such, Myanmar needs logistics hubs like these dry ports to help upgrade the system,” U Thant Sin Maung, Union Minster of Transport and Communication, said at the opening ceremony of KM’s dry port.

The Yangon dry ports will handle cargo directly transferred from the Yangon river ports and Thilawa ports and help to alleviate traffic congestion on the roads. It will also speed up the flow of cargo between vessels and major land transportation networks, which adds value for consignees and exporters.

In addition, the Ywar Thar Gyi dry port in Yangon and Myit Nge dry port in Mandalay are strategically located in the centre of Myanmar, which will support trade between lower and upper Myanmar.

“Our Yangon dry port will now be linked by road and railway to our Mandalay Myit Nge dry port, which started operations since May,” said U Nyi Htut, general manager of KM.

U Myint Maw, managing director of RG, said the ports will help to streamline trade flows and decrease logistics costs.

Last year, Myanma Railways, which is under the remit of the Ministry of Transport and Communications, signed agreements with KM and RG to construct the dry ports under a build, operate and transfer system.

Myanmar ranks 137 out of 160 countries on the World Bank’s logistics performance index 2018.

Source: https://www.mmtimes.com/news/myanmars-first-dry-port-opens-business.html

Foreign ships, containers tripled

The number of foreign ships stood at 784 in 2017-18 fiscal year, which was only 282 in 2012-13 fiscal. The number of containers was 43,000 in 2017-18, whereas it was 20,717 in 2015-16

Arrivals of foreign ships and containers have tripled in Mongla port in a period of five years, thanks to massive development and modernization initiatives to upgrade the second largest sea port in the country.

The number of foreign ships stood at 784 in 2017-18 fiscal year, which was only 282 in 2012-13 fiscal. The number of containers was 43,000 in 2017-18, whereas it was 20,717 in 2015-16, according to data of Mongla port .

With the growing interests from the port users, the port authority has garnered enhanced revenue from its services.

In the Fiscal Year (FY) 2016-17, the revenue earning has seen an upward trend by 15%, which turned to 50% in FY17-18. Arrivals of foreign ships and cargo handling have also increased simultaneously.

According to port users, without problems, such as poor navigability in the jetties, lack of adequate instruments to handle containers and difficulties in the customs, export-import business in the Mongla port would have boosted further, improving the financial standards of the locals as well.

Mongla port Chairman Commodore AKM Faruque Hasan said: “Among the 10 approved development projects intended for the port, seven are currently under progress.

“Once these projects- financed by India and China- are completed, the port will be better mobilized,” he added. “The government is constantly monitoring port development.”

Port users are increasingly attracted to Mongla port due to its enhanced efficiency, and better services, the chairman said.

Profitable since 2009, but problems remain

The chairman further said, after 2009, the Mongla port has been experiencing profits.

Currently, the port has six self-owned jetties, seven individually owned jetties and 22 anchorages- all of which are capable of handling 34 ships at the same time.

The port has the capacity to handle more than 10,000,000 metric tons of cargoes, 70,000 containers and more than 20,000 vehicles through four transit sheds, two warehouses, four container yards and two car parking yards.

Mongla Customs Clearing and Forwarding Agents Associations President Md Sultan Hossain Khan said: “According to data provided by the Chittagong customs house, 10% of the imported goods go through a physical checkup after entering the Chittagong port.”

“However, in Mongla customs house, 100% of the imported goods go through a physical checkup,” he said. “This is why importers do not want to bring ‘capital machineries’ through this port.”

He said due to the financial losses and harassments, many are unwilling to use the port.

Port Chairman Commodore AKM Faruque Hasan said as number of containers are low, the customs authority checks almost all consignments, although there is a provision of examining as low as 10% of the total consignments.

He said currently 70-80% of the capacity is used by the port users.

Meanwhile, port users say, the port can be used to its fullest potential with the cooperation of all concerned parties.

Mongla port user Shipping Agent and Managing Director of Stevedors Messrs Nuru and Sons HM Dulal informed: “Ships are continuously entering the Mongla port. Port users have increased their scope of work, creating more employment for workers.”

Former MP of Bagerhat-3 constituency- which comprises of Mongla-Rampal upazilas- and Khulna City Corporation Mayor Alhaj Talukder Abdul Khaleque said the Mongla port has gone through a lot of developments after the current government came to power.

“Through capital dredging, navigability was increased in 145km of channel area,” he said. “We are trying to ensure a safe, pollution-free and environment-friendly channel.”

The government has taken different initiatives to increase port usage. Among them, constructions of Padma Bridge, Khulna-Mongla railway, Khanjahan Ali Airport, 1320 megawatt of coal-based Rampal power plant, Special Economic Zone (SPZ) in the Mongla port area with the joint initiative of Bangladesh-India, and expansion of Mongla EPZ are some of them, the mayor said.

He hoped the construction works for all these projects will be completed by 2020-21.

According to port sources, the Mongla port does not have sufficient infrastructures. The port is going to be even busier after the construction of the Padma Bridge. And if all port-related activities of Khulna are to be transferred to Mongla port, the overall facilities of the port must be increased.

With that end in mind, Bangladesh is now seeking loans from India.

Aid from India

India will be providing Tk6,245cr in loans in the Tk6,585cr Mongla developmental project. The project, which started in June, is estimated to end by 2022.

The objective of the project is to increase the capacity of the Mongla port, as well as provide modern facilities for port users.

Port authorities say the project has a total of 12 components. They are: constructions of jetty-1 and jetty-2 container terminals, container handling yard, container deliver yard, security systems, roads, yard sheds, security walls automation, service vessel jetty, office, MPA tower, port residential complex and community facilities, mechanical workshops, equipment yards, equipment sheds, MT pools, marine workshops, signal rail crossing, overpass, entertainment sector, expansion of the preserved areas and other infrastructures and administration buildings and purchase of five harbour crafts.

Mongla port started its journey on December 1, 1950. It was opened 48km north of Khulna and 131km upstream of Bay of Bengal as “Chalna port”. In 1954, the name was changed to Mongla port for the convenience of the entry of foreign ships, port sources said.

Jute and jute-related goods, prawns, clay tiles, leather and other goods are exported through this port currently. On the other hand, food grains, fertilizers, machineries, vehicles, LP gas, coal, limestone, palm oil, wooden logs, stones and other goods are imported.

Source:https://www.dhakatribune.com/business/2018/11/11/foreign-ships-containers-tripled

Local cement companies thriving over multinationals

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Large government infrastructure projects and increased urbanization are boosting the local cement industries, as the sector has been growing more than 12.50% in the last five years, according to multiple studies and sector people.

Currently, more than 32 cement manufacturing companies, four of them multinationals, produce around 30 million tons of cement per annum.

Local companies hold more than 80% of market share, beating the multinationals by their attractive prices and quality.

Higher per capita incomes and sustained period of political stability helped grow the sector amid huge construction works in both public and private sectors, studies observed.

“Demand for cement has registered a robust the Compound Annual Growth Rate (CAGR) of 12.67% over the last five years. This is significantly higher than the country’s GDP growth, according to a recent study of LankaBangla Investment Ltd.

Average per capita cement consumption in the world is 500kg while that of Bangladesh is only 120kg, the study said referring to a World Bank.

According to another study of Lafarge Surma Cement, nearly 40% of total cement used in a single year is consumed in the construction of private homes followed by 33% in government buildings and infrastructure, 24% is used to build real estate and commercial buildings.

The remaining 3% cement is used for other purposes, said the study.

“A sustained period of political stability has provided stable and growth supportive environment,” said the report of LankaBangla Investment Ltd.

“Increased urbanization has been a key factor in the rise of the cement industry. Furthermore, higher per capita incomes have resulted in greater affordability while changing lifestyles have resulted in more nuclear families. These factors have contributed to consistent rise in the demand for construction materials such as cement.”

Large government infrastructure projects have sustained the growth in cement demand amid a slow real estate recovery, it further said.

People involved in the cement sector said large government infrastructure projects have shot the demand for construction materials, including cement.

In a recently surveyed report by the Cement Manufacturer’s Association, it has been found that there is production capacity of 40 million tons per annum, whereas actual production is hovering around 32million tons.

The machinery, equipment and manufacturing sites are not being utilized fully by the cement manufacturing companies. On an average the utilization rate by these companies is currently around 75-80%, the survey said.

The sector-related people say companies could not reap benefits of lower clinker prices due to the domestic price war. For the production of cement, two types of material are required — calcareous material such as limestone, chalk, etc., and the another is clay, which are extracted from quarries.

Limestone is the primary raw material for producing cement clinker. There are also other raw materials used in the cement industry.

Bangladesh depends on imports and it is one of the largest importers of clinkers globally. Of the 32 cement producers that are currently in operation, only two have clinker production facilities in their own plants. One is Chhatak Cement Factory Ltd, a government owned company, with limited production capacity and the other is LafargeHolcim Bangladesh Limited.

Out of seven listed companies in the premier bourse, six are listed in the ‘A’ category, meaning the companies regularly provide dividends to shareholders. The remaining one listed firm – Aramit Cement Limited fall under the ‘Z’ category.

The cement sector contributed 2% of the total turnover of the Dhaka Stock Exchange (DSE) in the last month, compared to 2.49% in September, 1.06% in August, and 1.41% in July, according to DSE data.

The listed Cement sector companies are Confidence Cement, Heidelberg Cement Bangladesh Ltd, LafargeHolcim Bangladesh, Meghna Cement Mills, M.I. Cement Factory (Crown Cement), Premier Cement Mills and Aramit Cement Limited.

Currently, only 32 factories are in operation, including four multinational companies. At present, 81% of the total market share is held by top 10 manufacturers. Among the top 10 cement market players in Bangladesh, eight are local and two are multinationals.

Multinational cement companies are facing intensive competition with local ones which are grabbing the top slot of the industry by operating along the economy of scale and with deft marketing strategies. Multinationals now hold only 25-30% of the total market share, industry sources said.

As a result of failure to penetrate the market, two of the global cement groups, UAE based Emirates Cement and Mexico based cement manufacturer Cemex have recently divested their Bangladesh operations. However, the acquisition of Holcim by Lafarge Surma will reshape the industry dominance in Bangladesh in the days to come as both companies already operate their own businesses in the domestic market, sector people said.

After the completion of acquisition, Lafarge Holcim has the 2nd place in terms of market share.

Another recent study by EBL securities revealed that Shah Cement holds 14% of the market share, while Lafarge Holcim holds 11.8%, Bashundhara Group 9.1%, Seven Rings Cement 8.1%, Heidelberg Cement 8%, Premier Cement 6.6%, M.I. Cement (Crown Cement) 6.6%, Fresh Cement 6.5%, Akij Cement 4.2%, and Confidence cement 2%, according to the study.

The sector-related people say Bangladesh is a populous country. On the other hand, the country’s economy continues to grow steadily. Therefore, construction of multi-storied buildings across the country is going on in full swing.

Urbanization in various cities including Dhaka is increasing. Construction of major infrastructure mega projects including the Padma Bridge, Metro Rail and Dhaka Elevated Expressway is boosting the demand.

Further, the use of cement in the villages is increasing more than urban areas, cement traders said.

“Foreign remittance has been playing a vital role that encourages rural people to construct buildings for their living,” a trader said.

Belal Hossen, executive director of the Bangladesh Cement Manufacturers Association (BCMA) told the Dhaka Tribune: “The cement sector is growing day by day as demands keep soaring. At the same time, foreign currency earning is also increasing through limited scale exports.”

Terming the industry mostly dependent on import for its raw materials, the association leaders urged the government to lower tariffs for further expansion of the sector.

African-American attacks Bhutanese business pretending to be white supremacist

A Bhutanese businessman is the victim of a false flag assault in Charlotte by an African-American man who made the attack on the man’s store appear to be the work of white supremacists.

North Carolina police arrested on Sunday the man allegedly seen on a surveillance video setting fire to the store on Thursday and leaving a note threatening to torture immigrants and refugees and signing it “White America”, The Charlotte Observer newspaper reported.

The Central Market, described as Nepali-Indian establishment that sells South Asian food and gifts, is owned by Kamal Dhimel, a refugee from Bhutan.

On Thursday night, the store’s front door was set on fire, a glass pane on the door was smashed with a stone and the note signed “White America” and warning that refugees and immigrant business owners would face torture “if they did not leave and go back to where they came from” was left there, according to police quoted by the newspaper.

Investigators said a video surveillance of the incident showed a “black male suspect”, the Observer reported.

African-American man Curtis Flournoy, 32, has been arrested and charged with ethnic intimidation, sending threatening letters, burning a business building and using incendiary material, according to the newspaper.

Charlotte City Council member Dimple Ajmera told the Observer that she was frustrated to see the hate crime take place.

“I’ll continue to work around the clock to make sure that all businesses and all the residences feel safe,” she added.

Last month, Harnish Patel, an Indian-American businessman in Lancaster in neighbouring South Carolina state, was shot dead outside his home. There have been no arrests in the case.

While attacks and threats against ethnic and religious minorities have always been a feature of America, activists and Democratic Party leaders have attributed recent incidents to President Donald Trump.

In some cases they have proved to be false flag attacks carried out by others and made to look like they were committed by white supremacists.

In the most notorious of those cases, a series of threats against Jewish institutions were sought to be linked by activists to the election of Trump, whose daughter is a convert to Judaism, and he was criticised for not acting on them.

However, an African-American man in the US and a Jewish man in Israel were arrested in connection with the threats.

In some places, including New York, false reports have been spread about raids on illegal immigrants to spook immigrant communities.

In February, an Indian-American woman, Ekta Desai, was harassed on a New York-New Jersey metro train by an African-American man who threatened her using foul language and said she should “get out of here”.

She uploaded the video of the harassment, but the Democratic New York city or state officials have not come forward to condemn it or take action against the man. US human rights organisations have not reacted to it either.

In February, in a case directly attributed to white racism, Indian engineer Srinivas Kuchsbhotla was shot dead and Alok Madsani was injured in Kansas, after they were mistaken for Middle Easterners or Iranians.

The alleged shooter, a white man, has been arrested and awaiting trial.

Last month, a Sikh in Kent, Washington State, was shot and injured by a man who shouted at him, “Go back to your country”. Authorities are still looking for the shooter.

In another case last month, an Indian woman Sasikala Narra, 38, and her six-year-old son, Anish, were stabbed to death in New Jersey. That case has not been solved either.

Source:http://www.bhutannewsnetwork.com/2017/04/african-american-attacks-bhutanese-business-pretending-to-be-white-supremacist/

Govt clears 500 acres of more land for Japan at Araihazar economic zone

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The Executive Committee of the National Economic Council or ECNEC cleared a project to acquire 491 acres of land for the economic zone in March last year.

After Japan sought more land, the ECNEC passed a revised proposal approving another 500 acres of land for the economic zone on Tuesday.

Now the estimated cost of the revised land acquisition project is around Tk 32 billion, according to Planning Minister AHM Mustafa Kamal.

The ECNEC approved a total of 11 projects at an estimated cost of around Tk 64.5 billion on Tuesday.

The other projects included dredging of the Padma River and saving its left bank in Dhaka’s Dohar Upazila at an estimated cost of around Tk 15 billion.

Source:https://bdnews24.com/economy/2018/08/07/govt-clears-500-acres-of-more-land-for-japan-at-araihazar-economic-zone

Bangladesh signs MoU with Nepal on hydro-electricity

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Apart from the import of hydro-electricity from Nepal through India, the MoU includes investments by Bangladesh in Nepal’s power sector.

Nasrul Hamid, state minister for power, energy and mineral resources of Bangladesh, and Barsha Man Pun Ananta, Nepal’ minister for energy, water resources and irrigation, signed the MoU in Kathmandu on Friday afternoon.

Hamid thanked the Nepal government for the MoU saying: “It was signed after a long wait.”

The state minister focused on the friendly relations between the two countries and said both should increase cooperation for development in power and communications sectors.

According to Bangladesh’s master-plan, a part of the goal to supply 40,000MW power by 2030 will come from imported power.

Nepal has the prospects of producing 40,000MW of hydropower and Bangladesh’s state-run and private companies can invest in future projects in the Himalayan country, said Hamid.

At present, Nepal imports 400MW electricity from India but has set a goal to produce 15,000MW hydropower in 10 years, which is being implemented, according to Barsha Man Pun Ananta.

He spoke about investment prospects in Nepal and the possibility of trading in power.

Hamid paid a courtesy visit to Nepalese Prime Minister KP Sharma Oli on Friday. The MoU was signed after a bilateral meeting with the energy minister of Nepal.

A working group and a steering committee will work to increase the cooperation in the power sector between the two countries, according to the MoU.

Hydropower is comparatively cheap and environment-friendly. The Awami League government has been working to increase hydropower cooperation with Nepal and Bhutan.

Bangladesh signed an MoU with an Indian company last year to import 500 mw power from Nepal. GMR Energy in India has started a project to produce 900MW of hydropower. The Bangladesh Power Development Board has signed an MoU with GMR Energy to buy electricity from the project through a cross-country grid via India.

Bangladesh has been importing 500MW of electricity from India’s Bahrampur and 150MW from Tripura. The government plans to import more power from India in future.

Source:https://bdnews24.com/economy/2018/08/10/bangladesh-signs-mou-with-nepal-on-hydro-electricity

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