Decisions on some investment offers likely by next month
Monday, 3 December 2007
Naim-Ul-Karim
The government is actively contemplating deciding on some of the investment offers worth about $12.5 billion (1250 crore) by next month as part of its plans to gear up economic activities in the aftermath of the two consecutive floods followed by the recent cyclone Sidr.
Following appointment of Kamal Uddin Ahmed as the new executive chairman of the Board of Investment (BoI) on November 26 last, the government asked it to expedite the processes relating to the proposals.
A senior official said, "We were asked to contact the parties concerned to know their latest positions on the investment proposals before calling them to resume negotiations."
Requesting anonymity, he said the foreign investment proposals, lying with the BoI since long, include $3.0 billion from India-based Tata, $2.5 billion from the UK-based Asia Energy, $ 1.6 billion from the US-based Vulcan Energy, $1.5 billion from the South Korean Luxon Global, and around $ 1.0 billion from the Saudi Arabian Kingdom Group.
There is also another foreign investment proposal from the Global Steel Holdings Ltd (GSHL), a subsidiary of the UK-based Mittal Group, involving $2.9 billion.
The fresh government move came in consideration of creating more jobs and gearing up the economy hit hard by the devastating floods and the cyclone Sidr.
The entire functioning of the BoI had been hampered for over a month after the government, in a major reshuffle in the administration on October 18, transferred its executive chairman Mohammad Mohsin as secretary to the Energy and Mineral Resources Division, among other five top bureaucrats.
During the period the BoI had to postpone many of its meetings in absence of its chief, BoI insiders said, adding that even a meeting with Chief Adviser Fakhruddin Ahmed scheduled for November 8 to discuss the overall investment scenario and other issues was also postponed.
A significant decline in registering investment proposals has already worried the BoI insiders as both local and foreign investors are adopting a wait and see approach, they said.
According to the World Investment Report-2007 published recently, Bangladesh received $792 million (79.2 crore) in foreign direct investment (FDI) in 2006, 6.0 per cent less than that of 2005.
In 2005, the actual FDI inflow was $845 million, the highest ever in a single year.
BoI insiders expressed their fear that in the current year investments might decline sharply as a longstanding effect of last year's political turmoil and a sluggish trend in registering investment proposals.
Registration of investment proposals, both foreign and local, declined significantly, about 30 per cent, in the first nine months of 2007.
Although the BoI targeted FDI worth $1.0 billion for 2007, the current trend proves that it might not be possible for the current year as large investment proposals are still hanging in the balance.
When asked, sources expressed their reluctance to give details of the investment offers, which are on top of the list for decision by next month.
The government is actively contemplating deciding on some of the investment offers worth about $12.5 billion (1250 crore) by next month as part of its plans to gear up economic activities in the aftermath of the two consecutive floods followed by the recent cyclone Sidr.
Following appointment of Kamal Uddin Ahmed as the new executive chairman of the Board of Investment (BoI) on November 26 last, the government asked it to expedite the processes relating to the proposals.
A senior official said, "We were asked to contact the parties concerned to know their latest positions on the investment proposals before calling them to resume negotiations."
Requesting anonymity, he said the foreign investment proposals, lying with the BoI since long, include $3.0 billion from India-based Tata, $2.5 billion from the UK-based Asia Energy, $ 1.6 billion from the US-based Vulcan Energy, $1.5 billion from the South Korean Luxon Global, and around $ 1.0 billion from the Saudi Arabian Kingdom Group.
There is also another foreign investment proposal from the Global Steel Holdings Ltd (GSHL), a subsidiary of the UK-based Mittal Group, involving $2.9 billion.
The fresh government move came in consideration of creating more jobs and gearing up the economy hit hard by the devastating floods and the cyclone Sidr.
The entire functioning of the BoI had been hampered for over a month after the government, in a major reshuffle in the administration on October 18, transferred its executive chairman Mohammad Mohsin as secretary to the Energy and Mineral Resources Division, among other five top bureaucrats.
During the period the BoI had to postpone many of its meetings in absence of its chief, BoI insiders said, adding that even a meeting with Chief Adviser Fakhruddin Ahmed scheduled for November 8 to discuss the overall investment scenario and other issues was also postponed.
A significant decline in registering investment proposals has already worried the BoI insiders as both local and foreign investors are adopting a wait and see approach, they said.
According to the World Investment Report-2007 published recently, Bangladesh received $792 million (79.2 crore) in foreign direct investment (FDI) in 2006, 6.0 per cent less than that of 2005.
In 2005, the actual FDI inflow was $845 million, the highest ever in a single year.
BoI insiders expressed their fear that in the current year investments might decline sharply as a longstanding effect of last year's political turmoil and a sluggish trend in registering investment proposals.
Registration of investment proposals, both foreign and local, declined significantly, about 30 per cent, in the first nine months of 2007.
Although the BoI targeted FDI worth $1.0 billion for 2007, the current trend proves that it might not be possible for the current year as large investment proposals are still hanging in the balance.
When asked, sources expressed their reluctance to give details of the investment offers, which are on top of the list for decision by next month.