Bangladesh Infrastructure Finance Fund Limited (BIFFL)
(A Company under Ministry of Finance for Financing PPP Infrastructure Projects)

Request for Expressions of Interest (REOI)

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Company Executives

List of E-Mail id & Mobile Numbers of all BIFFL Officials

Sl no

Name & Designation

E mail Addresses

Mobile Number

PABX Number

01

Mr. S. M. Formanul Islam   
Executive Director & CEO

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655300

300

02

Mr. Mohammad Sagir Hossain Khan  
Chief Operating Officer

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655301

301

03

Mr. Mohammad Monirul Islam Khan
Company Secretary

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655302

302

04

Mr. Syed. Md. Haseeb
AVP (Investment)

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655318

318

05

Ms. Mashruna A. Chowdhury
Chief Financial Officer

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655331

331

06

Mr. Sheikh Anower Sadat
Unit Head, Large Infrastructure

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655304

304

07

Mr. Md. Mizanur Rahman                  
Unit Head, Credit Administration

This email address is being protected from spambots. You need JavaScript enabled to view it.

0184655305

305

08

Mr. Md. Nisarul Kabir Siddiqui
Unit Head, Treasury

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655306

306

09

Mr. Md. Mohabul Alam                         
Unit Head, IT & MIS

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655311

311

10

Mr. Md. Saddam Hossain
 Unit Head, Sustainable Finance

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655313

313

11

Ms. Rabeya Rahman
Officer (Accounts & Finance)

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655314

314

12

Ms. Rajia Sultana
Officer (Human Resources)

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655315

315

13

Ms. Rajina Rashid
Unit Head, Woman Entrepreneur

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01841655312

312

14

Mr. Abdul Munem Chowdhury
Officer- Investment

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01841655324

324

15

Mr. Masnun Ahmed Wasi
MTO- Investment

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01841655323

323

16

Mr. Muhammed Shahjahan
Officer (Admin & HR)

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01841655320

320

17

Mr. Salah Uddin Kader Chy
Officer (Accounts & Finance)

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01841655322

322

18

Sujit Basak
Senior Officer- ICC

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655319

319

19

Mr. Md. Raihan Kawasar
Officer-Legal

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01841655328

328

20

Ms. Lamia Hossain
MTO- Investment

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655326

326

21

Mr. Muhammad Abdul Aziz
MTO- Investment

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01841655325

325

22

Ms. Bushra Ahmed
MTO- Investment

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01841655327

327

23

Mr. Md. Shams Razi Shopnil
MTO- Technical

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01841655329

329

24

Ms. Naw Safrin Sattar
MTO- IT

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655321

321

25

Mr. Mokabbir Sarkar
Legal - Consultant

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655330

330

26

Ms. Jhumur Barua
Junior Officer (Woman Entrepreneur)

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01841655317

317

27

Mr. Mohammad Hossain
Project Inspector

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01818289281

332

28

Mr. Monirul Isalm Kibria
Project Inspector

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01670274775

334

29

Mr. Asif Ahmed Khan
MTO -Technical

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01841655333

333

30

Ms. Afroza Akhter Nipun
Personal Officer to CEO

This email address is being protected from spambots. You need JavaScript enabled to view it.

01841655345

345

31

Mr. Raza Ahmad
Project Inspector

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01841655316

316

About Bangladesh

BANGLADESH AT A GLANCE

Bangladesh emerged as an independent and sovereign country in 1971 following a nine month war of liberation. It is one of the largest deltas of the world with a total area of 147,570 sq. km. With a unique communal harmony, Bangladesh has a population of about 152.51 million, making it one of the densely populated countries of the world. The majority (over 88%) of the people are Muslim. Over 98% of the people speak in Bangla. English, however, is widely spoken. The country is covered with a network of rivers and canals forming a maze of interconnecting channels. Being an active partner, Bangladesh plays vital role in the international and regional forum, particularly in the UN, Commonwealth and South Asian Association of Regional Cooperation (SAARC).



Official Name/Acronym: The People's Republic of Bangladesh/ BD or BGD
Geographical Location: Latitude between 20o34' and 26o38' North
Longitude between 88o01' and 92o41' East
Government: Parliamentary form of Government.
President is the head of the state,
while the Government elected by the people is headed by the Prime Minister.
Standard Time: GMT+6 hrs.
Capital City: Dhaka
Area – 1464 sq. km.
Population – 12.0 million
Other Major Cities: Chittagong, Khulna, Sylhet, Rajshahi, Barisal & Rangpur.
Climate: Sub-Tropical

Winter :11o C - 20o C (November - February)
Summer : 21o C - 40o C (March - September)
Monsoon: Rainfall 110-345 cm. (June-September)
Humidity: Highest - 99% (July)
Lowest – 36% (December & January)
Population: 145 million
Growth Rate: 1.48%
Density: 928 per Sq. Kilometer
Adult Literacy rate: 62.66%
Language: Bangla (National Language), Spoken by 95%, other dialects 5%;
English is widely understood and spoken.
Religion: Islam - 86.6%, Hinduism - 12.1%, Buddhism - 0.6%, Christianity 0.4% and others 0.3%.
Currency: Taka, having 1000, 500, 100, 50, 20, 10, 5, 2 and 1 in notes and 5,2,1 in coins.
Exchange Rate : US$ 1.00 = Taka 82.09, as on 01 December, 2012
Principal Rivers: Padma, Meghna, Jamuna, Surma, Brahmaputra, Karnaphuli, Teesta, Sitalakhya, Rupsha, Madhumati, Gorai, Mahananda etc.
Principal Exports: Garments, Knitwear, Frozen Shrimps, Tea, Leather and Leather products, Jute and Jute products, Ceramics etc.
Principal Imports: Wheat, Fertilizer, Petroleum goods, Cotton, Edible Oil etc.
Principal Industries: Garments, Tea, Ceramics, Cement, Leather, Jute, Cotton &Textiles, Fertilizer, Steel, Pharmaceuticals, Electric and Electronics, Light Engineering, Sugar etc.
Electricity: 220 Volts AC in all cities and towns
Business Hours: Government/Semi-Govt./Autonomous Offices:
9.00 a.m. to 5.00 p.m. Sunday-Thursday, Friday & Saturday closed.
Banks & Financial Institutions:
10.00 a.m. to 6.00 p.m. Sunday-Thursday, Friday & Saturday closed.
Best Tourist Season: October to March.
Major Administrative Units: Division - 7; District – 64; Upazilla
Source: Statistical Pocket Book Bangladesh-2010, Bangladesh Bureau of Statistics



Geography

Location: Between 200 34' and 260 38' north latitude and
between 880 01' and 920 41' east longitude.
Boundaries: North - India (West Bengal and Meghalaya),
West - India (West Bengal)
East - India (Tripura and Assam) and Myanmar,
South-Bay of Bengal.
Area: 56,977 sq. miles or 147,570 sq. km.
Economic Zone: Up to 200 Nautical Miles in the high sea measured
Territorial Water: 12 Nautical miles
Main seasons: Summer (March-May), rainy season (June-September) and winter (December-February)
Climate Variation:

Season

Temperature

Rainfall

Relative Humidity

Maximum

Minimum

Pre monsoon

32.60C

22.40C

453 mm

74%

Monsoon

31.50C

25.50C

1,733 mm

86%

Post monsoon

30.50C

21.40C

210 mm

80%

Winter

26.50C

13.90C

44 mm

73%

Annual

30.40C

21.20C

203 mm

78%

Principal seasonal crops and fruits: Paddy, Rice, Jute, Tea, Wheat, Sugarcane, Pulses, Mustard, Potato, Vegetables., Tobacco, spices;
Jack-fruit, Banana, Mango, Coconut, Pineapple etc.
Natural Resources: Natural Gas, Coal, Lime, White Clay, Granite, Glass Sand.
Statistical Pocket Book Bangladesh-2010, Bangladesh Bureau of Statistics



National Demographics

Total population (m*)

:

152.51

Male (m)

:

76.35

Female (m)

:

76.16

Annual growth rate

:

1.37%

Sex ratio (males per 100 females)

:

100.3

Density (per sq km)

:

1015

* = million
Source: Population & Housing Census Report 2011, Bangladesh Bureau of Statistics
Source: Projections as per previous report, Bangladesh Bureau of Statistics
Source: Population & Housing Census Report 2011, Bangladesh Bureau of Statistics




Economy
Overview

GDP total:

:

$105.00 bn (at current prices 2010-11)

GDP per capita:

:

$775 (at current prices 2010-11)

GDP growth rate (%):

:

6.32 (at constant prices 2011-12)

Total exports:

:

$24.231 bn (July, 2011-June, 12)

Total imports:

:

$30.93 bn (July, 2011-May, 2012)

Total FDI:

:

$1.136 bn (2011)

Forex reserves:

:

$9.953 bn (17th June, 2012)

Currency:

:

BDT (1 BDT=$0.0125) (avg 2011-12)

Per Capita Income

:

US$ 848 in the current FY

Per Capita Income needed to pull the country up to the middle-income bracket.

:

US$ 1,006

Source:Bangladesh Economic Review-2012 (Bangla version), Ministry of Finance Export Promotion Bureau




Ports

Seaports: Seaports

 

Inland river ports

 

:

 

:

Chittagong and Mongla

 

Dhaka, Chandpur, Barisal , Khulna , Baghabari, Sharishabari, Narayanganj, Bhairab Bazar, Ashuganj

 

Airports: International airports

 

 

 

Domestic Airports

:

 

 

 

:

Hazrat Shahjalal International Airport , Dhaka ;

Shah Amanat International Airport ( Chittagong );

Shah Jalal International Airport (Sylhet);

 

Chittagong , Jessore, Sylhet, Cox's Bazar, Syedpur, Rajshahi and Barisal .

Landports

:

Benapole, Teknaf, Banglabandha, Sonamasjid, Hilli, Darshana, Birol, Burimari, Tamabil, Haluaghat, Akhaura, Bibirbazar and Bhomra.



Communications

Radio stations

:

Dhaka, Chittagong , Rajshahi, Khulna , Rangpur, Sylhet, Rangamati, Comilla and Thakurgaon. broadcasting programmes (in addition to Bengali): in English, Hindi, Urdu, Arabic and Nepali.

Television stations

:

Dhaka, Chittagong

Relay stations

:

Chittagong , Sylhet, Khulna , Natore, Mymensingh, Rangpur, Noakhali, Satkhira, Cox's Bazar, Rangamati and Thakurgaon.

Television channels

:

Terrestrial: BTV

Satellite: BTV World, Channel-I, NTV, ATN Bangla, Bangla Vision, Boishakhi TV, Islamic TV, Desh TV, ETV, My TV, Diganta TV, RTV.

Daily Newspaper

:

Daily Prothom Alo, Daily Ittefaq, Daily Kaler Kontha, Daily Janokantho, Daily Jugantor, Daily Bhorer Kagoj, Daily Star, Daily Independent, Daily Financial Express, Daily News Today etc.

Source: Statistical Pocket Book Bangladesh-2009, Bangladesh Bureau of Statistics


 

Health

Facilities

:

2005

2006

2008

Hospitals

:

1,676

1,683

2,860

Hospital beds

:

50,827

51,044

74,415

Registered physicians

:

41,933

44,632

49,994

Persons per physician

:

3,317

3,125

2,860

Persons per household bed

:

2,736

2,732

1,860

Households per physician

:

691

655

-

Source: Statistical Pocket Book Bangladesh-2010, Bangladesh Bureau of Statistics

 

Directorate General of Health Services (DGHS)
Bangladesh Economic Review-2010 (Bangla version)
,
Ministry of Finance



Key Indicators of Economy

Percentance of Sectorwise contribution to GDP during (2010-2011)

Source:Bangladesh Economic Review-2010 (Bangla version), Ministry of Finance
Contribution of industries to GDP during 2010-11 (m US$)

Source:Bangladesh Economic Review-2010 (Bangla version), Ministry of Finance
Investment statistics during FY 2005-2009 (m US$)

Sector: Bangladesh Economic Review-2010 (Bangla version), Ministry of Finance
Foreign Trade (in m US$) Export Import Trend during the FY (2005-11*)

* Import fugure up to February, 2011 & export figure up to March, 2011 Source: Ministry of Commerce, GOB; Bangladesh Economic Review 2011(Bangla Version) Major economic indicators: monthly update (volume 06/2010), Bangladesh Bank

Source: Export Promotion Bureau, Bangla

Source: Export Promotion Bureau, Bangla Top

Key indicators

Electricity

Electricity data

2006-07

2007-08

2008-09

2009-2010

2010-2011

Per capita generation (Kwh)

168.08

176.87

184.26

200.32

252

Per capita consumption (Kwh)

149.97

158.20

165.32

170.27

 

Source: Anuual report 2009-10, Bangladesh Power Development Board


Source: Power and Energy Sector Development Roadmap, Ministry of Finance

Year

Installed capacity (MW)<1

Generation capability (MW)<2

Demand forecast (MW)<3

Demand served (MW)<4

2006-07

5,202

3,717

5,112

3,717

2007-08

5,201

4,130

5,569

4,130

2008-09

5,719

5,166

6,066

4,162

2009-10

5,823

5271

6454

4606

2010-11

7613

5000-5300

   

 

Source: Anuual report 2009-2010, Bangladesh Power Development Board

Notes:

1.Installed capacity as of June of the year.

2. Generation capability is the Maximum available generation capacity after maintanance outage in the year.

3. Demand forecast is the Base Forecast of PSMP-2005.

4. The dates of maximum demand served and maximum available generation capacity may not be the same.



Finance and Banking System

Overview
The financial sector in Bangladesh is continuously evolving towards a more modern and efficient system of finance which is supportive of greater investment and inclusive economic growth. The financial system of Bangladesh consists of The Bangladesh Bank, scheduled banks, non-bank financial institutions, micro finance institutions, insurance companies, co-operative banks, credit rating agencies and stock exchange.

Banking Infrastructure*

Type of Bank

No.

No. of Branches

State owned

4

3,404

Specialized

4

1,382

Private

30

2,816

Foreign

9

62

Total

47

7,664


An Overview of Financial Sector in Bangladesh


* As of February, 2011
Source:Bangladesh Economic Review-2011 (Bangla version), Ministry of Finance

Investment Freedom
The Foreign Investment Act of 1980 guarantees the right of repatriation of invested capital, profits, capital gains, post-tax dividends, and approved royalties and fees. Foreign firms are able to repatriate funds without much difficulty, provided the appropriate documentation is in order.

Economic Freedom in Bangladesh
Bangladesh’s economic freedom score is 53.0, making its economy the 137th freest in the 2010 Index. Its overall score is 3.6 points higher than last year, mainly reflecting improvements in trade freedom and investment freedom. Bangladesh is ranked 29th out of 41 countries in the Asia–Pacific region. Bangladesh has enjoyed impressive economic growth of around 6 percent per year over the past five years, driven mainly by its limited but growing services and industrial sectors.

Source:Index of economic freedom 2011, The Heritage Foundation

Comparison on economic freedom in Asia Pacific region

Name of the country

Business freedom (%)

Trade freedom (%)

Monetary freedom (%)

Investment freedom (%)

Bangladesh

68.7

54

67.5

55

Cambodia

40.7

65.2

80.7

60

China

46.4

71.6

74.2

25

India

35.5

64.1

62.9

35

Indonesia

54.6

73.9

75.2

35

Philippines

54.3

75.5

77.1

40

Singapore

97.2

90

84.8

75

Sri Lanka

78

77.1

68.5

30

Thailand

72.5

75.2

69.3

15

Vietnam

61.1

79.6

75.1

15

Source:Index of economic freedom 2012, The Heritage Foundation

Country's Score over Time

Source:Index of economic freedom 2011, The Heritage Foundation

Ten Economic Freedoms of Bangladesh

Source:Index of economic freedom 2011, The Heritage Foundation

Short History of Banking
The banking system at independence (1971) consisted of two branch offices of the former State Bank of Pakistan and 17 large commercial banks, two of which were controlled by Bangladeshi interests and three by foreigners other than west Pakistanis. There were 14 smaller commercial banks. Virtually all banking services were concentrated in urban areas. The newly independent government immediately designated the Dhaka branch of the State Bank of Pakistan as the central bank and renamed it Bangladesh Bank. The bank was responsible for regulating currency, controlling credit and monetary policy, and administering exchange control and the foreign exchange reserves. The Bangladesh government initially nationalized the entire domestic banking system and proceeded to reorganize and rename the various banks. Foreign-owned banks were permitted to continue doing business in Bangladesh.

The insurance business was also nationalized and became a source of potential investment funds. Cooperative credit systems and postal savings offices handled service to small individual and rural accounts. The new banking system succeeded in establishing reasonably efficient procedures for managing credit and foreign exchange. The primary function of the credit system throughout the 1970s was to finance trade and the public sector, which together absorbed 75% of total advances. The government's encouragement during the late 1970s and early 1980s of agricultural development and private industry brought changes in lending strategies. Managed by the Bangladesh Krishi Bank, a specialized agricultural banking institution, lending to farmers and fishermen dramatically expanded. The number of rural bank branches doubled between 1977 and 1985, to more than 3,330. Denationalization and private industrial growth led the Bangladesh Bank and the World Bank to focus their lending on the emerging private manufacturing sector.

Bangladesh Bank (BB)
Bangladesh Bank has been working as the central bank since the country's independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. Bangladesh Bank is also responsible for planning the government's monetary policy and implementing it thereby. Bangladesh Bank, which is the designated central monetary authority of the People's Republic of Bangladesh, has a governing body comprising of nine members with the Governor as its chief. Apart from the head office in Dhaka, it has nine more branches, of which two in Dhaka and one each in Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal.
Source: Bangladesh Bank

Scheduled Banks (SB) Out of 6,562 Scheduled Bank branches operating in the country, up to end December 2006 the nationalised commercial bank's operate 3,384 branches, of which 2,146 are in rural areas and 1,238 are in urban areas; Scheduled Banks have 1,354 branches of which 1,200 are in rural areas and 154 are in urban areas; Public Commercial Banks have 1,776 branches of which 488 are in rural areas and 1,288 are in urban areas.
Source: Bangladesh Bank

Cooperative Banks
In Bangladesh 119 cooperative banks are operating, of which 64 are central cooperative banks, 48 are land mortgage and the rest seven are other cooperative banks. The maximum share of total assets, 90%, is controlled by central cooperatives. Similarly the maximum share deposits (85%) and advances (90%) are handled by the same central cooperatives.
Source: Bangladesh Bank

Investment Corporation of Bangladesh (ICB)
The Investment Corporation of Bangladesh was established in 1976 with the objective of encouraging and broadening the base of industrial investment. ICB underwrites issues of securities, provides substantial bridge financing programmers’, and maintains investment accounts, floats and manages closed-end & open-end mutual funds & closed-end unit funds to ensure supply of securities as well as generate demand for securities. ICB also operates in the DSE and CSE as dealers.
Source: Investment Corporation of Bangladesh

Securities and Exchange Commission (SEC)
The Securities and Exchange Commission (SEC) was established on 8th June, 1993 under the Securities and Exchange Commission Act, 1993. The Chairman and Members of the Commission are appointed by the government and have overall responsibility to administer securities legislation. The Commission is a statutory body and attached to the Ministry of Finance.
Source: Securities and Exchange Commission

Dhaka Stock Exchange (DSE)
Dhaka Stock Exchange (generally known as DSE) is the main stock exchange of Bangladesh. It is located in Motijheel- the heart of the Dhaka city and its central business district. It was incorporated in 1954. Dhaka Stock Exchange is the first stock exchange of the country. At the end of March 2010, the amount of all issued capitalize securities and debenture was $8,179m which is 23% greater than the value of June 2009 ($6,611m). During 30th June 2009, the price of all securities of Dhaka Stock Exchange was $18,951m, which has increased by 73% at the end of March 2010 where the value was $32,850m. The share indices of DSE increased by 85%, where the value was $434m on June 2009 and reached to $805m at the end of March 2010.

Dhaka Stock Exchange is a public limited company. It is formed and managed under the Companies Act 1994, Security and Exchange Commission Act 1993, Security and Exchange Commission Regulation 1994, and Security Exchange (inside trading) regulation 1994. According to stock market rule, only members can participate in the floor and can buy shares for himself or his clients. At present it has 238 members.
Source: Dhaka Stock Exchange


* As of March, 2010; 1 crore Tk = 10 million
Source: Bangladesh Economic Review-2010 (Bangla version), Ministry of Finance

Chittagong Stock Exchange (CSE)
Chittagong Stock Exchange (generally known as CSE)-the first automated and modern trading bourse in the country. The Chittagong Stock Exchange began its journey in 10th October of 1995 from Chittagong city through the cry-out trading system with the promise to create a state-of-the art bourse in the country. Introduction of automated trading system in June 1998 replacing the practice and culture of age-old manual cry-out system of trading in the stock market of Bangladesh was a revolutionary step made by the Chittagong Stock Exchange in the history of the country's capital market. At the end of March 2010, issued capital increased by 29% compare to June 2009, reached to the amount of $2,539m. In addition, total market capital had a growth of 93% at March 2010, compare to June 2009, reached to the amount of $26,894m. Moreover, share index reached to 12,194 at the end of March 2010, with an increment of 54% compared to the index of June, 2009.
Source: Chittagong Stock Exchange


* As of March, 2010; 1 crore Tk = 10 million
Source: Bangladesh Economic Review-2010 (Bangla version), Ministry of Finance

Investment Opportunities

  • Foreign investment or joint venture investment in the Export Processing Zones (EPZs) or outside EPZs (with the exception of the five industries mentioned earlier).
  • Portfolio investment by purchasing shares in publicly listed companies through the stock exchange.
  • Investment in infrastructure projects such as power generation (private power generation policy announced); oil, gas and mineral exploration, telecommunication, ports, roads and highways.
  • Outright purchase or purchase of shares of state-owned enterprises, which are under process of privatization.
  • Investment in private EPZ (Private EPZ Act recently passed).



Legal Security for Investment

  • Foreign Private Investment (Promotion and Protection) Act, 1980 ensures legal protection to foreign investment.
  • Bangladesh is a member of Multi-Lateral Investment Guarantee Agency (MIGA), Overseas Private Investment Corporation (OPIC) of USA and International Centre for Settlement of Industrial Disputes (ICSID)
  • Member of World Intellectual Property Organization (WIPO) and World Association of Investment Promotion Agencies (WAIPA).



Non-Bank Financial Institutions (NBFI)
Non-bank financial institutions are an important part of financial system in Bangladesh, operations are regulated under the Financial Institutions Act, 1993. The non-bank financial institutions consist of investment, finance, leasing companies etc. There were 30 financial institutions operating in Bangladesh as of 31 December 2006. Of these two is government owned, 15 are local (private) and the other 13 are established under joint venture with foreign participation. Bangladesh Bank has introduced a policy for loan and lease classification and provisioning for non-bank financial institutions from December 2000 on a half-yearly basis. Among the 29 financial institutions, 12 have been listed in the stock exchanges up to 31 December 2006 to strengthen financial capability and the rest are under process to be listed in due course.

Insurance
The insurance sector is regulated by the Insurance Act, 1938 with regulatory oversight provided by the controller of insurance on authority under the Ministry of Commerce. A separate insurance regulatory authority is being established. A total of 62 insurance companies have been operating in Bangladesh, of which 18 provide life insurance and 44 are in the general insurance field. Among the life insurance companies, except the state-owned Jiban Bima Corporation foreign owned American Life Insurance Company, and the rest are private. Among the general insurance companies, state-owned Shadharan Bima Corporation is the most active in the insurance sector. A total of 31 insurance companies are listed in the capital market, of which eight offer life insurances.

Micro Finance Institutions (MFI)
Micro fiance institutions in Bangladesh were left unregulated for a long time since their inception. The government, with the close cooperation of Bangladesh Bank, undertook efforts to establish a regulatory framework which culminated in the enactment of the Micro credit Regulatory Authority Act, 2006. An executive board consisting of eight members is responsible for executing the general and administrative tasks of the management. The board consists of the Governor of Bangladesh Bank as ex-officio chairman, six government officials nominated by the government and one executive vice-president who serves as the member secretary of the board. The main responsibilities of the authority include issuance and cancellation of the license for micro credit, overseeing, supervising and facilitating the entire activities of micro finance institutions.

Recent developments in the financial sector
The stock market grew by 82% in 2009 compared to the year 2008, representing a total capitalisation of $275m. In order to encourage corporate houses with good fundamentals to come forward with new Initial Public Offerings (IPOs), the regulatory body introduced the ‘book building mechanism'. In the year 2009, the Securities and Exchange Commission also asked Dhaka Stock Exchange to open Order Confirmation Transaction (OCT) market to facilitate trading of de-listed companies from the floor. Moreover, preparations are afoot to set up Bangladesh Institute of Capital Market to work for its expansion. The scheduled banks in Bangladesh will be able to get credit reports of their clients online from the Credit Information Bureau from mid 2010. BRAC bank plans to open exchange houses in Malaysia, Singapore and Italy, in order to attract more remittances through its own channel.

The Asian Development Bank (ADB) has signed deals with 12 local private commercial banks for expansion of its trade finance facilitation programme in Bangladesh. Under the agreement, the banks will be able to offer more trade financing support to their clients particularly exporters and importers through international banks. The banks are Bank Asia Ltd., BASIC Bank Ltd., Dhaka Bank Ltd., Dutch Bangla Bank Ltd., Eastern Bank Ltd., Export Import Bank of Bangladesh Ltd., National Bank Ltd., Premier Bank Ltd., Prime Bank Ltd., Southeast Bank Ltd., Standard Bank Ltd., and United Commercial Bank Ltd.

Quick facts relating to the financial sector in Bangladesh

  • Bangladesh has applied for membership of Egmont Group to operate its newly-established financial intelligence unit in line with international standard.
  • Bangladesh Post Office is going to introduce postal cash card (e-money order) system through which people, across the country even in the remotest areas, will be able to send and receive money through mobile phone.
  • The central bank has raised the ceiling of foreign currency for Bangladesh nationals allowing them to spend more while traveling abroad.
  • The Bangladesh Bank launched the automation project of its Credit Information Bureau aiming at providing credit information in a faster and efficient way.
  • Bangladesh Bank has once again lowered different banking charges, fees and commissions to provide assistance to businessmen hurt by falling exports.



Economic data relating to the financial sector of Bangladesh
Money and Credit (bn* taka)

Money data

2006-07

2007-08

2008-09

2009-10

2010-11*

Money supply (narrow)

506.50

593.15

664.27

879.88

971.63

Money supply (broad)

2,119.86

2,487.95

2.965.00

3,630.31

4067.85

Scheduled banks time deposits

1,613.36

1,894.80

2,300.73

2,750.43

3096.22

* As of February, 2011
Sector: Bangladesh Economic Review-2011 (Bangla version), Ministry of Finance

Government Finance (bn* taka)

Data

2006-07

2007-08

2008-09

2009-10

2010-11

Revenue receipts

494.72

605.39

691.80

794.84

951.88

Revenue expenditure

454.12

569.89

671.25

771.19

832.43

Public sector development expenditure

179.16

243.49

247.12

318.17

394.21

Foreign exchange reserves (m US $)

5,077

6,149

7,471

10,750

10,731*

* As of February, 2011
Sector: Bangladesh Economic Review-2011 (Bangla version), Ministry of Finance

Yearly Interest Rates (% per annum)

End of period

Bank rate

Call money market's weighted average interest rates on

Schedule bank's weighted average interest on

Spread

Borrowing

Lending 

Deposits

Advances

2010*

5.00

3.51

3.51

 

 

 

2009

5.00

5.04

5.04

 

 

 

2008

5.00

10.27

10.27

7.31

12.31

5.00

2007

5.00

9.31

9.31

6.77

12.75

5.98

2006

5.00

7.17

7.17

6.98

12.99

 

2005

5.00

8.41

8.41

5.90

11.25

5.35

2004

5.00

4.93

5.74

5.56

10.83

5.27

2003

5.00

6.88

8.17

6.25

12.36

6.11

2002

6.00

9.49

9.56

6.49

13.09

6.67

*As of March, 2010.

Bank Deposits ($ m)

Items

February, 2010

January, 2010

February, 2009

% changes of February, 2010 over

 

January, 2010

February, 2009

Demand deposits*

4,885

4,786

3,655

2.03

33.63

Time deposits*

36,919

36,094

30,398

2.29

21.45

Total

41,804

40,880

34,054

2.26

22.76

Note:
* Excludes inter bank and government deposits; m=million, bn=billion.

Source: Statistics Department, Bangladesh Bank.

Proposed PPP Pilot Projects

Sl. No.

Sector/Line Ministry

Name of the Project

Project Description

Remarks

01.

Health/Ministry of            Health & Family Affairs

Establishment of a Haemodialysis Center at a Public Sector Health Facilities       (x2 projects)

The refurbishment, operation & management of dialysis centres at 2 public health facilities on a PPP basis to increase public access to dialysis & improve quality of service and care provided.         

02.

Tourism/ Ministry of  Civil Aviation & Tourism

Establishment of a International Standard Hotel Tourism Facilities (Uppal)

The construction, operation and management of a multi-storied international standard hotel to cater for tourism and help the local economy by supporting the development of tourist based resorts.

03.

IT/Industrial Zones/           Ministry of Information & Communication Technology

Establishment of  Kaliakoir Hi-Tech Park

The design, engineering, construction, marketing, operation and maintenance of buildings and facilities in an industrial park to target high growth industrial and IT sector business.

04.

Housing/ Ministry of Housing & Public Works

Mirpur “low-cost” housing complex

The design, construction, operation and management of a series of multi-storied apartment complexes with the provision of basic fundamental amenities and services.

05.

Roads/Ministry of Communications, Roads Division

a) Hemayetpur-Singair-Aricha PPP Road
b) Jatrabari-Sultana Kamal Bridge-Tarabo PPP Road

The design, build, finance and operation of an enhanced road infrastructure in the south-west of Dhaka, and the widening of an existing road in the north-east of Dhaka.

06.

Roads/Ministry of     Local Government, Rural Development and Co-operatives, Dhaka South City Corporation

Construction of Grade Separator on Mirpur Road (Polashi to Gabtali)

The design, construction of a series of overpasses and underpasses, and the operation and maintenance of the road to alleviate congestion and ensure upkeep of road infrastructure.

Fund Manager

In line with International best practices, BIFFL will get the services of an International Fund Manager.

Fund Manager shall be:

  • separate from the Company, selected and ratified by the Company Board;
  • domestic or international firm with domestic partner (s), having direct experience on Project Financing;
  • will be selected from large multi-disciplinary companies, for instance, management consultant companies, merchant & investment banks, and accountancy firms, or PPP boutiques and ratified by BIFFL Board.


Fund Manager will:

  • devise forms, criteria, procedures and regulations regarding application and fund disbursement for the BIFFL Board approval;
  • evaluate of the loan proposals received from individual PPP projects and provide the recommendation on the merit of the proposal to BIFFL;
  • prepare of independent financial model to determine cash flow of the project along with the Debt-Service coverage ratio and other covenants as required for BIFFL financing;
  • conduct independent due diligence services relating to Management, Commercial, Financial, Environmental & Social aspects of the project;
  • ensure that the corporate standards and good practices are followed in financial matters to support BIFFL operation;
  • deliver effective and efficient fund management in terms of planning, forecasting, monitoring, reporting and management risks;
  • provide guidance, support and challenge to CEO of BIFFL and operational staff in all areas of financing and accounting;
  • advise and supervise the assessment of risks involved in the project to be financed by BIFFL;
  • report to BIFFL with regular updates of works and the next steps to be taken in carrying forward the project financing activities of BIFFL in an efficient way.
  • deploy and monitoring of investment capital upon approval of the investment committee; and
  • perform other functions in accordance with the Investment Agreement.

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