Business
Bangladesh, World Bank sign US$ 2.25 billion loan agreement comprising 5 projects
World Bank will provide USD 2.25 billion as loan to Bangladesh to develop various sectors, including regional trade and connectivity, disaster preparedness and environmental management.
A loan agreement was signed on Monday (May 01, 2023) between Bangladesh and the World Bank for implementing five projects.
Prime Minister Sheikh Hasina and World Bank President David Malpass witnessed the exchanges of the financing agreement.
Read: Stay with us in implementing future physical & social mega projects: PM Hasina to WB
This loan agreement comprises five projects:
· Accelerating transport and trade connectivity in Eastern South Asia (ACCESS) – Bangladesh Phase-1 Project worth USD 753.45 million.
· USD 500 million Resilient Infrastructure Building Project (RIVER) for resilience, adaptation and vulnerability reduction that will be the first major investment to support Bangladesh’s Delta Plan 2100. It will help improve disaster preparedness against inland flooding.
· USD 500 million First Bangladesh Green and Climate Resilient Development (GCRD) project is the first such credit that will help the country’s transition to resilient development.
· USD 250 million Sustainable Microenterprise and Resilient Transformation (SMART) project aims to help transform the microenterprise sector into a more dynamic, less polluting, resource efficient and climate resilient growth sector.
· USD 250 million Bangladesh Environmental Sustainability and Transformation (BEST) project to help strengthen environmental management and promote private sector participation in green investment.
Read More: External pressure behind World Bank's withdrawal from Padma Bridge, says PM Hasina urging it to look into future
Silent Partner vs Investor in Business: Know the Difference, Pros and Cons
Starting a business is exciting, but it requires capital to get off the ground. While there are various ways to finance a business, two common options are having a silent partner or seeking an investor. Both options can bring in the necessary funds but have different implications for the business' ownership and management. This article will explore the key differences between a silent partner and an investor, including their roles, responsibilities, and expectations. By understanding these differences, a business owner can decide which funding option is the right fit for his or her business and associated goals.
Who is a Silent Partner or Sleeping Partner in a Business?
A silent partner, also known as a sleeping partner, is an individual or entity that invests money in a business without actively participating in its management or operations. In other words, a silent partner provides capital and shares in the profits or losses of the business but does not take an active role in decision-making or day-to-day operations.
Silent partners are typically passive investors who are looking for a return on their investment, and they may not have any expertise or experience in the industry or market of the business they are investing in. While they do not participate in the management of the business, silent partners may still have some rights and responsibilities, depending on the terms of the partnership agreement.
Read More: What to Consider Before Investing in a Startup or Company?
Differences Between a Silent Partner and an Investor
Although a silent partner and an investor both provide capital to a business, there are key differences between the two.
Role and Involvement
A silent partner provides capital without actively participating in the management or operations of the business. On the other hand, an investor may take on an active role in the business and offer strategic guidance and expertise.
Risk and Liability
Silent partners generally have limited liability and are only liable for their investment amount. In contrast, investors may have unlimited liability and potentially lose more than their initial investment.
Read More: What to Consider Before Buying Land: A Step-by-Step Guide
Return on Investment
Silent partners typically receive a share of the profits based on their ownership stake, while investors may receive a return on investment in the form of equity, interest payments, or a combination of both.
No export-import at Hili land port on May Day
On the occasion of International Labour Day (May Day), all activities including the import and export of goods between Bangladesh and India through Hili land port in Dinajpur have been stopped.
Abdur Rahman Liton, president of the Banglahili Customs C&F Agents Association, said, "May Day is being observed across the world today. Therefore, it has been decided to stop the import-export activities between the two countries through Hili land port today as it is a transport-labour-based operation, and this is a public holiday. All port operations will resume on Tuesday.”
SM Haider, assistant manager of Panama Hili Port Link Limited, a private operator, said the land port authority has organized a discussion with the workers at 11 am. There will be a doa mahfil and food will be distributed among the workers.
Sheikh Ashraful, officer-in-charge (OC) of Hili Immigration Check-post, said immigration activities are normal from 9:00 am to 6:30 pm every day of the week, and they are exempt from public holidays. On May Day, the import and export of goods, including the activities of the land port, will be closed, but using the check post, travelers will be able to move between Bangladesh and India with valid visas.
Bangladesh may opt to align energy prices with intl market rates
Bangladesh may soon prefer to set the petroleum fuel prices in line with with the international market prices.
Such an idea was floated by the Energy and Mineral Resources Division during its meeting with the visiting team of the International Monetary Fund (IMF) on Sunday, said a source at the division.
According to sources, the IMF has been pressing the government to follow a specific formula to set its petroleum fuel prices as per the prices in the international market as part of the lending agency’s $4.7 billion loan agreement, as it does with the LPG price at present.
Currently, at the beginning of every month the government announces the LPG price as per the global market rate.
As a result, no subsidy is being given on LPG.
But the government has to provide a huge subsidy in the petroleum sector.
Officials said the IMF has been pressing the government to withdraw its subsidy by liberalising the petroleum fuel price like the LPG price.
The IMF team was led by Rahul Anand, the head of the Asia Pacific Region of the lending agency, while energy secretary Dr Khairuzzaman Majumder led the Energy and Mineral Resources Division at the meeting.
Official sources said the officials of the Energy and Mineral Resources Division briefed the IMF teams about the measures taken by the division in the energy sector following the government’s loan agreement with the lending agency.
They said that earlier the government had to raise the prices of gas, petroleum and electricity as per conditions of the IMF to receive the $4.7 billion in loan.
“But the lending agency wants Bangladesh fully pursue a policy in setting the energy prices under which it should not need to provide any subsidy,” said a senior official of the Energy and Mineral Resources Division.
However, energy secretary Dr Khairuzzaman Majumder was not available to comment on the issue.
US Bangla offers special Bangkok package
Private carrier US-Bangla Airlines has announced a special package for Bangkok with free accommodation.
The special package starting from TK 40,590 includes Dhaka-Bangkok-Dhaka return ticket on the route, a free stay at popular hotels such as Ambassador Square Wing (Main Wing)-11 and Sky Wing (Tower Wing)-11 and Hotel Grand President-11 for two nights and daily buffet breakfast.
Apart from twin sharing, there are various packages for children. There is a facility to take any package to Bangkok on six months EMI facility at no extra cost.
If any tourist wants to stay extra nights outside the package, s/he has to pay extra money. The package is not changeable in any way after finalisation.
The package can be purchased from any sales office of the carrier fulfilling the conditions.
NRBC Bank recommends a 12 percent dividend for shareholders
The Board of Directors of NRBC Bank Limited has recommended a 12 percent dividend comprising 7.50 percent cash and 4.5 percent stock dividend for the shareholders for 2022.
The issue will be placed to the approval of the 10th Annual General Meeting of the Bank.
The decision was adopted in the 162nd meeting of the Board of Directors, held on Sunday.
The meeting was held in hybrid mode (online and offline) and was presided by its Chairman SM Parvez Tamal.
The Board also decided to hold the 10th Annual General Meeting of the Bank on Digital platform on 19 June 2023, Monday. The Record date for dividend entitlement has been fixed on 25 May 2023, Thursday. The meeting approved audited financial statements for the end on 31 December 2022.
According to the balance sheet, the consolidated Earnings per Share (EPS) of 2022 stands at Tk 2.44, and solo EPS at Tk 2.19.
On the other hand, the consolidated Net Asset value (NAV) per share on 31st December 2022 stands at Tk 16.73 whereas it was Tk. 15.12 in December last year. The solo NAV per share is Tk. 16.31 which was Tk. 14.89 in last December.
CPD survey reveals Tk 1500cr social safety funds spent on ineligible beneficiaries
The Centre for Policy Dialogue (CPD) in a survey report said about one-third or Tk 1500 crore of social safety net allocation goes to ineligible beneficiaries due to wrong selection.
The report stated about 30 percent of social safety net recipients are elderly and 33 percent are widowed ineligible beneficiaries. Through which about Tk 1500 crore was spent on ineligible beneficiaries.
CPD calls for effective household surveys to prevent this and selecting people to be beneficiaries based on nepotism and political consideration.
CPD believes that if this wastage can be prevented, it is possible to bring 45 percent of the genuinely eligible people under the allowance. At the same time CPD also suggested increasing the allocation to bring eligible non-beneficiaries under the allowance.
Dr Khondaker Golam Moazzem, research director of CPD revealed the primary survey data on Sunday at a discussion on ‘How to Improve Coverage and Effectiveness of the Social Safety Net Program’, held at BRAC Centre in the capital on Sunday.
The survey highlighted that beneficiaries from different areas of Bangladesh believed they were receiving the benefit due to nepotism or a faulty selection process.
Even beneficiaries of other social security programmes like pension and vulnerable group development are getting old age and widow allowances, the report said.
On the issue of nutrition, the survey found that pulses and vegetables were the main sources of nutrition for allowance recipients.
The CPD suggested that to achieve the SDG goals, all eligible individuals in the country should be brought under a social safety net programme.
It required an additional allocation of Tk90,000 crore in the budget, which can be possible to earn by stopping tax evasion, the think tank’s observation said.
Chief guest of the programme Rashed Khan Menon, MP also chairman parliamentary standing committee on Ministry of Social Welfare said the state was politically and economically trapped by a small group of rich people, and while poverty was decreasing, inequality was increasing.
“Social security programmes should be increased to reduce inequality. However, the social security sector does not have the resources to increase allocations, and this can only be done if tax evasion is stopped,” he added.
Aroma Dutta MP, Dr Md Abdul Aziz MP, Rasheda K Chowdhury, former adviser to the caretaker government were present in the function as the special guests.
CPD Executive Director Fahmida Khatun chaired the event and opined in her speech that nepotism and political considerations were present in the selection of beneficiaries of social security programmes.
The bigger problem was that those affected were not receiving the security benefits and those receiving it were getting less than what they should, she said.
Nagad to disburse allowances from PM’s fund to Gopalganj’s fire affected traders
The state-owned Mobile Financial Service (MFS) provider Nagad has been entrusted with the job to disburse financial assistance among fire affected traders in Gopalganj’s Kotalipara.
The financial assistance from the Prime Minister’s Relief and Welfare Fund will be given to the affected people through the MFS, according to a Nagad media release.
On April 23, a fire originating from a short circuit gutted several shops in Ghaghor Bazar in Kotalipara.
Later, Premier Sheikh Hasina decided to give a hand to the affected businessmen from her own relief and welfare fund. Each business will get a financial grant of Tk 25,000 from the fund.
Muhammad Zahidul Islam, head of Public Communications, Nagad, said, “Whenever we get any responsibility from the government, we carry out that flawlessly. We think that we are making great strides in establishing a cashless society in Bangladesh through digital disbursements of allowances and stipends.”
During the Covid-19 pandemic, the disbursements of the prime minister’s Eid gifts among poor families started using Nagad. In its continuation, the state-owned MFS later successfully distributed primary stipends and social safety allowances among real beneficiaries.
Nagad has already become a role model in disbursing government allowances and other financial assistance. Its successful journey of reaching cash aid out to poor and helpless people began with the disbursement of PM’s pandemic-time Eid gifts.
After that, the MFS carrier has continued to disburse stipends among 1.5 crore primary school students and social safety allowances, such as old-age allowance, widow allowance, allowance for the underprivileged with special needs and students with special needs among 50 lakh beneficiaries.
Meanwhile, Nagad has also successfully distributed grants to poor women marking the birth anniversary of Bangmata Begum Fazilatunnesa Mujib. It has also disbursed financial assistance provided by the Ministry of Fisheries and Livestock.
Trade through Sonahat land port resumes after 10 days
Trade with India via Sonahat land port in Kurigram's Bhurungamari Upazila resumed on Saturday after 10 days of closure on the occasion of Eid ul-Fitr, port authorities said.
Mohammad Rahul Amin, assistant director (Traffic) of Sonahat Land Port, said trade through the land port remained suspended from April 19-28 due to Eid ul-Fitr and the weekly holiday on Friday.
“Export and import of goods via the port has restarted. Vehicles coming from India with goods have started entering the land port since morning,” said Rahul Amin.
CAB places 13-point proposals to ensure 'energy justice'
The Consumers Association of Bangladesh (CAB) has placed a 13-point proposal to ensure "energy justice" in the country.
CAB Vice president Prof M Shamsul Alam placed the proposals at a citizen meeting titled: "Energy Crisis and Development of Renewable Energy" at the Cirdap Auditorium in the city on Saturday as part of its reform campaign to bring transparency, fairness and combating corruption in the sector.
The proposals include enactment of law prohibiting all kinds of unsolicited and uncompetitive investment in the energy sector, no mixing of private and public investment in the energy sector, directors appointed in companies in public sector from the bureaucrats, state-owned companies and organizations must be run by own technical manpower, cancelling the recent amendments to the Bangladesh Energy Regulatory Commission (BERC) Act that curtail its authority, cancelling the Speedy Enhancement of Power and Energy Supply (Special) Act 2010 and allowing the energy regulatory body to act independently.
Ensuring production of more than 50 percent of gas and electricity from public sector on cost-basis, treating use of funds from the Gas Development Fund, Power Development Fund, and Energy Security Fund as consumers' equity investment, gradually reducing the share of coal and petroleum fuels in primary fuel mix under the short and medium term plans, increasing gas exploration by own initiative and raising the use of renewable electricity to reduce import of coal and gas, and evolving policies and strategies in energy sector in compliance with the Paris Agreement to combat climate change are also among the 13-point proposal.
With CAB chairman Ghulam Rahman in the chair, the seminar was addressed, among others, by Workers' Party president Rashed Khan Menon, Samyabadi Dal president Dilip Barua, Communist Party of Bangladesh (CPB) general secretary Ruhin Hossain Prince, Jatiya Party presidium member Barrister Shamim Haider Patwari, Bangladesh Samajtantrik Dal assistant secretary Rajequzzaman Ratan, eminent energy expert Prof Badrul Imam, economist MM Akash, architect Iqbal Habib and lawyer barrister Jyotirmoy Barua addressed the function.
Criticising the Speedy Enhancement of Power and Energy Supply (Special) Act at the seminar, Rashed Khan Menon said an indemnity has been given through this law so that no public servant could be tried for corruption.
"Indemnity is a very disgusting word in our politics which cannot be acceptable in any civil society," he said.
He said now electricity is being generated for which there is no use. But the consumers have to pay the price as capacity charge.
Prof Badrul Imam alleged that state-owned company Bapex's capability is not being utilised although most of the gas fields were explored by this organisation.
He said American USGS found in its survey that the country still has 32 trillion cubic feet (TCF) undiscovered gas. But the government is not interested in producing that gas, he said.
Dilip Barua said the ruling party is now working against the ideology of Bangabadhu by promoting corruption through plundering of state wealth.
Jatiya Party presidium member Barrister Shamim Haider Patwari said, "I don't understand much about energy, but there is no need to be enlightened to understand the corruption going on here. Many bureaucrats are working in the respective ministries with their relatives. It is very sad."