DISPOSICIONES RELATIVAS A LA CONSTRUCCIÓN DE GRANDES RECIPIENTES PARA MATERIAS A GRANEL (GRG (IBC)) Y A LOS ENSAYOS A LOS QUE DEBEN SOMETERSE
6.5.6 Disposiciones relativas a las pruebas .1 Realización y frecuencia de las pruebas
6.5.6.8 Prueba de presión interna (hidráulica) .1 Aplicabilidad
As stated in “Identification and feasibility” report, Telenor is willing to assist Norwegian companies that would like to do business in Bangladesh in the initial business phase. Telenor like to see other Norwegian companies doing successful business in Bangladesh in one of the many business areas. Besides, increased business in Bangladesh is likely to be more business for Grameen Phone and Telenor.
The content of the informal collaboration between Telenor and the PSD program might be: • Telenor can give information like “how to do”, be it business specific issues or where
to find what as an expat in Dhaka.
• Peruse business plans and give comments from their experience and perspective • Introduce newcomers to business contacts and network
Planning and setting up of programs for delegations or companies visiting Bangladesh should not be the role of Telenor. These programs can be planned by e.g. Bangladesh Enterprise Institute, which has proven excellent as a facilitator for business related programs. In addition to BEI, there might be other local service providers. Telenor express willingness to assist companies with commitment to do business in Bangladesh, but would not encourage a rush to Bangladesh to look for opportunities driven by easy-to-get grants. Marketing of the program towards businesses in Norway is further a role that Telenor can take part in.
4.2 Learning experience from the Danish B2B
The B2B program is seen as successful with more than 50 business matches and many of these resulting in longterm business relationship and investments. The program started in 2000 and over the years the program has improved its success rate. Today, an estimated 60-80 % of the Danish companies entering into the program are likely to enter into some kind of business relationship in Bangladesh. The experience gathered from the program is likely to be relevant to Norwegian companies planning to do business in Bangladesh and is therefore specifically mentioned. The below mentioned experiences are based on recent information from persons knowing the program extensively as well as some recommendations and findings from the 2005 evaluation of the program by BEI17
17 Review of the Implementation of the Danida Private Sector Development (PSD)
Programme (2000‐2005) in Bangladesh and Recommendations for a Strategy for 2006‐ 2010
• The program recommends Joint Venture relationships between the company partners, but accepts also other forms of collaboration
• Careful selection of partners is important. Develop the business relationship and build trust before the parties enter into e.g. Joint Venture and binding relationship
• Discuss expectations with the partner and regulate the collaboration through written agreements
• Understand the importance of day-to-day follow up from the Danish side. Presence by the Danish partner in Bangladesh is crucial for success.
• Selection of Danish personnel to work in Bangladesh is crucial. The right management skills should be in focus. Support services from the company in Denmark are in most cases needed. The ability to live with cultural differences not to be underestimated in recruitment of personnel.
• Quality check of the Bangladeshi company can best be done through inspection at site. Access to reliable accounts is rare. Look at work conditions, work quality, products and very important is the impression of the people met.
• Practice and expect 0-tolerance for corruption from participating companies.
• The program gets credibility through its collaboration with the Danish Embassy (focal point is located in the Embassy)
• To market the program to companies in Denmark, it has proven an advantage to have Danish nationals working with the program. Important is also the link to the Embassy. • The program success rely on its ability to build business network in Bangladesh and
good relations to sector associations
• Bangladeshi companies find the program to be too much Danish driven as the Danish partner gets most of the program support and decides the level of technology.
5.0 Conclusions and recommendations
5.1 Business FrameworkCompanies that would like to do business in Bangladesh are likely to meet regulatory hassle and compliance problems. However, it is possible to do business without jeopardizing the company’s business and governance principles. Patience is necessary.
It is highly recommended to follow a 0 tolerance policy for corruption, although most companies conclude that by following the 0 tolerance principle they will miss out of some business.
Registering a company and getting the required licences in place are likely to take more time than indicated in the guidelines from the authorities. It is possible to have a chartered
Digitalising company registration and other business services is under way, thus making it difficult to use irregular payments to speed up the process. Digitalised services will hopefully decrease irregularities and promote transparency.
Bangladesh is one of the locations where it is relatively easy to invest 100% as a foreign company.
There are a number of incentives for foreign companies investing in Bangladesh. Tax holidays become less impressive when you learn that only a small part of Bangladeshi companies pay tax at all.
Outward remittances are seen as cumbersome affairs. Companies planning to invest are advised to search information at an early stage to how to make the process as easy as possible. Access to enough and reliable electricity is seen as one of the biggest obstacles to industrial development in Bangladesh. Assessment of the power situation at the selected site must be carried out and measures to reduce risk of power shortage to be taken by the investor.
5.2 Sector issues 5.2.1 ICT Cost of human resource and available ICT competence are reasons for Bangladesh to be rated as one of the upcoming outsourcing destinations in the world18. Internet capacity needs to be developed to keep abreast with the needs of the ICT sector in Bangladesh. Price and speed of data transfers become increasingly important and access to 3G is likely to be developed. The Telecommunication company might construct another international line for internet connection. This is likely to increase the interest for Bangladesh as an outsourcing location. 5.2.2 Energy and power production The energy sector has many challenges and is difficult to map. The gap between demand and supply for electricity represent a huge potential for business development for domestic and foreign companies. The energy sector depends on an efficient government to implement the national strategy and to carry out transparent tendering processes resulting in construction of new projects. The present government need urgently to prove its ability to act to improve the critical power situation. Subsidies have hampered the development of producing enough energy to a right price. Until market pricing of electricity is introduced, the situation with energy shortage is likely to continue. Coal reserves are available, but the authorities are not willing to make decisions on how to utilise the resources. 18 BASIS: Bangladesh Country Profile
Slow pace of the government actions in the energy area is likely to hamper the goal of GDP growth up to 10 % towards 2020. Availability of reliable power is needed to achieve the ambitious growth objective. Gas reserves are detected but not explored despite serious power gap and a sector almost solely depending on natural gas. Renewable energy with possibilities to sell carbon credits is not well developed and has business prospects. New business in the power sector depends more on politicians than on demand. The risk is therefore huge, that progress in implementing new projects continues to be slow. 5.2.3 Ship building Despite the present financial crisis affecting the shipping sector, Bangladeshi entrepreneurs show great enthusiasm to get into international shipbuilding. Some companies have got international orders; the shipyards ability to deliver according to contracts will be crucial for the reputation of the Bangladeshi ship building industry. Labour cost is the number one argument for Bangladesh to compete with established ship building nations, estimating that the same ship can be built in Bangladesh for half the price of that in China. The ship breaking industry has serviced Norwegian ship owners for years. Some ship owners might therefore increase business with Bangladesh also in building of new ships. The Bangladeshi ship building industry is developing their niche on ships between 3000‐ 6000 DWT. The chosen size is partly due to future expected demand for these types of vessels, and partly to the fact that most shipyards are located in rivers that restricts the size of the construction. Most ship builders in Norway have the hulls built elsewhere19. Quality and price are main criteria for where to locate contracts for hull construction. Occupational Health and Safety measures must be in place to avoid accidents and bad reputation. 5.2.4 Marine activities Projections for the marine sector expects a steep increase in aquaculture and a small decline in coastal and inland capture fisheries. Fish – and shrimp farming is likely to present business opportunities to Norwegian companies interested in either fish farming or selling of equipment. Production of fish and shrimp feed with improved quality control is needed to enhance the reputation of farmed species from Bangladesh towards the EU and other demanding markets practicing strict quality control. 19 www.nmi2008.com/
Farm based quality improvement programs are needed, as well as improved technology to enhance the environmental standard of the farms and ponds. The last survey of marine resources was made in 1969. Reliable projections for the future are not available. Only small reductions in catch have been observed. Parts of the trawler fleet is old and in need for reinvestments. Energy efficiency of many vessels is low. Investing in the trawler fleet with more modern fishing equipment as well as energy efficient motors are likely to pay off. 5.2.5 Trading with manufactured goods Trading in RMG is the main present trading connection between Norway and Bangladesh with 5 % of the knitwear and 2 % of the woven material imported from Bangladesh. These numbers can be increased, especially if the companies focus more on high value products both in garments and home textiles. The duty free textile import from Bangladesh to Norway does not require any extra duty on raw material coming from a third country. Products made from expensive fabrics, such as organic cotton can therefore be imported duty free to Norway. Production of home textiles of this kind is likely to give a high profit margin. The home textile factories have to refuse orders and have long waiting lists for production; this indicates an interesting investment possibility. The International textile brands buying RMG from Bangladesh as well as the NGOs should be commended for having made the sector almost ”clean” when it comes to child labour, violating of labour laws, human rights and environmental hazards. Despite the ongoing financial crisis, so far the RMG industry has not decreased its activities on a large scale. 5.3 Program issues
There are good prospects for building business relationship between Norwegian and Bangladeshi companies. A first step of a B2B program between Norway and Bangladesh should be to enter into a pilot phase with the aim of reaching a limited number of companies in the prioritised sectors (5-10 companies).
The selected sectors; marine resources, shipbuilding, ICT, energy sector and trading with e.g. garments all have scope for business. Value addition projects in agriculture sector (food processing), jute products and trade with ceramics and pharmaceuticals are business opportunities that might be investigated further as potentially interesting for collaboration between Norwegian and Bangladeshi companies.
A B2B programme will have an advantage if linked to the Norwegian Embassy, e.g. with offices in the Embassy. This will give the programme credibility and standing both in the Norwegian and the Bangladeshi business environment.
The programme is likely to benefit from having a Norwegian national as a programme director, to enable easy communication with Norwegian companies and marketing of the program in Norway.
The program director will be essential to connect and build relationship to the Bangladeshi business environment and business associations. Some services such as quality assurance of Bangladeshi companies as well as preparing local companies for the program might be outsourced e.g. to Bangladesh Enterprise Institute.
“How to do business with Norway/Europe” might be part of the preparation to enter the program for selected Bangladeshi companies. It can be organised as a training program raising issues of concern to Norwegian businesses and including a study visit to Norway. Norad might consider to invite Norwegian organisations such as NHO and LO to set up collaboration programs with sister organisations in Bangladesh parallel to starting a private sector program. Cooperation programs on institutional level might strongly advocate the need for businesses to apply CSR “inside” the company and focus on corporate
responsibility issues, such as work relations, health and safety and environmental issues. Recruitment of Norwegian companies should be done before finding their match in Bangladesh, as the number of interested companies in Bangladesh is no limitation. The person in charge should be prepared to stay up to 50% of the time in Bangladesh, e.g. through 4 lengthy visits per year. In the pilot phase, the program director should closely follow each company entering into the programme and give tailor made support. Based on experiences in the pilot phase, conclusion to be made on what service level to provide and what approach to follow for the B2B in the next phase.
Different companies are likely to need different support in the form of follow up from the program management. Smaller companies might need more close guidance as they might have fewer human resources to direct towards the activity in Bangladesh.
The support (both in the form of follow up by a program director and in monetary support) should be generous and felt as a real alleviation of risks involved, especially in the pilot phase. Support given also to the Bangladeshi partner participating in the program might create more ownership to the business project from their side.
The Norwegian B2B program should aim at a modest objective of companies participating in the program, maybe up to 50 companies over the life span of the program. Bangladesh is not well known to Norwegian businesses as a good location for business. Besides, there are many other PSD programs competing for the few Norwegian companies looking at business
opportunities in emerging and challenging markets.
The program might benefit from coordinated recruitment (“cluster entry”) of a handful companies for the pilot phase. Being in the same phase of entering a new market might create synergies and areas for collaboration, e.g. in terms of sharing premises, mutual learning, experiences and benefitting from coordinated contact with government and other bodies. Norwegian companies entering the program should be highly motivated and well informed about what to expect in Bangladesh. The recruitment should be strict. The companies should be selected on criteria as having good business opportunities in Bangladesh, as well as strong commitment to succeed. Small companies are less likely to succeed, due to the resource situation. However, there are examples on small companies with success in emerging markets. Small companies with the right motivation and realistic plans should not be excluded.
6.0 References and information:
Tender infoGovernment Sites
Gas & coal: www.petrobangla.org.bd
Power Generation: www.powercell.gov.bd
Power Grid: www.pgcb.org.bd
Communications: www.moc.gov.bd Roads & G\Highways: www.rhd.gov.bd
Railways: www.railway.gov.bd
Government's Central Procurement Technical Unit: www.cptu.gov.bd
Private Sector Sites
www.bdtender.com www.bdtender.info www.alltender.com
Other institutions that are also active in publishing tenders in the power sector are: Bangladesh Power Development Board (BPDB) www.bpdb.gov.bd
Power Grid Company of Bangladesh (PGCB) www.pgcb.org.bd
References made to websites and publications www.norway.org.bd/norsk/bangladesh/fakta/bilaterale.htm http://www.bangladoot.se/ www.fbcci-bd.org/investment/inctivfrforgninv.html http://www.discoverybangladesh.com/meetbangladesh/index.html http://www.boi.gov.bd/boi_services.html www.boi.gov.bd www.registrarofcompaniesbangladesh.com http://www.nbr-bd.org/incometax.html www.bfti.org.bd www.fbcci-bd.org/investment/inctivfrforgninv.html
www.bangladesh-bank.org: Guidelines for Foreign Exchange Transaction
www.bangladesh-bank.org: Guidelines for Foreign Exchange Transaction Volume 1, chapter 7 and 8
http://www.ficci.org.bd/monthly_bulletins_view.php?bu_id=B-004 www.mof.gov.bd/en/budget /09_10/ppp/ppp_09_10_en.pdf http://www.ambdhaka.um.dk http://www.bpdb.gov.bd/key_statistics.htm http://www.bpdb.gov.bd/installed_fuel.htm www.nmi2008.com/ http://www.edb.com/Documents/Corporate%20Documents/Report_Global_Sourcing_2007.pdf www.nmi2008.com/2009/02/19/from-prosperity-to-troubled-times/ http://www.thedailystar.net/newDesign/news-details.php?nid=108927
Complete list of RJSCF fees: www.roc.gov.bd:7781/
Publications:
BASIS: “Setting up Business in Bangladesh” Bangladesh Investment Handbook, 2007 p. 66 Basis checklist: Setting up Business in Bangladesh
World Bank: Harnessing Competitiveness for Growth, 2008, p.24
UNICO International Corporation; Software/ITES Industry in Bangladesh, Feb 2008 The Daily Star Business, 24th June 2009
The National Energy Policy, 2004
World Bank: Strategy for Sustained Growth, 2007, p. 63
World Bank Bangladesh Water Country Assistance Strategy 2005: Fisheries Sector Review and Future Development
Energy & Power, June 16, 2009 (www.ep-bd.com)
Review of the Implementation of the Danida Private Sector Development (PSD) Programme (2000-2005) in Bangladesh and Recommendations for a Strategy for 2006-2010, Bangladesh Enterprise Institute, 2005
7.0 Annexes
Annex 1 Information gathering
The information gathering is done through personal meetings. A handful of the people listed are interviewed on telephone.
Name and title Institution/organisation
M A Matin, Secretary General Foreign Investors chamber of Commerce & Industry (FICCI)
Fazlul Hoque, President Bangladesh Knitwear Manufacturers and Exporters Association
T.I.M. Nurul Kabir, Managing Director Spinnovation Ltd. Farah Jabeeen, programme officer Danida B2B programme Md. Rakibur Rahman, Chairman
Mohamad Shahjahan, Director A.F.M. Shariful Islam. CEO
Shaik Mohammadullah, General Manager
Dhaka Stock Exchange
Feradus Ara Begum, Additional secretary A H M Nurul Islam, Secretary
Ghulam Murtaza, consultant
Dhaka Chamber of Commerce and Industry
Phillip Michael Nelson Marsham, MD Maersk Line
Humayun Rashid, CEO Energypac Power Generation
Arild Klokkerhaug, Head of Opportunities Somewhere in
Wahid Salam North Bengal Mining
Ingebjørg Støfring, Ambassador Arup K Biswas, Senior Advisor Arne Haug, First Secretary
Royal Norwegian Embassy
Tanwir Dewan Madame Dewan
Esheeta
Asif Ayub, Research Associate
Kazi Hasan Imam, Program Coordinator
Hans Martin Førsund, Manager International Counselling Ib Albertsen Senior Investment Manager IFU
Erik Lynne, MD Solør Treimpregnering
Omera
Azam J Chowdry, Chairman East Coast Group Prime Bank Limited Finley Companies Mobil
Philip Marsham, MD Maersk Line
Saiful Alam Paiker, MD
Probir Kumar Barua, Chairman
Carbon Bangla Emission
Major Abdul Fatah, Director Sea Resources Ltd. Mahmood Ur Rahman, Chairman
Capt. ATKM Kamal
Highspeed Group of Companies
Rashed Iqbal, MD S R Enterprise Ltd.
Ali Mustafa Choudhury, managing director Golam Mowla, Executive Director
Saleed Ullah, Executive Director Mostafa Kalam Uddin, Secretary
Bangladesh Shipping Corporation
Richard Boulter, Dep. Country Rep. M.Masur Reaz, Private Sector Advisor
DFID