A Country developing fast ...
The People's Republic of Bangladesh is
a moderate, democratic and homogeneous
country. It maintains a constitutional
republic with a multi party parliamentary
democracy. Elections are held on the basis
of universal suffrage. The President is
the head of state elected by the members
of the parliament for a five-year term.
Executive power is exercised by the cabinet
headed by the Prime Minister, who is the
leader of the house in the parliament.
The President appoints the Prime Minister
and, on her recommendation, other ministers.
He also appoints members of the judiciary.
Bangladesh has a four-tier local government
system.
Bangladesh is one of the least developed
countries in the world. In 1997/98 per
capita GDP was US$338. Most land is fertile
and intensely cultivated, rice being the
main crop, followed by jute and tea. Agriculture
accounts for around 34% of GDP and 65%
of employment while the manufacturing
sector accounts for only 18% of GDP and
16% of employment activity.
The cost of doing business in Bangladesh
is highly competitive in comparison to
other economies in the region. Mineral
Resources include Natural gas, limestone,
hard rock, coal, lignite, silica, sand,
white clay, redio active sand, etc and
there is a strong possibility of some
oil deposits. The Government are actively
encouraging new natural gas based industries
including:-
| Electricity
Generation |
| Fertilizer
Production |
| Petro
Chemicals |
Bangladesh has official gas reserves of
about 20 trillion cubic feet (tcf) although
various studies conducted by US survey
groups, Unocal the US energy group and
Petrobangla, the state energy corporation,
have concluded that the reserves are nearer
to 65 tcf and maybe even higher. On this
question no one really knows for sure
as Bangladesh has perhaps one of the last
great remaining unexplored gas deposits
in the World.
The primary concern of the Government
has been to ensure that there is enough
gas being produced to service domestic
production. Unfortunately economic and
operating conditions in the country have
not been conducive for Oil & Gas exploration
companies to invest into new fast track
gas development and therby exploiting
the huge reserves. For this reason the
whole question of exporting gas and India's
willingness to buy it has become one of
the greatest and most sensative political
issues in Bangladesh. This has also been
complicated by India's desire to pipe
gas from Myanmar (Burma) accross Bangladesh
teritory.
There is a massive demand for fertilizer
in Bangladesh as agriculture is a principal
sector of the economy and low cost textiles
are also a major export.
The private sector power generation policy
announced in 1996 under which private
power companies are exempt from income
tax for 15 years. Several barge-mounted
power plants are in operation. But an
extensive demand gap for electricity is
crucial. Opportunities exist in developing
new plants (barge-mounted and other, large,
small and mini), constructing transmission
and distribution system, rehabilitating
or upgrading existing plants and supplying
a variety of support services. Investment
opportunities are available on a number
of different basis.
CWC
Gulf have successfully worked
in Bangladesh since mid 2001 and
have an office in Dhaka. If you
are planning to do business in
Bangladesh then speak to us now.
