Bangladesh Current Affairs - 2020

India’s IOCL and Bangladesh’s Beximco LPG Limited signs agreement for LPG JVC in Bangladesh

An agreement was signed on 30th June 2020 between the Dubai based IOC Middle East FZE-subsidiary of Indian Oil Corporation Limited (IOCL) and Bangladesh’s Beximo LPG Limited’s UAE based holding company RR Holdings Ltd.

The agreement signing event was virtually presided by Dharmendra Pradhan (Union Minister of Petroleum and Natural Gas).

As per the agreement, for LPG business in Bangladesh, a 50:50 Joint Venture Company (JVC) would be formed. Compound Annual Growth Rate (CAGR) of the LPG market in Bangladesh is expected to around 12-13%. The LPG market in Bangladesh has registered five-fold growth over the last five years.

How the JVC will work?

The company will begin by acquiring the existing LPG assets of Beximco LPG Limited. Then in one of the deepwater port of Bangladesh, the company will set up a large LPG terminal. This LPG terminal will be able to receive Very Large Gas Carriers. These would lead to a significant reduction of cost of import of LPG, further would be able to provide LPG at an affordable price in Bangladesh.

Future Plans for the JVC

The company will further intend to expand into other downstream gas and oil businesses such as Petrochemicals, establishing pipe LPG connection to the North Eastern States of India, other renewable forms of energy, etc.

World Bank Approves USD 500 Million to Bangladesh for Improving Road Connectivity

World Bank has approved a loan amount of USD 500 million to Bangladesh on 23rd June 2020. The amount was approved for improving road connectivity along the Jashore-Jhenaidah corridor that will benefit 4 western districts of Bangladesh. This will be Phase I of the overall USD 1.4 billion multi-phase projects of the World Bank for improving road connectivity in Bangladesh.

The World Bank stated that the western districts of Bangladesh are endowed with much natural and agricultural produce. The project once completed will have great economic potential for the entire region.

Phase I of the Project

Phase I of the project for which USD 500 million has been approved is named as Western Economic Corridor and Regional Enhancement (WeCARE).  In this phase, an existing 110 Km of two-lane highway will be upgraded to a safer and climate-resilient four-lane highway. This 110 Km project will be part of the Bangladesh Government’s larger plan of developing an economic corridor of 260 km in the western part of the country.

Between Jhenaidah and Jashore, 48 Km will also be upgraded on the N7 highway under the Phase I. Apart from this, 600 Km of rural roads that connect 32 rural markets will also be improved under this Phase.