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City-dwellers will have to pay 5.0 per cent higher price plus VAT for water usages from August as Dhaka Water Supply and Sewerage Authority (DWASA) has again raised its tariffs. The bill per unit (1,000 litres) of water will be Tk 10.50 for residential users from the existing rate of Tk 10 while commercial rate will climb a little higher to Tk 33.60 from Tk 32. Added up to the tariffs will be value-added tax (VAT). With the latest hike, the government utility-service provider has enhanced the water tariffs thrice since July 2016.    But questions have cropped up as to whether the hikes are taking place in accordance with the existing law, as rights groups stood against.   According to DWASA, the board approved the new price hike in May. Under the law, the board can't hike price more than once a year--and the increase should not be more than 5.0 per cent.   The Consumers Association of Bangladesh (CAB), however, termed the water-tariff hikes 'arbitrary'.   DWASA does not have any accountability to the people, said the rights group. The water authority for the capital city has its own logic.   "This is a yearly tariff hike. We don't call it tariff hike, it is actually adjustment with inflation and expenditure," Dhaka WASA Managing Director Taqsem A Khan told The Financial Express. Last year, WASA increased per-unit water price 22 per cent for a residential client. Before July 2016, the price per unit was Tk 7.71. After the yearly 5.0 per cent rise in July, it cost Tk 8.49. But in November the WASA raised the price by 17 per cent to Tk 10. Is it going to be a repetition of last year's? To this question Mr Khan said the tariff hikes were as per the Dhaka WASA Act 1996. WASA board has power to make 5.0 per cent hike. "If we need more tariff hike in a year, we apply to the ministry and the ministry approves it if it is rational. Thus, last year water tariff was hiked 17 per cent additional to 5.0 per cent regular increase," the MD said. And if they need, he hastened to add, they would apply again to the ministry this year as per law. He said the inflation is 7.0 per cent but WASA hiked only 5.0 per cent, so it is actually a 2.0 per cent reduction. According to the Bangladesh Bureau of Statistics (BBS)), the 12-month average inflation in the month of March, 2017 was 5.39 per cent. Khan also pointed out that the production cost of per-unit water is Tk15 but they charge only Tk10.50. The rest comes from indirect subsidy from government. Contacted, member of Dhaka WASA Board and President of Central Executive Committee of the Institution of Diploma Engineers AKMA Hamid said the 5.0 per cent hike was discussed at the board meeting and it was rational to adjust inflation. Taqsem A Khan said they were setting up new pipelines, implementing four mega- projects, replacing old pipelines and the system loss would come down to seven or eight per cent soon. Chairman of the Consumers Association of Bangladesh Ghulam Rahman termed the price hike arbitrary. "Such a utility service provider can't hike price at their board. There must be public hearing for the rationale of tariff hike," he said. He said the WASA Act should be changed to make pro-people. The DWASA does not have any accountability to the people. The WASA Act 1996 allows them to raise water tariffs at their sweet will. The law does not have any consumer-protection clause. The CAB chief also demanded the formation of a committee or authority, like the ones for electricity and gas, to adjust the price of water in a transparent and accountable way. "The price hike will affect the people of lower-and middle-income groups," said Mr Ghulam, demanding a logical review of the pricing. When contacted, a senior official of the Ministry of Local Govt., Rural Development & Co-Operatives said the WASA has been empowered to revise the tariffs in accordance with the law. "I am not aware of the latest tariff hike. I have to see it," the official said when asked about the latest hike. bdsmile@gmail.com....

Published at: 2017-07-25 00:00:04

The government has taken an initiative to widen the scope of investing in bonds, including wage earners' bonds, as part of its efforts to boost bond market in the country as well as increasing remittance inflow through the formal channels, officials said. Finance Minister AMA Muhith recently issued an official instruction, asking the senior officials of his ministry to find ways through consultation with the authorities concerned for increasing the opportunities to invest in the bonds, they said. Officials said the instruments like Wage-Earner Development Bond (WEDB), US Dollar Premium Bond (UDPB) and US Dollar Investment Bond (UDIB) were introduced years back, aimed at stimulating the remittance inflow into the country. But those could not attract as much investment as expected, they added. At present, a person has to be present in Dhaka if he/she wants to buy any of the bonds from the authorised dealer banks. "… this is a backdated process and it should go," the minister mentioned in the directive, stressing the need for boosting further the country's bond market. The government has long been trying to boost the bond market while capital market stakeholders and analysts have been repeatedly requesting the government to help bring derivates like bonds in the secondary market and create alternative investment opportunities for mitigating the investment risks. "The purchasing system of the bonds is old-fashioned. It should be updated immediately," an official of finance ministry told the FE Monday. Officials said steps have already been taken to simplify the process of investment in the bonds by the non-resident Bangladeshis (NRBs). They pointed out that a lack of mutual trust between customers and the bond-selling banks was also partly responsible for discouraging investment in the tools. The government had introduced the WEDB in 1981, followed by the UDPB and UDIB in 2002. Now the yield rate of WEDB is 12 per cent, UDIB is 6.50 per cent and UDPB is 7.50 per cent. The response so far, however, failed to achieve the goal of introducing the instruments due to poor sales since the beginning, said an official of the finance ministry. According to statistics of Department of National Savings (DNS), net investments in WEDB were Tk 1.45 billion in the fiscal year (FY) 2010-11, Tk 1.45 billion in FY 2011-12, Tk 760 million in FY 2012-13, Tk 1.29 billion in FY 2013-14 and Tk 4.28 billion in FY 2014-15. The net sales of UDPB were Tk 170 million in FY 2010-11, Tk 710 million in FY 2011-12, Tk 310 million in FY 2012-13, Tk 260.93 million in FY 2013-14 and Tk 80.0 million in FY 2014-15. UDIB fetched Tk 1.18 billion in FY 2010-11, Tk 2.98 billion in FY 2011-12, Tk 2.64 billion in FY 2012-13, Tk 440.68 million in FY 2013-14 and Tk 1.25 billion in FY 2014-15. "The government is trying to change the current situation. A process is now underway to this effect, a deputy general manger of Bangladesh Bank told the FE Sunday. "Presently, we are encouraging the banks to sell the instruments online for the Foreign Currency Account (FCA) holders." He, however, said the prospective clients hesitate to buy the bonds online in accordance with the existing policy as they express doubt and question whether the bonds are real or not. He said the prospective clients also raised questions if the bond documents would be fake ones. Many of the non-resident Bangladeshis (NRBs) or Bangladesh origin foreign nationals have inquired about the bond documents with the Bangladesh Bank over phone, he added. On the other side, the BB official said, the dealer banks were mostly reluctant to sell the bonds online or through existing system due to procedural complexities, especially nominee complexities. "We are now examining the savings bonds, especially WEDB," senior secretary of finance division Hedayetullah Al Mamoon, told the FE Sunday. The WEDB issued in Bangladesh Taka (BDT) currency against wage earners' foreign exchange remittance. A wage earner in his/her own name, in the name of a person nominated by the wage earner or in the name of a beneficiary of the wage earner residing in Bangladesh, any employee of the government or of a statutory, autonomous, semi-autonomous body working abroad on lien, government employees working in the Bangladesh High Commissions abroad can invest in the WEDB. Bangladeshi nationals residing abroad and Bangladesh origin foreign nationals residing abroad can invest in UDPB and UDIB. The bonds issued in equivalent U.S. Dollar against the foreign exchange remitted by the wage earners. Meanwhile, a central bank official said, the government was trying to increase the remittance inflow through formal channel by adopting measures now under its consideration. The considerations were being made due to sluggish inflow of remittance apparently due to less economic activities in the middle-eastern countries and sending remittance by NRBs through informal channels, he added.   rezamumu@gmail.com....

Published at: 2017-07-25 00:00:04

Bangladesh will install another cross-border high-voltage transmission line for importing 500-megawatt electricity from India, officials said Monday. This will be the second such line to be used for importing Indian electricity. Currently, 500MW power is being imported everyday from India through the first 400kv transmission grid line. The state-run Power Grid Company of Bangladesh (PGCB) will set up the 400-kilovolt (kv) high-voltage double-circuit grid line between Bheramara in Bangladesh and bordering Berhampur in India to import power from the neighbouring state, West Bengal, QM Shafiqul Islam, a superintending engineer of PGCB, told the FE. Mr Islam said they had already sent a Tk 1.88-billion worth of project proposal to the Planning Commission (PC) for government approval for installing the second transmission. He said the government is expected to bankroll Tk 1.74 billion, the lion's share of the total cost, while the remaining Tk 136.5 million will be spent by the PGCB from its own funds. "We are upgrading the existing 400kv cross-border grid line. After the upgrading, the exiting grid line also could supply 1000MW electricity. But the proposed second line will work as an alternative grid for ensuring reliable power supply," he added. If any circuit of the first line trips, then the second line will ensure uninterrupted power supply to Bangladesh from India, the company SE told the FE. Mr Islam said the PGCB has already invited tender for setting up the second cross-border transmission line. Meanwhile, the state-owned power company completed the first 400kv Bheramara-Baharampur transmission-line construction in September 2013. Thereafter, in October 2013 the government started import 250MW power from India, which later increased to 500 megawatt. Mr Shafiqul Islam said the grid line on the Indian side had already been upgraded. "When the second grid-line construction will be completed, Bangladesh will be able to import another 500MW power from India." According to the PGCB, it has plans to set up the second 40-kilometre double-circuit line between Bheramara and bordering Baharampur of India by December 2018. Earlier, Bangladesh had signed a 500MW power-import deal with India under which it could begin the power import from the neighbouring country in late 2012. In July 2010, Bangladesh Power Development Board (BPDB) signed a 35-year power agreement with the Power Grid Company of India Ltd (PGCIL) to import 250MW electricity in the first phase. The proposed back-to-back High Voltage Direct Current (HDVC) 125-km transmission line connects Baharampur in India and Bheramara in Bangladesh, which can transfer 500MW electricity. India's largest electricity producer, National Thermal Power Company (NTPC), is supplying power to Bangladesh under a move meant for helping strengthen trade ties between the two nations. The stat-owned BPDB purchases the power from the Indian public company, NTPC, under a power-purchase agreement signed in February 2012. kabirhumayan10@gmail.com....

Published at: 2017-07-25 00:00:04

The maritime ports of Cox's Bazar, Mongla, Payra and Chittagong have been advised to keep hoisted local cautionary signal no three Squally weather may affect the ports and coastal areas of the country, Met Office said. Due to the well marked low over West Bengal and adjoining area and strong monsoon steep pressure gradient and deep convection persists over North Bay and adjoining coastal areas of Bangladesh, it said. All fishing boats and trawlers over North Bay and deep sea have been advised to remain close to the coast and proceed with caution till further notice, reports UNB.....

Published at: 2017-07-25 00:00:03

A young man was beaten to death in Dhaka's Paltan area on Monday. The deceased was identified as Rabiul Islam, 32, son of Rakibul Islam of Jugirghar village in Gangni upazila of Meherpur district. He used to work as a middleman for recruiting agencies. Mizanur Rahman, sub-inspector of Paltan Police Station, said locals spotted Rabiul near the house No-70/1 in an injured condition and informed police. Later, police rescued Rabiul and took him to Dhaka Medical College Hospital (DMCH) around 5:40pm where doctors declared him dead, reports UNB. SI Bachchu Miah, in-charge of DMCH police camp, said Rabiul used to manage intending overseas jobseekers for recruiting agencies. There were marks of beating by hammers all over the body, he added.....

Published at: 2017-07-25 00:00:03