A new universal pension scheme – the first of its kind in Bangladesh – could start within a year
Danish shipping giant Maersk interested in managing new 500,000 TEU container terminal at Patenga
A Chinese company will finance and build a sixty square kilometre smart city on land reclaimed from the sea around Chittagong
The World Bank approved a $300m loan for Bangladesh on 25 February for The Local Government Covid-19 Response and Recovery Project Paragraph
A weekly round up of articles about work, employment, social security, business and the economy. Here is the news for the week ending:
February 25th, 2022
This week’s round up comes from:
The Daily Star
This week in Bangladesh…
Plans for a universal pension scheme for Bangladesh began with an election commitment in 2008.
This month the Finance Minister outlined detailed principles and benefits for the scheme.
If someone starts contributing Taka 1,000 (about $12) each month at the age of 18 then, at the pensionable age of 60, they will receive a monthly pension of Taka 64,776 (about $760).
Employers and employees will contribute to the scheme.
News in Bangladesh for the week ending February 25th, 2022
Education, Work, and Social Security
Universal Pension Scheme
Can government start a new pension scheme this year?
The governing party included a universal pension scheme in a 2008 election manifesto.
Last week we noted the Prime Minister announced plans for a new universal pension scheme.
This week Finance Minister, AHM Mustafa Kamal, outlined the scheme at a press conference on 23 February.
The government has taken several years to prepare the strategic paper for the universal pension scheme. But plans to roll out the scheme within one year.
The strategic paper explains the fundamental principles and design of the pension scheme.
The scheme will include both employer and employee contributions.
If someone starts contributing Taka 1,000 (about $12) each month at the age of 18 then, at the pensionable age of 60, they will receive a monthly pension of Taka 64,776 (about $760).
The World Bank supported the design of the scheme with technical guidance. Practices from other countries such as India, Malaysia, Sweden and Australia informed the Bangladesh design.
India’s national pension scheme was particularly influential in shaping the proposed Bangladesh universal pension scheme.
Business, Economy and Trade
Lack of public information on large infrastructure projects
Bangladesh is completing several large infrastructure projects. These range from ports to power plants to the 6 kilometre Padma bridge.
But the implementing agencies could provide more information to the public about project progress on dedicated websites for example.
Projects like these are undertaken in the public interest and with public money. So, the people have the right to know all relevant information
Iftekharuzzaman – Executive Director, Transparency International Bangladesh
In line with the Right to Information Act 2009, the Government should share details of budgets, procurements and progress with its citizens.
Danish shipping giant Maersk in bid to manage container terminal
Five companies are competing to manage the container terminal at Patenga.
Maersk is the latest to express an interest to “equip, operate and maintain” the facility.
The Bangladesh Army is building the terminal on 30 acres at near the estuary of the Karnaphuli river in Chattogram (formerly Chittagong).
The terminal will handle 500,000 TEUs (“twenty-foot equivalents”) of containers annually.
The current Chattogram seaport operates at full capacity. The new Patenga terminal will facilitate Bangladesh’s growing economy and trade ambitions.
The end of subsidy?
The Prime Minister would like to phase out energy subsidies. Typically gas and electricity consumers pay less than market value. The government makes up the difference through an annual subsidy.
Put an end to subsidies in phases – gently, economically and effectively
Sheikh Hasina, Prime Minister of Bangladesh
Climate, Energy and Environment
Chittagong smart city on reclaimed land
An unnamed Chinese company will finance and build a sixty square kilometre smart city on land reclaimed from the sea around Chattogram (formerly Chittagong).
The Chattogram Development Authority has signed a memorandum of understanding with a Chinese company to develop “Seaside Bay View Smart City.”
The company will also build 20 kilometres of metro rail between connecting the airport and the train station.
In return for the investment the Chattogram Development Authority will lease part of the reclaimed land to allow the Chinese company to profit from its initial outlay.
The parliamentary standing committee on housing and public works ministry has been reviewing the details of the proposal.
Financial Inclusion and Services for the Poor
Internet connectivity to the remotest corners
Through “Connected Bangladesh,” the ICT Division will connect the remotest areas to the internet.
So, all schools, colleges, and madrasas will have internet access. E-commerce, e-services, telemedicine, business and employment opportunities will also grow.
The Social Obligation Fund supports Connected Bangladesh. Bangladesh Telecommunication Regulatory Commission, under the Posts and Telecommunications Division, manages the Social Obligation Fund,
The project will lay 8106 km of optical fibre cable at the union level to connect 617 remote unions.
A union is an administrative area. Bangladesh has 4,562 union.
Covid News and Update
The World Bank approved a $300m loan for Bangladesh on 25 February for The Local Government Covid-19 Response and Recovery Project.
The project will support urban local government institutions to manage the coronavirus pandemic and its future shocks.
About 40 million urban residents would benefit from the project.
The project will provide residents better access to municipal health clinics and facilitate vaccine registrations for disadvantaged people.