Rajib Dey special correspondent: Foreign dominance is increasing in the management of strategic infrastructure such as seaports, airports and the energy sector of the country. Despite the capabilities of domestic entrepreneurs in this sector, they are being marginalized, which is against the national interest in the long term. Therefore, the relevant experts have demanded a minimum of 51 percent domestic ownership and mandatory technology transfer in foreign investment in these assets.
These were said at a policy-making roundtable discussion organized by the ‘Center for Strategic Research’ (CSR) at Hotel Sarina in the capital on Tuesday (19 May). CSR Executive Director Shakib Anwar presented the keynote address at the event titled ‘Priority of Domestic Investment in Strategic Assets’.
State Minister for Planning Jonayed Saki, Member of Parliament Fazle Huda Babul, President of Nagorik Oikya Mahmudur Rahman Manna, Sujon Secretary Badiul Alam Majumder, CAB President Abu Alam Shahid Khan, Former Secretary Shafiq Zaman, Former Director of BSCIC Abu Taher Khan, Dhaka Steam Advisory Secretary Hasan Mamun, Chief Executive Officer of Dhaka Steam Col (Retd) Md. Sohel Rana, Center for Strategic Research Coordinator Subuj H Chowdhury, FCA, ATJFB General Secretary Baten Biplob and Center for Strategic Research Program Director Iqtandar Hossain Howlader participated in the discussion.
In the main article, Shakib Anwar said that in many cases, domestic money and loans are being used in the name of foreign direct investment (FDI). Citing the example of Patenga Container Terminal (PCT), he said that out of the $170 million investment by foreign operators, $100 million or 58.8 percent came from loans from domestic and regional banking and financial institutions.
On the other hand, CDDL and MGH Group are proof that domestic entrepreneurs are capable of providing international quality services if given equal opportunities. In the NCT of Chittagong Port, CDDL of the Bangladesh Navy has shown 46.66 percent more productivity than the previous operator. Similarly, MGH Group, which operates NCT, has proposed to pay more revenue per container than the foreign company DP World. Moreover, MGH Group has taken the initiative to build a green terminal in Laldia at a cost of Tk 550 crore.
Criticizing the avoidance of open competitive bidding, the article said that the long-term contracts for Laldia and Pangaon terminals were completed in an unusually fast pace in just 13 days without an international bid, while the deadline set by the World Bank’s subsidiary IFC was 62 days.
In addition, although the local company MGH Group has proposed to pay more revenue per container ($98.50) than the foreign company DP World ($93.50 and $97.50) for the management of the Chittagong Port NCT, the government is moving forward with the process of forming an evaluation committee with foreigners.
The speakers said, “Foreign companies are lobbying at the ambassador and head of state levels to get ground handling services at the third terminal of Shahjalal International Airport. But the government does not have any meaningful dialogue with domestic logistics companies. We are not against foreign investment, but showing ‘FDI’ with loan money like PCT makes no sense. In the case of foreign technology partnerships, domestic majority ownership or joint ventures should be made mandatory.
“In the open discussion of the event, the speakers cited the examples of the Philippines, Malaysia and Indonesia and said that the domestic majority ownership policy in strategic sectors does not hinder foreign investment flows, but rather builds domestic capabilities. Finally, it is recommended to ensure equal opportunities for domestic companies in open tenders for investments in strategic infrastructure, as well as to form an independent port regulatory body free from political influence.
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