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‘They are hard working, they know how to do the job’

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October 11, 2000 

Dhaka-- (UNB) – Foreign entrepreneurs of a USD 47.5-million cement project yesterday alleged that they didn’t get the much-publicized investment incentives in importing plant and machinery for their project due to bureaucratic bottlenecks.

“We could not yet avail the incentives due to bureaucratic complexity,” said an official of Scancement International Ltd, a German-based company, which is setting up a cement grinding plant on 15 acres of land near Kanchpur Bridge in Dhaka.

They also imported power generators paying duty, which the government had exempted.

The investors said the country should improve its investment climate by reducing harassment by customs and government officials and port problems.

They, however, praised the local workforce. “They are hard working, they know how to do the job,” said an official.

The plant is expected to start production in June next year, one month behind the schedule of May 21, 2001, with the annual production capacity of 750,000 tons.

About two-thirds of the project have been completed so far, although 72 percent should have been complete by now. “This is mainly due to import delays at Chittagong port,” a board meeting of the company was told yesterday.

President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Abdul Awal Mintoo, who is the chairman of the company for its Bangladesh chapter with 6 percent share, presided over the meeting at the project site.

Scancement International holds 62 percent shares of the company, the landowner 6 percent and the rest remains for financing organisations like NORFUND.

The meeting was told that US$20.35 million would be equity capital while US$25.15 million will come as loan from IFC and local bank syndication.

“We are still importing cement to meet our demand. A time will come when we will be able to export it,” Industries Minister Tofail Ahmed told the investors while visiting the project site yesterday.

The entrepreneurs informed the minister that the project would have its own captive gas-based power of 9.9 megawatt to run the cement plant as local power supply is not reliable.

The project, having its own water treatment plant, will create employment for about 150 people.

Officials said the plant would manufacture quality cement through grinding imported clinkers (96 per cent) and gypsum (4 per cent).

Technical manager of the company Graham Bell said there is a huge potential cement market in Bangladesh. Only 37 Kilogram cement is being used per person in the country against over 2000 Kg in Singapore, he said.

“There is a bad reputation of cement manufacturers in Bangladesh. They are blamed for polluting the environment. We want to change it,” Graham said.