Good morning. Here's what happened overnight and what you need to know today.
1.
$234 Billion Siphoned Off During AL Rule: A total of $234 billion was siphoned off from Bangladesh between 2009 and 2023, according to the white paper on the state of the economy. As per the report, the laundered money was sent to or routed primarily through the UAE, the UK, Canada, the US, Hong Kong, Malaysia, Singapore and India as well as a number of tax havens. Chief Adviser Professor Muhammad Yunus hailed the report as a "historic document. "It will show us the economy we inherited after the July-August mass uprising," he said in a short speech before receiving the white paper yesterday from Debapriya Bhattacharya, the chair of the committee. (The Daily Star)
2.
Cost of Seven Mega Projects Jumped 70% from Initial Estimate: Seven mega projects taken up by the previous government cost Bangladesh Tk 80,569 crore more than initial estimates due to escalating cost and time overruns, according to the final draft of the white paper on the state of the economy. Construction of those large infrastructures suffered from poor planning, corruption and inadequate governance, ultimately leading them to require more money and miss deadlines. The projects are the Padma Multipurpose Bridge Project, Multi-Lane Road Tunnel under the Karnaphuli River, Dhaka Mass Rapid Transit Development Project, Padma Bridge Rail Link Project, Dohazari to Cox's Bazar Railway Track, Payra Deep Sea Port and Matarbari Ultra Super Critical Coal-Fired Power Project. (The Daily Star)
3.
Bangladesh Wants to Renegotiate Adani Power Deal Unless Court Cancels: Bangladesh wants to sharply lower prices under a power purchase deal with India's embattled Adani Group unless it is cancelled by a court, which has called for an investigation into the 25-year deal, its de facto energy minister told Reuters on Sunday. Adani Group founder Gautam Adani is already facing allegations by US authorities that he was part of a $265 million bribery scheme in India, charges he has denied, even as one Indian state reviews a power deal with the group and France's TotalEnergies pauses its investments. In Bangladesh, based on an appeal by a lawyer demanding the power deal's potential cancellation, the High Court last week ordered a committee of experts to examine the contract under which Adani supplies power from a $2 billion coal-fired plant in eastern India. The investigation is expected to be concluded by February, when the court is due to make its order. (The Business Standard)
4.
Diversifying Exports: Non-RMG Sectors Face 11 Challenges: Entrepreneurs seeking to diversify their export basket face 11 key challenges, such as inadequate infrastructure, high logistics costs, a shortage of skilled labour, and slow technology adoption, according to the draft of the White Paper on the state of the Bangladesh economy. Other significant challenges identified include limited access to finance, bureaucratic red tape, exchange rate instability, stringent regulatory compliance, lack of product diversification, and insufficient support for small and medium enterprises (SMEs) in marketing and branding. At the same time, the White Paper advises that the government should undertake targeted policy interventions for the development of non-RMG sectors. (The Business Standard)
5.
All 10 Banks Diagnosed 'Distressed' Found Technically Bankrupt: All the 10 banks marked as 'distressed' by the regulators are "technically bankrupt" and illiquid, according to the draft white paper that painted a dismal state of Bangladesh economy following past reign of plunder. The draft 'White Paper on State of Bangladesh Economy', made public following its submission to the Chief Adviser of the post-uprising interim government Sunday, states that a banking system can only be protected by its capital and liquidity in a distressed situation. "We chose 10 distressed banks to dig into their solvency and liquidity. Of the 10 banks, 2 are state-owned banks that were mostly hit by scams in the last decade. The other 8 are extremely weak shariya-based banks and conventional private commercial banks," the expert panel notes in the white paper. (The Financial Express)
6.
AL Cronies, Lobbyists, Pvt Producers Major Players in Energy Sector: Members of the fallen regime of the Awami League, lobbyists, private business and independent power producers became major stakeholders in power and energy sector bypassing due processes, the 'White Paper on the State of Bangladesh Economy' revealed on Sunday. The energy adviser, the state minister for power and the power division were all conduits of corruption, according to the paper. Every single deal from a small solar plant to a mega project like Adani Power was approved by none other than the Prime Minister's Office (PMO). While groups like Summit, Reliance and United were picked for 350+MW gas plants, a complete newcomer like S Alam Group got 1320MW coal plant contract. Many of the plants did not have any firm commitment of gas supply and are now stuck with stranded capacity, thereby increasing cost, debt and subsidy, prolonging public sufferings. (The Financial Express)
----Saju Sarker
BBN/SSR/AD