More projects find favour with donor agencies after Tata’s investment
The total foreign direct investment into Bangladesh last year was less than US$150m, with red-tape, poor infrastructure and political unrest keeping investors away. Seen in this context, India’s Tata group is making a huge leap of faith in its bid to invest US$2 billion in Bangladesh’s power, steel and fertilizer sector.
But Tata’s proposal to invest in gas-fired power and steel plants in Bangladesh have led to international donor agencies to take a fresh look at other projects proposed by the Bangladesh government.
The government has sought funding from donors for laying gas pipeline and setting up power transmission line in the Western region.
Donors were concerned about viability of the projects. But with the Tata proposals to set up gas-fired steel and power plants in the region, the donor community finds the proposals to worth investment now. [Daily Star]
Moreover, Tata’s investment in the power sector will not only help Bangladesh make better use of its natural resources, but also allow it move up the food chain and become an exporter of electric power to India. Without investment in power plants, Bangladesh would only have been able to export raw material (natural gas), if its government does approve the Tatas proposal, the country will be able to reap greater benefits by selling a ‘value-added’ product.