Bangladesh draws Saudi investment for cement, paper plants

Leading Saudi enterprise Al Rajhi Company for Industry and Trade yesterday inked a deal with state-run Bangladesh Chemical Industries Corporation (BCIC) for installing cement, paper and power plants.

"A memorandum of understanding (MoU) has been signed today between the BCIC and the Al Rajhi Group at the Industries Ministry," an official statement said.

It said according to the deal the Saudi enterprise would set up a cement plant with 15 lakh tonnes annual production capacity near Chhatak Cement Plant alongside a 330-mw power plant under a joint venture with BCIC.

Simultaneously, the statement said, the Al Rajhi Group would install a modern paper mill with annual 3 lakh tonnes production capacity and a 360 mw power plant at the Karnaphuli Paper Mills Limited complex in Chittagong.

Officials familiar with the process said the two proposed power plants would provide electricity to the cement and the paper mills and the excess power would be channeled to the National Power Grid.

The development came four months after Prime Minister Sheikh Hasina sought Saudi investments in Bangladesh during a meeting with Jeddah Chamber of Commerce while she was on an official visit there on June 4-6, this year.

BCIC's secretary Hasnath Ahmed Choudhury and Al Rajhi's managing director Yousif Al Rajhi signed the MoU at a function witnessed by Idustries Minister Amir Hossen Amu.

Senior officials of the industries and foreign ministries including Senior Secretary of the Industries Ministry Mohammad Mosharraf Hossen Bhuiyan and Bangladesh Envoy in Saudi Arabia Golam Moshi, among others, were present.

Amu earlier in March this year visited Saudi Arabia and held a long meeting with Saudi Commerce and Industries Minister Dr Tawfig Fawzan Alrabiah and Saudi investors.

Source: BSS