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Invest in telecommunication sector: BOI chief asks foreign investors

When the foreign investors were pointing to problems in the country's state-run telecom system, the Board of Investment (BOI) chief asked them to come up with investment in both land and satellite telecommunications systems to infuse competitiveness in the telecom service. 

"Why don't you come up with investment proposals to establish completely independent telecom system parallel to the BTTB," Mahmudur Rahman, BOI Executive Chairman, told a meeting of foreign investors yesterday. 

Mahmudur Rahman was speaking at the monthly luncheon meeting of Foreign Investors' Chamber of Commerce and Industry (FICCI) at Sonargaon Hotel in the city. FICCI President Wali Bhuiyan and its executive committee member Paul Kirkham of British American Tobacco, Bangladesh also spoke on the occasion. 

The BOI chief also unveiled the government's massive economic reform plans and his own plan to revamp the BOI, the organisation that works as the facilitator for the investors. "I want to assure this audience that this government will not hesitate to take 'hard decisions' to transform Bangladesh into a sustainable and competitive investment destination," he said. 

His comments came after the foreign chamber mentioned that good policies in books do not mean anything if they are not properly implemented. The FICCI has long been saying that mismatch between policies and reality made it difficult for the foreign investors to work here.

Appreciating private mobile phone operator GrameenPhone's achievement to reach half million-subscriber mark, he asked the foreign investors to set up cellular telephone set assembly plant in the country for domestic as well as export markets. 

He also asked the foreign investors to come up with investment projects in power distribution along with power projects. Mahmudur Rahman, a man from the private sector, also mentioned the government is not against the proposed private container terminal. "We have not created this problem, we have inherited this. The previous government could not implement this due to opposition from within." However, he said it will take some more time to get the job done as the government will go through the whole proposal and if necessary it will renegotiate for making the whole deal transparent. 

About his and the government's plan to attract investment, Mahmudur Rahman said the government will assume the role of facilitator. Our vision for BOI is to act as the 'partnership sourcing agent' between local firms and TNCs (transnational companies). "This will be in addition to the traditional role of BOI as normally expected." 

He also said he will rename BOI's 'One Stop Service Centre (OSSC)' as Utility Service Centre. "The situation is not that we can provide all sorts of utility services to the prospective investors at one go. It will take some time. So I have decided to change the name of the OSSC."Mr. Rahman also said he has taken initiative to set up Investment Implementation Monitoring Cell. 

The FICCI President Wali Bhuiyan said businesspeople often explain BOI as 'Board of Impediments' for its role for creating 'blockade' for the investors rather than making their works easier. In this context he said the BOI should have adequate administrative and financial authority "to act promptly in addressing the issues that the investors confront time to time." 

Also about the long-standing problem of work permit and multiple visa facing the foreign investors and expatriate workers, the chamber asked the government to follow the policy stipulated in the industrial policy. 

FICCI also suggested for undertaking a thorough study to review BOI to see whether a restructured organisation will ensure effective operation. "It may not be a big surprise to see that a lot of the jobs currently done by BOI could actually be outsourced in a cost effective manner," FICCI President Wali Bhuiyan added. 

"We feel, if our proposals are accepted, 90 per cent of the existing problems will be addressed and this will send proper signals to prospective foreign investors," Wali Bhuiyan said with a caution that the other way round would force the foreign investors winding up and go somewhere else. 

Talking on the investment needs of the country to effectively address poverty, Bhuiyan, quoting economists, said 2.5 million jobs have to be created every year. "Conservative estimates show that it takes at least fifty thousand taka to create one new job. This means that the annual investment has to be around Tk 12,500 crores, which is about 20 per cent of the GDP. 

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