BANGLADESH WATER SECTOR

NETWORK STUDY
Market Intel Summary
BANGLADESH WATER SECTOR
NETWORK STUDY
Final Report

Prepared by:

October 31, 2018

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 Acknowledgement

We would like to express our deepest gratitude to all those who provided us support for
accomplishing this study. We are immensely indebted to the government and private sector key
informants including executive directors, project directors, country directors, chief engineers,
chairman of associations and sector experts for providing their valuable time and insights.

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 List of Acronyms

ADB Asian Development Bank

ADP Annual Development Plan
BDP2100 Bangladesh Delta Plan 2100
BDT Bangladeshi Taka
BADC Bangladesh Agriculture Development Authority
BMDA Barind Multi-purpose Development Authority
BEZA Bangladesh Economic Zones Authority
BEPZA Bangladesh Export Processing Zones Authority
BGMEA Bangladesh Garment Manufacturers and Exporters Association
BIWTA Bangladesh Inland Water Transport Authority
BKMEA Bangladesh Knitwear Manufacturers & Exporters Association
BLD Billion Liter per Day
BUET Bangladesh University of Engineering and Technology
BWDB Bangladesh Water Development Board
CAPEX Capital Expenditure
CEGIS Center for Environmental and Geographic Information Services
CETP Central Effluent Treatment Plant
DoE Department of Environment
DPHE Department of Public Health Engineering
DG Director General
DWASA Dhaka Water and Sewerage Authority
EKN Embassy of the Kingdom of Netherlands
ETP Effluent Treatment Plant
FBCCI Federation of Bangladesh Chamber of Commerce and Industries
FSM Fecal Sludge Management
FY Financial Year
GoB Government of Bangladesh
GIS Global Information System
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit
ICT Information and Communications Technology
IDI In Depth Interview
IFC International Finance Corporation
IFI International Financial Institute
IWM Institute of Water Modelling
JICA Japan International Cooperation Agency
JV Joint Venture
KII Key Informant Interview
LoC Line of Credit
LGD Local Government Division
LGED Local Government Engineering Department
MASP Multi Annual Strategic Plan
MoA Ministry of Agriculture
MLD Million Liter per Day
MoFE Ministry of Forestry and Environment

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MLGRDC Ministry of Local Government, Rural Development and Co-operatives
MoI Ministry of Industries
MoWR Ministry of Water Resources
NGO Non-Government Organization
OPEX Operational Expenditure
PaCT Partnership for Cleaner Textiles
REHAB Real Estate and Housing Association of Bangladesh
SCADA Supervisory Control and Data Acquisition
SDP Sector Development Plan
STP Sewerage Treatment Plant
WASH Water, Sanitation and Hygiene
WASA Water And Sewerage Authority
WB World Bank
WSS Water Supply Services
USD US Dollar

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Table of Contents
Executive Summary.......................................................................................................................................................9
1. Introduction........................................................................................................................................................13
1.1 Background of the Study ...........................................................................................................................13
1.2 Objective ....................................................................................................................................................13
1.3 Methodology .............................................................................................................................................13
2. Overview of the Water Sector ...........................................................................................................................14
3. Opportunity Landscaping in the Public Sector ..................................................................................................22
3.1 Dredging and reclamation .........................................................................................................................23
3.2 Water treatment in ports and economic zones ........................................................................................26
3.3 Inland container terminals and Shipyards ................................................................................................28
3.4 Inland water including irrigation and fisheries .........................................................................................30
3.5 Urban Water Supply and Sewage .............................................................................................................33
3.6 Energy ........................................................................................................................................................35
3.7 Funding Trends for Public Sector Projects ................................................................................................36
4. Opportunity Landscaping in the Private Sector ................................................................................................42
4.1 Garments and Textile ................................................................................................................................44
4.2 Leather Industry ........................................................................................................................................50
4.3 Pharmaceuticals ........................................................................................................................................56
4.4 Real Estate Industry ...................................................................................................................................53
4.5 Shipbuilding and Scrapyards .....................................................................................................................55
4.6 Irrigation pumps and others .....................................................................................................................57
4.7 Capacity building and consulting ..............................................................................................................59
4.8 Drinking Water Company ..........................................................................................................................59
4.9 Others- Technical Assistance and accessory products ................................ Error! Bookmark not defined.
5. Policy Landscaping .............................................................................................................................................60
6. Recommendations .............................................................................................................................................66
Annex I: List of Key Informants...................................................................................................................................70
Annex II: List of G2G development Projects...............................................................................................................73
Annex III: List of different Economic zones with their status ....................................................................................76
Annex IV: List of Recent tendering projects ...............................................................................................................79
Annex V: Market Size Estimates for Textile and Leather Industry ............................................................................81
Annex VI: List of Local RMG & Textile Companies,Tanneries and Water Technology Solution Providers...............87

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List of Figures

Page no.
Figure 2.1: Variation of Pre-monsoon ground water table, 5-years moving average 13

Figure 2.2: Variation of Post-monsoon ground water table, 5-years moving average 13

Figure 2.3: Forecasted Salinity Intrusion affecting Southern Districts 14

Figure 2.4: Institutional Framework in the Water Sector in Bangladesh 15

Figure 2.5: water Governance value chain with relevant public authorities and stakeholders 17

Figure 3.1: Estimated sewerage volume in 2035 compared to benchmark values of 2011 27

Figure 3.2: A glimpse of different development projects funded by China 30

Figure 2.3: A glimpse of different development projects funded by India 31

Figure 2.4: List of Japanese projects in the 38th ODA Package of 2018 32

Figure 4.1: Value chain of the textile industry with Flow diagram of fibre processing stage in WDF 37
factories

Figure 4.2: The Percentage of Poorly Designed or Poorly Operated ETPs in Bangladesh Textile Wet 39
Processing Units

Figure 4.3: Projection on Sector-wise Water Demand in Bangladesh by 2030 40

Figure 4.4: Leather Sector Value Chain with water withdrawal processes and amounts 43

Figure 5.1: Break-down of SDP Investments in Water Sector (Water Supply and Sanitation) 53

List of Tables

Page no.
Table 1.1: Composition of Stakeholder Interviews 11

Table 2.1: Water pollution source and their ranking in Bangladesh 14

Table 2.2: Government Stakeholders with Key Responsibilities 16

Table 3.1: Potential Areas in the Government Sector 18

Table 3.2: List of Some Local and Foreign Dredger Companies 20

Table 3.2.1: Description of different Inland Container Terminals currently operational and being 27
constructed

Table 3.3: Comparison between different G2G investment trends 29

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Table 4.1: Potential Areas in the Private sector (Based on Secondary Research) 35

Table 4.2: Summary of specific opportunities in the Textile and RMG sector 36

Table 4.3: Water consumption and water withdrawal amounts in value chain stages of the textile 38
industry

Table 4.4: Summary the tannery industry opportunities 42

Table 4.5: estimated Wastewater production in Leather Industry in 2021 using conversional 44
production methods

Table 4.6: Different steps in the Leather processing industry 44

Table 4.7: Summary the Real Estate industry opportunities 53

Table 4.8: Different Opportunities of Hydraulic Structures in Bangladesh 54

Table 5.1: Budget allocation for different government ministry and departments in the ADP 2017- 50
18

Table 5.2: Medium Term Expenditure Estimates and Projection under MoWR (FY 2017-18 to 2019- 59
20)

Table 5.3: Projects relating to climate change under Ministry of Water Resources (MoWR) 60

Table 5.4: Different Water Sector Investment Categories in SDP in Water Supply and Sanitation 63
(WSS) Category

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Executive Summary
The study was commissioned by the Partners for Water Program, an alliance consisting of the Embassy of the
kingdom of Netherlands, Ministry of Foreign Affairs, Ministry of Infrastructure and Water, RVO and the Netherlands
Water Partnership. The objective of the study is to gather strategic insights on the current status quo and future
prospects of the Water Sector in Bangladesh, enabling The Netherlands Embassy to explore avenues for Dutch
Private Sector companies, as well as drawing conclusions on the Embassy’s position in terms of the Multi-Annual
Strategic Plan (MASP). This study has been conducted by reviewing existing literature as well as undertaking 30 plus
in-depth interviews with government stakeholders, development partners, private sector enterprises, think tanks,
research organizations, associations and sector experts.

Bangladesh’s ecological sustainability and economic development is dependent on a number of critical factors. Due
to the country’s riverine nature with water flowing downstream, it faces a number of challenges: starting from
flooding during monsoon season (44,000 metre Cubic feet per second flowing through Ganges) to experiencing
drought during off-season (10,738 cubic feet per second). Although much of this variance is due to environment
reasons, man-made barriers hindering natural water flow from neighboring country are also contributory factors.
Climate change induced sea water level rise is another major factor adversely impacting local ecosystem and
livelihood in the Southern region of the country. The Southern division of Khulna is saline prone, which has resulted
in lower agricultural yield and economic activities. As a result, the region is experiencing exodus of these climate
refugees, seeking economic opportunities in other regions.

Water resource management features heavily in government’s development plans. The cabinet has recently ratified
the Delta Plan 2100, which features 80 prioritized projects, which will be implemented within 2030 with the World
Bank committing to source financing for these projects. From a broader perspective, infrastructure development,
policy and governance related areas will receive financing in near future as Bangladesh gradually transitions into a
middle income status.

Dredging, land reclamation and Urban Water Supply are areas with the highest potential for Dutch organizations.
With an annual sedimentation rate of 1.2 billion tons per year, dredging is a potential growth segment, particularly
due to the need for improved waterways for managing domestic and cross-border transport. Potential opportunities
include providing technical support, capacity building for dredger maintenance and operations, accessories and
equipment support etc.

Due to large scale urbanization, city based water suppliers (DWASA, CWASA etc.) have been struggling to expand
drinking water and urban waste management facilities. According to UN estimates, Dhaka’s population is expected
to reach 27.4 million by 2030, with daily demand of 3.425 billion liters. Apart from drinking water, growing
population will result in increased investment opportunities in waste water processing and fecal sludge
management. Dutch companies can capitalize on existing digitization drive within the government, offering relevant
software like SCADA to WASA for optimizing performance. Opportunities also exist in terms of technical assistance
in terms of consulting support and organization wide capacity development.

Although country specific economic zones are outside the purview of Bangladesh Economic Zone Authority (BEZA),
rest of the economic zones are under the direct supervision of the government body. BEZA intends to setup 100
economic zones across the country and have direct authorization for setting up centralized STPs and ETPs in each of

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these zones. Dutch companies can directly collaborate with the BEZA for setting up these treatment plants, as well
as offering technical and capacity building support.

Funding for implementing government led development projects have traditionally been sourced from internal
revenue sources e.g. direct taxes, or through soft loans or grants from multilateral lenders and foreign Governments.
As the country gradually moves towards the middle-income status, grant funding is expected to reduce markedly
and be partially replaced by PPP and G2G based funding. China and India have emerged as major development
partners, offering funding (grants and loans) to the tune of up to USD 24 billion and USD 4.5 billion respectively.
Although the tendering process for many of these projects is expected to be on a level playing field for all the
countries, conditional financing terms, at times, are being used for many development loans. For example, the
Line of Credit (LoC) agreements with India stipulates as closed tendering for Indian firms only, while Chinese loans
have similar preconditions for hiring Chinese equipment and service providers.

As Bangladesh’s population grows with rising economic prosperity, demand for groundwater- currently catering to
98% if water demand- is expected to keep on increasing. The resulting urbanization and industrialization led by
government sponsored economic zones, will require efficient water and industrial waste management. The country’s
RMG and textile sector has significant economic footprint, contributing 83% of country’s export and 12% of GDP,
having headroom for further growth. However, the sector (particularly textile sub-sector) has been generating toxic
industrial waste, most of which are not properly treated before dissipation. The leather sector is another emerging
economic contributor, which faces similar challenges in terms of managing industrial waste water. Although ETPs
and STPs have been installed in a number of these factories (mostly RMG and Textiles) and relevant policies are in
place, opportunities exist in terms of offering both hardware and technical support for setting up these facilities.
World Bank predicts water management capital expenditure for waste water management to top USD 12-16 billion
and USD 35-50 billion for textile and leather sectors respectively within 2030.

Garments & Textile and leather sectors have some opportunities with significant pressure for complying with
environmental standards, particularly from international buyers and regulatory agencies. Many manufacturers are
also aware of potential efficiency upside for adopting environment friendly technologies. However, most of these
manufacturers are cost sensitive, opting to install inexpensive equipment with lower capital expenditure. For
example, Chinese ETPs are popular among manufacturers due to lower pricing compared to European made ones.

In the textile sector, dyeing and washing are water intensive processes with waste-water treatment plants (ETPs)
made mandatory for all factories. Currently, the ETPs are sourced from local sources having a price range of USD
470,000 on average. Apart from top-tier factories, most are price-sensitive preferring Chinese machinery and
equipment due to affordable pricing. Similar trends have been observed in other market segments like agro-
processing and drinking water.

Dutch companies need to devise a marketing strategy focusing on long term benefits for procuring Dutch equipment
at premium pricing. In terms of technical assistance and capacity building, Dutch players have some opportunities,
though local and regional firms are gradually closing the gap in terms of service quality. Opportunities through exist
with JV based project bidding and technology & skill transfer. Inland water including irrigation and fisheries,
construction of Inland container terminals and Shipyards have limited opportunity being limited to providing
engineering design support and technical assistance.

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In real estate, opportunities exist in specific zones and satellite cities near the suburbs, where large apartment blocks
or condominiums are being constructed, which are few in number at this point in time. Construction of sophisticated
water purification and waste water recycling facilities for apartment complex and condominiums will become more
popular with growing urbanization and expansion of major cities like Dhaka and Chittagong. For smaller apartment
buildings, there is limited opportunity for Dutch companies, as local companies manufacture water tanks, reservoirs
for water or sludge at very competitive pricing.

Dutch private sector firms can contribute to a rising economy like Bangladesh, which has its unique challenges in
terms of the fall out of climate change, rising population, industrialization led pollution and inadequate
infrastructure for water management. Dutch companies have a wide repertoire of relevant products and services
offerings for water management, but are likely to be priced out in the local market due to availability of cheaper
alternatives. However, establishing strategic relationships with local partners can help optimize costing, enabling
Dutch players to create value for the end clients. Dutch companies can also offer equipment and technical assistance
to government led infrastructure development projects, funded by multilateral donor agencies.

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 Summary of Opportunities

High
Medium
Limited

Public Sector(s) Opportunity

Dredging to counter sedimentation and river erosion High
Integrated Water and Resource Management High
Water treatment in industrial and economic zones High
Urban Drinking Water High
Capacity building of public institutions High
Wastewater market segment, drainage, sewerage, water harvesting, surface water Medium
Water Harvesting Limited in product market
High in Services market
River and sea transport Medium
Water for Agriculture Medium

Consultancy services Medium to Limited

ICT and Water, Water for food in combination with ICT and agriculture Limited
Dredging rivers and enhanced surface water irrigation in the south Limited
ICT and Water, Water for food in combination with ICT and agriculture Limited
Dredging rivers and enhanced surface water irrigation in the south Limited
Rural drinking water Limited

BRIEF OVERVIEW OF THESE PUBLIC SECTOR OPPORTUNITIES ARE IN SECTION 3.

Private Sector(s) Opportunity

Textile companies & Ready Made Garment Sector (Tier 1 companies)- generally large Medium
factories (> 2,000 employees) that secure orders from buyers- water treatment plants,
sewerage treatment plants
Small scale water treatment plants for agriculture and industrial wastewater (B2B) Medium
Water Efficiency for agro-processing companies Medium
Small‐scale Service Market (B2C) Medium
Large‐scale Urban Utilities Market (B2B/B2G) Medium
Design, construct, and operate shipyards (Joint Venture or PPP) Medium
Inland container terminal (Joint Venture or PPP) Medium
Water treatment plants for Economic Zones Medium
Effluent treatment plants for Economic Zones Medium
Providing water-based tourism marketing and technical assistance. Medium
Small‐scale Hardware Market (B2C) Limited

BRIEF OVERVIEW OF THESE PRIVATE SECTOR OPPORTUNITIES ARE IN SECTION 4.

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1. Introduction

1.1 Background of the Study

This study was commissioned by the Netherlands Enterprise Agency (Government of the Netherlands/ Ministry of
Economic Affairs) with the aim to garner insights about the current and future opportunities in the Bangladesh water
sector and to strengthen the cooperation between the two countries on water.

1.2 Objective

The objective of the study is to gather strategic intelligence on developments in a number of areas of Bangladesh
water sector for supporting EKN in drawing conclusions about the strategic positioning of the Netherlands, and for
preparing a Multi Annual Strategic Plan (MASP), as well as for supporting the Dutch water sector with insights on the
current and future opportunities in Bangladesh.

Specific Objectives

 Recent policy and investment programming by the Government of Bangladesh (GoB) and IFIs
 Programs and financial flows of donors and government
 Updated overview of current opportunities in various segments of the water sector
 Tendering/procurement of projects relevant for the Dutch water sector
 Financial capabilities and capacity of the government, private sector parties and international donors

1.3 Methodology

The study adopted a blended approach utilizing both secondary and primary sources of data for gathering available
insights and evaluating future prospects for the Dutch Water Sector in Bangladesh. The research process
commenced with the review of existing publications on the water sector including Water Market Scan Bangladesh
(2010) by Mott MacDonald; Exploring the Water Management Sector in Bangladesh (2014) by Nyenrode; Bangladesh
Positioning Survey for the Dutch water sector (2015) by Aidenvironment etc. among others.

The research process mainly included qualitative tools

Type of Stakeholder Percentage
included Key Informant Interviews (KII), and in-depth
Interviews (IDI) of stakeholders, including private Government Entities 24%
sector players (Garments, Leather, Real estate, FMCG, Private Sector Companies 21%
Pharmaceutical), different industry associations Association 14%
(BGMEA, BTA, REHAB etc.), government (Ministry of Sector Experts 14%
Planning, BEZA, BADC, BIWTA etc.), knowledge-based Water Research Organizations 10%
institutions (BUET, IWM), NGOs (International Society Donor funded Projects 10%
for Red Cross) and industry experts. THE COMPLETE INGO and International Consulting Firms 6%
LIST OF STAKEHOLDERS INTERVIEWED PRESENTED IN TOTAL 100% (n=31)
TABLE 7.1 OF ANNEX-I.

Table 1.1: Composition of Stakeholder Interviews

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2. Overview of the Water Sector

Bangladesh Water Sector at a Glance

Bangladesh is a riverine country with the Bay of Bengal located in the South of the country. The rivers and floodplains
are the main sources of water supporting livelihood of the people, as well as providing the wherewithal for sustaining
the local economy. Bangladesh is the ninth most densely populated country in the world. With growing population,
industrialization and urbanization, the demand for water resources will keep on increasing.

Primarily, two types of water resources, namely surface and groundwater, make up bulk of Bangladesh’s water
sources. Flowing rivers and static sources like ponds, beels, haors are stated as surface water sources, cumulatively
generating maximum inflow of 140,000 cubic meter per second (during August) and a minimum of 7,000 cubic meter
per second (during February) (Source: American Journal of Water Science and Engineering, 2018). The Brahmaputra
and the Ganges account for more than 80% of stream flows. The Brahmaputra splits into two branches- the larger
branch continuing towards south as the Jamuna and Padma, while the other branch curves southeast as the old
Brahmaputra, flowing into the upper Meghna. Groundwater is the main source of water for domestic, industrial and
irrigation supplies considering the relatively uncontaminated nature of water, compared with surface water, which
usually is polluted, and often bearing waterborne diseases. A total of 95% of the domestic and industrial water
supplies and 70% of the irrigation supplies are drawn from groundwater.1

The average daily flow of the Ganges is about 10,874 meter cube per second, which reduces to 1,366 meter cube
per second during off season and might increase to 44,000 meter cube per second during peak season in August.
The Ganges Barrage Project is one of the top 80 priority schemes of the Delta plan, to be implemented by 2031. The
estimated cost of implementing these 80 projects is $37 billion, of which, the Ganges Barrage project costs the
highest and is given the highest priority (SOURCE: KII- Ainul Nishat). The Ganges Barrage project is aiming to source
water for irrigation and cultivation purpose.

The alluvial aquifer system is the most productive ground water source usually consist of three lithological units- an
upper clay and silt layer, a middle layer of fine to very fine sand, and a lower layer of fine to coarse sand constituting
the main aquifer. The transmissibility of the aquifer can be less than 500 to more than 2000 meter square per day
(Source: BWDB), and the storage coefficient varies from less than 1% to 15%. At places, water table can be found
within a few meters below the ground surface (Source: American Journal of Water Science and Engineering, 2018).
Bangladesh receives plenty of rainfall during monsoon (June to October), with annual rainfall ranging from about
3,200 mm in the northeast to about 1,600 mm in the southwest region.

In spite of monsoon rainfall which replenishes the ground water aquifer levels, the water layer is decreasing per year
at a steady rate, and industries which used to source their water requirements from groundwater are being forced
to bore deeper for their motorized tube wells. (Source: KII- Drinking Water Company, Aqua Mineral) Textile and
RMG sector is one of the key contributors to water demand, 98% of which is sourced underground. 2

1
Ashim Das Gupta, Water Sector of Bangladesh in the Context of Integrated Water Resources Management, Water
resources development, vol 21, No.2 (2005): 385-398
2
Sagris, T. and Abbot, An analysis of industrial water use in Bangladesh with a focus on the textile and leather
industries, 2030 Water Resources Group (2015)

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 Industries are required to have licenses for extracting groundwater or end up paying water utility charges to
municipalities and city corporations. According to World Bank’s benchmarking study, 90% of urban water3 supply is
being sourced from groundwater.

The pre and Post-

monsoon water
tables showing
drastic decrease of
Figure 2.1: Variation of Pre-monsoon ground water table, 5-years moving average ground water Dhaka
District

Figure 2.2: Variation of Post-monsoon ground water table, 5-years moving average

The current population of the country is 160 million and is projected to grow to about 202 million in 2050 (forecasted
by UN Population Division medium projection). The country’s economic growth is around 7% (Source: BBS, 2018),
and if this economic growth continues, the country’s wealth will increase eight-fold by 2050. These would catalyze
increased demand for water in households and manufacturing entities.

The Fifth Assessment Report by IPCC in 2014, quoted Bangladesh as being vulnerable to sea-level rise and natural
disasters such as cyclones. The report also estimated that almost 27 million people were at risk of sea level rise by

3
WSP. Benchmarking to Improve Urban Water Supply Delivery in Bangladesh. (2014)

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2050. Currently, the southern districts of Bangladesh is affected by salinity intrusion due to sea level rise. With
increased industrialization and urbanization, more and more of the surface water bodies would be suffering from
contamination.

Figure 2.3: Forecasted Salinity Intrusion affecting Southern Districts 4

According to empirical studies, sectors contributing to water pollution include- Textile, Leather, Agriculture, Paper
and Sugar.

Table 2.1: Water pollution source and their ranking in Bangladesh 5

Industry Water Pollution Pollution Product Ranking

Agriculture Moderate 1.08 3
Textile Big 3.35 1
Transport Small 0.02 6
Construction Small 0.14 5
Paper Very Big 0.67 4
Leather Extreme 1.88 2
Sugar Extreme 1.72 2

Sugar and Paper manufacturing sectors have been excluded from the study due to smaller number of sugar mills (12
were registered in 2006) and de-growth of the paper industry due to increasing usage of alternatives like electronic
devices. The study is focusing on the Textile and Leather sectors owing to comparatively larger industry size and
generation and unplanned disposal of toxic chemical contaminated waste water.

4
Akter, Rabeya, Mashrekur Rahman Sumaiya, Tanveer Ahmed, Anisul Haque, and Munsur Rahman. "Prediction of
Salinity Intrusion Due To Sea Level Rise and Reduced Upstream Flow In The GBM Delta." (2016)
5
M. A. Hannan, M. A. Rahman, M. F. Haque. ‘An Investigation on Quality Characterization and Magnitude of
Pollution Implsications with Textile Dyeing Industries’ Effluents using Bleaching Powder’ DUET Journal, Vol 1, issue
2 (2011)

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It is projected that industrial water demand can increase by 109%, domestic water demand by 75%, and agricultural
water demand by 43% in 20306 for taking the water demand to 52.96 billion cubic meter, from 35.87 billion cubic
meter in 2014.

Year 2014 (Unit: Billion Cubic Meter) Year 2030 (Unit: Billion Cubic Meter)
Industry,
Domestic,
Domestic, 1.61
Industry, 0.77 6.3
3.6

Agriculture,
Agriculture, 45.05
31.5

Figure 4.3: Projection on Sector-wise Water Demand in Bangladesh by 2030

The estimated water consumption in the Textile and Leather sectors is estimated to be 4,027 Million Liters per day.
The WB estimates annual water demand to reach 6,788 MLD and 80 MLD for the Textile and Leather sector
respectively within 2030.

Additional 6788 MLD

Water needed Textile sector
by the Textile
4077 MLD
and Leather
industries 76 MLD
Water Leather sector
needed by
the Textile
and Leather
industries

2014 2030

Figure 4.3.2: Projected water demand of textile and leather sector by 2030
Source: An analysis of industrial water use in Bangladesh (2015) by 2030 WRG

Assuming the different projected industry growths, a broad estimate for water sector infrastructure requirement
has been estimated by the 2030 Water Resources Group,7 which gives an indication of the future market size for
water related technologies.

6
PricewaterhouseCoopers, Consolidation and Analysis of Information on Water Resources Management
in Bangladesh, (2015)
7
Sagris, T. and Abbot, An analysis of industrial water use in Bangladesh with a focus on the textile and leather
industries, 2030 Water Resources Group (2015)

Page 17 of 92
Broad Market Size in Textile Water Technologies by 2030

Parameter Forecasted Cost by 2030 WRG*

Capex 12-16 billion USD
Opex 13.7 billion USD
TOTAL 26- 30 billion USD

* Assuming that the textile industry will grow to USD 66.25 billion by 2030, requiring an additional water supply of
6,788 MLD and Implementation of interventions, which will reduce water usage by 20-35%. The costs include an
estimate of investment required for new water treatment and wastewater treatment infrastructure by existing
factories to comply with environmental standards.

Broad Market Size in Leather Tanneries Water Technologies by 2030

Parameter Forecasted Cost by 2030 WRG*

Capex 35-50 million USD
Opex 40-47 million USD
TOTAL 75-100 million USD

* Assuming that the leather industry will grow to USD 8.25 billion by the year 2030, requiring an
additional water supply of 76 MLD and Implementation of interventions, which will reduce water usage by 20-35%.

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Structure of Water Governance in the Public Sector

Following the Water Act 2013, strategic direction on national water resources planning and policy-making is being
provided by the inter-ministerial NWRC and its Executive Committee.

The Ministry of Water Resources (MoWR) is regarded as the highest authority in the water sector, and leads the
policy formulation, monitoring, implementation of plans and policies relevant to water. However, the MoWR is not
directly involved with implementation, but accomplishes it indirectly through five supporting organizations i.e.
BWDB, JRC, RRI, BHWDB and WARPO. Among them, particularly BWDB and WARPO are responsible for
implementation of water management in Bangladesh.

BWDB supervises implementation, operation and maintenance of large scale water-related projects, while WARPO
is responsible for macro-level water resources planning and management and the preparation of the National Water
Resources Plan. However, due to institutional constraints indicated by both previous studies 8 and primary
interviews, the current activities of WARPO for contributing in Water Governance was found to be very limited.
Therefore, while WARPO also has a mandate on planning the location of new industries on the basis of water
availability and effluent discharge requirements, their influence and overall actions is assumed to be limited, unless
institutional changes improve their current operational modality.

While the Ministry of Water Resources (MoWR) is the principal water regulator, the Department of Environment
(DoE) under the Ministry of Environment & Forests (MoEF) is the principal water monitoring agency, with the
authority to take legal measures against various water polluters. For example, any effluent plant water discharge
not meeting the environmental parameters can be penalized by DOE.

Ministry of Local
National Water Ministry of Water Resources government, Regional Other Duty
Development and Holders
Resources Cooperatives
Council Water Resources Planning
Organization Local Government
Engineering Division Bangladesh
Agricultural
Joint Rivers Commission Development
Water Supply and Sewerage
Corporation
Aithorities (WASAs)
River Research Institute
Department of Public Health
Engineering Ministry of
Industries
Institute of Water Modelling

Department
Bangladesh Water Development
of
Board
Environment
Center for Environmental and
Geographic Informations Planning
Services Commission
Haor and Water Development
Board

Flood Forecasting and Warning

Center

Figure 2.4: Institutional Framework in the Water Sector in Bangladesh

8
WWF. “Water Governance in Bangladesh: Challenges and Opportunities Around Policy, Institutional Function And
Implementation for a Sustainable Water Future”.(2015)

Page 19 of 92
Table 2.2: Government Stakeholders with Key Responsibilities

Name of Government Body Responsibility

National Water Resources Apex body at national level responsible for the formulation of water policy,
Council (NWRC) including interagency coordination and is charged with making
recommendations to the Cabinet on issues related to water policy.
Ministry of Water Resources Managerial body of the government for development and management of
(MOWR) the country’s water resources. The organization formulates policies, plans,
strategies, guidelines, instructions and acts, rules and regulations related to
water management
Bangladesh Water Planning and execution of water projects throughout the country including
Development Board (BWDB) flood control, drainage, irrigation, town/coastal protection and erosion
control. The functions include construction of water management structures,
dredging and re-excavation of channels, land reclamation works, river
training and erosion control, construction and maintenance of coastal
embankments, and rainwater harvesting, flood and drought forecasting,
hydrological survey and investigations, research, establishment and training
of water user associations and other stakeholder organizations.
Local Government Engineering Development and management of rural projects—small-scale flood control,
Department (LGED) drainage and irrigation (1000 hectors and less), road, electricity, water supply
and sanitation, health improvement etc. emphasizing on local participation
with representation in sub-district co-ordination committees
Water Resource Planning Apex planning and coordinating organization with multidisciplinary
Organization (WARPO) professionals from different water use sectors
Centre for Environment and Established as a public trust, works using integrated environmental analysis,
Geographical Services (CEGIS) geographic information systems, remote sensing and information technology
Institute of Water Modelling Mathematical modelling of Bangladesh river systems, geographic information
(IWM) systems, environment and groundwater modelling
Department of Public Health Waterworks development projects, and planning in the rural water supply
Engineering (DPHE) and sanitation sector, in the urban water supply sector
Dhaka Water Supply and In charge of domestic, industrial and commercial water supply of Dhaka
Sewerage Authority (DWASA)
Chittagong Water Supply and In charge of domestic, industrial and commercial water supply of Chittagong.
Sewerage Authority (CWASA)

Government Entities Concerned with Water Usage

There are altogether 30 ministries with 35 departments that are responsible for using of river water and other
water resources.

However, the ministries considered as principal water users include-

 Ministry of Agriculture (MoA),
 Ministry of Local Government, Rural Development & Cooperatives (MoLGRD&C),
 Ministry of Industries (MoI),
 Ministry of Textiles & Jute (MoT&J) and
 Ministry of Disaster Management & Relief (MoDM&R)

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 Return flow of water to
Policy and Regulations Water Supply and Water
Efficient Water use Wastewater recycling environment/ discharge of
from Strategic Level Utilities
used water

Water Resources Planning Water utilities under MoLG Ministry of Textiles and Jute Utilities under MoLG Dept. of Environment (DoE),
Organization (WARPO), under • Setting charges for sewerage under Ministry of
Ministry of Water Resources Three types of water utilities under • The National Institute of Textile and wastewater treatment Environment and Forest
Engineering & Research (NITER)
(MoWR) MoLG: services. (MoEF)
aims to enhance the overall
• High level water resource  Water Supply and Sewerage productivity, quality of products • Monitor operations of the
planning and management Authorities (WASAs) and raise efficiency of textile sector DoE, under Ministry of activities affecting
through National Water  City corporations • Monitoring of the textile sector Environment and Forest (MoEF) environmental quality
(water, air, land pollution
Management Plan.  Pourashavas. from 2014. • Monitoring operations of the
etc.) and enforce the
• Planning the location of new activities affecting
Ministry of Industries standards of environmental
industries based on water • Role: planning, construction, environmental quality and conservation, including
availability and effluent operations and maintenance of enforce the standards of
• Developing new policies and monitoring of ETPs.
discharge requirements. water supply and sewerage
strategies for promotion, expansion environmental conservation,
ECNWRC services, including issuing licences
and sustainable development of including monitoring of ETPs.
• Extraction of water, for sinking deep tube wells and Industries.
construction that may charges for industrial water use. Other actors: Ministry of Textile and Jute
potentially change the
• Approval of registration of
direction of flow of water in a Other actors: Bangladesh Garment textile wet processing units
natural water body. Manufacturers and Exporters
provided effluent treatment
The Prime Minister’s Office through Association (BGMEA)
• Organizing training on social and plant (ETP) installations are
Bangladesh Investment made.
environmental standards.
Development Authority (BIDA) and Bangladesh Knitwear • Monitoring existing ETP
the Bangladesh Export Processing Manufacturers and Exporters capacities in the textile sector
Zones (BEPZA) Association (BKMEA) from 2014.
• Approval of foreign, joint-venture Bangladesh Chambers of
and local projects. Commerce and Industry (FBCCI)
Other actors:
• Monitoring of site water use
• Facilitate utility connections BEPZA
reduction.
including water. • Water supply and sewerage
• Water supply and sewerage services within Export Processing
services within Export Processing Zones (EPZs).
Zones (EPZs).
BGMEA
• organising training on social
and environmental standards.
• Requiring industry to have ETP
after 2010 to be its member

Figure 2.5: Water Governance value chain with relevant public authorities and stakeholders (Adapted from "Water Governance Mapping Report” (2016).
3. Opportunity Landscaping in the Public Sector
Potential products and services that can be explored by Dutch companies have been synthesized from the report
and presented in the table below.

Table 3.1: Potential Areas in the Government Sector

Sector Potential Product/Services Stakeholder Opportunity

Dredging to counter Small scale dredging (canals and rivers) and BIWTA High
sedimentation and land reclamation. Sedimentation is a continuous
river erosion phenomenon and there will be
Programming for dredging and revival of sustained demand in the long run.
dead or dying rivers, channels, canals etc.
Integrated Water Preparing long term integrated strategy and MoWR, BWDB High
and Resource investment programs, Water Operating Mostly technical assistance and
Management Partnerships, Flood protection and policy development support
Drainage, polder management and
infrastructure
Water treatment in A central water treatment facility or ETP committee in BEZA, High
industrial and individual water treatment facilities for food BEPZA Along with waste-water recycling
economic zones industry, processing industry, Ready Made infrastructure deployment,
Garment (RMG) etc. (B2B) training of human resources and
technical assistance
Urban Drinking Construct, improve and operate water Dhaka WASA, High
Water supply and sewerage works as well as other Chittagong WASA In terms of future plans of
facilities to improve environmental sourcing drinking water from
sanitation in the city rivers due to decreasing ground
water levels, there is opportunity
for centralized water purification
and waste-water recycling plants
Capacity building of Institutional Training BWDB and other High
public institutions government institutions Dutch engineering expertise and
brand recognition in Bangladesh
can be leveraged for long-term
projects.

Wastewater market Joint opportunities with Donor organizations WB, ADB Medium
segment, drainage, Government-to-government
sewerage, water based contracts can provide
harvesting, surface opportunities along with joint
water projects with donor agencies and
IFIs.
Water Harvesting Engineering options for water harvesting Private sector and NGOs Limited in product market
(services); Harvesting technology (goods);
Desalination (goods) Product market is price sensitive
and China-manufactured
products are price competitive.

High in Services market

Services for engineering (design

and maintenance) have potential.
 River and sea And develop, maintain and operate inland River Research Institute Medium
transport river ports (RRI), BIWTA
Inland Container Terminals and
River Ports mentioned in Delta
Plan
Water for o Expertise on the recharge of groundwater BADC (Bangladesh Medium
Agriculture basins to use less groundwater for irrigation Agriculture Development
and - services; Authority); In terms of hydrological
o Increase water harvesting for irrigation - structures required for irrigation,
services and goods; BMDA(Barind Multipurpose there might be selective market
o Treatment and re-use of wastewater for Development Authority) opportunities.
irrigation - services and goods;
o Improve and increase efficiency of surface
water irrigation, in particular in the South -
irrigation management - services;
o Development and maintenance of dams
and canals - works and goods; and
o Reduce impact of saline water intrusion in
the South and enhance river water flow
Consultancy services Surface water, urban drinking water, WASA and Municipalities Medium to Limited
drainage and sewerage
In the medium term, this market
will gradually be occupied by local
consultants and trained experts
Dredging rivers and Rehabilitation of polders and their Inland Dredging- BWITA Limited
enhanced surface management; dredging of rivers; enhanced
water irrigation in surface water irrigation; and improved Irrigation- BADC, BMDA
the south brackish water resource management
practices.
ICT and Water, Water Early warning systems and the use of geo DAE, Flood warning cell in Limited for flood-based warning
for food in data in agriculture in cooperation with BWDB systems
combination with ICT mobile data providers Limited for geo data in
and agriculture agriculture.
Rural drinking water Extraction, purification, treatment - services LGED, DPHE Limited
and goods Rural water sources are
predominantly tube wells(95%)
and local companies dominate
the market

3.1 Dredging and reclamation

An estimated 6,000 Km of waterway contains the inland rivers used for transportation and these rivers need to be
dredged on a continuous basis. Currently, dredging in 300 major rivers covering 2,393 Km of waterways within next
15 years has been identified as a key strategic imperative. The economic value for implementing this mammoth
master plan is estimated to be more than EUR 1.2 bn. With the government targeting to increase the riverbeds for
making them deeper, the need for both capital dredging and maintenance dredging will remain in the future.
Capital dredging work will increase as the government is prioritizing dredging of 53 of the country’s major rivers.
The route which needs most capital dredging is the Dhaka-Baghabari- Barishal Route. Due to the movement of large
oil tankers in Barishal-Dhaka route, the need for maintenance dredging of these rivers has to be conducted
periodically. One recent development in dredging is the India-Bangladesh joint dredging project of 470 kilometers
of two river routes - from Ashuganj to Zakiganj, and Sirajganj to Doikhawa (of Assam in India). India will finance 80%
of the cost, while the rest will be financed by Bangladesh. The goal of this project will be improving trade between
Bangladesh and India, and facilitating cargo transportation from Kolkata to India's northwestern states.

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Currently, multiple Dutch companies are importing Dredgers and dredging components in Bangladesh, and this
market segment has significant potential. Top three dredger importers are IHC Royal, DAMEN and Elecord
Dredgers. DAMEN is particularly active in Bangladesh and has organized seminars (last one arranged in 2017) on
dredging. They plan on hosting similar events in 2018-19, through engaging relevant stakeholders. Their main
products include- Dredgers, Water Boats and Tug boats.

Government is currently prioritizing dredging as a project component. Any project needs to have a mandatory
dredging component having up to 50% of the project budget (Source: KII of Ex-BIWTA Director). Since Bangladesh is
a riverine country where annual siltation stands at 1.4 billion tons, dredging will always receive priority while
planning development projects (Source: KII of Ainul Nishat). Although dredging was originally under the aegis of
BWDB and BWiTA, based on widening opportunities for dredging services and government’s positive view towards
involving the private sector, a number of new dredging companies have become operational.

There are currently 40+ dredger companies operating in Bangladesh with an estimated 200+ dredgers in
operations. (Source: COO- SS Rahman Dredger Ltd.) Although a small volume of dredgers are currently built in local
shipyards, majority of dredgers are imported. Recently, private sector conglomerates such as Basundhara Group has
assembled their own dredging fleet up to 35-40 dredgers, engaging in land-filling for their housing projects and other
economic zones.

Opportunity for Dutch Private Sector Companies

Directly engaging in dredging (inland river dredging or for land filling) has very limited opportunity for foreign
companies and apart from large-scale G2G tenders, foreign companies do not typically engage in dredging
assignments unless the contract is part of a package, involving bilateral or multilateral donor agencies, ensuring
stronger monitoring and transparency. For example, a Chinese company is involved in Padma bridge construction
project and dredging is carried out by a Chinese company: China Harbour Ltd., which is using its own dredgers. Apart
from these selective opportunities, bidding for dredging tenders are dominated by local firms. Although 20% of
tenders are floated through online tender portals, a number irregularities have been observed, which include bribery
and nepotism; resulting in an uneven playing field. Since Dutch companies tend not to engage in unethical practices,
some Dutch players have engaged in supplying dredging equipment and accessories to local bidders.

In terms of servicing, these dredgers do not require any maintenance work before 250-500 hours of operations, and
the daily maintenance downtime is minimal- which include changing air-filter, oil-water filter and pumps. There are
no training institutes in Bangladesh for supporting capacity building of dredger operators and most operators are
provided on the job training .Therefore, providing skill based training can be a potential area along with maintenance
training.

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Table 3.2: List of Some Local and Foreign Dredger Companies

Top Local Companies

 Asian dredgers Ltd.  Mir Akhter Hossain Ltd.
 Abdul Monem Ltd  Nabarun Traders Ltd
 Aqua Marine Dredging Ltd
 Nuruzzaman Khan
 ARK Progressive Dredging Ltd
 Orient Trading & Builders
 Amena Dredging & Services Ltd. (New
company with 4 dredgers)  Reve Dredging and Engineering
 Banga Dredgers  Reza Construction Ltd
 Bengal Structure Development Ltd  Spectra Engineers Ltd.
 Basundhara Dredging Co. Ltd.  Sonali Dredgers Ltd
 DBL Dredging Ltd
 SS Rahman International
 Future Infrastructure Development
 Westarn Marine SY Ltd
 Jamuna Spacetech JV
 Kanak Construction Co.  Western Engineering (Pvt) Ltd

Foreign companies operating in Bangladesh Companies that import dredgers and dredging
equipment to Bangladesh
 China Harbour (China)  IHC Royal (Netherlands)
 Sinohydro Harbour Corp. (China)  Damen Shipyard (Netherlands)
 Van Oord (Netherlands)  Elecord Dredgers (USA)
 Dredging International (Belgium)  BSC Dredging Ltd. (USA)
 Dredging Corporation of India Limited (DCIL)  Italdraghe (Italian, Market presence is low)
(India)

DETAILS OF SPECIFIC LOCAL DREDGER COMPANIES ARE ADDED IN THE TABLE 7.4 OF THE ANNEX-VI.

Entry strategy and Way Forward

Due to the high number of dredgers currently being imported by private sector companies and Bangladesh Water
Development Board, existing and new fleets would require ongoing repair services and steady supply of
accessories, equipment and trainers. This can be a potential area for Dutch companies involved in dredger
repairing. The most common technology or type of dredger is the 18-inch and 20-inch cutter suction type. From
2010 to 2017, 32 cutter-suction dredgers had been imported by IHC alone (Source: IHC beaver reference list from
2010-2017). New entrants in the Bangladesh market can reach out to the top local dredging companies for selling
new units. Alongside, Netherland based manufacturers can provide agent rights to local dredging service
providers for selling dredgers to smaller players.

Complimentary with dredging is navigation channel improvement nearby sea-ports and floating sea terminals
(such as the LNG Floating Regasification Unit), the inland river ports etc. Additionally, river reclamation and river
training can be additional complimentary interest areas for Dutch companies providing technical support and
equipment.

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3.2 Water treatment in ports and economic zones

Instead of targeting individual factories, targeting an economic zone can ensure reaching out to larger number of
factories in one place. However, from stakeholder interviews, we found that for Economic zones, the technologies
vary and there is no thumb rule or one-solution-fits-all. The applicability of the technology is dependent on case by
case basis. Company management decides whether to adopt high CAPEX- low OPEX or Low CAPEX-High OPEX based
technology.

a. Waste water treatment in Ports

Bangladesh has setup a new sea port (Payra) and are expanding capacity of Mongla and Chittagong port. Many ports
across the world have waste water treatment facilities, which are absent in all the Bangladeshi ports. Black water
(the water stored in the hull of ships, may contain diesel and other water contaminants) and waste stored in ships
can be discharged safely at the port.

b. Water Treatment in Economic Zones

The initial pre-feasibility & feasibility studies needed before setting up of factories have a mandatory environmental
assessment component which assess the water requirements. BEZA has created an ETP coordination team, which
will provide advisory services for the ETP
needs and requirements for the zones.

There are broadly two type of economic

zones and the tendering process for
equipment may vary.

 Private sector owned- The tendering

is done by the local companies
themselves. However, BEZA has
authority over the centralized
systems (a centralized ETP or STP) for
the overall zone.

 Foreign government owned- The

government-based G2G zones are out
of the jurisdiction of BEZA and the
individual country determines the
type of technology to be used &
where it will be sourced from (usually
from companies from that country,
i.e. a Chinese economic zone will
source equipment from a Chinese
company)

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For example, the LoC given by India includes conditions that the equipment for their individual factories (including
ETPs) will be sourced from Indian companies. Therefore, this becomes a closed tender where only Indian companies
can participate.

LIST OF ECONOMIC ZONES WITH THEIR TYPE ARE INCLUDED IN THE ANNEX- III.

Similarly, for Chinese economic zones, the tendering & procurement is restricted to only Chinese companies.

In terms of the BEZA constructed centralized ETP/STP, they are currently testing out different modalities such as
PPP-based or fully-private sector owned or fully funded by BEZA. The regulator for economic zones hasn’t finalized
the modality for financing centralized ETPs.

The investment for centralized ETPs are high and any private sector companies are responsible for the individual
ETPs in the factories (a private sector conglomerate has multiple industries i.e. multiple type of production factories
in their economic zone) and the processed water will then be sent to the central ETP.

The current target of BEZA is to construct 100 economic zones within the next 15 years. 89 of the zones have already
received provision (permission from authority regarding allocation of land). The targeted area is 75,000 acres of area
and investment of USD 30 billion. BEZA envisions that no manufacturing plant would be setup outside the economic
zones within the next 10 years.

Currently two zones are being constructed- the Mirersorai zone in Chittagong which has 30,000 acres of land and
the Moheskhali zone which has est. 25,000 acre of land.

Entry strategy and Way Forward

In the Southern economic zones (such as Moheskhali), the current challenge is in the saline water treatment (for
drinking and also for industrial purposes).

In the Chittagong Mirersorai economic zone, the water sources will include both ground water & river water (since
ground water is not in itself sufficient enough in volume). There may be opportunities in water procurement
infrastructure from rivers and subsequent waste-water recycling. Current priority regarding water treatment is
the Southern economic zones of Moheskhali (converting saline water to usage water for drinking & for
production). (Source: KII- Director of Planning, BEZA). In the long-term, the government plans to use river
reclamation to deposit land and construct economic zones there.

Contact Point:
Executive Member, Planning & Development
Bangladesh Economic Zones Authority
Phone No (Office): +88029632455
Email: [email protected]

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3.3 Inland container terminals and Shipyards

The first Inland Container Terminal was built by the government in 2014 for facilitating transport of export containers
from capital Dhaka to seaports.

Alongside, the government has issued licenses to different private sector players. Currently, two private sector
players- Rupayan and Summit Group have built and are operating individual inland port terminals, while Meghna
Group is constructing another terminal. The purpose of these inland port terminals is to transport exportable goods
to seaport or for carrying imported good from the seaport.

The recent agreements between India and Bangladesh allowing India to use the Chittagong and Mongla ports, while
at the same time, enabling Bangladesh to use Kolkata and halliday ports for transshipment of its garments good to
the regional players. The deal will be finalized by delegates from both the countries in New Delhi by end of October
2018.

Table 3.2.1: Description of different Inland Container Terminals currently operational and being constructed
Name Type Comment
Pangaon Inland Public Currently, the only publicly owned ICT operational in Bangladesh, jointly
Container (Operational) developed by BIWTA and Chittagong Port Authority (CPA) at a cost of BDT
Terminal 1.54 billion. The project aims towards easing the cargo movement pressure
on the Dhaka-Chittagong railway and highway corridors. The terminal has a
storage capacity of 3,500 20-foot equivalent units (TEUs) of containers and
can handle 116,000 TEU containers annually.
Inland container Public In May, 2018, the government had signed a deal for setting up an inland
river port in (under container river port in Ashuganj with the Indian 2nd Line of Credit. This
Ashuganj construction) project is worth about USD 154 million, 67% of which will be provided by the
state exchequer, while the rest would come from the Indian Line of Credit
(LoC). The project will be implemented by Bangladesh Inland Water Transport
Authority (BIWTA) under the Ministry of Shipping. According to the initial
survey, the facility can handle 4,000,000 twenty feet equivalent units (TEUs)
of containers on this route per annum.

Summit Alliance Private Constructed by the Summit group, currently offering shippers totally
Port Limited sector dependent on highways, with alternative route in the form of transporting
(SAPL) (Operational) containers from Chittagong to Dhaka through waterways.

Inland Container Private Constructed over 30 acres of land on the bank of the river Shitalakhya and is
Terminal by sector currently operational. The port will connect the main sea port of the country
Rupayan group (Operational) in Chittagong with the industrial hub, mitigating dependence on road
transport. The port has been developed with technical assistance from
seaport innovations-Denmark. The port can handle 390,000 (three hundred
ninety thousand) TEUs annually.
Inland Container Private In August, 2017, the government approved construction of an ICT by Meghna
Terminal by sector Group that will is currently being built at the bank of the Meghna river.
Meghna Group (under
construction)
Khanpur Inland PPP Method The proposal for the construction of Khanpur Inland Container Depot in
Container Port construction Narayanganj was initiated in July, 2013. Subsequently, in 2015, the project
and Depot ongoing got awarded a public private partnership contract, with the transaction

Page 28 of 92
 advisory service being led by a consortium of PricewaterhouseCoopers (PwC),
BMB Mott Macdonald and UNICONSULT Universal Transport Consulting
Gmbh, under the Prime Minister’s Office. The estimated capital cost is USD
30-80 million, with an annual capacity of 80,000 TEUs.

Entry strategy and Way Forward

Similar to dredging, it is more feasible for Dutch companies to

1. Sell accessories and equipment that local companies can buy and use for construction and operation of inland
ports. Currently three private sector conglomerates - - Rupayan, Summit, Meghna (currently constructing)
have inland container terminals. So, initially these groups can be approached for incremental technical
support.

2. Allow soft loans or Line of Credit (LoC) for building inland port terminals. For example, Bangladesh is using
India's line of credit for the construction of the second government inland container port. According to the
terms of the loan, at least 70% of value addition should directly come from Indian suppliers.

3. Technical Support: Dutch organizations can provide technical and consulting support for constructing and
operating these inland container terminals.

Page 29 of 92
3.4 Inland water including irrigation and fisheries

In total 26,000 Km of waterways are available, 6000 Km is attributed to inland transport, while the rest is used for
agriculture and fisheries (capture and culture).

a. Agriculture

Ministry of Agriculture is one of the key users of the water. The government is currently promoting solar-powered
irrigation pumps for replacing diesel fueled ones. Low cost irrigation technology could be another potential market.

The market potential in the agriculture sector is limited due to the presence of low cost local and Chinese player,
and due to the price sensitive nature of the target audience (Farmers). Although a number of local and international
players are operating in the market, there are limited scope for increasing demand in the future. This is partially due
to receding water level and drying up of natural water habitats and rising purchasing capacity of farmers. Alongside,
a number of other opportunities have come up in the form of co-operatives, which jointly own agricultural
equipment.

Selective opportunities and a niche market for Irrigation exists, such as

 Pivot irrigation (a type of irrigation) in Northern regions where spices are cultivated.

 Springer irrigation in Chittagong hill tracts.

 Use of a pipeline or construction of a water tunnel for moving water from one spot to another.

 In hilly areas (known locally as “Jhiri Badh’’) the preferred structure is small hydraulic dam of 20-40 meter for
capturing water from hill for using in cultivation. These structures additionally need associated structures such
as sluice gates and water control regulators.

 Currently, there are 37,000 deep tube-wells (average irrigation capacity of 60-80 acre per tube well) covering
up to 1,000,000 hectares of land. And there are almost 14,000,000 shallow tube-wells (having average coverage
of 2.5 hectors). The use of an advanced tube well head can cover higher catchment area for dispersing water.
Currently a deep tube well can disperse up to 80 acres of land, which can be increased to 150-200 with the use
of an advanced head.

 Canal dredging with construction of submersed wire- a type of canal which has 4-5 meter of structure with an
elevated structure.

 Polders in char-areas: After the use of polder and water-management groups in Southern regions, use of Polders
to mitigate water challenges in Char regions can hold potential

 SMART Irrigation (using remote sensing to control water)

While using temperature dependent control switches or remote control switches to control water pumps is not an
unknown technology in the farmer community, the total target base for such technology is comparatively limited. In

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Bangladesh, over 76%9 of farmers are smallholders (having less than 1.5 acres of land). These farmers neither have
the affordability nor the amount of land to use such ICT-enabled technologies for their farming land. The rest 24%
are medium and large farmer categories (with at least 1.5 acres of land) and can be the potential target group for
such ICT-based irrigation technologies.

Entry strategy and Way Forward

Specific regions for piloting irrigation-based technologies: (based on discussion with Bangladesh Agricultural
Development Authority

• Jesshore beel of Bobodoho (using water from the rain-water clogged canal and ponds for irrigation)

• Chalan beel area of Natore/Pabna (using pivot irrigation to water crops during dry season and using the same
to remove excess water from canals during wet season).

Small Accessories Market for Irrigation

 The use of an advanced tube well head can cover higher catchment area for dispersing water. (Currently a
deep tube well can disperse up to 80 acres of land which can be increased to 150-200 with the use of an
advanced head)

Contact Point
Chief Engineer (Construction)
Phone (office): 029550896
Email: [email protected]
Bangladesh Agricultural Development Authority (BADC)

9
IFPRI, Bangladesh Integrated Household Survey (BIHS). (2015)

Page 31 of 92
b. Fisheries

Bangladesh maritime area constitutes 118,000 square KM hosting at least 400 species, of which 90 are commercially
important. The country recently resolved maritime area dispute with Myanmar and India, which has increased the
maritime boundary to a large extent. This would enable opportunity for marine fishing.

The International Tribunal for the Law of the Seas (ITLOS) in Hamburg, Germany, gave its judgment on the maritime
boundary dispute between Bangladesh and Myanmar (case 16), on March 14, 2012. The Tribunal for Bangladesh &
Myanmar drew baselines for both the countries.
For Bangladesh, one line was from Mandarbaria
Island (east of Hariabhanga estuary) to the
Kutubdia Island and the other from Kutubdia to Naf
River (land boundary terminus with Myanmar). The
western boundary of the relevant area was drawn
by a straight line from the Mandarbaria point
towards south along 180-degree azimuth (Line C
Figure 1). The relevant area was estimated 283,471
sq km on the sea, of which Bangladesh was
awarded 111,631 sq km and Myanmar 171,832 sq
km areas.

The Tribunal considered continental shelf claims

beyond 200 nautical miles. While both Bangladesh
and Myanmar argued that the other should not
have entitlements beyond the EEZ, the Tribunal
continued the natural 215-degree angle
prolongation of the demarcation line beyond 200
nautical miles. In the end, both Myanmar and
Bangladesh willingly accepted the Tribunal’s
decision and both have proceeded with oil and gas
exploration partnerships.

According to recent (2018) estimates by World Bank, the ocean economy contributes USD 6.2 billion in terms of
gross value , accounting 3% of the country’s GDP. The detailed industry-wise percentages are given as below:

Table 3.2.2: Opportunities in different segments of the Blue Economy of Bangladesh

Industry Value in USD Billion Percentage

Tourism and Recreation 1.5 25%
Marine fisheries and aquaculture 1.4 22%
Transport 1.4 22%
Offshore oil/gas extraction 1.2 19%
Source: Toward a Blue Economy by WorldBank10

10
Patil, P.G., Virdin, J., Colgan, C.S., Hussain, M.G., Failler, P., and Vegh, T. Toward a Blue Economy: A Pathway for
Bangladesh’s Sustainable Growth. Washington, D.C., The World Bank Group (2018).

Page 32 of 92
Compared to other Asian countries, the capture fish volume (in inland rivers and marine coastal areas) is one-third
e.g. an Indonesian fish catching fish boat catches three times more fish than a Bangladeshi fishing boat. Due to lack
of efficiency of local trawlers, Bangladeshi fishermen are unable to catch fish beyond the depth of 200 meter.

This can be resolved by purchasing or deploying modern deep sea trawlers. Government has expressed interest in
directly working with other countries for extracting fisheries from the sea. To this end, countries like Japan, China,
Australia and Netherlands, Sri Lanka, India and Maldives have formally expressed interest in pursuing marine fishing
on PPP basis. The current government is looking into these proposals.

3.5 Urban Water Supply and Sewage

a. Government Projects

Urban infrastructure development is currently attracting significant investment from the government as seen in the
SDP (Sector Development Plan). World Bank is also investing in the drinking water and sewerage infrastructure in
Dhaka and Chittagong. Currently, a French company, Suez, is involved in the construction of sewerage and water
infrastructure. However, opportunities for Dutch companies are present in terms of providing technology and
knowledge-based support. A computer controller system is currently being used in DWASA enabling the authority
to control water flows by an automatic system. The opportunity for similar systems known as SCADA(Supervisory
Control and Data Acquisition) to help digitize the different municipality and sewerage authorities can be a
prospective area (Source: DWASA interview).

In terms of related and complimentary services, capacity building of staff such as vocational training related to O&M
is a prospective area. Along with Bangladesh, other regional players such as Nepal, India, Bhutan also need
infrastructure improvement and investment will continue in these areas. With the construction of urban
infrastructure projects, the need for new O&M will move to the forefront along with catering to the training needs.

The WASA and municipalities have started on focusing in sewerage waste management in addition to the sewerage

Figure 3.1: Estimated sewerage volume in 2035 compared to benchmark values of 2011
Source: Consolidation and Analysis of Information on Water Resources Management in Bangladesh by PWC(2015)

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waste collection in line with established policy frameworks. The Institutional and Regulatory Framework for Faecal
Sludge Management (FSM) has been released in 2017 by Department of Public Health Engineering (DPHE).

In addition to the drinking water needs of the urban population, the need for waste-water and faecal sludge
treatment will lead to investments in these areas.

According to United Nation’s estimates, the population of greater Dhaka will reach 27.4 million by 2030. Taking
average of 125 Liters of water per person per day, the total amount of water needed will be 3.425 billion. The DWASA
is currently planning to construct six new surface water treatment plants by 2035 for meeting additional domestic
water demand. These will deliver a total supply capacity of approximately 3,000 MLD (Million Liters per Day) at an
estimated development cost of more than USD 4.1 billion. DWASA expects that this additional surface water capacity
will reduce the long term reliance on groundwater from 80% to approximately 20% of the water supply.

Entry strategy and Way Forward

Small products Market (B2C)

Another area for Dutch companies can be supply of small equipment and accessories needed for large
infrastructure projects such as valves, pumps, water meters etc. However, the prime criteria for procurement in
terms of both government and private sourcing is competitive pricing. Therefore, a possible way forward can be
JVs between Dutch and local companies for bringing manufacturing on-shore, supported by Dutch technology
and knowledge transfer. The opportunity for producing cheaper infrastructure products can also open up the
prospect of exporting these technologies to other developing and underdeveloped countries at competitive
pricing.

Case Study: Joint-Venture between a Netherlands and a Bangladeshi Company

BM Container Depot Ltd is a Netherlands – Bangladesh joint venture company that is based in Chittagong. It
started operating as an Inland Container Depot from the beginning of May 2011. The depot is used for packing
and unpacking export and import containerized cargos. The ICD is situated 20 kilometers from Chittagong port
and comes equipped with machineries like reach stackers, empty handlers, forklifts, cranes, prime movers, trailers
etc. All of these machineries are imported from Japan, Sweden, Sri Lanka and India.
(Source: www.bmcdl.com)

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3.6 Energy

a. Coastal

One of the experts mentioned opportunities for generating renewable energy (hydro) harnessing the coastal waves.
This can be a great opportunity for electrifying the economically backward coastal region in Bangladesh. In the
coastal region, current electrification rate is less than 3% and most of coastal islands are devoid of productive
infrastructure.

In May, 2014, a deal was signed between US-DK Green Energy (BD) Ltd. and Power Development Board. US-DK Green
Energy (BD) Ltd is a joint venture between Taylor Engineering Group of USA, ph-consulting group of Denmark and
Multiplex Green Energy of Bangladesh. The project aimed at establishing a wind power plant with a capacity of 60
MW at Kurushkul, southeast of Moheshkhali at a cost of USD 120 million. The project funding was provided by Danish
wind turbine company Vestas.

b. Renewable energy used in irrigation

For example, solar-based drip irrigation (Also known as “solar pump with drip irrigation system”) in Char & hill areas
(where electric wires cannot be used) can be the main method of irrigation in those areas where surface water
sources are scarce. However, opportunities exist only in terms of a government-to-government based context in
which the engineering design, operational modification, technical assistance will be sourced from Dutch origin as
part of a conditional investment loan.

c. Maritime Gas Block

Bangladesh awarded an offshore block to Posco Daewoo Corporation of South Korea for gas exploration in March
2017. As per the agreement, the two-dimensional seismic survey would begin this year, and based on the outcomes
of the survey, the real picture of gas availability could be known by 2019, according to Petrobangla. The block is
adjacent to block-12 of Bangladesh. Bangladesh has 26 blocks in the Bay, of which, 15 are deep-sea blocks and 11
are in shallow waters.

Bangladesh's efforts to attract international oil and gas companies for deep-sea blocks explorations have been
delayed due to low oil prices in the international market for over two years. The low price discouraged oil companies
from expanding to new territories.

Similar type of oil-gas exploration and extraction contract opportunities may exist for Dutch companies.

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3.7 Funding Trends for Public Sector Projects

The funding sources for public sector projects ranging from infrastructure to capacity development comes from
three key sources:

Government Source: Government’s development projects stipulated in Annual Development Plan (ADP) are fully or
partially financed from government’s internal revenue sources.

Loans and grants from other governments, IFIs, multilateral donors: The government receives international funding
through loans or grants, either from other governments (G2G basis) or from multilateral development agencies like
IMF, World Bank and ADB. Alongside, some development projects are directly getting funded from international
financial institutions in exchange of implicit sovereign guarantee.

Private Sector Funding: While private sector funded projects as well as PPP projects are selectively fewer in number
and were concentrated mainly in energy sector, currently water infrastructure projects are being piloted under this
modality. For example, the central ETPs in economic zones are being developed on PPP basis.

Table 3.3: Comparison between different G2G investment trends

Countries China India Japan Germany

Investment USD 24 billion USD 4.5 billion USD 1.83 billion 381.8 million
Amount (signed in 2016) (signed in 2017) (signed in 2018) (signed in 2018)

No. of projects 25 projects under the 7 project under 6 projects under ODA
loan agreement the third LoC in 2018
signed in 2016
Sectors  Power,  Power  Power  Power and
 Infrastructure  Railroads  Infrastructure Renewable
 Water  Highway  Port Energy
roads  Textile
 Shipping and  Water
ports  Good
Governance
 Climate
Change
Adaptation to
Urban Areas

Interest rate 2-3% 1% Around 1% 2.49%

Payment period 15 Years 20 years 30 years 16 years
Grace Period 5 years 05 years 10 years 05 years

SOME KEY HIGHLIGHTS OF THESE DIFFERENT DONOR GOVERNMENTS ARE GIVEN, HOWEVER A MORE
COMPREHENSIVE LIST OF DIFFERENT PROJECTS FUNDED BY THEM IN PROVIDED IN ANNEX-II FOR FURTHER
REFERENCE.

Page 36 of 92
 Country Profile: China
Investment USD 24 billion for 27 projects (Signed between Chinese Prime Minister and Bangladeshi
Amount Prime Minister in 2016)

Sectors Power, Infrastructure, Water (water treatment plants, infrastructure development of port
facilities etc.)

Broad Strategy As part of China’s OBOR (One Belt One Road) initiative or the Bangladesh-China-India-
Myanmar Economic Corridor, investments are heavily focused on infrastructure projects
covering communications such as Highways, Railroads. Part of the investment loans of USD
24 billion include 12 projects for developing railway infrastructure.
Highlighted  The biggest project under the loan agreement is in terms of building 225-kilometre rail
Projects link on both sides of Padma Bridge within 2022, signed between Bangladesh Railway
and China Railway First Group Co. Ltd in August, with a deal size of USD 3.13 billion.
(DETAIL OF MORE
PROJECTS ARE
GIVEN IN ANNEX-  Six projects worth of USD 700 million were earmarked for implementation which
II) includes partial financing for two Power plants worth USD 3 billion, Info Four network
USD 1.56 billion, BTCL USD 1.60 billion and Single Point Mooring Terminal USD 5.00
billion.

 USD 249 million for expansion and modernization of Mongla Port facilities awarded to
Chinese Contractors (Expected completion date: 2021)

 USD 350.6 million for Rajshahi WASA surface water treatment plant (Expected
completion date was 2015 but project delayed)

Payment Period 15 Years with a grace period of 5 years

Interest Rate 2-3%

Figure 2.3: A glimpse of different development projects funded by India

Pagedevelopment
Figure 2.2: A glimpse of different 37 of 92 projects funded by China
 Country Profile: India
Investment Amount India has committed more than USD 7 billion of loans to Bangladesh over a period of 8
years. The first Line of Credit (LoC) was USD 862 million signed in 2010 and the second
LoC of USD 2 billion was signed in 2016. The third LoC, signed in 2017, is worth USD 4.5
billion, which is aimed at funding 17 major projects in Bangladesh.

Sectors  Power
 Railroads
 Highway roads
 Shipping and ports
Broad Strategy According to the latest LoC agreements, Indian companies will get work through
selected bidding and 65-75% of the materials to be used in the projects will have to be
imported from India (signed October, 2017).

Bangladesh is India’s largest trade partner in South Asia with bilateral trade almost
tripling to USD 7.52 billion in 2016-17 from USD 2.75 billion in 2008-09.

Highlighted Projects The government of India in July 2017 sanctioned USD 54.4 million for dredging the
Brahmaputra river.
(DETAIL OF MORE
PROJECTS ARE GIVEN
Investment in two economic zones- Mirsorai zone worth USD 100 million and
IN ANNEX-II)
Moheskhali zone worth USD 100 million.

Upgradation of Mongla seaport and chittaagong seaport under transshipment and

transit agreement.
Payment Period 20 years for repaying the loan and with grace period of five years

Interest Rate Indian LoC agreements specify interest rate of 1% a year.

Private Sector In total, 13 agreements in the private sector worth nearly USD 10 billion were signed
during the visit of Prime Minister of Bangladesh to India in 2017 in areas such as energy,
logistics, education and medicine.

Country Profile: Japan

Investment Amount JICA signed a loan agreement with the Bangladesh government for providing about USD
1.59 billion in six infrastructure projects as part of their 39th ODA package (Signed June,
2017). The projects included- sea-port and power-plant development at Matarbari, the
Dhaka mass rapid transit project (Roads and Highways Development), Jamuna Railway
Bridge Construction Project.)

Sectors Power
Infrastructure (Roads, Railways)
Port

Broad Strategy Japan’s development agency- Japan International Cooperation Agency (JICA) is the
leading player in the power sector of Bangladesh with the Power Sector Master Plan-
2016 being formulated by them along with Bangladesh Power Development Board.

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 As mentioned before, Japan is working on a joint public private project management
platform, which will allow Japanese companies to participate and secure work using the
government to government system, allowing them to avoid any open bidding.

Highlighted Projects  JICA is working on a water resources development project phase-II (USD 105.5
million) as part of the loan agreement of USD 1.59 billion (Expected completion
(DETAIL OF MORE date: March, 2023)
PROJECTS ARE GIVEN
IN ANNEX- II)
 The biggest project (USD 4.6 billion) a sea-port and power plant in Matarbari with
JICA offering partial funding, implemented by a consortium of three firms-
Sumitomo, Toshiba and IHI (Expected completion date: July, 2024)

Payment Period Maturity of the loan is 30 years with a 10-year grace period

Interest Rate Construction- per annum 1% interest rate,

Health services- 0.9% interest rate and
Engineering services 0.01% interest rate.
However, the front end fee is 0.2%

Figure 2.4: List of few Japanese projects in the 38th ODA Package of 2018

Page 39 of 92
 Country Profile: Germany
Investment Amount In January 2018, Bangladesh had signed agreements worth USD 381.8 million. These
agreements include both technical and financial support. Of these, USD 103.4 million is
allocated for climate change adaptive drinking, water resources management Dhaka
(Saidabad Water Treatment Plant Project, Phase III). The implementing agencies of the
projects are - Power Division, Local Government Division, WASA and the Ministry of
Forests and Environment.
Sectors Power and Renewable Energy
Textile
Water
Broad Strategy Germany is involved in deploying funds through GIZ. Since Bangladesh RMG sector’s
largest export destination in Europe is Germany, GIZ has been involved in Bangladesh’s
textile industry since 2005. Their main mode of intervention is through capacity
development.

Although Bangladesh had historically accepted only development grants from Germany,
in 2014, Bangladesh inked a loan agreement with Germany worth USD 52 million. The
loan was for investing in power transmission system in the country’s western region.
Highlighted Projects  The German conglomerate Siemens is going to be a major investor in Bangladesh,
financing USD 8.1 billion for generating 8,000MW electricity in Payra.

 Bangladesh is buying the products and services from Veridos GmbH (a joint venture
of Giesecke+Devrient and state-owned Bundesdruckerei) on a government-to-
government basis, under the project titled ‘Bangladesh e-Passport and formulation
of automated border control management’ at an estimated cost of USD 553.07
million (July 2018 to June 2028)

 GIZ is implementing a project for training 30,000 plus managers and staff in the
RMG industry on fair pay, fire safety and safe handling of chemicals. This project is
implemented on behalf of German Federal Ministry of Economic Cooperation and
Development (BMZ) and funded by European Union (EU).

 GIZ is focusing on supporting setting up of ‘Central Effluent Treatment Plants

(CETPs) for Economic Zones (EZs) in Bangladesh’, and to this end, has arranged a
seminar with BEZA as well as signing a memorandum of understanding (MOU) in
April 2017. The document was signed by BEZA, 2030 Water Resource Group (WRG)
and GIZ for initiating a technical and knowledge-based partnership for facilitating
establishment of CETPs.

Payment Period 16 years including five years of grace period.

Interest Rate 2.49% interest rate
Private Sector German companies in Bangladesh have launched German Business Council for
supporting growth of their businesses. The council is expected to organize business
networking events for building relationship with different companies.

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Other Development Partners

Agency Francaise De Development (AFD)

Russia
In 2012, AFD has started its operations in Bangladesh by
Russia has committed to provide USD 500 million as signing a Credit Facility Agreement in January 2013 with
technical and financial support for constructing the the GoB for a loan to support a Transport Project in
Rooppur Nuclear Power Plant Project. partnership with Asian Development Bank (ADB). AFD is
focused towards the development of the urban
Russia has interest for investing USD 100 million in infrastructures, such as providing drinking water,
the ICT sector of Bangladesh. supplying clean and sustainable energy and the climate
change adaptation strategy of the Government.

Under the project “Dhaka Environmentally Sustainable

Water Supply Project” (DESWSP), funded by the Asian
Belgium Development Bank (ADB), French Development Agency
(AFD) and European Investment Bank (EIB),
Jan De Nul Group (JDN) and Payra Port Authority construction of a water plant for DWASA was given to
(PPA) signed a joint venture company agreement in the French joint venture SUEZ-VEOLIA. The project is
2017, for the Payra Deep-Sea Port dredging project, worth USD 318.3 million and will be operated under the
worth USD 626.6 million. The Payra Port Project has DBO or design-build-operate modality.
19 components of which capital dredging is the key
one.

KOICA
The Payra Port Authority (PPA) will have 51% share
in the joint venture company and the rest 49% will
On 2018, KOICA (Korea International Cooperation
be held by Jan De Nul. The firm will bear 20% of the
Agency) has signed a MoU with ICT division and LGD
cost of capital dredging from its equity and 80% of
division and a2i program. “Digital Municipality Service
the funding will come from the Belgian government
System” project’s aim is to establish a digital platform to
in the form of loan. The interest rate on the loans
manage all types of resources in an organized, effective
will be 0.85% and the repayment period is 12 years.
and efficiency way. It will digitalize 10 Municipalities
The joint venture agreement between both the
(Tungipara, Ramgoti, Faridpur, Jhenaidah, Natore,
parties will be valid for 15 years and loans will be
Singra, Pirganj, Tarabo, Mymensingh, and Sirajganj and
repaid through tolls collected from vessels berthing
promote e-governance.
at the seaport.

SIDA (Swiss International Development Agency)

The 2014-2020 country strategy of SIDA commits to a total of USD 178.5 million (1.6 billion SEK) of development
funds focusing on expanding its support in education, health, women's rights (under Democratic development)
and climate change adaptation.

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4. Opportunity Landscaping in the Private Sector
Multiple areas have been identified from the secondary literature for identifying possible opportunities in the private
sector.

Table 4.1: Potential Areas in the Private sector (Based on Secondary Research)

Sector Potential Product/Services Stakeholder Opportunity

Textile companies & Water treatment plants, WDF factories/ knit and Medium
Ready Made sewerage treatment plants woven textiles Industry receptive to
Garment Sector environment-friendly
technologies with a
business case
Agriculture and Small scale water Targeting of Economic Medium
industrial wastewater treatment plants Zones Prevalence of local
(B2B) companies that
manufacture and import
water treatment solutions
Agro-processing and Water Efficiency PRAN RFL, ACI Medium
drinking water Agribusiness, Basundhara, Prevalence of local
companies Square Consumer companies that
Products Lim. manufacture and import
water treatment solutions
Small‐scale Service Upgradation of irrigation Farmers in Northern Medium
Market (B2C) pumps/ hydraulic Districts Lower disposable income
structures and high price sensitivity

Large‐scale Urban Pumps, valves, motors for PRAN RFL, ACI, Sigma Medium
Utilities Market large infrastructure Engineers Ltd Opportunities for joint
(B2B/B2G) venture with local players
entrenched within the
market.
Shipyards and Design, construct, and Western Marine Medium
Environmentally operate(Joint Venture or Shipyards, Dockyard and Lack of accessory industries
friendly scrapyards PPP) Engineering Works and high capital intensive
Limited, Khulna Shipyard nature of the venture
Inland container Design, construct, Summit Group, Meghna Medium
terminal maintenance, TA (Joint Group, Rupayan Group, Due to high capital
Venture or PPP) Kanpur Inland Terminal investments, only business
and Depot conglomerates will be
interested
Economic Zones Water treatment plants, Southern Zones such as Medium
Centralized Effluent Moheskhali EZ and Economic zone authority
treatment plants (CETPs) Mirsorai EZ interested but investment
is needed and mode of

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 operation is yet to be
finalized
Water-based tourism Providing marketing and RAJUK, Divisional City Medium
infrastructures technical assistance. Corporations Currently being outsourced
to the army or the local city
corporation authorities
Small‐scale Hardware Irrigation pumps PRAN RFL, ACI Motors, Limited
Market (B2C) Sigma Engineers Ltd Presence of strong local
sector players in the market

In broad sense, product market in different industries have medium to limited potential for any business opportunity
for Dutch private sector companies. Due to the general price-sensitive nature of business and management, sourcing
destinations are China or India mainly due to cost competitiveness. However, premium products and machineries
including chemicals and sophisticated equipment are still sourced from European countries but most local
companies again prefer cheaper alternatives from China, India, Thailand, Korea etc. Small-scale hardware market is
dominated by local industries and may not be possible for Dutch companies to compete due to basic reason of
importing the goods or products at a higher price. Instead, services such as engineering design, maintenance training
offer higher market potential due to Dutch companies being renowned for their technical and engineering expertise
globally.

Water treatment can range from water recycling to waste water treatment ranging from urban infrastructure
projects to commercial industries (manufacturing factories). In Bangladesh, roughly 20% of pollution is from textile
factories, 20% is from leather industry, the rest 40% is from urban waste (used by city inhabitant and commercial
industries connected to municipal drains), 10% is from transportation and the rest are from commercial industries
such as agricultural, pharmaceutical etc. (Source: 2030 Water Resources Group, World Bank)

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4.1 Garments and Textile

Market Size: USD 30.61 billion worth of exports, employing an estimated 4.2 million workers
Players: Approximately 2,500-3,000 factories in the RMG and Textile industry
Sector Growth Prospects: Medium, apparel sector registered 8.76% growth in 2017-18

Table 4.2: Summary of specific opportunities in the Textile and RMG sector

Parameter Comments

Players 2000-2500 factories

Potential Markets The Dutch companies may find open market for wastewater treatment plants (ETP) &
their accessories (such as Pump Motor, Filter Press, Blower, Diffuser, Dozing pump,
Gear Motor/Agitator, lab equipment & chemicals.

Currently not gazetted, but the Department of Environmental (DoE) is pushing to make
a STP (Sewerage Treatment Plant) mandatory for factories having more than 500
employees.
Market Sizing Effluent Treatment USD 139,860,000
(DETAILED MARKET Plant (ETP)
SIZE CALCULATIONS
ARE GIVEN IN THE Sewerage Treatment USD 13,960,000
ANNEX V) Plant (STP)
Financiers Green financing by banks and FIs through credit quotas

To accelerate climate resilient investments, the minimum credit quota of direct green
finance is set at 5% of total loans from January 2016 onwards.
(Bangladesh Bank as acts as regulator, bank and FIs as implementing institutions.
Textile is one of the key targeted industries with sensitive (potentially high)
environmental impacts.

Bangladesh Bank Refinancing Schemes

Loans are provided for 50 green products in targeted green sectors at 5% interest rates
chargeable to the customers capped at 9%. Around USD 500 million was pledged for
this scheme. In 2015 BDT 2 billion (USD 200 millon) of the pledged funds, also called
Green Transformation Fund (GTF), is allocated for water and energy use efficiency in
textile industry, including ETPs.
Technologies There is no ideal ETP for a textile dyeing industry but the best options consist of several
units. The combined physiochemical and biological treatment is the most common
type used in textile sector, while chemical ETPs are most popular. In case of machinery
and equipment used in ETPs, variable frequency drives are popular (they help in
controlling the speed of the electric motor). Energy efficient motors, upgraded heating,
cooling, ventilation systems, energy efficient lighting systems are also poplar
accessories.

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 Sourcing Destinations Most companies use locally assembled ETPs. Imported ETP equipment in Bangladesh
are from China, India, Taiwan, Italy and Germany etc. Name of some local ETP suppliers
include - Meem Water Technology, WaterWin Limited, OSMOTECH BD., Azuya Water
Engineering Ltd., Water Link Bangladesh, Green Genesis Engineering Ltd. etc.

DETAIL OF THESE COMPANIES ARE ADDED IN THE ANNEX VI.

Primary Insights

One of the notable incidents in the industry is the Rana Plaza industrial accident which started a wave of workplace
safety compliance reforms. Currently, one prominent trend in the industry is setting up or converting factories into
‘green buildings’ and getting certified as LEED factories. While the factory workplace reformation was a reactive
event, in response to the Rana plaza tragedy; the green factory initiative is a proactive for many players. Currently,
there are 72 LEED certified factories in Bangladesh. This trend shows the transition of the apparel industry towards
sustainable practices in a proactive manner. Therefore, opportunities for promoting environment friendly
technologies in water conservation will align with the industries outlook for sustainable and greener technologies.
However, at the end, since factory management are price-sensitive in nature, the business case for promoting such
technologies is mandatory.

a. Waste water treatment in Textile factories

Fabric production phase is estimated to consume 50% of the overall water usage in this sector. In the phase, the
most water intensive part of the production process is the wet processing component in the fiber processing
factories, accounting for almost 85% of the water consumed. (Source: 2030 WRG report, 2015)

Fibre Clothing and Apparal

Production Production Consumers

Fibre Marketing and

Processing Sales

Wet Processing Stage accounts for 85% of the water is used and
discharged from fibre processing factories

Spinning
Fabric Dyeing/ Printing
and Weaving Desizing Bleaching
Preparation Printing
kniting

Figure 4.1: Value chain of the textile industry with Flow diagram of fibre processing stage in WDF factories
(Source: 2030 WRG Report, 2015)

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Table 4.3: Water consumption and water withdrawal amounts in value chain stages of the textile industry

Value Chain Process/Activities related to water in the value Consumption* Water withdrawal*
Stage chain
Fibre  Agriculture and petrochemical supplies 52% 46%
Production  Yam/fibre producing/ spinning mills

Fibre  Dyeing and fabric finishing 43% 47%

Processing  Weaving
 Knitting

Other Others - 5% 7%
Stages  Confection of clothing and apparel
 Transport
 Stock/man management

Consumption is defined as ‘water used and not returned to its source’ and withdrawal is defined as ‘water diverted
or withdrawn from a surface water source’

Bangladesh has approximately 2,000-2,500 factories in the garments industry. Of them roughly, 10% or 200-250
are top tier meaning they work directly with the global clients complying with safety standards and policies for work
regulation (Source: Echotex). When any of these companies are expanding their operations, they would be needing
additional ETPs or STPs for their factories. For example, Ha-Meem group is investing USD 60 million for expanding
their denim plant in Maona. The Viyellatex group received funding worth USD 40 million in 2017 for setting up a new
spinning unit. Among the rest of the mid and small-tier players, a number of factories maintain some environmental
standard and work as ‘sub-contractors’ for top-tier factories, producing apparel for global brands. The rest of the
factories are low tier and lack a safe working environment as well as being noncompliant with safety and
environmental regulations. There are almost 500 to 700 Wet processing units dedicated to the washing, dyeing, and
finishing (WDF) of textiles. Around 70% of WDF textile units are located around or in Dhaka, and the remaining units
are in Mymansingh and Chittagong. (Source: WRG Study 2015).

The market lies between the aspiring mid-tier and expanding top-tier segments of the RMG sector. Ready-made
Garments factories do not involve water intensive process and produce solid waste as a by-product for their
operations (except sweater factories, which produces some wastewater). In textiles, knit and woven dyeing are
mainly the most water intensive production process. The source of water pollution contributed by textiles is wet
processing steps. It includes sizing, desizing, scouring, bleaching, mercerizing, dyeing, printing and finishing. Desizing,
scouring and bleaching processes produce large quantity of wastewater. 11

DETAIL OF TOP TIER GARMENTS COMPANIES ARE GIVEN IN ANNEX VI.

11
Dey, Shuchismita, and Ashraful Islam. "A review on textile wastewater characterization in Bangladesh."
Resources and Environment 5, no. 1 (2015): 15-44.

Page 46 of 92
A study12 analyzing effluent data from 2005 to 2014, found that the major three textile oriented industrial areas -
Savar, Narayangonj, Gazipur are severely affected by textile effluent.

There is no ideal ETP for a textile dyeing industry but a number of factors determine the type required. Some of
these factors include- the size of the factory; the exact nature of the industrial process, and thus the waste being
generated; the funds allocated for installing and operating the ETP; the compliance criteria specified by buyers (if
any); and the engineering consultants contracted for designing and developing the ETP.

The wastewater generated in textiles also contain a significant volume of harmful chemicals and ETP usage has been
made mandatory by the DoE (Department of Environment) for reducing emission of harmful wastewater in the
surrounding environment.

While some of these companies have an aspiration for moving up the ladder for becoming a fully compliant factory
or becoming eligible for supplying to international retailer brands (like Walmart, Levi’s, Uniqlo etc.), some of these
factories are comfortable operating in the mid-tier segment, opting for sub-contracting work that does not require
any additional permit or certification. (Source: KII- IFC PaCT Interview).

Bangladesh Ministry of Environment and Forest’s (MoEF) environment protection law of 1995 stipulates that all new
textile wet-processing plants must install an effluent treatment plant (ETP), in reality the number is much lower. A
study by UNIDO13 in 2011 found only 29% of textile wet processing units to be compliant. Also, many companies that
had an installed ETP facilities did not run it due to high operational costs.

Figure 4.2: The Percentage of Poorly Designed or Poorly Operated ETPs in Bangladesh Textile Wet Processing Units
(Adopted from Water Governance Mapping Report: Textile Industry Water Use in Bangladesh)

Since textile processing and dyeing are the most water intensive process in RMG manufacturing, this segment
should be targeted. Textile industries consume high volumes of water per unit of fabric. In 2016, an estimated 217

12
Khan, Mohidus Samad, Shoeb Ahmed, Alexandra EV Evans, and Matthew Chadwick. "Methodology for
performance analysis of textile effluent treatment plants in Bangladesh." Chemical Engineering Research Bulletin
13, no. 2 (2009): 61-66.
13
Park, J, The Treatment of Textile Effluent – the current status with particular reference to Bangladesh.
Support to the Bangladesh Quality Support Program Textiles and RMG Component, UNIDO, (2011)

Page 47 of 92
million meter cube (m3) of wastewater was produced for manufacturing 1.80 million metric tonnes of fabrics (Source:
Professor Samad, BUET). In 2021, it is estimated that 349 million meter cube (m3) of wastewater will be produced
using conventional dyeing practices.

However, opportunities may reside in sludge management since new provisions by the department of environment
is considering making STP (Sewerage Treatment Plant) compulsory for all garments factories with at least 500
workers. (Source: KII of ETP Expert)

It should be noted that locally produced ETPs can be assembled at a much lower price (almost 1/4th the price of an
Italian ETP i.e. a locally procured ETP can cost 100,000 Euro whereas an Italian ETP can cost about 400,000), and
majority of ETP in our country are locally assembled. Only top tier companies invest in high value foreign ETP. Over
the years, ETP has become a common practice with majority of textiles are now equipped with an ETP. (Source: KII
of ETP Expert). Currently, dyeing factories have very limited land, and a dyeing factory using an ETP that can operate
in small area & has a small size can be a potential product.

Some of the most frequently used technologies in water conservation in textile factories are listed from the PaCT
phase-I database containing 102 factories-

 Heat recovery from condensate, hot jacket, dying machine

 Reducing water consumption by installing water trigger nozzles instead of hose pipes, open pipes and for
general cleaning
 Heat and water recovery from condensate
 Reducing water consumption by process modification of knitted fabric and denim
 Reduction in water & electrical energy consumption by eliminating generator cooling tower
 Implementation of central sample washing tank instead of separate sample washing for each dyeing
machine
 Boiler-automatic blow down control
 Use of waterless direct softener injection washing for reducing water consumption
 Lab to Bulk RFT process performance improvement
 Minimizing Heat Loss by proper insulation of bare surface, pipes, valves and correction of steam leakages
 Retrofit of PLC based monitoring and control system on Belly washers
 Promoting the concept of “zero discharge”
(Source: PaCT Interview and Database)

Entry strategy and Way Forward:

Strategy will involve a three-step approach to promote Dutch Water Technologies in the Garments Sector

Three type of initiatives need to be taken in a step-by-step manner-

1. Easy technologies (short term)

2. Capacity development (mid-term)
3. Collaborative program approach (long-term)

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Easy Technology at affordable price

Collaborative approach to technology innovation (such as importing the technology and procuring locally) which
will provide both quality and cost.

Since management in RMG and Textile sectors are cost-sensitive, for promoting Dutch technologies which are
efficient but costly, the solution would be to present not just the CAPEX and OPEX of the product but presenting
the life-time Cost-Benefit along with the business case.

Capacity Development

Factories have the ability to buy better and environment-friendly technologies, but there is gap in the
understanding of management regarding the usefulness of these equipment. Capacity development of middle
management/staff needs to be done, so they can understand the importance of environment friendly equipment
and promote these to their senior management.

Collaborative Program Approach

Long-term projects for promoting water conservation technologies with a view to institutionalizing the
approach will help solidify the positioning of these technologies.

Focusing on the fact that durability & quality wins in the long-run, and associated branding activities can help
position Dutch technologies.

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4.2 Leather Industry

Market Size: USD 1.08 billion of export of leather and leather goods. Currently, 155 tanneries produce 124 million
square foot of leather annually. (Source: Secretary, Bangladesh Tanners Association)
Players: Currently 165 tanneries employing an estimated 25,000 workers
Sector Growth Prospects: Medium. From FY 2006-07 to FY 2016-17, the leather industry has been witnessing an
average annual growth of 16.65%. However, in 2017-18 there was relocation of the Tanneries to the industrial zone
in Savar, which disrupted the operation of almost half the tanneries leading to 12% decrease in export earnings.
(Source: Chairman, Bangladesh Tanners Association)

Table 4.4: Summary the tannery industry opportunities

Parameter Comments

Players 165 tanneries in Savar industrial zone

Potential Markets Leather production from raw hide is a water intensive industry. Use of efficient tanning
drums can converse the water used during the production process. Use of advanced
technologies such as chrome recovery and chrome liquor recycle, counter current
soaking, enzyme assisted soaking, mechanical desalting, ammonia free deliming using
carbon dioxide etc.

Market sizing USD 11,150,000

(DETAILED MARKET SIZE CALCULATIONS ARE GIVEN IN THE ANNEX V)

Financiers Green financing through Financial institutions

For accelerating climate resilient investments, minimum credit quota of direct green
finance has been set at 5% of total loans from January 2016 onwards.

(Bangladesh Bank acts as a regulator, while FIs are the implementing institutions)

Technologies Converting raw hide into processed leather requires the use of ‘Tanning Drums’ and
multiple steps using different types of chemicals. When tanneries were located in
Hazaribagh area, majority of players used local Tanning Drums which were inefficient
and used 50,000 Liter of water per ton of processed raw hide.

Sourcing Destination The currently relocated tanneries are more resource conscious and almost 70% of them
/Countries use Tanning drums imported from Chin and Italy, which are more efficient and use
36,000-40,000 Liter of water per ton of production. However, the international standard
is 24,000 Liter per tonne of production, indicating that there is a huge potential for
improvement.

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Primary Insights: Largest market for Bangladeshi leather and leather goods exports is Asia (40%), followed by Europe
(33%), North American, Africa and Australia. Since, European and North American buyers are environmentally
conscious, promotion and use of environment friendly technologies will be taken-up by buyers.

Initially the Hajaribagh area in Dhaka consisted of 220 tanneries for processing raw hide into processed leather. They
were relocated to Savar based on a High Court order, instructing government to cut power and gas connections to
the tanneries; thus compelling the owners to relocate to the purpose-built Savar Leather Industrial Park. Currently
there are 155 tanneries located in the Leather industrial zone in Savar, and many had to be closed down temporarily
due to lack of plots in the park. This zone also includes a SME cluster having some 600 SMEs providing peripheral
service to the leather industry. Currently, the tanneries produce an estimated 240 million cubic meter of leather per
year. An estimated 25,000 people work here in these tanneries.

The raw hide to leather production stage in tanneries currently require 36,000 Liters per tonne of raw hide, while
the international standard is 24,000 Liters per tonne of raw hide. (Source: KII- Chairman, Bangladesh Tanners
Association). Along with water, more than 450 kg of chemicals are used for processing per tonne of raw hide. The
different stages involved in leather production from raw hide is given in table 4.2, indicating the potential for
optimizing water usage.

Process: Confection of
Process: Curing, Storage
clothing & apparel
Water withdrawal:
Water withdrawal:
20-25K Liter/tonne of hide
12-13K Liter/tonne of hide

Raw hide Leather Distribution &

Productin processing warehousing
(animals) Consumer

Curing Finished Marketing

hides product & sales
manufacture

Process: Tanning, Post-tanning

Water Withdrawal:
1-3K Liter/tonne of hide

Figure 4.4: Leather Sector Value Chain with water withdrawal processes and amounts

If annual production growth rate of 20% is used for the next 5 years, the total production by 2021 will be around 746
million kg of leather (conventional tanning process) generating about 30 million m3 wastewater. Again, if the annual
growth rate of 35% is used, the total production in 2021 will be 1,345 million kg of leather, generating about 54
million m3 wastewater. This volume is 1.8 times higher than the wastewater volume of 2016.

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Table 4.5: estimated Wastewater production in Leather Industry in 2021 using conversional production methods14

Scenario Leather Wastewater

Production in 2021 at 20% growth rate 746 million KG 30 million m3

Production in 2021 at 35% growth rate 1345 million KG 54 million m3

The industrial zone in Savar has a Central Effluent Treatment Plant (CETP) which was constructed by and is currently
operated by Bogura RD (a local company) having a capacity of 20,000 m3. With the growth of the leather industry
shown in the projected scenarios in table 4.3, capacity expansion will be needed through either constructing
additional CTEPs or expanding the capacity of the current CTEP.

Reduction in waste-water emission provides multiple benefits for the tannery owners and a business-case can be
developed for attracting tannery owners to adopt water efficient technologies.

1. Cost minimization due to lower usage of water

2. Cost minimization due to lower usage of chemicals (larger volume of water dilutes the chemicals)
3. Cost minimization due to lower usage of energy (due to lower volumes of water)
4. Cost minimization due to lower amount of waste-water produced (Lower charge paid to CETP)

Currently, machinery such as Tanning Drums are mostly imported from Italy (due to Italian Leather having a global
brand name), while the rest coming from China. Previously, small number of equipment were imported from
Germany and France but imports have stopped completely. In terms of chemicals, highest volume is imported from
Italy, and second highest from Netherlands. Two well reputed companies include- Smith & Jones and Stann. Germany
is another chemical import destination.

Table 4.6: Different steps in the Leather processing industry

Steps Steps used in Converting Raw Hide to Processed Leather Water Used Water
International Current Used
Standard (Unit: Liter)
(Unit: Liter)
1 Soaking 9,000 12,000
2 Liming (Use of lime and sulfur compounds to separate hair from 6,000 10,000
the hides)
3 Lime-fleshing 1,000 2,000
4 Deliming and bating (To remove the lime and make the leather 5,000 8,000
soft)
5 Pickling (use of salt and other chemicals such as Chromium) 1,000 2,000
6 Pre-Tanning/Wet blue tanning (Also, known as crust-dyeing) 2,000 4,000
TOTAL 24,000 38,000
Source: Interview- Bangladesh Tanners Association

14
Hossain, Laila, Sumit Kanti Sarker, and Mohidus Samad Khan. "Evaluation Of Present And Future Wastewater
Impacts Of Leather Industries In Bangladesh." (2017)

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Although as source of water both ground water and river water can be used, river water is currently not being used
since there is a higher water processing cost.

Entry strategy and Way Forward

It should be noted that the most water-intensive steps include soaking (salt washing) used for raw hide processing
and Liming which uses chemicals such as lime and caustic soda for cleaning the surface. While according to
international standards, per tonne (1000kg) of raw hide needs 9000 Liter of washout with water in the socking
stage, tanneries in Savar use 12,000-15,000 Liter. Also, liming standard is 6000 Liter per tonne of raw hide but
tanneries in Savar use 10,000 Liter. Therefore, usage of improved machinery and advanced technologies can
initially optimize water use in these two steps.

Cleaner production options for tannery industries include chrome recovery and chrome liquor recycle, counter
current soaking, enzyme assisted soaking, mechanical desalting, ammonia free de-liming using carbon dioxide
etc. which can have a potential market in terms of efficient production.

A LIST OF TANNERY COMPANIES ARE INCLUDED IN ANNEX VI.

Initial Stakeholder to target:

BTA (Bangladesh Tanners Association)
Email: [email protected]

Contact Person:
Additional secretary
Bangladesh Tanners Association

Chairman
Bangladesh Tanners Association

4.3 Real Estate Industry

Market Size: 540 billion BDT15 (2015)

Sector Growth Prospects: Medium. Market growth of 42.4% from 2005-2015 (average growth 4% year on year)
Industry Actors: More than 1100 (Source: Interview- REHAB)

Opportunity for Dutch Companies: Due to decreasing ground water levels, the water supply will be sourced from
rivers and central purification plants will be constructed in the urban cities. For Southern cities and coastal zones,
drinking water is a challenge due to salinity intrusion and a centralized desalination plant will be the solution. Since
water supply is governed by WASA and Municipalities in urban cities, a Government to Government contract can
help secure such contracts.

Table 4.7: Summary the Real Estate industry opportunities

15
Mutual Trust Bank, Monthly Business Review MTBiz, vol 8, issue 4 (May 2017)

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 Parameter Comments

Players Top players in the real estate industry include:

Basundhara Group, Advanced Development Technologies, Alliance Properties, Amin
Mohammad Group, Anwar Landmark, Artisan Group, Avenue Builders, Bangladesh
Development Group., Building technology and ideas ltd., Navana Real Estate, Concord
Real Estate, Shanta Holdings Ltd., Assurance Developments Ltd., Rangs Properties Ltd.,
Sheltech, Comprehensive Holdings Ltd. etc.

Potential Markets Centralized water supply plant for apartment buildings in satellite cities or neighbouring
districts of Dhaka city like Gazipur, Manikganj, Munshiganj, and Narayanganj. The
southern district of Khulna another growth stop owing to

Market sizing A centralized water supply or sanitation tank can vary due to size of the apartment and
also is influenced by government regulations.

Technologies Centralized water recycling plant or septic tank.

Sourcing countries Existing water reservoirs are procured from local companies. In terms of waste-water
and faecal sludge equipment, Chinese and Indian manufacturers provide quality
products at affordable price.

Interviews with the real estate association and few realtors revealed that apartments currently use a centralized
reservoir or tank which collects water from the WASA designated central water tanks. Used water is sent back to the
sewerage through drains and pipes. The current central water reservoir system in apartments use plastic tanks and
pipes manufactured by local companies such as RFL, Gazi, Madina, Bengal etc. The opportunity for Dutch companies
in this segment is limited since local players are providing equipment at a lower price (due to cost advantage from
local production). However, the source of urban water source will slowly be shifting from ground water to river water
(Source: DWASA). Few centralized water purification terminals will be needed along with the infrastructure for
providing the purified river water to urban households.

Entry strategy and Way Forward

Stakeholders for Urban Cities: DWASA and Chittagong WASA.

Currently, Dhaka city is expanding towards the east through “Purbachol” and habitation complexes (apartment
blocks and buildings). All these newly inducted residential areas would be requiring water purification plants as
well as STPs for processing wastewater and sludge.

Government Stakeholders to target include LGD, DPHE and Municipalities in Southern districts particularly
focusing on Khulna and Barishal regions.

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4.4 Shipbuilding and Scrapyards

Market Size: USD 30.35 million (between July and December of FY18)
Sector Growth Prospects: Shipping export growth is 9% per annum (Source: President, Shipbuilders Association Ltd.)
Industry Actors: Seven shipbuilding companies in Bangladesh and 69 shipyards are engaged in building and repairing
ocean going ships

Opportunity for Dutch Companies: Joint-venture opportunities with Dutch companies for shipyards or environment
friendly scrap-yards

Table 4.8: Summary export-oriented shipbuilding companies

Parameter Comments

Players The top shipbuilding companies in Bangladesh include - Khulna Shipyard, Western
Marine Shipyard, Ananda Shipyard, Chittagong Dry Dock, FMC Dockyard, Karnaphuli
Shipyard, and Ready Point Shipyard.

Additionally, shipyards such as High Speed, Western Fishers Shipyard, Narayanganj

Engineering, Khan Brothers, Meghna Shipyard, Radiant Shipyard, Three Angle, etc have
the capacity for building international quality ships.

Western Marine Shipyard and Ananda Shipyard are export-oriented.

Potential Markets Western Marine Shipyard and Ananda Shipyard exported 40 ships to 14 countries from
2009 to 2017 worth $170 million, which were both small and medium sized vessels
(Source: Export Promotion Bureau Data).

Western Marine Shipyard accounted for 89% of export earnings (USD 150 million),
exporting 31 ships, while Ananda Shipyard earned USD 20 million by exporting 9 ships.

To ship importers are the EU countries- Denmark, Netherland, Sweden and Germany.
Other importers include- Ecuador, Finland, Tanzania, New Zealand, Gambia, UAE,
Uganda, Kenya, India, and Pakistan. (Source: Export Promotion Bureau)
Market sizing Bangladesh’s export in the shipbuilding sector is USD 700 M and domestic market has
aggregate demand of USD 3.0 Billion. (Source: President, Shipbuilders Association)

USD 650.83 billion will be spent across the world for procuring new ships by 2026.
(Source: Projection by Business Wire). And market for small ocean-faring vessels will
stand around USD 400 billion annually.
Technologies Bangladesh exports main smaller vessels such as Cargo Vessels, Passenger Ferries and
Patrol craft. (Source: President, Bangladesh Shipbuilders Association)

The Netherlands make very advanced ships, however with rising labor costs, the industry will look for alternate
destination for outsourcing production.

Ships with a volume larger than 50-60 thousand tonnes are considered large ships which have high demand in the
international market, however small ships (lesser than 30,000 tonnes) are currently being made by Bangladeshi
shipyards, including small ferries for inland water transportation.

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The strategy of the Bangladesh Shipping industry is to initially start building smaller ships and gradually progress to
building larger ones in the medium to long term. (Source: Director, Bangladesh Shipbuilders Association). However,
the industry is facing a number of challenges, which include high capital investment requirements and lack of
supportive ecosystem for supplying components. Seasonality effect of demand is another industry fundamental and
global economic downturn can adversely impact demand for ships.

Currently, Bangladesh can’t support construction of larger sea-faring vessels (above 50,000 tons). Transportation of
larger ships in Bangladesh is currently not possible due to inadequate capacity of existing ports and Shipyards. A
floating shipyard or dockyard needs to be constructed first for supporting building of larger ships.

In a nutshell, major shipbuilding countries such as China, Japan and Korea are focused on building large ocean-faring
vessels, which are less labor intensive. This has left a void in the market for building small ocean-faring vessels, i.e.
vessels with a capacity not exceeding 25,000 DWT. This gap is now being filled by countries like Bangladesh, India
and Indonesia. Among the 69 shipyards building and repairing inland and coastal vessels, majority (70%) are located
in and around Dhaka and Narayanganj, along the riverbank of Buriganga, Shitalakya and Meghna, followed by the
Karnapuli river in Chittagong (20%). The rest are located in Poshur River in Khulna (6%) and in Barisal (4%) division.

Entry strategy and Way Forward

Opportunity for Dutch Private Sector Companies

Opportunities exist in terms of Joint-Venture initiatives for setting up environmental friendly scrapyard and
shipbuilding dockyard. The current scrapyards in Bangladesh use manual labor for dismantling ships and
scrapping of iron and other accessories. Current process is not environmental friendly and opportunities lie with
using low cost affordable labor in a regulated and safe way under environmentally safe provisions e.g. disposition
of waste filled tankers, harmful chemicals in a safer way. Scrapped materials can be used for construction of
newer ship vessels. However, constraints such as lack of associated industries for forging, melting; skilled human
resources and a construction yard for releasing the vessels into the deep sea are limit opportunities.

Sourcing of associated materials and technological expertise from Netherlands and combining with the low wage
cost of Bangladeshi workers can help create a ‘win-win’ scenario. However, due to the high capital investments
required, these shipyards will only be economically feasible if favorable government policies (such as tax
exemption or low interest rate loans etc.) are enacted for supporting the overall industry.

Contact Point
Director
Bangladesh Shipbuilder Association

4.5 Pharmaceuticals

Market Size: USD 103 million exports in 2017-18 with the domestic market estimated at USD 1.7 billion
Players: 173 active players, however the top 20 players constitute 86% of market share
Sector Growth Prospects: Medium with historic industry CAGR of 15%
Opportunity for Dutch Companies: Chemicals and Waste-Water Treatment

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Primary Insights: The pharmaceutical factories which are export-oriented adhere to strict environmental policy
regulations and have waste-water treatment plants. The top 15 companies are mainly focused on exporting
medicines. In terms of Pharmaceutical machinery and equipment, India is the first choice followed by Germany,
Denmark and France. It should be noted that some raw materials such as Active Pharmaceutical Ingredient (APIs)
are currently sourced from Netherlands. Considering competitive pricing for capital machinery and APIs, the sector
hold limited opportunities for Netherland based companies.

The principal manufacturing steps in pharmaceuticals sector requiring water include:

(a) Preparation of process intermediates;

(b) Introduction of functional groups;
(c) Coupling and esterification;
(d) Separation processes such as washing and stripping
(e) Purification of the final product.
(Source: World Bank, Pharmaceuticals Manufacturing, Pollution Prevention and Abatement Handbook)

Additional product preparation steps include granulation, drying, tablet pressing, printing, and coating, filling, and
packaging. Each of these steps may generate air pollution, liquid effluents, and solid wastes. Approximately 200 kg
wastes per ton of product is generated.

According to National Drug Policy-2016, all manufacturing pharmaceutical plants must have an ETP and the
installation of an incinerator is encouraged. Similar to textile factories, chemical ETPs are popular in pharmaceutical
manufacturing plants. In case of machinery and equipment, variable frequency drives, energy efficient motors,
upgrading heating, cooling, ventilation systems etc. are popular.

4.6 Irrigation pumps and others

Market Size: Fragmented, with an estimated 37,000 deep tubes and almost 14,000,000 shallow tube wells
Players: Top players include RFL, ACI, Bengal, Gazi etc
Sector Growth Prospects: Medium. Since, Bangladesh is an agrarian economy, mechanization of technologies
related to cultivation and agro-processing will become more mainstream

Opportunity for Dutch Companies: Opportunities exist in terms of G2G contracts through conditional development
loans. Since total irrigated land in Bangladesh is 5,500,000 Hectares, there are opportunities in terms of hydraulic
structures & tunnel system with water regulating structure in both sourcing of irrigation water and removal of
drainage water.

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Opportunities in Hydraulic Structure based on interview with BADC.

Table 4.5: Different Opportunities of Hydraulic Structures in Bangladesh

Type Suggested Hydraulic Structure Comment

water structures Canal digging with submersed Smaller hydraulics has more opportunities compared to
used in canal wire structure (RCC) larger structures.
digging
Box Culvert (which can be used A type of water-bridge named aqua duct (RCC overhead
to move agricultural goods) structure) can be constructed and used for long
distances along with a Box culvert (small bridges on
canals). For smaller distances and smaller canals, the
process used is syphon (used in the irrigation).

water tunneling Hydraulic tunneling with For moving water from river and other large water
system pumping station. bodies for irrigation and drainage.

Hydraulic elevator Hydraulic elevator Dam is a Currently, there are 65 rubber dams in place throughout
Dam and Rubber comparatively bigger structure the country and a feasibility study is being carried out by
Dam made using RCC on canals and government organizations for understanding the
medium size rivers. They can be opportunity of deploying additional rubber dams.
up to six meter high.

Rubber dam (3.5 meter height) is

being constructed on canals &
medium sized rivers. The
advantage is that the height can
be changed and can be
suspended into the ground when
not being used (during dry
season).
Hydraulic Sluice-gate Used to control water in tidal zones.
Infrastructure for
Coastal regions The Blue Gold project is currently implementing similar
infrastructure projects in the Southern zones. There are
limited opportunities for future expansion.

Entry strategy and Way Forward

Collaboration opportunities exist for deploying easy to use hydraulic structure focusing on irrigation and drainage.
Joint venture agreements with leading private sector players (PRAN-RFL or ACI) can help with technology transfer
and on-shore manufacturing.

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4.7 Capacity building and consulting

Advisory services (TA or consulting) opportunities for bigger Dutch firms exists with Donor funded projects with very
limited opportunities with local private sector (since they are cost sensitive).

Currently, multiple types of organizations are involved in water-sector related consulting projects, starting from local
firms to educational institutions to individual consultants. However, in terms of stringent quality standards that are
needed for Donor-funded or IFI-funded work, such as a joint project of World Bank or ADB, the choice for local firms
are limited (Source: Country Director, MottMcDonald).

Public Sector trusts: Prominent ones include– the Institute of Water Modelling (IWM) and Center for Environment
and Geographical Studies (CEGIS)
Educational Institutes: ITN-BUET; Institute of Water and Flood Management (IWFM), BUET; Center for Climate
Change, BRAC University
Individual Consultants: Ex-BIWTA or Ex-BWDB directors etc.

Recommendations by EuroConsult Mott Macdonald

There are skilled human resources between 25-35 years of age and experts between 60-65 years of age in the
consulting industry, but gap exists in the mid-tier.

4.8 Drinking Water Company

The main source of water used in industries is ground water. Currently, layer for underground water is getting lower
each year with companies drilling deeper tube well pumps with electric motors. However, the deeper layers of water
are now being found to be contaminated (Source: Director, Aqua Mineral).

The deteriorating quality of ground water indicates the overuse of water reservoirs underground, with more and
more tube wells extracting water from the group.

A water bottling company uses filtration and water is purified in two stages- microbiological purification and
Chemical purification.

Equipment used in the microbiological or chemical purification stage are often sourced from European countries.
For example, membrane-filters are a sophisticated filter and pharmaceutical grade membrane-filters can be sourced
from UK based companies. For Chemicals such as ion exchangers needed for the chemical purification stage,
countries such as US or China are more popular.

In terms of machinery such as filling, packaging, labelling machinery- China, Thailand, Korea, Germany etc. are
popular sources. For machinery, closer destination countries are preferred such as China, Thailand, Korea since
securing after-sales service in case of machine malfunction is easier from these destinations (e.g. a trained engineer
from Thailand who can come, examine and fix an equipment is comparatively less cheaper than a trained engineer
from Germany).

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Challenges in the industry are technical gaps such as lack of trained manpower for operating the machineries or for
repairing.

Entry strategy and Way Forward

Opportunities in machinery imports are limited due to presence of nearby competitors-China, Thailand, Korea,
India etc. However, chemicals are sourced from Netherlands and sophisticated equipment such as high-grade
membrane filters, ion-exchange resins etc. are sourced from Europe.

5. Policy Landscaping

Recent policy and investment programming by the Government of Bangladesh

(GoB) and IFIs

The water sector has always featured prominently in the policymaking process of the government, especially
considering the riverine nature of the country, high population density and persistent increase in seawater level
contributing to salinity.

Among multiple policies and central strategic plans of the government, the newly drafted Bangladesh Delta Plan
2100 is assumed to act as the roadmap for Water related project investments in upcoming years. Environmental
sustainability, natural disaster response and climate change are central themes of the Bangladesh Delta Plan 2100.
According to governments SDP 2011-2025, the Water sector needs an estimated investment of USD 20,936 million.

The Ministry of Water Resources (MoWR), MLGRDC and Ministry of Agriculture (MoA) spend a considerable amount
of funds in water related activities and investments. Excluding the MoWR, 35 central government organizations,
affiliated with 9 different ministries have functions relevant to the water sector, while NWRC precedes over all these
institutions in matters of water policy and legislation.

Table 5.1: Budget allocation for different government ministry and departments in the ADP 2017-18

Name of Department/Ministry Amount in USD Percentage

Local Government Division 484.4 81.4%
Ministry of Agriculture 20.4 3.4%
Ministry of Chittagong Hill Tracts Affairs 1.1 0.2%
Ministry of Disaster Management and Relief 0.1 0.0%
Ministry of Environment and Forest 0.3 0.1%
Ministry of Fisheries and Livestock 10.6 1.8%
Ministry of Shipping 42.9 7.2%
Ministry of Water Resources 34.4 5.8%
Rural Development and Co-operatives Division 1.2 0.2%
Grand Total 595.4 100%
Source: Annual Development Budget 2017-18 by GoB

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It should be noted that recent policies and budget allocation in combatting the effects of climate change is a
development focus for the government and water is a priority area in that respect. Funded by multilateral and
bilateral sources, the Government established Bangladesh Climate Change Trust Fund (BCCTF) and has an allocation
of BDT 2,639 crore (approx. USD 310 million). The Ministry of Water Resources is the highest recipient of this fund,
with an estimated USD 133 million or (44% of total allocation). Apart from that, the total allocation of MoWR in FY
2017-18 budget has been USD 697 million, of which 35.98% has been allocated for climate change related projects
and programmes. Thematic areas which show increase in absolute contribution include Comprehensive Disaster
Management (19.36%), Climate Resilient Infrastructures (6.09%), Capacity Building and Institutional Strengthening
(5.44%) and Research and Knowledge Management 0.69%).

Table 5.2: Medium Term Expenditure Estimates and Projection under MoWR (FY 2017-18 to 2019-20)
(Unit: USD in Thousands)

Budget Revised
Projection
Description Budget FY
2017-18
FY 2016-17 FY 2018-19 FY 2019-20

Bangladesh Water Development Board 536,726 551,706 674,389 739,478 813,700

Joint River Commission 798 520 878 965 1,062
WARPO 1,263 1,380 2,459 7,032 7,603
River Research Institute 1,462 1,700 4,432 5,200 5,898
Secretariat 8,062 1,013 11,616 2,849 3,107
International Organisations 7 7 8 9 9
Department of Bangladesh Haor and
Jolabhumi Development 6,172 3,154 3,446 3,816 4,080
Grand Total: 554,491 559,480 697,228 759,348 835,460
Source: Climate Protection and Development: Budget Report, 2017-18

Although the Ministry Budget Framework does not mention strategies and actions directly relating to combatting
adverse effects of climate change, the project and programmes activities carry out the climate change agenda of the
MoWR.

Table 5.3: Projects relating to climate change under Ministry of Water Resources (MoWR)

Projects Strongly Relevant Projects Moderately Relevant

 Rehabilitation, protection, strengthening of  Flood control and livelihood in hoar areas,
polders;  Emergency cyclone rehabilitation,
 Repair of breaches of polders;  Erosion protection, river bank protection,
 Coastal embankments improvement projects  Dredging of river,
 Pre-monsoon flood protection
 Restoration and reconstruction of submerged
embankments.

Source: Climate Protection and Development: Budget Report, 2017-18

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The ADB has a 2020 program committing USD 985 million for improving access to water and sanitation in urban and
municipal environment. Besides, ADB focuses on the improvement of agriculture production through improved
water and resource management (river basin) and disaster risk management, pledging USD 290 million till 2020.

Policy Regarding Ground Water Use

The policy titled “Groundwater Management in Agricultural Activities Bill, 2018” -an enabler for reducing wastage
of water and ensuring well planned use of groundwater, has been passed in the parliament by the end of January,
2018. This newly proposed law empowers an Upazila Parishad to form and supervise an Upazila Irrigation Committee
(UIC). This UIC will conduct field research and provide licenses among the interested and qualified farmers in
exchange for a fee. After the law comes into effect, any unlicensed user of groundwater will be fined up to BDT
10,000 (approx. USD 117) with provision for seven days of imprisonment.

Bangladesh Delta Plan 2100

Deltas are created due to the complex interaction of rivers and tidal processes resulting in sedimentary deposits.
Bangladesh is part of the Ganges-Brahmaputra-Meghna Delta or GBM Delta, which is the world’s largest and
populated delta. For being a low lying delta region (One third of the country stands lower than 5 meters), Bangladesh
is vulnerable to the effects of climate change (such as sea-level rise). Additionally, the country is disaster-prone,
suffering from floods, droughts, erosion, cyclones. The high population density and land scarcity puts more strain on
the water resources resulting in pollution and damage to the ecosystem. In 2050, it is estimated that additional 14%
of the area will be exposed to coastal floods leading to movement 35 million climate refugees.

The Delta Plan 2100 is a long-term multi-sectoral techno-economic plan formulated by the General Economic
Division of the Bangladesh Planning Commission and funded by the Netherlands Government. The Delta Plan 2100
aims for a long-term, holistic and integrated water management system. The Delta Plan is formed around the vision
which Bangladesh wants to achieve in 2100 for her Delta. The strategies outlined in the Delta Plan focus on two
national strategies in addition to six hot-spots having similar water challenges –

 Coastal Zone,
 Barind and Draught Prone Area,
 Hoar Region,
 Chittagong Hill Tracts and Coast
 Major River and Estuary
 Urban Areas

The total of eight strategies (two national and six hot-spot based) are tested through an assessment framework
against four scenarios to provide a robust, future proof and climate-change proof.

The draft of the BDP 2100 was approved by the National Economic Council (NEC) on 2 September, 2018. A total of
80 project proposals have been selected for implementation. Among them, 81.25% (65 out of 80) are infrastructure
projects, while the rest (15 out of 80) involve institutional capacity development and research. According to the draft
of the BDP 2100, an estimated USD 37 billion by 2031 is needed for ensuring food and water security and for fighting
disasters. World Bank will help Bangladesh source funding for implementing the projects. The required funding for
the currently approved projects would come from government sources, development partners, Green Climate Fund,
as well as from the private sector. To implement the plan, two percent of the GDP would be required and Bangladesh

Page 62 of 92
is also expected to receive assistance from Green Climate Fund in lieu of USD 2 billion every year (Source: KII-
Planning Commission).

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Programs and financial flows of donors and government

According to SDP 2011-2025, GoB has plans to invest USD 20.9 billion on WSS (drinking water, sanitation and
drainage). These investments are scheduled for 2011-2015 USD 5.4 billion, 2016-2020 USD 7.5 billion and 2020-2025
USD 8.0 billion.

Table 5.4: Different Water Sector Investment Categories in SDP in Water Supply and Sanitation (WSS) Category

Categories Total (in USD Million)

Urban Water supply 8,411.1

Urban sanitation 3,951.7
Urban drainage 2,123.2
Rural water supply 1,677.9
Rural sanitation 1,077.5
Total 17,241.4
Source: Sector Development Plan (SDP) 2011-2035 by GoB

Break-down of SDP Investments for WSS (Unit: USD Million)

8,411

3,168
3,952

3,300 1,586 2,123

1,678
1,265 877 648 1,078
1,944 1,100 770 504 322
326
476 526 429
Urban Water Urban Urban drainage Rural water Rural sanitation
supply sanitation supply

Short Term Medium Term Long Term Total (in USD Million)

Figure 5.1: Break-down of SDP Investments in Water Sector (Water Supply and Sanitation)

According to 7FYDP, 2% of national budget will be allocated for investments in the Delta plan. The document
mentions that the World Bank and the ADB are now facilitating potential support for Bangladesh from the Green
Climate Fund. The Bangladesh Delta Plan 2100 also includes proposal for eight projects for possible support by this
Fund.

The proposed 20.9 billion USD for Water Sanitation and Drainage is segregated to be funded 80% by the government
and rest 20% from private sector and development partners.

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Tendering/procurement of projects relevant for the Dutch water sector
Tendering guidelines and principals for all companies (local or foreign) are the same. However, procurement
practices often lack transparency and are usually coupled with significant bureaucratic burden.
Under the Private Sector Investment program (PSI), subsidies are available for Dutch and foreign companies entering
into long-term cooperation with local partners in developing countries.

For dredging, tenders can be issued by Bangladesh Inland Water Transport Authority (BIWTA) and Bangladesh Water
Development Board (BWDB). Almost 20% of tenders are e-tenders that can be applied electronically. Although
evaluation of tenders is expected to be based on price competitiveness, in reality, non-transparent means such as
nepotism and bribery are prevalent. The current trend for foreign companies engaging with the project are either
through co-bidding with a local partner or, bidding in only donor funded development projects which have stringent
protocols.

One notable finding was that the Land, Infrastructure, Transport and Tourism Ministry of Japan, and the Public
Private Partnership (PPP) Authority of Bangladesh are working to float a joint public private project management
platform (Contract signed in 2018). Japan will invest in Bangladesh's infrastructure projects under this new
arrangement which will allow Japanese companies to work under the government-to-government system without
participating in any bidding.

It should be noted that, India when providing their Line of Credit, in accordance with the “Make in India” policy of
Indian prime minister Modi, which specifies that under the line of credit a minimum of 75 percent of goods and
services needs to be of Indian origin; adheres to this condition and tendering has to be limited to Indian companies
for implementing projects financed from the government loans. Similar conditions are also given for Chinese loans
that tendering of projects must only include Chinese companies.

A LIST OF CURRENT TENDERS IN THE PUBLIC SECTOR AND JOINT TENDER PROJECTS WITH GOVERNMENT AND IFIs
ARE GIVEN IN ANNEX IV.

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6. Recommendations
With Bangladesh aspiring to become a middle-income country within 2030, the development requirements and
landscape of the country is shifting in the water sector from WaSH related project interventions to large
infrastructure, policy and governance projects. Netherlands can align with this shifting funding by establishing their
leadership in the policy and governance of Water Sector initiatives of Bangladesh. While the Delta plan was funded
and the initial implementation of projects under the Delta Plan are prioritized by the Netherlands which are currently
being funded by the WorldBank and Government of Bangladesh, it should be noted that the possibilities of
leveraging the Delta Plan initiative can go beyond mere project implementation.

The Delta Plan for Bangladesh is an example of policy transfer and highlighting such policy transfer initiatives can
contribute to the marketing of Dutch Leadership in the water sector on a global scale. Since, Bangladesh and
Netherlands are hydrologically, economically and geographically different, direct policy implementation is not
feasible. Rather policy transformation such as the Delta Plan initiative can be a way forward for developing countries
like Bangladesh.

Some of the strategic recommendations of the study include-

1. For successful implementation of water projects, the mindset of the stakeholder need to be changed from
water Development to Water Management i.e. not only focusing on constructing large value infrastructure
projects but emphasizing on holistic management including O&M and future sustainability through
institutionalizing project-based initiatives.

2. One of the constraints in the current ecosystem preventing the sustainable implementation of the
initiatives is the existing practices in the Water Sector and one important step recommended by key experts
was restructuring of the Water Development Board.

3. In the training and capacity development initiatives, senior government representatives are sent for foreign
tours, which have limited effectiveness since being seniors they have fewer years left (sometimes less than
2-3) to implement their knowledge regarding Dutch expertise. The current mix of government officials
should include ample number of influential and young government officials who can promote Dutch
expertise.

In the private sector, no generalized recommendations can be made since each industry varies in their characteristics
and trends. A summary of the findings according to priority is provided below-

1. In the private sector, opportunities primarily lie in the dredging sector. As mentioned previously,
Bangladesh suffers from an estimated 1.2 billion tonne of slit sedimentation in her rivers and dredging will
be a key component of river management in future years. With an estimated 100+ dredgers currently
present in Bangladesh, the need for accessory equipment and training of manpower for operating these
dredgers will become vital. Complementary with river dredging are river training and land reclamation
projects and equipment.

2. The export-driven industries such as RMG and leather are being more environmentally compliant in their
factories by adhering to global standards and preserving their brand image. Ready Made Garments and

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 Textile is the largest industry of Bangladesh employing an estimated 4.2 million workforce and earning more
than USD 30 billion per year. From manufacturing perspective, ready-made garments such as knit and
woven are not water-intensive and apart from some sweater factories producing waste water, most of
Ready Made Garments produce solid waste. On the other hand, textile is a water intensive industry due to
the dyeing component in production. From the perspective of the heavy workforce employed in garments
or RMG factories, water for drinking and sewerage treatment plant (STP) can be potential areas.
Technologies which can produce electricity from STP are more lucrative for factory management as they
provide an inbuilt business case for their factories in terms of cost minimization. (Source: KII Interview-
Sustainability Manager, DBL Group)

3. Leather tanneries currently use water as part of processing leather from raw hide. Currently, tanneries on
average, use 38,000 liters of water for processing a tonnes of raw hide. According to Tanner’s association,
water consumption can be reduced to 24,000 liters per tonnes of hide, using more efficient equipment like
tanning drums. Majority of the tanners have moved to the leather industrial park in Savar, which has a
Centralized Effluent Treatment plant (CETP). Tanners have to pay CETP usage charges based on their
dissipation level. Hence, adopting efficient equipment would reduce tanners’ effluent treatment charges.

4. One of the recent Sanitation highlights is The Institutional and Regulatory Framework for Faecal Sludge
Management-2017. After providing access to sanitation, sanitation management is the next tier of
development agenda. In near future, all municipalities will need to make a Fecal Sludge Management
facility. Currently there are 313 municipalities in Bangladesh and only 13-14 of them have FSM facilities.
Since the framework for Fecal Sludge Management was constructed by SNV Netherlands, there is potential
for Dutch Private Sector Companies to engage in FSM related infrastructure and equipment in future.

5. In the Real Estate Sector and Water-Sanitation equipment and accessories (including Drinking Water and
Fecal Sludge management), the local industries dominate the current product market. For example, 95% of
rural water supply is dependent on tubewells and local conglomerate RFL is the market leader dominating
the industry through cost competitiveness. For pipes, valves, switches and other accessories, local
industries will always have the advantage of price. The way forward for Dutch Private Sector companies is
through Joint-Venture initiatives which combine the local cost competitiveness and Dutch expertise. The
vision should also be not limited to the Bangladesh context and instead should aim for additional export to
African countries with similar markets.

6. Opportunities for environmentally friendly shipyards and scrapyards have potential but also are subject to
constraints such as lack of nearby accessory industries, the lack of a dock for building of large vessels of
more than 50,000 tonne of volume etc.

Page 67 of 92
Entry Strategies in Specific Segments

Stakeholders Specific Action Points for Opportunity for Dutch Private

Sector
Partnership for Water Sector
BWDB, LGED  Provide investment (soft  Advocate as a sourcing
loans) for BWDB destination for infrastructure
infrastructure projects equipment and materials
regarding water supply and
dredging;
Public
 With LGED, provide
Infrastructure
investment (soft loans) for
small scale water supply,
sewerage infra-structure
projects; water desalination
plants in coastal regions
BWDB, LGED  Arrange institutional capacity  Engage private sector
building programmes for companies adept at providing
Public BWDB; skills training for technical
Capacity  capacity building training for topic (engineering design,
building/TA LGED staff on small-scale O&M)
water project maintenance,
monitoring
WARPO/ MoWR  WARPO capacity development  Policy formulation/transfer
for coordination/ help in may not provide private sector
water sector policy opportunities or scope
formulation (policy transfer &  The scope of appointing Dutch
Policy- transformation) consultants and project
Governance  Promote integrated water management specialists for
management projects and integrated water management
institutionalize to create a projects
centre of excellence, working
as a permanent link.
Public sector  Dredging is a priority area of  Opportunity lies in import of
companies-DBL, the government, however dredgers as well as providing
Bangla dredgers, import of dredgers will technical assistance for
Basundhara become saturated quickly due equipment and capacity
Dredging to the high number of building of staff for dredger
dredgers currently being operations and maintenance.
bought by Bangladesh
conglomerates.

BGMEA/ BTMEA  Use PaCT as an entry point to  Connect to factories in PaCT

Textile MoJT/BTMA promote Dutch technologies. database that are interested in
Companies  Participate in current trade adopting water efficient
fairs regarding water tefchnologies

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 technologies and organize  Showcase Dutch technologies
exclusive trade-fairs to in jointly arranged trade-fairs
promote Dutch technologies with business case.

BTA, LGMEAB  Do piloting to find any areas  Arrange workshop/seminar

of collaboration with with the tanneries to promote
Associations. water-efficient technologies
Leather
 Supply of production along with a business-case
Tanneries
equipment (tanning drums
that can have water efficiency
or water saving capabilities).
DWASA/ CWASA/  Use SNV Netherlands as an  Source materials, accessories
Municipalities entry-point for Faecal Sludge and human-resources for
Urban
Management infrastructure construction of FSM
sewerage
for local government WASA or infrastructure
municipalities
Municipalities in  Provide water-supply  Provide equipment and
Urban water the South/NGOs solutions (e.g. centralized technologies relevant to water
supply desalination plants) desalination plants

Western Marine,  Promote the formation of a  Having a joint-venture initiative

High speed joint-venture by allowing with a local company which has
Shipbuilding shipbuilders Ltd., access to funds and accessory existing infra-structure.
or Khulna Shipyard technologies and influence However, this is a capital
Environmental government policies to boost intensive industry and the lack
Scrapyard favourable policies of supporting industries make
opportunities limited.

Basundhara,  Arrange trade-fairs and  Targeting real estate

Alliance Group seminars to promote developers in expanding cities
Navana, Ananta complete technology such as Khulna, Dhaka,
Amin Mohammad solutions that provide a Chittagong, Rangpur along with
Real Estate group etc. business-case (e.g. water their satellite hubs such as
Companies recycling that can be used Narayanganj, Norshindi,
again or, renewable energy Gazipur in case of Dhaka where
solutions integrated with the apartment blocks or
design etc.) commercial condominiums are
being constructed.

PRAN-RFL, ACI,  Promote collaboration for  Currently domestic companies

Bengal Group Joint-venture companies by existing who produce at a
Water supply allowing favourable policies. cheaper rate. Entry strategy
Hardwares would be a Joint-venture with
Market an existing local company using
their distribution channels.

Page 69 of 92
Annex I: List of Key Informants

Table 7.1: Key Informant Interviews with stakeholder name and type

Sl. Stakeholder Type Person Interviewed

1 BGMEA(Bangladesh Garments Association Mohammad Monower Hossain
Garments Manufacturers Senior Deputy Secretary
Association)
2 Dulal Brothers Lim. Garments Player Mohammad Zahidul Islam
Sustainability Manger

3 Ecotex Garments Player Mr. Anis Rahman

Managing Director

4 Specialist – Effluent Sector Expert Mr. Md. Abdubakar Ahmed

Treatment Plants CEO Eco Aid Foundation

5 Planning Commission, Government Entity Murtuza Zulkar Naim Noman

General Economic Senior Assistant Chief &
Division Assistant Project Director
Bangladesh Delta Plan 2100 Formulation Project

6 Mercantile Marine Government Entity Md. Shafiqul Islam

Department Principal officer

7 Mongla Port Authority Government Entity Mr. Fokrul islam

Chief Hydrographer

8 BADC (Bangladesh Government Entity Md Ferdousur Rahman

Agricultural Development Chief Engineer (Planning)
Commission)
9 BEZA (Bangladesh Government Entity Dr. M. Emdadul Haque
Economic Zones Executive Member (Planning)
Authority)
10 BEZA (Bangladesh Government Entity Shakil Ahmed
Economic Zones Environmental Specialist
Authority)
11 EuroConsult Mott International Consulting Ben Witjes
Macdonald Firm Country Director

12 CEGIS (Center for Water Research Malik Fida A Khan

Environment and Organization Deputy Operations Director
Geographic Information
Services)

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13 PaCT (Partnership for Donor funded Project Mohammad Zahin Rahman
Cleaner Textiles) Operations Analyst, IFC

14 2030 Water Resources World Bank Project Javed Bin Karim

Group Senior Advisor

15 DWASA (Dhaka Water Government Entity Bojwwin Stark

and Sewerage Authority) Resident Project Manager

16 Blue Gold Project Donor funded Project Bart Brookhuis

Water management Consultant

17 IHE Delft Netherland-based Water Shahinoor Hasan

Research Institute Researcher

18 REHAB (Real Estate and Real Estate Association Alamgir Alamin

Housing Association of President
Bangladesh)

19 IWM (Institute of Water Water Research Abu Saleh khan

Modelling) Organization Deputy Executive Direction

20 Specialist- Wastewater in Industry Expert Dr. Mohidus Samad Khan

Textile Department of Chemical Engineering
BUET

21 Specialist- Water and Industry Expert Dr. Shahjahan Mondal

Flood Management Institute of Water and Flood Management
BUET

22 Specialist- Inland water Government Entity Dr. Reaz Ahmed

transport and dredging Professor, MIST
Ex-Director BIWTA (Bangladesh Inland Water
Transport Authority)

23 Aqua Mineral Private Sector Rajib Matin

Director
Aqua Minerals Ltd.

24 Bangladesh Tanners Association Md. Shaheen Ahamed

Association Chairman
Bangladesh Tanners Association

25 Samota Leather Complex Private Sector Md. Mizanur Rahman

Ltd. Managing Director

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 Samota Leather Complex Ltd.

26 Shipbuilders Association Association Haidul Karim Khan

Bangladesh Director
Shipbuilders Association Bangladesh

27 Specialist Industry Expert Dr. Ainul Nishat

Water Sector Specialist
Professor Emeritus, BRAC University

28 Red Cross International Sector Expert Ahsan Habib

Wathab Engineer and Sanitation Expert
International Society for Red Cross (ICRC)

29 Specialist Sector Expert Nirjhor Rahman

Ex- Country Lead, Water Sanitation for Urban
Poor (WSUP)

30 Square Pharmaceuticals Private Sector Abdullah Al Mizan

Senior Officer
R&D

31 SS Rahman Dredger Ltd. Private Sector Iqbal Siraj

COO (Chief Operating Officer)

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Annex II: List of G2G development Projects

Table 7.2: Notable development projects under China, India, Germany, Japan

Sl. Country Project Value (USD)

1 China two Power plant projects (1320 megawatt thermal power plant in USD 3 billion
Patuakhali’s Payra and a 1320 MW coal-fired power plant in
Chittagong’s Banshkhali)

2 China Padma Bridge rail link USD 3.10 billion

3 China Info Four network including Development of National ICT Infra- USD 1.56 billion
Network for Bangladesh Government Phase-iii” (Info-Sarker) project

4 China BTCL (modernization of telecommunication network for “digital USD 1.60 billion
connectivity” i.e. connecting 2,250 unions with the upazilas
concerned through optical fiber cables and set up business process
outsourcing (BPO) centers)

5 China installation of a single point mooring (SPM) with double pipelines USD 5.00 billion
which will enable crude and finished petroleum products to be
directly taken to the Eastern Refinery in Chittagong's Patenga from
deep sea these two pipelines
6 China Padma Bridge Project USD 3.7 billion
7 China Padma (Jasholdia) Water Treatment Project USD 426.3 million
(Expected date of completion: 2019)
8 China primary infrastructure and facilities at Payra Sea Port (Expected date USD 137.3 million
of completion: 2020)
9 China expansion and modernization of Mongla Port facilities (Expected date USD 249 million
of completion: 2021)
10 China Rajshahi WASA surface water treatment plant USD 350.6 million
(Expected date of completion was 2015, but delayed)
11 China 24-km Dhaka airport-Ashulia evelated expressway USD 1394 million

12 China Joydebpur to Ishwardi dual gauge rail track and Joydebpur- USD 753 million and
Mymensingh dual gauge rail track USD 258 million
13 China Marine dirve expressway, coastal protection work from Shitakundu USD 2856 million
to Coxs Bazar
14 Germany Climate change adaptive drinking, water resources management USD 103.4 million
Dhaka (Saidabad Water Treatment Plant Project, Phase III)

15 Japan JICA is working on water resources development project phase-II Value is USD 105.5
(Expected date of completion: March, 2023) million as part of the
loan agreement of
USD 1.59 billion

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16 Japan Sea-port and power plant in Matarbari with JICA and a consortium of USD 4.6 billion
three firms- Sumitomo, Toshiba and IHI
(Expected date of completion: July, 2024)

17 India Brahmaputra dredging (Sanctioned July, 2017) USD 54.4 million

18 India Upgrade 245km of road stretches in three major highways –

Benapole-Jessore-Narail-Bhanga, Ramgarh-Baruerhat, and
Moynamoti-Brahmanbaria-Sarail – to provide transit facilities to
Indian trucks
19 India Upgrade of Chittagong and Mongla seaports under the transit and
transshipment agreement
20 India Construction of new dual-gauge rail line between Bogra and Sirajganj

21 India Development of Saidpur airport in Nilphamari

22 India Development of two economic zones for investors USD 100 million for
EZ in Mirsarai,
Chittagong and USD
100 million for EZ in
Moheskhali.
23 India Installation of 100,000 LED lights in Dhaka, Chittagong and Rajshahi

24 India Development of 765 KV interconnected power transmission network

25 Japan Matarbari Ultra Super Critical Coal-Fired Power Project, two 600MW USD 599.7 billion
power plants will be built to generate 7,865GWh of electricity per
year
(Expected date of completion: 2026)

Part of 39th ODA signed in 2018

26 Japan Dhaka Mass Rapid Transit Development Project (urban rail network (Line 5)
aiming to eliminate traffic congestion by providing transportation to USD 65.6 million
over 570,000 people every day)
(Expected date of completion: 2024) (Line 6)
USD 706.4 billion
Part of 39th ODA signed in 2018
27 Japan Jamuna Railway Bridge Construction Project USD 311.6 billion

Part of 39th ODA signed in 2018

28 Japan Matarbari Port Development Project (E/S) USD 23.6 billion

Part of 39th ODA signed in 2018

29 Japan Health Services Strengthening Project USD 58.4 billion

Part of 39th ODA signed in 2018

30 Japan Hazrat Shahjalal International Airport Expansion Project USD 687.6 billion

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 Part of 38th ODA signed in 2017

31 Japan The Kanchpur, Meghna and Gumti 2nd Bridges Construction and USD 471.9 million
Existing Bridges Rehabilitation Project

Part of 38th ODA signed in 2017

32 Japan Dhaka Mass Rapid Transit Development Project (Line 1) USD 5.05 billion

Part of 38th ODA signed in 2017

33 Japan Matarbari Ultra Super Critical Coal-Fired Power Project USD 69.16 billion

Part of 38th ODA signed in 2017

34 Japan Dhaka Underground Substation Construction Project USD 183.2 billion

Part of 38th ODA signed in 2017

35 Japan Small Scale Water Resources Development Project (Phase 2) USD 106.07 billion

Part of 38th ODA signed in 2017

Page 75 of 92
Annex III: List of different Economic zones with their status

Table 7.3: List of Export Processing Zones, Non-Government Economic Zones and Science and
Technology Based Economic Zones

Type Names Comment

Non- Meghna Industrial Economic Zone (Under Construction)
Government Meghna Economic Zone (Under Construction)
Economic Non-government zones
Fomcom non-governmental Economic Zone (Proposed)
Zone hold higher potential
A.K.Khan non-governmental Economic Zone (operational) since comparatively
Abdul Monem Economic Zone (operational) lower entry barriers for
Comilla Economic Zone (operational) promoting
technologies.
Garments industrial park (operational)
Sonargaon Economic Zone(operational)
PowerPac Economic Zone (Mongla)

Export Adamjee Export Processing Zone

Processing Chittagong Export Processing Zone
Zone (EPZ) in
Comilla Export Processing Zone
Bangladesh No opportunity since
Dhaka Export Processing Zone CETP are already
Ishwardi Export Processing Zone operational under PPP-
Karnaphuli Export Processing Zone basis in these zones
Mongla Export Processing Zone
Uttara Export Processing Zone
Rangunia Export Processing Zone (Proposed)

Science and Janata tower Software Park (Completed)

Technology Jessore Software Technology Park (under construction) Limited opportunities
based since these industries
Kaliakoir high tech park (Block development ongoing)
Economic are not production-
Zone Keranigonj Special IT Economic Zone,Dhaka (Under construction) based and more
Dhaka high tech park (proposed) service-oriented
Khulna high tech park (proposed) industries requiring
lesser industrial
Rajhshahi high tech park (Land acquiring) solutions for
Sylhet Electronic City (Under Construction) manufacturing or
Sylhet high tech park (Land acquiring) production (such as
waste-water treatment
Chittagong high tech park (Land acquiring)
plants and such)
CUET IT business incubator centre, Chittagong (under construction)
Rangpur high tech park (Land acquiring)
Barisal high tech park (Land acquiring)
Mohakhali IT Village (Land acquiring)

Page 76 of 92
Table 7.3.2: List of Economic Zones under Construction

Economic Zone Division Status Expected

Completion Year
Sirajgong Economic Zone Rajshahi Under Construction 2019
Bagerhat Economic Zone Khulna Under Construction 2020
Mirsarai Economic Zone, Chittagong Under Construction 2020
Anowara (Gohira) Chittagong Under Construction 2021
Srihotto Economic Zone, Sylhet Under Construction 2021
Sripur Economic Zone (Japanese Dhaka Under Construction 2019
Economic Zone)
Sabrang Special Economic Zone Chittagong Under Construction 2022
Agailjhara Economic Zone Barisal Under Construction 2022
Anowara Economic Zone-2, Chittagong Under Construction 2022
Jamalpur Economic Zone Mymensigh Approved 2024
Narayangonj Economic Zone Dhaka Under Construction 2021
Narayangonj Economic Zone-2 Dhaka Under Construction 2022
(Under construction)
Bhola Economic Zone Barisal Under Construction 2020
Ashuganj Economic Zone Sylhet Under Construction 2022
(Under construction)
Kustia Economic Zone Khulna Under Construction 2023
Panchagar Economic Zone Rangpur Under Construction 2024
Nilphamari Economic Zone Rangpur Under Construction 2022
(Under construction)
Narshingdi Economic Zone Dhaka Under Construction 2022
Manikganj Economic Zone Dhaka Under Construction 2019
Dohar Economic Zone, Dhaka Dhaka Under Construction 2020
Habigonj Economic Zone Sylhet Under Construction 2021
Shariatpur Economic Zone Dhaka Under Construction 2021
Jaliardip Economic Chittagong Under Construction 2022
Zone,Teknaf-Cox'sbazar
Natore Economic Zone Rajshahi Under Construction 2021
Maheskhali Economic Zone-1 Chittagong Under Construction 2022
Maheskhali Economic Zone-2 Chittagong Under Construction 2023
Maheskhali Economic Zone-3 Chittagong Under Construction 2024
Cox'sbazar Free trade Zone Chittagong Under Construction 2023
(Maheskhali)
Shariatpur Economic Zone-2 Dhaka Under Construction 2024

Table 7.3.2: List of Economic Zones with location, size and status

Economic Zones Region Size (Acres) Status

Meghna Economic Zone Narayangonj 245 Under Construction
Meghna Industrial Economic Narayangonj 80 Under Construction
Zones
Meghna Economic Zone-2 Comilla 102 Under Construction
AK Khan Economic Zone Narshingdi 200 Under Construction
Abdul Monem Economic Zone Munshiganj 216 Under Construction

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Graments Industrial Park Gazaria 532 Under Construction
(BGMEA owned)
PowerPac Economic Zone Mongla 205 Under Construction
Sirajganj Economic Zone Sirajganj 1035 Proposed
Sonargaon Economic Zone Narayanganj 300 Proposed
Comilla Economic Zone Comilla 270 Proposed
East Coast Group Economic Habiganj 150 Proposed
Zone
City Special Economic Zone Dhaka 115 Proposed
Fomcom Economic Zone Bagerhat 80 Proposed
Magura Group Economic Zone Narayanganj 52 Proposed
Jaj Bhuiyan Economic Zone Narayanganj 40 Proposed
Karnaphuli Dry-Dock Economic Chittagong 20 Proposed
Zone

Page 78 of 92
Annex IV: List of Recent tendering projects
Table 7.4.1: List of Government Tendering Projects (Till October 10, 2018)

Category Ministry/Division Agency Funding Package Name

Information
Water Ministry of Shipping Mongla Port Non_Developmen Expression of Interest of surface water treatment
Treatment Authority t GOB Plant of ongla Port Authority.
Water Ministry of Shipping Chittagong Port Own Funds Operation & Maintenance of Desalination & Water
Treatment Authority Treatment Plant including Supply of Chemicals and
Spares Parts at CPA.
Water Ministry of Health and Directorate Non_Developmen Medical Equipment-(OT-ICU) Air Conditioning
Treatment Family Welfare General of Health t GOB System, AVR, Water treatment Plant
Services (DGHS)
Water Ministry of Home Bangladesh Police Non_Developmen 1. Spares of Water Treatment Plant, 2. Spares of
Treatment Affairs t GOB Generator, 3. Spares for Refrigerator Container &
Tools. 4. Minor Engineering (Carpentering) Items. 5.
Minor Engineering (Plumbing) Items
Dredging Ministry of Shipping Mongla Port Development Dredging at the Food Silo Area in Harbour Channel
Authority Budget GOB of Mongla Port
Dredging Ministry of Shipping Chittagong Port Own Funds
Authority
Dredging Ministry of Water Bangladesh Water Development Procurement of Amphibious Excavator with cutter
Resources Development Budget GOB suction dredging attachment 05(five) sets
Board (BWDB)
Dredging Ministry of Shipping Bangladesh Inland Non_Developmen Dredging with ancillary works on River Routes.
Water transport t GOB
Authority (BIWTA)
Dredging Ministry of Shipping Mongla Port Development Supply of 01 (one) no. high speed boat for the
Authority Budget GOB project Dredging at the Outer Bar in the Mongla Port
Channel
Dredging Ministry of Shipping Chittagong Port Own Funds Supply and Installation of Highmast,Light Fittings
Authority etc. for Electrification in Newly constructed 400
Meter Lighterage Jetty under Capital Dredging
Project at Sadarghat of CPA
Dredging Ministry of Shipping Mongla Port Non_Developmen Supply of 01 no. high speed boat for the project
Authority t GOB dredging at the outer bar of Mongla Port Authority.
Dredging Ministry of Shipping Mongla Port Development Supply of 01 no. high speed boat for the project
Authority Budget GOB dredging at the outer bar of Mongla Port Authority.
Dredging Ministry of Shipping Bangladesh Inland Non_Developmen Dredging with ancillary works on River routes.
Water transport t GOB
Authority (BIWTA)
Dredging Ministry of Water Bangladesh Water Development Procurement of Amphibious Excavator with cutter
Resources Development Budget GOB suction dredging attachment 05(five) sets
Board (BWDB)
Dredging Ministry of Water Bangladesh Water Development Procurement of 12 Dredger and Ancillary
Resources Development Budget GOB equipments with accessories
Board (BWDB)
Climate Ministry of Water Bangladesh Water Development Bangladesh Weather And Climate Services Regional
Change Resources Development Budget Project Component-B : Strenthening Hydrological
Board (BWDB) Grant/Credit Information Services & Early Warning Systems.
Land Ministry of Water Bangladesh Water Development The pilot project in different areas of Bangladesh
reclamation Resources Development Budget GOB using Bamboo Bandaling Structures to reduce river
Board (BWDB) erosion, land reclamation and increase navigation,
River Research Institute, Faridpur.
Dredging Ministry of Water Bangladesh Water Development Procurement of Amphibious Excavator with cutter
Resources Development Budget GOB suction dredging attachment 05(five) sets
Board (BWDB)
Dredging Ministry of Water Bangladesh Water Development Procurement of Fork lifter 03(three) sets
Resources Development Budget GOB
Board (BWDB)

Page 79 of 92
Table 7.4.2: List of Joint Government Tendering Projects with IFIs (Till October 10, 2018)

Category Ministry/Division Agency Funding Development Package Name

Information Partner
Dredging Ministry of Water Bangladesh Development IDA (World Procurement of Systems for Morphological
Resources Water Budget Bank) Survey (1) 15 Handheld TDS; (2) 12 RTK
Development Grant/Credit GPS (3) 6 DGPS beacon receiver (4) 8 total
Board (BWDB) stations (5) 4 first order digital leveling
machine (6) 2 Sub-bottom profiler.
Irrigation Ministry of Water Bangladesh Development Asian Farmer’s Distribution System, Stage- 3:
Resources Water Budget Loan Development 5025 ha of Buried Pipe Systems, with
Development Bank Pump and Tele Prepaid Meters for Muhuri
Board (BWDB) Irrigation Project under Irrigation
Management Improvement Project)
(Package No. CW-06, ICB)
Irrigation Ministry of Water Bangladesh Development Asian Farmer’s Distribution System, Stage: 2:
Resources Water Budget Loan Development 5400 ha of buried pipe systems, with Pump
Development Bank and Tele Prepaid Meters for Muhuri
Board (BWDB) Irrigation Project under Irrigation
Management Improvement Project)
(Package No. CW-05, ICB)
Infrastructure Ministry of Water Bangladesh Development Asian "Turn Key Contract (A) Construction of
Resources Water Budget Loan Development 1X10/14 MVA, 33/11 KVA Indoor Type Sub-
Development Bank Station and (B) Upgrading of Electrical
Board (BWDB) Distribution (HT, LT Over Head Line)
System"
Climate Ministry of Water Bangladesh Development IDA, World Bangladesh Weather and Climate services
Change Resources Water Budget Bank Regional Project Component-B:
Development Grant/Credit Strengthening Hydrology Information
Board (BWDB) Service & Early Warning System
Climate Ministry of Water Bangladesh Development IDA, WB Bangladesh Weather And Climate Services
Change Resources Water Budget Regional Project Component-B :
Development Grant/Credit Strengthening Hydrological Information
Board (BWDB) Services & Early Warning Systems.
Climate Ministry of Water Bangladesh Development IDA, WB Bangladesh Weather And Climate Services
Change Resources Water Budget Regional Project Component-B :
Development Grant/Credit Strengthening Hydrological Information
Board (BWDB) Services & Early Warning Systems.
Climate Ministry of Water Bangladesh Development IDA, WB Bangladesh Weather And Climate Services
Change Resources Water Budget Regional Project Component-B :
Development Grant/Credit Strengthening Hydrological Information
Board (BWDB) Services & Early Warning Systems.
Dredging Ministry of Water Bangladesh Development Asian Re-excavation of 4.350 km of Kuchiamora
Resources Water Budget Development Khal from km 0.000 to km. 4.350 in C/W
Development Grant/Credit Bank (ADB), KalidasKhali-Arpara Sub-Project under
Board (BWDB) Government SWAIWRPMP-AF during the year 2017-
of the 2018 & 2018-2019.
Netherlands

Page 80 of 92
Annex V: Market Size Estimates for Textile and Leather Industry

Total Addressable Market for Textile factories

Assumption List for calculation of Market Size for ETP

 A top-down approach is used to calculate the Total Addressable market for different technologies
 Data from published articles and Key Informant Interviews is used
 Top tier factories are defined as more than 2,000 workers and 1,000 kg production/day and mid-tier factories
are defined as with 500-1,500 workers and average 500 kg production/day
 Of the target group (SAM), 10% is assumed to be early adpoters and 40% is assumed to be late adpoters
Factor Parameter Percentage (%) No. of Factories

TAM
(Total
Total Factories 100% 2,500
Addressable
Market)
SAM
High tier factories 60% of total
(Served Available
And Mid-teir factories factories1 1,800
Market)
SOM-1 Early Adopters
(Serviceable (Top-tier factories who 180
10% of total
Obtainable will expand their
Market) business)
SOM-2 Late Adopters
(Serviceable (Mid-teir factories who
40% of total 450
Obtainable will upgrade their
Market) business)
1. Source: 2030 WRG, An analysis of industrial water use in Bangladesh, (2015)

Total Addressable Market

No. of Factories 2,500

Serviceable Available Market

No. of factories 1,800

Serviceable
Obtainable Market

Page 81 of 92

Figure: Total Addressable Market for ETP

Calculation for target market for ETP

Market size is determined by multiplying the size of the target market with the average value of the ETP and
estimated percentage of target market in each tier to find the total estimated market.

Technology for wastewater treatment- ETP

Amount
Factor Parameter/Unit SOM-1 (Top-tier SOM-2 (Mid-tier Total
expanding) upgrading)
Serviceable Obtainable 630
Factory 180 450
Market (SOM)
Average Value of ETP1 USD 477,0001 120,0002 -
Total Estimated market USD 85,860,000 54,000,000 139,860,000
1,2 Data from interview of garments factories and ETP expert

Page 82 of 92
Assumption List for calculation of Market Size for STP
 A top-down approach is used to calculate the Total Addressable market for different technologies
 Data from published articles and Key Informant Interviews is used
 Of the Total, currently 60% of factories are assumed as top-tier and mid-tier with an intention to buy STPs
 Of the factories who will purchase STPs, two groups are assumed, 20% as early adpoters and 40% as late
adpoters, and the rest 40% is assumed to not purchase STPs
Factor Parameter Percentage (%) No. of Factories

TAM
(Total
Total Factories 100% 2,500
Addressable
Market)
SAM High tier factories
60% of total
(Served Available And Mid-teir factories 1,800
factories
Market) without STP
SOM-1
(Serviceable Top-tier factories who 360
20% of SAM
Obtainable are early adpoters
Market)
SOM-2
(Serviceable Mid-teir factories
40% of SAM 720
Obtainable who are late adpoters
Market)

Total Addressable Market

Serviceable Available Market

Serviceable
Obtainable Market

Figure: Total Addressable Market for STP

Page 83 of 92
Calculation for target market

Market size is determined by multiplying the size of the target market with the average value of the ETP and
estimated percentage of target market in each tier to find the total estimated market.

Technology for Sewerage Treatment- STP

Amount
Factor Parameter/Unit SOM-1 (Top-tier SOM-2 (Mid-tier Total
expanding) upgrading)
Serviceable Obtainable 1080
Factory 360 720
Market (SOM)
Average Value of ETP1 USD 20,0001 8,0002 -
Total Estimated market USD 7,200,000 5,760,000 13,960,000
1. Since top tier factories have more than 10,000 workers, the STP is of higher capacity
2. Mid-tier factories have relatively lower number of workers than high-tier, having a smaller sized STP

Page 84 of 92
Total Addressable Market for Leather Tanneries

Assumption List for calculation

 A top-down approach is used to calculate the Total Addressable market for different technologies
 Data from published articles and Key Informant Interviews is used

Factor Parameter Percentage (%) No. of Tannaries

TAM
(Total
Total Tannaries 100% 165
Addressable
Market)
SAM Tanneries with
(Served Available inefficient tanning 70% of total1
124
Market) drums
SOM-1
(Serviceable 25
High-tier tanneries 20% of total2
Obtainable
Market)
SOM-2
(Serviceable
Mid-end tanneries 50% of total 99
Obtainable
Market)
1,2 Key informant interview, Bangladesh Tanners Association

Total Addressable Market

Serviceable Available
Market

Serviceable
Obtainable Market

Figure: Total Addressable Market for High Income Consumers

Page 85 of 92
Calculation for target market

Market size is determined by multiplying the size of the target market with the average value of
the ETP and estimated percentage of target market in each tier to find the total estimated
market.

Technology for Water Production- Tanning drum

Amount
Factor Parameter/Unit
Total
SOM-1 SOM-2
Serviceable Obtainable 124
Tannery 25 99
Market (SOM)
Average Value of Tanning -
USD 50,0001 10,0002
drum1
Total Estimated market USD 1,250,000 9,900,000 11,150,000
1,2 Data from interview of garments factories and ETP expert

Page 86 of 92
Annex VI: List of Local RMG & Textile Companies, Tanneries and
Water Technology Solution Providers
List of Top Ten Garments Companies

Sl. Name Type of Products No. of Factories

1 Hameem Group Lady's T shirt, Sweatshirt, Cardigan, knitted bottom, 23 factories in
CRITICAL CARGOS, HI-FASHION DENIM JEANS, BASIC AND Bangladesh
HIFASHION WASHES, Sweaters and Jumpers

2 Asian Apparels Pants and shorts – Casual, Robes, Caftans, Skirts, Skorts, 14 Factories in
Ltd Sleepwear,Tops, Shirts, Blouses, Men’s & Boys Swim Bangladesh
trunk, Knit Top & BTM Woven Top & Bottom, Boxers,
Pants, Shorts-Casual, Skirts, Skorts, Sleepwear

3 Babylon Group woven wear manufacturing, knit wear manufacturing, 10 factories in

washing plant, printing house, knitting unit, dyeing and Bangladesh
finishing of knitted fabrics, embroidery, trims
manufacturing, paper converting and packaging

4 Epyllion Men's knit Polo/T shirt, Sweatshirt, Cardigan, knitted 10 factories in

bottom, Boy's knit Polo/T shirt, Sweatshirt, Cardigan, Bangladesh
Lady's T shirt, Sweatshirt, Cardigan, knitted bottom, Girl's
knit Polo/T shirt, Sweatshirt, Cardigan
Kid's & Baby’s knit Polo/T shirt, Sweatshirt, Cardigan

5 Givensee Group Knitwear, Sweater and Woven - T-shirts, Polo shirts, Tank 5 factories in
of Industries Ltd Top, Vest, Jackets Bangladesh

6 Apex Lingerie Ltd Mould Bra, Padded Bra, Wire Bra, Shapewear Bra, 1 Factory in
Bandeau Bra, Soft Bra, Shorty Panty, Thong Panty, String Bangladesh
Panty

7 Square Fashions Polo Shirts, T-Shirts, Tank Top, Trousers, Hooded Jacket & Total of 5 factories two
Cardigan, Sports Wear, Undergarments, Men’s & Ladies focused on RMG and
Fashions Wear, Kids Wear) the rest in Textile
manufacturing -
vertically integrated
8 Viyellatex Group Boy's/Ladies/Men's/Kids knit Polo/T shirt, Sweatshirt, 10 factories in
Cardigan Bangladesh

9 Golden refit Mens shorts, Ladies full zip, Kids t shirt and nightwear, 1 Factory in
garments ltd Bangladesh

10 Divine Group T-Shirt, Sport T-Shirt, All Kind of Sleeping Suits 11 Factories in
Bangladesh

Page 87 of 92
 List of Large Tanneries (Provided by Bangladesh Tanners Association)

Sl. Name of Type of Type of Contact Address

Company Product Product
Anjuman Crust & Md. Shaheen Plot no: ZE-28, Tannery Industrial Estate Savar, Dhaka.
Trading Finished Ahamed 01711522288 [email protected]
1.
Corporation Leather Managing
Ltd. Director
Salma Crust & Md. Sakawat Plot no: ZE-2, Leather Industrial Area, Horindora,
Tannery Ltd. Finished Ullah Hemayetpur, Savar, Dhaka. 01727094988
2
Leather Managing [email protected]
Director
Ahsan Habib Crust & Md. Mizanur Plot no: ZE-4, Leather Industrial Area, Horindora,
3 & Brothers Finished Rahman Hemayetpur, Savar, Dhaka. 01535475155
Leather Proprietor
A. B. S Crust & Md. Emam Plot no-YS-9, Leather Industrial Area, Jhowchar, Savar,
Tannery Ltd. Finished Hossain Dhaka. 01710978509
4
Leather Managing
Director
Samata Crust & Md. Mizanur Plot no: ZC4+ZC5+ZC6, Leather Industrial Area,
Leather Finished Rahman Horindora, Hemayetpur, Savar, Dhaka. 01711528180
5
Complex Ltd. Leather Executive
Director
Asia Tannery Crust & Mrs. Nur-A- Plot no: ZS-26, Leather Industrial Area, Horindora,
Ltd. Finished Afroza Sultana Hemayetpur, Savar, Dhaka. 01743764507
6
Leather Managing
Director
M/S. Fancy Crust & Md. Samsul Plot no: YS-24, Chamra Shilpa Nagari, Jhauchar,
Leather Finished Huda Hemayetpur, Savar, Dhaka.
7
Enterprise Leather Proprietor 01819211572
E-mail: fancygroupnet2bd.com
Khokon Crust & Md. Akbor Plot no: ZS-7, Leather Industrial Area, Heamayatpur,
Tannery Ltd. Finished Hossain Jawchor, Savar, Dhaka. 01841111118
8
Leather Managing
Director
The Comilla Crust & Mohammad Plot- XE-3, Leather Industrial Area, Jhauchar, Dhaka.
Tannery Finished Mahbub Ur 01911287945
9 Limited Leather Rahman
Managing
Director
Amin Tannery Crust & Abdul Kader Plot no: YS-27 Leather Industrial Area, Savar Dhaka.
10 Ltd. Finished Managing 01711594563, 02- 8628908
Leather Director
Mukta Crust & Syed Md. Plot no: ZS-29, Jhawchor Leather Industrial Area,
Tannery Ltd. Finished Shahidullah Hemayetpur, Savar, Dhaka. 01711831977
11
Leather Managing
Director
Globe Crust & Mr. Tsang Dhaladia, Rajabari, Sreepur, Gazipur. 01942521848
Tanning Finished Wing Yiu
12 (Bangladesh) Leather Managing
Company Director
Limited

Page 88 of 92
 Reliance Crust & Md. Shahjahan Plot no: YA7, YA8, YD4, YB2, YS15, Leather Industrial
Tannery Ltd. Finished Mia Area, Jhauchar, Hemayetpur, Savar, Dhaka.
13
Leather Managing 01713011344
Director
Ruma Leather Crust & Eng. Plot No: ZD-8, ZS-25, BSCIC leather Industrial Estate,
Industries Ltd Finished Mohammad Hemayetpur, Savar, Dhaka. 01711532325, Manager
14 Leather Abu Tahir
Managing
Director
Chandpur Crust & Abdus Sattar Plot no: ZE-38, Lether Industrial Area, Hamayetpur,
15 Tannery Finished Managing Savar, Dhaka.
Limited Leather Director 01819279888

Page 89 of 92
List of Companies Selling Water Technologies (Drinking water, Waste-water- ETP, STP etc.)

Sl. Name of Company Area of Focus Type Type of Water Technologies

1 D-Water Tech Ltd. Factories, Imports Water and waste water treatment plant,(RO,
Commercial merchandise EDI, UV, Ozone, Ion exchange, Distillation, Sea
Buildings and from China, water desalination, STP, Central Water
real estate Taiwan and Treatment, Iron Removal, Water Softener
Japan and
markets at
whole sale
and retail
basis
2 HRG Engineering Factories, Local Water Softening Plant, Demineralization Water
Limited Residential manufacturer Treatment Plant, RO Plant, Drinking Water
users of Water Treatment Plant, Iron Removing Plant. Supplies
Treatment accessories such as Sand Filter, FRP Vessel,
Plant Multiport Valve, RO Membrane, Cation, Anion &
Mix Bed Resin etc.
3 Water Fine Residential Imports water Water Treatment plant, D.M. plant, Water
Treatment & users, treatment softener Iron Removal plant, All types of
Filters commercial plants from Cartridges, Hot & Cold Water Dispenser PC &
buildings USA, Taiwan PET Bottle.
4 WaterWin Limited Residential Imports and Water treatment plant, House Hold R.O Water
users, locally Purifier System, UV System, Online System,
commercial manufacturers Water Filter, Water treatment Chemical, Water
buildings water and Softener, D.M Plant, Iron Removal Plant
wastewater
treatment
equipment
5 Meem Water Factories, local RO & UV Water Purifier, All Kinds of Water
Technology Commercial manufacturer Treatment Plant (ETP, WTP & STP),
Buildings of Water Demineralization Plant, Ozone Generator, UV
Treatment Sterilizer, Filtration, Iron, MBSR Resin, Auto
equipment Filling, Capping, Packaging for Jar and Bottles
6 OSMOTECH BD. Factories, Wholesale Water Treatment Plant, Iron Removal Plant,
Commercial distributor Water Softener Plant, DM Water Plant, (Battery
Buildings and assembler Water Plant), Water Recycling Plant, Zero Liquid
of Reverse Discharge Plant, Effluent Treatment Plant, RO
Osmosis Membrane Cleaning Chemicals
Systems, and
Components.
Imports from
Taiwan.
7 CleanTech Factories, Water- Water Purifier & Filter, Water Treatment Plant,
Engineering Commercial treatment Iron Removal Plant, RO Plant, DM Water Plant,
Buildings part supplier (Battery Water Plant) Mobile Drinking Water
and local System, Zero Liquid Discharge Plant, Effluent
manufacturer Treatment Plant, Water Treatment Accessories,
Clarifies & Filters.
8 Azuya Water Residential Water Purifier & Filter, Water Treatment Plant,
Engineering Ltd. users, Iron Removal Plant, Water Softener Plant, DM
Water Plant, (Battery Water Plant), Water

Page 90 of 92
 commercial Recycling Plant, Zero Liquid Discharge Plant,
buildings Effluent Treatment Plant, RO Membrane
Cleaning Chemicals, Filter Feed Pump
9 Green Genesis Factories, Local Water Purifier & Filter, Water Treatment Plant,
Engineering Ltd. Commercial manufacturers Iron Removal Plant, DM Water Plant, (Battery
Buildings of pumps for Water Plant), Water Recycling Plant, Zero Liquid
water, Discharge Plant, Effluent Treatment Plant, RO
sewerage Membrane Cleaning Chemicals, Filter Feed
Pump
10 Water Link Factories, local Household Water Purifier, Commercial Water
Bangladesh Residential manufacturer Purifier, Accessories, Filter Media and
users, of Water Chemicals, Effluent Treatment Plant (ETP),
commercial Treatment Industrial Water Purifier, Industrial Pump,
buildings equipment Wastewater Recycle Plant

Page 91 of 92
 NAME OF AUTHORS

Zahedul Amin
Imran Chowdhury
Bijon Islam

© LightCastle Partners
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Gulshan-1 | Dhaka 1212 | Bangladesh
Mobile: +8801711385988
Web: www.lightcastlebd.com
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Page 92 of 92