HUGE GLOBAL MEGA PROJECTS....

Faster trains will reduce travel time in Kerala: V Muraleedharan

By Express News Service

“The future of K-Rail semi-high speed rail project planned by Kerala government is uncertain. However, the railways has initiated steps to introduce faster rail traffic. The signalling system is being modernised for this purpose.

The rail coach factory at Perambur in Tamil Nadu is manufacturing coaches that are faster, lighter and safer, he said while inaugurating a seminar on the Vision and Mission of Prime Minister Narendra Modi organised by the BJP at Bharat Hotel in Kochi.

The country needs faster transportation system for development and the Union government has undertaken a mega project for development of road network in the country, he said. The minister said the developmental project of Ernakulam North railway station will bring a huge transformation. The station will have modern facilities and a 250m-long walkway to connect it with the Kochi Metro Rail Lisie Junction station. The walkway will have shopping centres on both sides. India has grown as the fifth largest economy in the world overtaking England and in 10 years, we will be the third largest economy, he said.

KOCHI: The Railways has initiated steps to reduce the travel time from Thiruvananthapuram to Kasaragod to four hours and Kerala will have trains that can run at a speed of 160km per hour soon, said Union Minister of State for External Affairs V Muraleedharan in Kochi on Saturday. “The future of K-Rail semi-high speed rail project planned by Kerala government is uncertain. However, the railways has initiated steps to introduce faster rail traffic. The signalling system is being modernised for this purpose. The rail coach factory at Perambur in Tamil Nadu is manufacturing coaches that are faster, lighter and safer, he said while inaugurating a seminar on the Vision and Mission of Prime Minister Narendra Modi organised by the BJP at Bharat Hotel in Kochi. The country needs faster transportation system for development and the Union government has undertaken a mega project for development of road network in the country, he said. The minister said the developmental project of Ernakulam North railway station will bring a huge transformation. The station will have modern facilities and a 250m-long walkway to connect it with the Kochi Metro Rail Lisie Junction station. The walkway will have shopping centres on both sides. India has grown as the fifth largest economy in the world overtaking England and in 10 years, we will be the third largest economy, he said.

1,000km of Metro rail work on in country: PM Modi

By Express News Service

The PM said in the past eight years after the NDA government came to power, over 500km of metro railway has been constructed in the country. In the decades till 2014, only 259km of metro rail was developed. “The construction of another 1,000km is in progress across the country,” Modi said, adding modern infrastructure plays a very big and important role in this development road map.

“I remember that in June 2017, I had the opportunity to inaugurate the Aluva-Palarivattom stretch. Today, the Kochi Metro Phase-I extension was inaugurated, while the foundation stone was laid for the construction of Phase-II,” he said. Kochi Metro Phase-II will be from JLN Stadium to Infopark. “This will be a boon for the young techies and professionals,” said the PM.

He said the work that began in Kochi will give a new direction to the urban development and transport development in the whole country. “In Kochi, the Unified Metropolitan Transport Authority (UMTA) has been implemented. This authority will work to integrate every means of transport like metro, waterways and others under one umbrella.”

Modi said the aim is to reduce traffic congestion and pollution in the city. “The Union government has been giving great importance to the development of urban transport for the past eight years,” he said.The government is also taking steps for the comprehensive development of the Indian Railways. “The doubling from Thiruvananthapuram to Mangaluru will be very beneficial for passengers and pilgrims,” he said.

PROJECTS IN KERALAThe PM said the doubling of the Kuruppanthara-Kottayam -Chingavanam railway line, which has been completed, will bring a huge relief to the Sabarimala pilgrims arriving from different parts of the country. At the same time, the completion of electrification of the Kollam-Punalur line will reduce pollution and enable the introduction of faster trains. He said with the development of the transport system, the tourism sector will also develop. As much as D70,000 crore has been given in Mudra loans in Kerala for entrepreneurship development. Most of these are initiatives from the tourism sector. He said, “Infrastructure development projects worth D1 lakh crore are under way in Kerala and D55,000 crore is being spent on the development of NH-66.”

CM SEEKS CENTRAL GOVT HELP TO DECONGEST ROAD TRAFFICKochi: Chief Minister Pinarayi Vijayan on Thursday urged the prime minister to approve the state government’s proposal, aimed at the development of the transport sector in Kerala, at the earliest. He was speaking at the inaugural and dedication function of various Kochi Metro and railway projects at the CIAL Convention Centre in Nedumbassery.

“Kerala needs valuable help from the Union government in its efforts to decongest the road traffic,” said the CM while pointing out the efforts the state government is taking to reduce the carbon footprint in the densely populated state. He said, “The work on the widening of the NH-66 is progressing fast and is an example of the meaningful co-operation between the state and the Central governments.” The CM said the state is encouraging people to turn to alternative modes of transport. “We are popularising alternative modes of transport like the waterways, train and airways. The waterways project from Kovalam to Bekal is making good progress. A component of it stretching from Kollam to Kozhikode is part of the national waterways,” said the CM.

SHIPYARD, NAVY AWAIT PM’S WORD ON NEW AIRCRAFT CARRIERKOCHI: While the nation is eagerly awaiting the induction of INS Vikrant into the Indian Navy, Cochin Shipyard Ltd (CSL) and the Navy are hoping for an announcement from the prime minister regarding a third aircraft carrier. Though India will now have two aircraft carriers — INS Vikramaditya and Vikrant — the Navy has been demanding a third one, but the government has not responded yet. CSL chairman Madhu S Nair has already stated that the shipyard is ready to build another aircraft carrier. If the government grants permission now, the works could start by 2024 and the new aircraft carrier will be ready for commissioning by 2032. The cost is pegged around D 30,000 crore. INS Vikrant will be able to accommodate 1,600 sailors and can operate a fleet of 30 fighter jets and helicopters.

RAILWAY SECTOR

A70K cr has been given in Mudra loans for entrepreneurship development in state

The electrification of Kollam-Punalur line will reduce pollution and help introduce faster trains

A55K cr crore is being spent on the development of National Highway-66

KOCHI: Asserting his government’s focus on development, Prime Minister Narendra Modi has said the Centre has been pumping funds for various infrastructure investments to make India a developed country within the next 25 years. He was speaking at the inaugural and dedication function of various Kochi Metro and Indian Railway projects in the state at the CIAL Convention Centre at Nedumbassery, Kochi, on Thursday. The PM said in the past eight years after the NDA government came to power, over 500km of metro railway has been constructed in the country. In the decades till 2014, only 259km of metro rail was developed. “The construction of another 1,000km is in progress across the country,” Modi said, adding modern infrastructure plays a very big and important role in this development road map. Chief Minister Pinarayi Vijayan welcoming Prime Minister Narendra Modi who arrived in Kochi on a two-day visit. Governor Arif Mohammed Khan, MLA Anwar Sadath and DGP Anil Kant are also seen “I remember that in June 2017, I had the opportunity to inaugurate the Aluva-Palarivattom stretch. Today, the Kochi Metro Phase-I extension was inaugurated, while the foundation stone was laid for the construction of Phase-II,” he said. Kochi Metro Phase-II will be from JLN Stadium to Infopark. “This will be a boon for the young techies and professionals,” said the PM. He said the work that began in Kochi will give a new direction to the urban development and transport development in the whole country. “In Kochi, the Unified Metropolitan Transport Authority (UMTA) has been implemented. This authority will work to integrate every means of transport like metro, waterways and others under one umbrella.” Modi said the aim is to reduce traffic congestion and pollution in the city. “The Union government has been giving great importance to the development of urban transport for the past eight years,” he said. The government is also taking steps for the comprehensive development of the Indian Railways. “The doubling from Thiruvananthapuram to Mangaluru will be very beneficial for passengers and pilgrims,” he said. PROJECTS IN KERALA The PM said the doubling of the Kuruppanthara-Kottayam -Chingavanam railway line, which has been completed, will bring a huge relief to the Sabarimala pilgrims arriving from different parts of the country. At the same time, the completion of electrification of the Kollam-Punalur line will reduce pollution and enable the introduction of faster trains. He said with the development of the transport system, the tourism sector will also develop. As much as D70,000 crore has been given in Mudra loans in Kerala for entrepreneurship development. Most of these are initiatives from the tourism sector. He said, “Infrastructure development projects worth D1 lakh crore are under way in Kerala and D55,000 crore is being spent on the development of NH-66.” CM SEEKS CENTRAL GOVT HELP TO DECONGEST ROAD TRAFFIC Kochi: Chief Minister Pinarayi Vijayan on Thursday urged the prime minister to approve the state government’s proposal, aimed at the development of the transport sector in Kerala, at the earliest. He was speaking at the inaugural and dedication function of various Kochi Metro and railway projects at the CIAL Convention Centre in Nedumbassery. “Kerala needs valuable help from the Union government in its efforts to decongest the road traffic,” said the CM while pointing out the efforts the state government is taking to reduce the carbon footprint in the densely populated state. He said, “The work on the widening of the NH-66 is progressing fast and is an example of the meaningful co-operation between the state and the Central governments.” The CM said the state is encouraging people to turn to alternative modes of transport. “We are popularising alternative modes of transport like the waterways, train and airways. The waterways project from Kovalam to Bekal is making good progress. A component of it stretching from Kollam to Kozhikode is part of the national waterways,” said the CM. SHIPYARD, NAVY AWAIT PM’S WORD ON NEW AIRCRAFT CARRIER KOCHI: While the nation is eagerly awaiting the induction of INS Vikrant into the Indian Navy, Cochin Shipyard Ltd (CSL) and the Navy are hoping for an announcement from the prime minister regarding a third aircraft carrier. Though India will now have two aircraft carriers — INS Vikramaditya and Vikrant — the Navy has been demanding a third one, but the government has not responded yet. CSL chairman Madhu S Nair has already stated that the shipyard is ready to build another aircraft carrier. If the government grants permission now, the works could start by 2024 and the new aircraft carrier will be ready for commissioning by 2032. The cost is pegged around D 30,000 crore. INS Vikrant will be able to accommodate 1,600 sailors and can operate a fleet of 30 fighter jets and helicopters. RAILWAY SECTOR A70K cr has been given in Mudra loans for entrepreneurship development in state The electrification of Kollam-Punalur line will reduce pollution and help introduce faster trains A55K cr crore is being spent on the development of National Highway-66

18 incredible mega projects coming to Abu Dhabi soon

In the past year we’ve seen some huge new leisure projects launch in Abu Dhabi, we’re looking at the WB hotel; The Yas Bay Waterfront; The National Aquarium and other alluring attractions within Al Qana; Mamsha Al Saadiyat has proliferated into a thrilling little foodie district; and The Al Wathba Fossil Dune Protected Area headlines our pick of the thoroughly engaging heritage projects.

But there is a huge amount still to come in the coming months and years. Here’s just a little taste of what’s in the Abu Dhabi engineering wizardry pipeline.

Reem Hills

The Eastern face of Abu Dhabi’s Reem Island will be transformed into a verdant urban oasis — with hills, beaches, parks and even a canal — under plans from locally-based developer Q Properties. The villa mega-project, being carved right into the heart of the capital, is primarily an upscale gated residential endeavor, but there will be plenty of leisure attractions to it too. Teased in the development brochure are mosques, community spaces, nurseries, club houses, shops, restaurants and cafes, jogging and cycling tracks, parks and playgrounds, beaches and pools. Rather fittingly, one of the central features of the development is that it will be cast over engineered hills, the highest of which will offer spectacular 360 degree views of the surrounding area.

Jubail Marina

Nestled between Yas and Saadiyat, Jubail Island is already one of Abu Dhabi’s most idyllic islands, thanks to its lush, stretching mangroves. But the development of Jubail Island is set to see it become one of the capital’s most desirable residential destinations, with six residential estates comprising of beautiful luxury townhouses and apartments currently under construction. But in a new update, developer Jubail Island Investment Company (JIIC) has also unveiled plans for a beating heart for the new local community, the stunning Jubail Marina. On track for completion by mid-2023, Jubail Marina will form part of the Marina District, and will feature 66 berths for visitors and residents to set sail for Jubail as and when they please. This stunning seafront community project will also feature a luxury yacht club, scenic boardwalk and a collection of restaurants and cafes that will make the most of the gorgeous alfresco setting. That sounds like a true haven for boating enthusiasts.

Abrahamic Family House a view of a city: Abrahamic Family House Nighttime copy

Situated on Saadiyat Island, the Abrahamic Family House is a mega project with an incredibly inspiring message. Inspired by the Document on Human Fraternity, supervised by the Higher Committee of Human Fraternity, and ‘followed closely by Pope Francis and the Grand Imam’ — the Abrahamic Family House will comprise a mosque, a church, and a synagogue within the same space. The building was designed by architect Sir David Adjaye, to capture ‘the values shared between Judaism, Christianity, and Islam’. The endeavour was first announced back in 2019, by H.H. Sheikh Abdullah bin Zayed Al Nahyan, UAE Minister of Foreign Affairs and International Cooperation, but this latest update has given us the names of the worship centres. Within Abrahamic Family House you will find Imam Al-Tayeb Mosque, St. Francis Church, and Moses Ben Maimon Synagogue. The aim is that this project will symbolise and inspire tolerance, togetherness, fraternity, mutual respect and peaceful coexistence.

LXR Hotels & Resorts

It’s not just Bond villains that enjoy an island lair, it’s a proven pick for sun chasing holiday makers too, which goes some distance to explain why LXR, the luxury indie arm of Hilton Hotels – has set its sights on Abu Dhabi’s Al Nawras Island with an ambition to transform the island into a one-stop leisuretropolis complete with its own golf course. Expected to pop at some point in 2023, this Al Nawras Island resort has been designed to draw inspiration from the destination, with 80 expansive villas set between the beach and the water’s edge. Other features include three swimming pools, tennis and padel courts, a spa, two signature restaurants, two bars, a beach club, a kids’ club and aquatic centre complete with splash pad.

Etihad Rail

For those with a heart that beats to the call of wanderlust, there’s something particularly romantic about the idea of rail travel, especially when it passes through the sort of big geography you find in the UAE. That feeling of crossing frontiers, powering towards the horizon with otherworldly plains flooding past the window. And it could be something we get to experience here sooner than you think, following a new update issued by the UAE Rail Programme. Yes, according to the latest projections, the UAE’s very own ‘Sanpiercer’ (not the official name) passenger service will link 11 cities across the seven emirates by the year 2030. From the beautiful renders above supplied by Etihad Rail, we can see that the sleek cone-nosed train cuts a very similar image to those of the other high speed networks across the world. It looks like there will be at least two classes of cabin to choo-choose from, spacious bathrooms, comfortable seats, and a kitchen area. There is literally no information in support of whether there are private suites aboard, but we dare to dream. In lieu of getting the low down from train wisdom GOAT, Francis Bourgois — we reached out directly to Etihad Rail for some more stats and facts about the train. Expect those to arrive on the What’s On platform imminently.

Saadiyat Grove

We now know that Saadiyat Grove will play a large part in the look and layout of Saadiyat Island island, a blended leisure, commercial and residential project that looks to be linking (or close enough) the individual culture mega projects and the beachfront entertainment district of Mamsha Al Saadiyat. The important numbers we have so far are that the launch date is set for some time in 2023. There’ll be a ‘Town Square’, more than 70 retail stores, a gym, cinema, offices, and 50,000 sqm of dining space. Aldar’s website describes some of the aesthetic experiences you can expect, saying “interactive artworks and digital murals surround you”. Louvre Abu Dhabi residences will also be part of the project. Once complete, there’ll be a residential complex of 400 apartments, with an iconic address, stunning ocean views and next-door-neighbour-status to one of the world’s most impressive collections of art and historical artefacts.

Natural History Museum

One of the biggest bits of cultural news so far this year, is the DCT’s confirmation that Abu Dhabi is getting a Natural History Museum. This will be the fourth museum of the Saadiyat Cultural District (after Louvre Abu Dhabi, Zayed National Museum, and the Guggenheim), and is due to open its doors on Saadiyat Island in 2025. In addition to engaging exhibits curated to illuminate the universe’s 13.8 billion years of origin story, the site will also include a scientific research centre ‘that will undertake studies in zoology, palaeontology, marine biology, molecular research and earth sciences’. The project was announced by Khaled bin Mohamed bin Zayed, and promises to ‘help find solutions for the future of our planet.’ We also have context confirmation on two of the flagship objets d’awe — Stan, a 67 million year old tyrannosaurus rex skeleton; and the seven billion year-old Murchison Meteorite (both of these specimens will be available to see at a special Manarat Al Saadiyat preview exhibition between April 6 and May 12 this year).

Mina Zayed redevelopment

Mina Zayed, named after the UAE’s founding father, is a 40-year-old port-side community that was instrumental in Abu Dhabi’s meteoric growth as a trading hub. The three million square metre glow-up project aims to create a blended housing, tourism and entertainment destination, in addition to building on the reputation of the area as a colourful commerce hub. When the project is completed, visitors will be able to enjoy enhanced shopping experiences, such as a brand new fish market, seasonal market and redeveloped plant souq. The redevelopment includes the involvement of both Modon Properties and Aldar Properties, which means the concept and execution of the new set-up is in the very best hands.

Yas Creative Hub

Located just a brief amble away from the foodie district of Yas Bay, this twofour54 project is poised to house a thriving community of creative endeavor. Inside you’ll find a walkable campus, sustainable intelligently-conceived landscape design, innovation incubation spaces, an amphitheatre, studios, and production facilities. Once finished, this world-class, future-proof ingenuity hub will be armed with a team of more than 900 freelancers, a smart ecosystem that prioritises data, tech and resource efficiency, and sits in a location that offers uber convenient commute times to both Dubai and Abu Dhabi.

Traditional Souk

Abu Dhabi-based developers Al Qudra have unveiled plans to transform a 245,000 sqm stretch of Abu Dhabi’s W64 Zone overlooking the Sheikh Zayed Grand Mosque, next door to the upcoming Al Qana project on the Khor Al Maqtaa, into a sophisticated blanched-wall leisure and entertainment complex. And looking at these Traditional Souk renders, the scale and quality of concept are giving us legitimate cause for awe. From the patchwork-shaded alleyways of the UAE heritage-style marketplace to the leafy open courtyards, waterfront hotel and vibrant new restaurant district — it’s a project that’s somehow both in synergy with the neighbourhood it joins, and yet something truly different.

Louvre Abu Dhabi Residences

Louvre Abu Dhabi represents the cultural epicentre of the emirate, but after a truly astounding piece of news announced by local master developers, Aldar — it might soon represent the epicentre of your living room too. Once complete, the Louvre Abu Dhabi Residences by Aldar will be a residential complex of 400 apartments, with an iconic address, stunning ocean views and next-door-neighbour-status to one of the world’s most impressive collections of art and historical artefacts. Included within the structure will be Le Salon Détente — a lounge for residents that will feature art curated in consultation with the experts at Louvre Abu Dhabi; a 12-seater Cinema Privé for private theatre experience; a wellness centre – Spa Bien-être which will of course feature a gym, sauna rooms, spaces for yoga and meditation; and there will also be an indoor kids’ playroom, called, appropriately, the Creativité Room. It’s all part of Saadiyat Grove, a 242,000 square metre, Dhs10 billion development which will also include retail and entertainment attractions, other residential properties, two news hotels and co-working spaces.

Zayed National Museum

Once completed, the Zayed National Museum will stand as an architectural marvel, a fitting home for the inspiring story of our great nation and its visionary founder. Located on Saadiyat Island, already the seat of so much cultural import, the breathtaking structure designed by Foster + Partners will include a 123 metre high tower. The main gallery will be devoted to a collection of artifacts illuminating aspects of Sheikh Zayed bin Sultan Al Nahyan — the man, and his leadership journey the country’s unification, and beyond. There will also be gallery space devoted to exhibitions on Falconry and Conservation; Land and Water; History and Society; Science and Learning; Faith and Islam; and it will host the grand Sheikh Zayed Library. Although we don’t have a projected completion date, work on the building began back in 2019.

Al Reem Mall

Reem Mall has described itself as ‘The World’s First Omnichannel Mall’. The details of what that actually means get complicated quickly, but from what we understand, the mall will offer a ‘blended retail’ approach, which allows for digital shopping (through an app/website) at the same time as conventional ‘bricks and mortar’ mall shopping. Data from your shopping habits can be used to make sure you get invited to redeem tailored promotions. Milat Sayra Berirmen, Digital Innovation Director for Reem Mall is on record as saying “At Reem Mall, we are leading this transformation by creating a totally new retail concept – the world’s first fully digitally enabled mall, supported by an integrated logistics hub.”

Snow Abu Dhabi a group of people in a room: reem mall, snow park abu dhabi, worlds biggest snow park, snow zones uae, where to see snow abu dhabi uae, Snow Abu Dhabi

a group of people in a room: reem mall, snow park abu dhabi, worlds biggest snow park, snow zones uae, where to see snow abu dhabi uae, Snow Abu Dhabi

The enchanted-forest themed Snow Abu Dhabi was previously scheduled for completion in the last part of this year, and it’s being trailed as ‘the region’s largest snow park’. Construction is well underway at its location inside the USD1.2billon Reem Mall project, on Reem Island. The attraction will span across a huge 100,000 sq ft area, divided into distinct whimsical zones. We can look forward to themed-characters and 13 thrilling rides and attractions, including an enchanted tree, a snowflake garden, crystal carousel, ice labyrinth, tobogganing and a shovel-ton more. It doesn’t matter if the weather outside is frightful. The park will be kept at a rosy-nosed -2ºC, with a 500mm covering of snow (more than enough for beefy snowball building) offering a year-round chill spot in this, our beloved land of the eternal sun.

Guggenheim Abu Dhabi

Image courtesy of Gehry Partners, LLP.

On track for completion in 2025, the Frank Gehry designed Guggenheim Museum will add a jagged smear of swoon to the Saadiyat Cultural District skyline. True to the spirit of Guggenheim (and conceived in collaboration with Solomon R. Guggenheim Foundation), the plans for the building — cut a contemporary, unconventional, but singularly beautiful design. As outside, so within. Inside you’ll find 28 galleries across a 11,600 sqm expanse, there’s also an additional 23,000 sqm of exhibition spaces contained within the distinctive cones and terraces attached to the building. Guggenheim Abu Dhabi will exhibit a collection of modern and contemporary art with a special focus on pieces from the West Asia, North Africa, and South Asia (WANASA) region. The museum has been tasked with providing a platform for artists from the WANASA area, commissioning works from artists at the spear’s tip of creative innovation, and illuminating how “the interconnected histories and cultures” have helped shape our world. Speaking about the project, H.E. Mohamed Khalifa Al Mubarak, Chairman of DCT Abu Dhabi said: “The museum will also play a civic role through its mission to spark wider interest in global modern and contemporary art, fostering diversity and inclusion in a meaningful cultural exchange. As we move forward with our plans, it is crucial to recognise the impact of this museum in realising our vision for the Emirate’s culture and creative industries.”

Rixos Abu Dhabi Marina

It’s fair to say that the city has watched the giant pink arch of the Rixos Marina Abu Dhabi hotel (formerly set to be a Fairmont property) rise with curiosity. It achieved architectural iconhood even prior to its launch, which was originally slated for 2020, but will finally arrive in Q3 of this year. Although there’s no update on the official opening date, it’s slated for the coming months, and the brand has already set up its Instagram page – although is yet to populate it with the sneak peaks of what we can expect. @rixosmarinaabudhabi

Cinemacity

One of the main family entertainment attractions of the mamouth Rabdan leisure project, Al Qana will undoubtedly be the 15-screen Cinemacity. A massive movieplex that comes kitted out with Abu Dhabi’s largest cinema screen, coming in at a huge 26 metres, and will host the latest blockbuster screenings, with potential red carpet moments on the horizon. Recent updates also include the news that a lively outdoor amphitheatre will also be positioned close to the cinema. Designed to host special eventssuch as festivals, concerts and exhibitions. Alongside the amphitheatre, the waterfront will be equipped with the equipment to put on light and water spectaculars.

Pixoul

Pixel will be the largest gaming hub of its type in Abu Dhab and include the latest evolution of Location-Based Entertainment (LBE). In addition to futuristic VR tech, the venue will also operate the first certified eSports (that’s competitive gaming for any noobs out there) academy in the region. The announcement of Pixel’s inclusion in the Al Qana development followed a Memorandum of Understanding (MoU) between Fouad Mashal, CEO of Al Barakah International Investment and developer of Al Qana, and Karim Ibrahim, CEO of Robocom VR. Speaking about the news, Fouad Mashal said: “In line with our vision to bring world-class experience to Al Qana, our partnership with Robocom VR will position Pixel as one of the most sought-after VR and eSports destinations in the UAE.”

Images: Provided/Instagram/What’s On Archive

Finance prepares to-do list to offset effects of global slowdown

Highlights-

Timely implementation of mega projects

More public-private partnerships

Ensuring safety net reach

Nurturing investment-friendly climate

Redesigning tax collection strategies to boost revenue

Foreign loans from development partners

Timely implementation of mega projects, more public-private partnerships (PPP) in development work and facilitating exporters to find new markets are among the government's priorities to cushion the economy from the global slowdown ahead and the fallout of the Russia-Ukraine war, the finance ministry has said.

Measures are also being taken to maintain the growth momentum. These include setting up new economic zones, tax administration reforms and measures to improve the ease of doing business, according to a ministry report titled "Socioeconomic progress and recent macroeconomic developments in Bangladesh". The report was prepared by the Finance Division of the ministry.

The plan comes on the heels of growing fears of the spillover effects on exports and remittances – the two contributors to foreign exchange reserves – spurred by high global inflation and output contraction.

Experts have also sounded a note of caution in regards to strained foreign reserves and the impact of unbridled inflation growth and have also called for more immediate impact measures.

Despite promising growth in the first two months (July-August) of the fiscal year, Bangladesh's export may not be able to keep up the tempo throughout the fiscal year due to the global slowdown, especially in the three largest economies in the world – the USA, China and the European Union – the ministry warns in the report.

Director of the Policy Research Institute MA Razzaque told The Business Standard that the global economy was going into a major recession and global economists feared that this could be prolonged until 2030. As a result, both exports and remittances of Bangladesh will decrease, straining the external sector.

"But in the context of the Ukraine war, commodity prices, which have increased in the international market, will fall due to the recession, making the balance of payment deficit somewhat tolerable. However, exports and remittances may fall further, so the pressure on Bangladesh's foreign exchange reserves will continue. That's why we have to be careful," he said.

The finance ministry is banking on exporters' resilience, some success in revenue collection and progress in the implementation of mega projects as movers of future growth.

There still remain some short-term priorities to be addressed like a satisfactory current account balance, foreign exchange reserves and inflation, the report says.

It highlighted the overall economic situation, including the decrease in the country's foreign exchange reserves due to the increase in the import cost of food products, fuel oil and gas amid the Ukraine war.

It gauged the effect on the economy after fuel oil prices were hiked and the foreign debt situation, said the report sent to top policymakers.

'Forex first, not revenue'

The main strategy for FY23 is to increase aggregate supply while reducing demand growth.

Success in revenue collection, expected growth in per capita income, construction of the Padma Bridge, along with the implementation progress of other mega projects etc., will ensure strong recovery from the Covid-19 pandemic and help cope with the ongoing global challenges, the finance ministry's report says.

The impact of the Ukraine war on Bangladesh's foreign trade will depend on the duration of the war, its multilateralism and the economic sanctions imposed on Russia by the US and its allies.

"However, Bangladeshi exporters are resilient enough to ride the current and future challenges. With support from the government, they are trying to both diversify the export basket and also identify new, unconventional markets for Bangladeshi goods and services," it says.

The report also stresses the need for increased automation of the revenue administration and modernisation of tax laws to earn more revenue and speed up the momentum of growth for attaining the 2041 target of the Developed Country status.

Finance ministry officials said the government is redesigning revenue collection strategy to address the existing loopholes and shortcomings, and generate sufficient revenue to support investment and expenditure plans in the medium term.

As Bangladesh is scheduled to graduate from the list of Least Developed Country (LDC) status in 2026, both the national tariff policies and the revenue administration are in the process of transformation.

"Initiatives are underway, with the assistance of the IMF, to conduct a tax expenditure study to bring in efficiency in tax collection, plug loopholes and expand the tax net," the report adds.

"Focus should be on inflation control"

Zahid Hussain, former chief economist of the World Bank Dhaka office, however, said the focus should be on controlling inflation.

"Everyone knows the problem in the revenue sector, so there is no need to do studies and bring reforms there. The most important thing to control inflation was to increase the interest rate on loans, but the government is not doing that."

He also said the pressure on exports had already started, while about six lakh workers went abroad last year and about eight lakh went abroad till September this year, meaning there was little risk of a negative impact on remittances.

Zahid Hussain highlighted that remittance had decreased in September due to the instability of the foreign exchange, saying the government's moves to stabilise forex had been successful only in controlling imports to a certain extent, but the Bangladesh Bank still has to sell dollars to meet the needs of the banks.

The central bank sold $3.20 billion last three months.

He said for overall economic stability, the Finance Division has emphasised on those issues which are good for the medium and long terms, but there was no mention of any special initiative for the current macroeconomic stability.

Current account balance recorded a deficit of $18.7 billion and the overall balance recorded a deficit of $5.4 billion in FY22, while foreign reserves fell below $37 billion.

This has created extraordinary pressure on the foreign exchange management.

"As a pre-emptive initiative, Bangladesh is also seeking foreign loans from the development partners such as IMF, World Bank, ADB, Jica etc," the report adds.

Inflation, business environment

Finance Division officials said inflationary pressure was present in Bangladesh, but the government is working to combat it.

At present, an average of Tk1,745 crore has been allocated for beneficiaries of social security allowances through mobile financial services alone every day.

Some 29% of families in the country have been brought under social security programmes, and the division expects the allocation to double in the next five years.

An effective demand management policy along with boosting the supply side are needed to check the rising trend of inflation, officials said.

"Although Bangladesh has made a strong recovery from the pandemic, economic uncertainties are still looming in the context of global economic recession escalated from the Ukraine war. High inflation has eroded the purchasing power, compromising the living standard of the people," the finance ministry report reads.

Highlighting the government's emphasis on attracting private investment in development projects, the report says of the 77 projects valued at $38.77 billion initiated under the PPP, one has been implemented and nine others are in progress.

Furthermore, to enhance productive investment, the government will strive to remove the key bottlenecks in the economy with special emphasis on power and energy, ports, communication, and the ICT sectors.

To facilitate private sector investment and improve the investment climate, various fees and charges have been slashed, while reforms were initiated to improve the ease of doing business and cut costs.

'Fiscal disciple means low debt distress'

On the much discussed external debt, the finance ministry report says the government attempts to avail only concessional loans from external sources.

Although the overall balance of payment deficit widened in FY22, the government is keen to maintain an affordable and favourable external balance of payment, it says.

Regarding debt sustainability, the report says the latest debt sustainability analysis by the IMF-IDA was conducted in February 2022 which concluded that, "fiscal discipline has kept Bangladesh at a low risk of debt distress".

According to the assessment, overall public debt-to-GDP was 41.4% at the end of FY21, which is expected to stabilise at around 41.8% by FY31 and thereafter. Besides, the external debt-to-GDP ratio is expected to settle at around 11.6% by FY42.

The external debt-to-export was 97.5% in FY21 which is expected to stabilise at 93% by FY32 and thereafter, maintaining the threshold, the report adds.

Besides, higher and targeted spending on health and education sectors and bringing reforms to relevant areas would likely increase employability and address skill mismatch.

The Kingdom will sure 'look different' by 2030: Saudi Arabia has 80 mega-projects up its sleeve

More than 80 mega-projects, each worth at least $1 billion, are under way or planned for completion by 2030 in Saudi Arabia, according to a new report. This makes the kingdom the Middle East’s largest megaproject market by a wide margin, said the Meed report released during the third annual Meed Saudi Mega Transport & Infrastructure Projects conference. The event is being held at the Al Faisaliah Hotel in Riyadh from September 15 to 17. The opening keynote address was delivered by Saudi Arabia’s Minister of Economy and Planning Dr Muhammad Al Jasser. Leading project management firms are focusing growing attention on the opportunities emerging in the mega-projects market of Saudi Arabia. Speakers at the event are expected to highlight the opportunities emerging in the kingdom’s large-scale projects market. They include Saudi Aramco’s plan to invest $40 billion a year over the next decade to keep oil production capacity steady and double gas production. The $20-billion Riyadh Metro is another major project under implementation. Further major metro projects are planned for Makkah and Jeddah. “The conference will concentrate on finding solutions to the mega-project challenge the kingdom faces,” said Meed Event’s chairman Edmund O’Sullivan, who is moderating the event. “The resurgence of large-scale and complex projects and programmes being developed in the GCC region continues to present delivery challenges to the megaproject industry,” said CH2M Hill Saudi Arabia country manager Amer Khan.

“Part of the overall holistic solution is to implement tailored programme management methodologies for mega-project delivery with strategic-level integrated teams comprising project owners, sponsors and world class delivery professionals.”

“The Saudi Arabian mega-project market is an exciting, challenging and rapidly growing entity,” said Faithful & Gould regional development director David Clifton. “To ensure successful delivery, we need to ensure global best practice, procedures and systems are both brought and then tailored to the market and implanted. Further, with the rapid rise of major programmes, we need to develop intelligent procurement as the supply stretches and capacity is taken up by multiple mega programmes running concurrently.”

Technology will play a critical role in the implementation of these projects.

“The construction industry which includes design, engineering and construction has been plagued by flat and declining productivity, low growth and constant complaints about margin compression,” said global head of programme management at Arcadis Julio Maggi.

“There has been very little innovation. We really don't design things any better, faster or cheaper than we have done in the past. So we are not delivering value to the client that you see happening in the microchip industry for example.”

“There needs to be more innovation and a wider embrace of the technologies that are emerging including robotics, 3-D printing and driverless vehicles. A wider adoption of Building Information Modelling (BIM) would be beneficial, particularly in large infrastructure programmes. Saudi Arabia has a vision for 2025,” Maggi said.

The importance of information management and full lifecycle BIM on megaprojects will the subject of a special breakfast briefing at the conference on September 17, hosted by Bentley Systems.

Maharashtra loses two mega projects to Gujarat

By Express News Service

Shiv Sena leader Aaditya Thackeray has blamed the Shinde-Fadnavis government for loss of the mega projects.“The then CM Uddhav Thackeray had written to the Centre requesting for the BDP project in Maharashtra. We had followed it up with the Centre and hoped to get it. The project would have generated 70,000 job opportunities in the state. We had even finalized the location in Raigad district that was close to airports and ports,” said Aditya.

“Meanwhile, we lost the government and the new unconstitutional dispensation failed to pursue it. We have now learnt that the BDP project has gone to Gujarat,” he said. “I believe every state should get its fair share of investment, job opportunities. I don’t complain about the three states bagging the project. Yet I wonder why the current Maharashtra dispensation could not actively pursue the project with the Centre,” he said.

Aaditya Thackeray, who was minister of tourism and environment in the MVA government led by his father, said with the Foxconn-Vedanta’s semiconductor project shifting to Gujarat, Maharashtra has lost two major opportunities that could have easily generated one lakh jobs.

“The current government is indulging in mudslinging, but has no answer for the youth who lost out on job opportunities,” he said.“We have 350 pharmaceutical colleges in Maharashtra. Besides, the climate for business is also good and we have other connected drugs firms in Pune. We missed a great opportunity due to the non-performance of the Shinde government,” Thackeray said.

The Bulk Drug Parks will provide common infrastructure facilities at one place, thereby creating a robust ecosystem for bulk drug manufacturing in the country, reducing the cost significantly. This scheme is expected to encourage domestic manufacturing of bulk drugs to reduce import dependence and establish a dominant position in the global market by providing easy access to standard testing and infrastructure facilities.

MUMBAI: Not only the Foxconn-Vedanta semiconductors plant, but yet another mega project – the Bulk Drug Park (BDP) -- pursued by the previous MVA government -- has also gone to Gujarat, Andhra Pradesh and Himachal Pradesh, drawing flak from Maharashtra's opposition. Shiv Sena leader Aaditya Thackeray has blamed the Shinde-Fadnavis government for loss of the mega projects.“The then CM Uddhav Thackeray had written to the Centre requesting for the BDP project in Maharashtra. We had followed it up with the Centre and hoped to get it. The project would have generated 70,000 job opportunities in the state. We had even finalized the location in Raigad district that was close to airports and ports,” said Aditya. “Meanwhile, we lost the government and the new unconstitutional dispensation failed to pursue it. We have now learnt that the BDP project has gone to Gujarat,” he said. “I believe every state should get its fair share of investment, job opportunities. I don’t complain about the three states bagging the project. Yet I wonder why the current Maharashtra dispensation could not actively pursue the project with the Centre,” he said. Aaditya Thackeray, who was minister of tourism and environment in the MVA government led by his father, said with the Foxconn-Vedanta’s semiconductor project shifting to Gujarat, Maharashtra has lost two major opportunities that could have easily generated one lakh jobs. “The current government is indulging in mudslinging, but has no answer for the youth who lost out on job opportunities,” he said.“We have 350 pharmaceutical colleges in Maharashtra. Besides, the climate for business is also good and we have other connected drugs firms in Pune. We missed a great opportunity due to the non-performance of the Shinde government,” Thackeray said. The Bulk Drug Parks will provide common infrastructure facilities at one place, thereby creating a robust ecosystem for bulk drug manufacturing in the country, reducing the cost significantly. This scheme is expected to encourage domestic manufacturing of bulk drugs to reduce import dependence and establish a dominant position in the global market by providing easy access to standard testing and infrastructure facilities.

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