Sectors for Privatization

Jute Sector	Textile Sector	Disposal of Govt. Shares
Steel & Engg. & Miscellaneous Sector	Sugar & Food Sector	Chemical Sector
Power Sector	Natural Gas & Oil Exploration	Tele Communication
Transport Sector	Port & Container Handling	Aviation & Tourism
Banking & Insurance

Power Sector : In view of the gradual widening of demand-supply gap, government has recently opened up investment in power generation, transmission and distribution to the private sector. Significant private foreign investment is envisaged for power generation. It may be mentioned here that power Development Board (PDB) has signed initial agreements for setting up Barge-Mounted Power Plants with the following international companies recently:

1) Smith Co-generation International - 100 MW	2) New England Power Company - 100 MW
3)Wartsila Power Development Ltd. - 100 MW	4)Westmont Offshore - 100 MW

Natural Gas and Oil Exploration : National Petroleum Policy which came into force from July 1993 has already attracted foreign investment in oil and gas exploration and development. Five international oil companies have signed production sharing contracts for exploration and development of hydrocarbon. The five companies are :

1) Occidental Exploration of Bangladesh Ltd.	2) Occidental of Bangladesh
3)Cairn Energy PLC and Holland Sea Search Bangladesh	4)Rexwood Oakland
5) United Merridian International Corporation (UMIC)

Tele Communication : Telecom services used to be provided exclusively by Bangladesh. Telephone and Telegraph Board (BTTB)-a government functionary. The recent revolution in information technology has opened up a new area for private investment in the telecom sector. In the meantime, the following two private companies are operating in rural telecom sector-

1) Bangladesh Rural Tele Communication Authority	2) Sheba

For Cellular/Mobile telephone, the following private companies have been allowed to operate:

1)Pacific Bangladesh Telephone Ltd.	2)Grameen Telephone
3) Sheba	4) Telecom Malaysia International Ltd.

Transport Sector : Recent studies on sectoral reform had identified suitable privatization prospects in both the Road & Highways and in Inland Water Transport. Contracting out the existing operations and maintenance functions of these organizations is an immediate promising possibility. Besides private shipping liners and vessel services are in full operation in the country, having no restrictions whatsoever. Port & Container Handling : There are quite bright prospects of private sector participation in improving port services in Mongla and Chittagong and in handling container services in the ports and other areas. Reforms are in the initial stages and may take sometime before such implementation take place. Aviation & Tourism : Serious reforms have taken place in the civil aviation sectorby allowing operation of private sector airlines in the domestic services. Tourism sector is fully open for the private sector to operate. Banking & Insurance : At the moment financial sector reform programmes are underway. Private banks and insurance companies with few exceptions are functioning creditably. Uttara, Pubali and Rupali Banks which were formally owned by the GOB were privatized. Shadaran Bima Corporation's (General Insurance) 49% shares are contemplated to be off loaded in the local stock markets soon.

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