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Doing Business and Investing in Bangladesh: A Comprehensive Guide for Foreign Investors
Bangladesh has emerged as one of the fastest-growing economies in South Asia, with a unique combination of demographic advantages, competitive input factors, and high investor returns. As the nation evolves into a hub for global investment, TRW Law Firm’s comprehensive guide, “Doing Business and Investing in Bangladesh,” serves as a critical resource for foreign investors. This detailed 200-page guide outlines the macroeconomic fundamentals, legal frameworks, and actionable insights necessary to successfully navigate the Bangladeshi market.
This article provides an in-depth overview of the key aspects covered in the guide, including Bangladesh’s economic strengths, legal frameworks, and practical guidelines for foreign investors. Whether you’re considering entering the Bangladeshi market for the first time or expanding your existing operations, this resource is indispensable.
Bangladesh’s macroeconomic fundamentals are a testament to its growth potential:
Population and Workforce: With a population of over 169 million (2022), Bangladesh boasts a large, youthful, and rapidly growing workforce. Approximately 65% of the population is under the age of 35, offering a robust demographic dividend.
Middle and Affluent Class (MAC): The MAC population is expanding rapidly, driven by rising incomes and urbanization. By 2030, the MAC is expected to constitute 25% of the population, creating robust domestic demand.
GDP Growth: Bangladesh’s GDP growth has consistently exceeded 5% over the past decade, with projections indicating continued expansion. The economy is expected to reach $1 trillion by 2040, positioning Bangladesh as a major player in the global market.
Sectoral Growth: Key sectors contributing to GDP include agriculture (12.91%), industry (33.90%), and services (53.40%), reflecting a balanced and diverse economic structure.
2. Competitive Input Factors
Bangladesh offers several input factors that make it an attractive investment destination:
Cost Advantage: The cost of labor in Bangladesh is among the lowest in the world, providing a significant advantage for labor-intensive industries such as textiles, garments, and manufacturing.
Growing Productivity: Investments in education, training, and technology have steadily improved labor productivity, enabling companies to achieve higher output at lower costs.
Economic Zones and Fiscal Incentives: The government has established over 100 economic zones (EZs) offering tax holidays, duty exemptions, and other fiscal incentives to attract foreign direct investment (FDI). These zones provide state-of-the-art infrastructure and connectivity to international markets.
Short In-Land Travel Distances: With a compact geography, Bangladesh minimizes logistics and transportation costs. Key industrial zones and ports are within a few hours’ travel, enabling efficient supply chain management.
3. High Investor Returns
Investors in Bangladesh often enjoy returns significantly higher than global averages due to:
Rapid Market Growth: The expanding middle class and urbanization fuel demand for consumer goods, housing, and infrastructure, creating lucrative opportunities.
Export Competitiveness: Sectors like textiles and pharmaceuticals have established strong footholds in global markets, leveraging Bangladesh’s cost advantages.
Government Support: Pro-business policies, improved ease of doing business rankings, and ongoing legal reforms further enhance the investment climate.
Legal and Regulatory Framework in Bangladesh
One of the key sections of the TRW guide is its detailed explanation of the legal frameworks governing business operations in Bangladesh. Here are the major highlights:
1. Entering Bangladesh
Foreign investors must adhere to specific entry protocols:
Visa and Residence Permits: Investors from non-SAARC nations require a business visa for short-term visits and a residence permit for long-term stays. These permits are issued based on the purpose of entry, such as business setup or employment.
Investment Approval: For certain industries, investors must seek approval from the Bangladesh Investment Development Authority (BIDA). This includes submitting a feasibility study, financial plans, and corporate documents.
Company Registration: Businesses must register with the Registrar of Joint Stock Companies and Firms (RJSC) and obtain a trade license from the local municipality.
2. Starting Business Activities
Investors can operate through various structures:
Branch or Liaison Offices: Suitable for market exploration or representation. These entities cannot engage in direct revenue-generating activities without prior approval.
Private Limited Companies (PLCs): The most common structure, allowing 100% foreign ownership and limited liability.
Public Limited Companies: Ideal for large-scale operations, with the ability to raise capital through public offerings.
Partnerships and Sole Proprietorships: Limited to domestic entrepreneurs or joint ventures with local partners.
3. Duties After Setting Up a Company
Once operational, companies must comply with:
Taxation: Register for Value Added Tax (VAT) and corporate income tax. Corporate tax rates vary by sector, with preferential rates for industries such as IT and green energy.
Employment Laws: Employers must adhere to labor laws, including minimum wage requirements, employee benefits, and workplace safety regulations.
Annual Compliance: Submit annual financial statements audited by a certified accountant and maintain updated shareholder records with the RJSC.
4. Financing Options for Businesses
The guide outlines several financing avenues:
Equity Financing: Foreign investors can inject capital directly into their businesses or through venture capital and private equity funds.
Debt Financing: Loans from domestic or international banks are available. Bangladesh Bank regulates external commercial borrowing to maintain economic stability.
Government Grants and Incentives: Export-oriented industries can avail of cash incentives, duty drawbacks, and subsidized financing under the Export Policy 2021-2024.
5. Bangladesh Tax System (2024/2025)
The tax system is investor-friendly, with the following key features:
Corporate Tax: Rates range from 12.5% for IT companies to 25% for standard industries.
VAT: Standard rate of 15%, with exemptions for essential goods and services.
Tax Holidays: New industries in designated economic zones enjoy tax exemptions for up to 10 years.
Customs and Duties: Import duties vary based on the type of goods, with exemptions for capital machinery and raw materials used in export production.
6. Employment and Social Security Laws
Bangladesh’s labor laws are comprehensive and aim to balance employer and employee interests:
Employment Contracts: Must be in writing and include details on wages, benefits, and termination conditions.
Social Security: While there is no universal social security system, employers must contribute to gratuity, provident funds, and group insurance schemes.
Trade Unions: Employees have the right to form unions, and businesses must comply with regulations regarding collective bargaining.
7. Real Estate Acquisition and Leases
The guide also provides insights into property laws:
Land Registration: Foreign entities can lease land for up to 99 years. All transactions must be registered with the Land Registry Office.
Building Permits: Investors must secure permits from local authorities before constructing industrial or commercial facilities.
Environmental Compliance: Projects must adhere to environmental regulations, including obtaining clearance from the Department of Environment.
8. Protecting Intellectual Property (IP)
Bangladesh is a signatory to international IP treaties, offering robust protection for:
Patents: Valid for 20 years, with options for extension.
Trademarks: Registration is mandatory for legal protection, with validity for seven years.
Copyrights: Automatic protection for original works, with a term of 60 years post-author’s demise.
High-Growth Sectors in Bangladesh
Several industries in Bangladesh offer exceptional opportunities for foreign investors:
1. Textiles and Garments
As the second-largest exporter of ready-made garments globally, Bangladesh enjoys duty-free access to major markets like the EU and Canada. Investments in backward linkage industries, such as fabric production, can yield significant returns.
2. Pharmaceuticals
Bangladesh’s pharmaceutical industry has achieved self-sufficiency, with exports to over 150 countries. Government incentives include duty exemptions on raw materials and machinery imports.
3. Renewable Energy
The government aims to achieve 40% renewable energy by 2041. Solar and wind projects enjoy tax holidays, duty exemptions, and attractive power purchase agreements (PPAs).
4. ICT and Software
Bangladesh’s ICT sector has grown exponentially, with a target to achieve $5 billion in IT exports by 2025. The government’s Digital Bangladesh initiative includes tax holidays for IT firms and grants for tech startups.
5. Infrastructure and Real Estate
Mega projects like the Padma Bridge, Dhaka Metro Rail, and Payra Port underscore Bangladesh’s commitment to infrastructure development. Investors in industrial parks, logistics hubs, and urban housing projects stand to benefit.
Bangladesh offers a unique blend of macroeconomic stability, cost advantages, and high returns, making it an attractive destination for foreign investors. TRW Law Firm’s “Doing Business and Investing in Bangladesh” guide provides the comprehensive insights and legal expertise needed to navigate this dynamic market. With its detailed analysis of legal frameworks, sectoral opportunities, and competitive advantages, this guide is an essential resource for investors looking to capitalize on Bangladesh’s growth trajectory.
For further assistance and inquiries, contact TRW Law Firm:
Child custody disputes arise primarily from the breakdown of marriages, often following divorce. However, such disputes can also emerge due to other familial or social challenges. In Bangladesh, two principal laws govern child custody and guardianship disputes: The Family Courts Ordinance 1985 and The Guardians and Wards Act 1890. These laws provide the framework for determining custody based on the welfare of the child while considering religious and personal laws. This article delves into the legal principles, precedents, and processes associated with child custody in Bangladesh.
Legal Framework for Child Custody in Bangladesh
1. The Guardians and Wards Act 1890
This Act is pivotal in matters of child custody and guardianship. Section 17(2) emphasizes that courts must prioritize the welfare of the child. The following factors guide the court’s decision:
Age, sex, and religion of the minor.
Character and capacity of the proposed guardian.
Wishes of the deceased parent(s).
Relationship between the minor and the proposed guardian.
If the minor is capable of forming an intelligent preference, their opinion is also considered.
2. The Family Courts Ordinance 1985
Section 5 of this Ordinance empowers Family Courts to address issues related to guardianship and custody. The Ordinance applies universally, irrespective of religion, based on judicial precedents that emphasize the overarching welfare of the child over strict personal law interpretations.
Muslim Personal Law on Custody
Guardianship (Wilayat-e-Nafs) vs. Custody (Hizanat)
In Islamic law, guardianship pertains to the supervision and management of the child’s overall welfare, while custody refers to the physical care of the child.
Natural Guardians: Fathers are regarded as natural guardians, maintaining legal oversight until the child reaches adulthood.
Custody Rights:
A mother retains custody of a son until he turns seven and a daughter until she attains puberty (usually 15 years).
However, custody rights may cease if the mother remarries, is deemed morally unfit, or cannot adequately care for the child.
In cases where both parents are deemed unfit, custody may be granted to other relatives or the state.
Hindu Personal Law on Custody
Under the Hindu Minority and Guardianship Act 1956, the mother has the primary right to custody of a minor child until the age of five. Thereafter, the father assumes custody. For boys over seven and unmarried girls beyond puberty, the father remains the natural guardian unless proven unfit.
Key Considerations for the Court
1. Welfare of the Child is Paramount
While personal laws provide guidelines, courts consistently emphasize the child’s best interests. In several cases, Bangladeshi courts have deviated from rigid rules to ensure a child’s welfare.
Notable Case Laws:
Zohra Begum v. Latif Ahmed Munwar (1965): The court awarded custody of a minor son to the mother, prioritizing the child’s welfare over strict adherence to Hanafi principles.
Muhammad Abu Bakar Siddique v. SMA Bakar & Others (38 DLR 1986): The court ruled that deviations from classical Islamic law are permissible when the child’s welfare demands it.
2. Role of Constitution
The Constitution of Bangladesh guarantees equality between men and women under Articles 27 and 28(2). This principle has been instrumental in challenging traditional biases in custody cases, ensuring gender equity.
Grounds for Custody Denial
Custody may be denied to a parent under the following circumstances:
Immorality or bad character.
Inability to care for the child.
Negligence or abuse.
Remarriage of the mother (under specific circumstances).
Process to Obtain Child Custody
1. Filing a Case in Family Court
A custody suit is initiated in the Family Court, typically located in the district where the minor resides.
2. Supporting Documents
Applicants must provide relevant documentation, including:
Proof of financial stability.
Evidence of the child’s current living conditions.
Character references.
3. Court Proceedings
The court evaluates evidence and testimony from both parties, often seeking reports from welfare agencies or experts to determine the best arrangement for the child.
Child’s Preference
If a minor is mature enough to express an intelligent preference, the court may consider their wishes. This approach ensures that the child’s voice is heard in matters directly impacting their life.
Financial Responsibility
Regardless of custody arrangements, the non-custodial parent, usually the father, is obligated to provide financial support for the child. Failure to do so may result in legal actions.
Modern Developments in Custody Laws
The progressive shift in Bangladeshi courts highlights a growing emphasis on the child’s welfare rather than rigid adherence to traditional laws. This is evident in several landmark judgments.
Case Study: Rahmatullah v. Sabana Islam
The court granted custody to a widowed mother despite her remarriage, recognizing her ability to provide a nurturing environment for the child.
Frequently Asked Questions
1. Who gets child custody after divorce?
Mothers are typically entitled to custody of sons until the age of seven and daughters until puberty. However, courts may deviate based on the child’s welfare.
2. Can a mother lose custody after remarriage?
Yes, but only if the remarriage is deemed detrimental to the child’s welfare.
3. Is the father always the natural guardian?
Yes, under most personal laws, fathers are considered natural guardians.
4. What happens if both parents are unfit?
The court may grant custody to other relatives or appoint the child as a ward of the state.
5. What documents are required for a custody case?
Proof of financial stability, current living conditions, and character references are commonly required.
6. Can a child’s preference influence the court’s decision?
Yes, if the child is mature enough to form an intelligent preference.
7. What role does the Constitution play in custody disputes?
Articles 27 and 28(2) of the Constitution ensure gender equity, often influencing custody rulings in favor of mothers when justified.
Hire TRW to get your child custody in Bangladesh
Aspect
Key Details
Governing Laws
– Guardians and Wards Act 1890 – Family Courts Ordinance 1985
Court Jurisdiction
Family Courts handle custody and guardianship cases, guided by the welfare of the child and applicable personal laws.
Key Custody Principles
– Welfare of the child is paramount. – Courts consider age, sex, religion, parental character, and child’s preference (if mature enough).
Custody under Muslim Law
– Mother’s custody: – Son: Until 7 years. – Daughter: Until puberty. – Custody may transfer to father or other relatives if the mother is unfit.
Custody under Hindu Law
– Mother: Custody until 5 years. – Father: Custody after 5 years or in the absence of the mother.
Role of the Father
Recognized as the natural guardian. Custody may be denied if the father is found unfit or incapable of caring for the child.
Grounds for Custody Denial
– Remarriage of the mother (under specific conditions). – Immorality, neglect, or inability to care for the child. – Abuse or unsafe environment for the child.
Modern Developments
Courts prioritize welfare over rigid personal law interpretations. Gender equity and constitutional rights often influence decisions.
Financial Responsibility
The non-custodial parent (typically the father) is obligated to provide financial support for the child.
Child’s Preference
Courts consider the preference of children mature enough to express an intelligent opinion.
Notable Case Precedents
– Zohra Begum v. Latif Ahmed Munwar: Custody awarded to mother despite classical Muslim law. – Rahmatullah v. Sabana Islam: Widow retained custody despite remarriage.
Custody Process
– File a case in Family Court. – Submit necessary documentation (financial proof, living conditions, references). – Court evaluates the best arrangement for the child’s welfare.
FAQs
– Mother retains custody until specific ages (son: 7; daughter: puberty). – Father remains the natural guardian. – Courts prioritize child welfare above strict personal laws.
This table provides a concise overview of the legal framework and processes involved in obtaining
Child custody in Bangladesh is a nuanced legal issue guided by both personal laws and overarching statutory frameworks. While fathers are traditionally viewed as natural guardians, the courts prioritize the child’s welfare above all else. This progressive approach reflects a commitment to the child’s holistic development and well-being.
For legal assistance and representation in child custody matters, please contact TRW Law Firm.
Registering a trademark is a vital step for businesses and individuals looking to protect their brand identity in Bangladesh. Trademark registration provides legal protection and ensures that a brand remains unique in the marketplace. In Bangladesh, the process is governed by the Trade Marks Act, 2009, and the Trade Marks Rules, 1963, and is managed by the Department of Patents, Designs, and Trademarks (DPDT). This guide outlines the step-by-step process, requirements, and associated legal frameworks for trademark registration in Bangladesh.
What Is a Trademark?
A trademark is a unique symbol, word, phrase, design, or combination thereof that distinguishes the goods or services of one business from another. Trademarks can include:
🔵 Words or phrases. 🔵 Logos or symbols. 🔵 Colors or sounds (in specific cases). 🔵 Packaging styles and more.
Service marks, which apply to services rather than goods, can also be registered in Bangladesh under the International Nice Classification of Services.
Step-by-Step Process for Trademark Registration
Step 1: Conduct a Trademark Search
Conducting a search is not mandatory but highly recommended. This step ensures that your trademark does not conflict with existing trademarks. Searches can be performed at the DPDT, typically taking 2-3 working days.
Step 2: Prepare a Power of Attorney (If Applicable)
Foreign applicants or entities must authorize a Bangladeshi representative or lawyer to file the application on their behalf through a Power of Attorney.
Step 3: File an Application for Trademark Registration
An application must be filed with the Trademark Registry Wing of the DPDT. The required documents and information include:
🔵 A clear representation of the mark/logo/device. 🔵 Name, address, and nationality of the applicant. 🔵 If the applicant is a firm, the name and position of the signatory. 🔵 Status of the applicant (manufacturer, merchandiser, service provider). 🔵 Specification of goods/services and class under the Nice Classification. 🔵 User date of the mark (if already in use in Bangladesh). 🔵 Applicable government fees (BDT 3,500 or approximately USD 42).
Applications can be filed at the DPDT Head Office or its territorial branches.
Step 4: Acknowledgment of Application
Upon submission, the Registrar issues an acknowledgment receipt containing the application number, filing date, and details of the trademark.
Step 5: Examination of Application
The DPDT examines the trademark for uniqueness and conflicts with existing registrations. If satisfactory, a Letter of Acceptance is issued, moving the application to the next stage. In case of objections, the Registrar issues a show-cause notice, and the applicant must respond within three months or request a hearing.
Step 6: Publication in the Trademark Journal
Accepted trademarks are published in the DPDT’s Trademark Journal. The publication invites objections, if any, from the public within two months.
Step 7: Handling Oppositions
Any opposition to the trademark must be submitted using Form TM-5 with a fee of BDT 2,000. The applicant must counter the opposition within two months with a Counter-Statement (fee: BDT 1,500). If unresolved, the matter can be appealed to the High Court.
Step 8: Registration
If no objections are raised or oppositions are resolved, the applicant pays the certification fee. The Registrar then issues a Certificate of Registration. The trademark is valid for seven years from the filing date.
Step 9: Renewal of Trademark Registration
Trademarks can be renewed indefinitely in ten-year increments. Renewal fees should be paid within six months before expiration. Late renewal is possible with additional fees up to four months after expiration.
Special Provisions for Assignments and Licensing
Assignment of Trademarks
The registered proprietor can assign the trademark with or without the goodwill of the business. An application for assignment must be filed with proof of title.
Licensing of Trademarks
Licenses must be recorded with the DPDT to be effective. The licensor or licensee should apply to the Registrar with the appropriate documents.
Legal Remedies for Trademark Infringement
Trademark infringement occurs when an unauthorized party uses a registered trademark. Remedies include:
🔵 Civil Proceedings: Filing a suit in the District Court for injunctions, damages, and account of profits. 🔵 Criminal Proceedings: Initiating cases in Metropolitan Magistrate Courts or 1st Class Judicial Magistrate Courts for penalties and fines.
Why Choose TRW Law Firm for Trademark Registration?
TRW Law Firm specializes in trademark registration and related legal services. Our experienced lawyers provide end-to-end assistance, ensuring compliance with all legal requirements and efficient processing. Our services include:
🔵 Trademark search and application filing. 🔵 Representation during opposition hearings. 🔵 Assistance with renewals, assignments, and licensing. 🔵 Legal advice on infringement issues and dispute resolution.
Property Registration Process in Bangladesh with TRW Law Firm’s Expert Assistance
Welcome to our guide designed to provide you with a comprehensive understanding of the property registration process in Bangladesh. Whether you are a first-time buyer or an experienced investor, knowing the registration process is essential to ensure a legally sound and smooth transaction. In this article, we will take you through each step of the property registration process, detailing the required documents, fees, legal obligations, and how TRW Law Firm can provide expert assistance at every stage.
Understanding Property Registration in Bangladesh
Property registration is a mandatory legal process in Bangladesh that transfers ownership rights from the seller to the buyer. This process ensures legal recognition and protection for both parties involved in the transaction. Registered property ownership is the only valid proof of ownership under Bangladeshi law.
Preparing for Property Registration
Before starting the registration process, it is crucial to undertake some preparatory steps to ensure a smooth transaction. Below are the key steps to prepare for property registration:
1. Research and Title Verification
Conduct thorough research and verify the title to ensure the property is free from encumbrances or disputes. TRW Law Firm can assist in title verification by reviewing the property’s legal history, ensuring that the title is clear and marketable.
2. Payment of Stamp Duty and Registration Fees
Both stamp duty and registration fees are required to proceed with property registration. Stamp duty is a tax based on the property’s transaction value, while registration fees cover administrative costs. These rates vary depending on the property’s location and assessed value.
3. Preparation of Necessary Documents
Collect and organize all documents required for property registration. These include:
Original deed of sale or purchase agreement
Original title deed
National ID cards or passports of both buyer and seller
Passport-sized photographs of both parties
Tax clearance certificates
Mutation certificate
Encumbrance certificate (if applicable)
Property Registration Process
Once preparation is complete, the following steps outline the property registration process:
1. Visit the Sub-Registrar’s Office
Property registration takes place at the Sub-Registrar’s Office where the property is located. Visit the office during working hours with all the required documents and photocopies.
2. Filing the Application
Submit an application along with the necessary documents to the Sub-Registrar. Ensure that the application is properly filled out and signed by both the buyer and seller.
3. Document Verification and Execution
The Sub-Registrar verifies the submitted documents against their originals. If all documents are in order, both parties execute the registration deed in the Sub-Registrar’s presence.
4. Witnessing and Attesting
Two witnesses must be present during the execution of the registration deed. They sign the deed as witnesses, confirming the transaction’s validity.
Fees and Stamp Duty Payment
1. Calculation of Stamp Duty
Stamp duty is calculated based on the higher value between the sale price and the government-assessed value of the property. TRW Law Firm can assist in calculating the exact stamp duty using an online calculator or official guidelines.
2. Payment Procedure
Pay stamp duty and registration fees at the designated bank located within the Sub-Registrar’s Office premises. Keep the payment receipt as proof.
3. Document Stamping
After payment, the stamped document and payment receipt must be submitted to the Sub-Registrar for verification.
Final Steps in Property Registration
1. Document Scanning and Data Entry
The Sub-Registrar scans and records the property details into the official system.
2. Issuance of Registration Certificate
Once data entry is complete, the Sub-Registrar issues a registration certificate, confirming the buyer’s ownership rights over the property.
3. Document Collection
Collect your registered documents from the Sub-Registrar’s Office. These documents serve as legal proof of ownership and should be securely stored for future reference.
TRW Law Firm’s Expert Assistance
TRW Law Firm offers unparalleled expertise to guide you through the property registration process in Bangladesh. Our services include:
Title Verification: Ensuring the property is free from legal disputes or encumbrances.
Document Preparation: Assisting in preparing all required documents.
Legal Advice: Providing guidance on compliance with Bangladeshi property laws.
Ongoing Support: Offering continued assistance for lease agreements, property disputes, and related legal matters.
Conclusion
Navigating the property registration process in Bangladesh can be complex, but with the right guidance, it becomes manageable and straightforward. TRW Law Firm specializes in making this process seamless, ensuring compliance with legal requirements and protecting your interests. From title verification to document collection, our team is here to support you every step of the way.
For expert assistance, reach out to TRW Law Firm today and ensure a hassle-free property registration experience.
Sourcing Public-Private Partnership (PPP) Projects in Bangladesh: Insights by TRW Law Firm
Public-Private Partnerships (PPPs) have emerged as a critical mechanism for developing infrastructure projects in Bangladesh. By leveraging resources and expertise from both the public and private sectors, PPPs foster economic growth, enhance public service delivery, and address the country’s infrastructure needs. However, the process of sourcing, bidding, and executing PPP projects is complex and requires a robust understanding of regulatory frameworks and sector-specific requirements.
At TRW Law Firm, we specialize in providing expert legal advice at every stage of PPP projects, ensuring seamless compliance, effective risk management, and successful project implementation. This article delves into the key aspects of sourcing PPP projects in Bangladesh, highlighting TRW’s role in guiding clients through these processes.
Key Procurement Modes for Infrastructure Projects
Depending on the nature of the project, the sector involved, and the parties, procurement modes vary. The three primary modes of sourcing infrastructure projects in Bangladesh are:
1. G2G Partnership for PPP Projects
Projects implemented through Government-to-Government (G2G) partnerships involve bilateral cooperation between two countries to develop infrastructure under the PPP model.
Key Considerations:
Approval from the Economic Relations Division (ERD) and concurrence from the relevant law ministry.
Compliance with the Policy for Implementing PPP Projects through Government-to-Government (G2G) Partnership, 2017.
Negotiating bilateral agreements, ensuring treaty compliance, and addressing financing terms.
2. PPP Projects
PPP projects can be categorized as either solicited or unsolicited, depending on the nature of the bidding process.
Solicited Projects: Projects initiated by the government through a formal bidding process. These require adherence to Public Procurement Act, 2006, Public Procurement Rules, and Procurement Guidelines for PPP Projects.
Unsolicited Projects: Projects proposed by private parties. The preparation of proposals and agreements for unsolicited projects is governed by the Guidelines for Unsolicited Proposals, 2016.
Challenges:
Preparing bid documents in compliance with the tender requirements.
Meeting strict timetables for bidding.
Navigating regulatory complexities.
3. Non-PPP Projects
Non-PPP infrastructure projects are executed solely by the public or private sector without a formal partnership arrangement. These projects focus on rapid execution and direct delivery of infrastructure services.
Key Legal Aspects of Sourcing PPP Projects
1. Regulatory Framework
PPP projects in Bangladesh are governed by various laws and guidelines, including:
Public Procurement Act, 2006 and Public Procurement Rules.
Policy for Implementing PPP Projects through G2G Partnership, 2017.
Guidelines for Unsolicited Proposals, 2016.
Sector-specific regulations, such as the Energy Efficiency and Conservation Rules, 2016.
TRW Law Firm assists clients in navigating these frameworks, ensuring full compliance at every stage.
2. Drafting and Negotiating Agreements
Most PPP and infrastructure projects involve multiple agreements, such as:
Power Purchase Agreements (PPA) for power projects.
Implementation Agreements (IA) for infrastructure projects.
Land Lease Agreements and Gas Supply Agreements.
Legal advice is critical to safeguard the interests of all parties and ensure enforceability.
3. Obtaining Consents and Permits
Securing necessary consents and permits is essential for project execution within the specified timeline. However, this process is often complex and involves:
Environmental clearance.
Land acquisition approvals.
Sector-specific permits.
TRW Law Firm provides comprehensive support in obtaining these permits, minimizing delays and ensuring regulatory compliance.
4. Sustainable and Eco-Friendly Projects
The Energy Efficiency and Conservation Rules, 2016, encourage energy-efficient practices across industries. TRW Law Firm offers guidance on adhering to these rules, particularly for clean energy projects, addressing legal risks such as:
Lack of a clear regulatory framework.
Challenges in enforcing energy efficiency standards for small businesses.
Challenges in Sourcing PPP Projects
1. Regulatory Complexity
Multiple layers of regulations can create confusion, especially for international bidders unfamiliar with Bangladesh’s legal environment.
2. Bidding Process
Both solicited and unsolicited PPP projects require meticulous preparation of proposals and adherence to tender requirements.
3. Land Acquisition
Acquiring land for infrastructure projects involves navigating disputes over ownership, compensation, and resettlement.
4. Financing and Risk Allocation
Negotiating financing terms and allocating risks between public and private entities are critical but challenging tasks.
TRW Law Firm’s Expertise in Sourcing PPP Projects
At TRW Law Firm, we provide end-to-end legal solutions for sourcing PPP projects, ensuring compliance, mitigating risks, and facilitating smooth project execution.
1. Pre-Procurement Stage
Conducting due diligence on project feasibility, regulatory requirements, and land acquisition laws.
Preparing and reviewing bid documents, MOUs, and project proposals.
2. Procurement Stage
Assisting clients in participating in tenders and bidding processes.
Drafting and negotiating key project agreements, such as PPAs, IAs, and lease agreements.
Ensuring adherence to public procurement guidelines.
3. Implementation Stage
Securing necessary consents and permits from regulatory authorities.
Addressing disputes related to contracts or regulatory compliance.
Ensuring smooth project execution within the stipulated timeline.
Case Studies: TRW Law Firm’s Success Stories
1. Renewable Energy Projects
Solar Projects: Provided legal consultancy for 100 MW solar power projects in Feni and Matarbari.
Wind Projects: Conducted pre-feasibility studies and legal due diligence for wind projects in Chittagong and Patuakhali.
2. Transportation Infrastructure
Advised on contracts for expressway construction under the PPP model.
Successfully resolved disputes related to tendering and regulatory compliance for railway projects.
3. Energy Efficiency Initiatives
Assisted clients in adhering to the Energy Efficiency and Conservation Rules, 2016, particularly for clean energy projects.
Summary Table: Sourcing PPP Projects
Aspect
G2G Projects
PPP Projects
Non-PPP Projects
Definition
Projects implemented through bilateral government agreements.
Projects involving public-private collaboration.
Solely public or private sector-funded projects.
Procurement Mode
Governed by G2G Policy, 2017.
Governed by Public Procurement Act, 2006, and PPP Guidelines.
