US berates Bangladesh red tape

The US ambassador said there was immense opportunity

The US ambassador to Bangladesh, John Holzman, has sharply criticised red tape in the country for holding up outside investment.

Repeated delays and obstructionism discourage investors from coming to Bangladesh

US ambassador John Holzman

Speaking to journalists in Dhaka, he said US investors "had encountered almost incomprehensible delays and obstacles" in trying to put money into the country.

"Repeated delays, and obstructionism that is less than transparent, discourage investors from coming to Bangladesh and do not serve the interests of the country," he said.

Last week, a US company threatened to pull out of a major power project in Bangladesh in a dispute over costs.

AES Corporation threatened to quit in a dispute over the site where the 450 Megawatt plant would be set up.

US investment in Bangladesh is estimated to stand currently at $750m.

"There is immense opportunity," he said.

He added that while US executives listened to Prime Minister Sheikh Hasina Wajed's invitation to invest in Bangladesh, they would also consider the experiences of those companies that were already there.

"If private investment projects now on the drawing board come to fruition - and that is not a certainty - within just a few years, US investment would amount to about $2bn," he said.

"Three years ago it was minimal."

Mr Holzman said Bangladesh had huge reserves of gas and that Washington wanted Dhaka to export it to promote healthy economic growth and foreign investment in the country.

The Bangladesh Government has said it wanted to ensure it has 50 years worth of reserves for domestic use before exporting any gas.