#

Ease of Doing Business in

Bangladesh

Bangladesh Download Profile (1990KB, pdf)
Region South Asia
Income Category Lower middle income
Population 160,995,642
GNI Per Capita (US$) 1,190
City covered Dhaka , Chittagong

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 176 178 up
2
40.84 40.68 down
0.16
Starting a Business 122 115 down
7
81.74 81.72 up
0.02
Dealing with Construction Permits 138 138
-
61.60 61.25 up
0.35
Getting Electricity 187 187
-
16.17 15.22 up
0.95
Registering Property 185 186 up
1
27.58 27.48 up
0.10
Getting Credit 157 152 down
5
25.00 25.00
-
Protecting Minority Investors 70 69 down
1
56.67 56.67
-
Paying Taxes 151 148 down
3
55.56 56.07 down
0.51
Trading across Borders 173 173
-
34.86 34.86
-
Enforcing Contracts 189 189
-
22.21 22.21
-
Resolving Insolvency 151 153 up
2
27.02 26.36 up
0.66

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points):

16.00

DB 2016 DTF (% points):

15.03

Change in DTF (% points):

up0.97

STANDARDIZED CONNECTION
Price of electricity (US cents per kWh) 9.3
Name of utility Dhaka Electric Supply Company Ltd. (DESCO)
City Dhaka
Indicator Dhaka South Asia OECD high income
Procedures (number) info_outline 9 5.7 4.8
Time (days) info_outline 404 136.4 76.2
Cost (% of income per capita) info_outline 2,914.8 1,207.8 62.5
Reliability of supply and transparency of tariff index (0-8) info_outline 0 2.1 7.5
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain clearance for setting up substation

    Agency: Ministry of Power

    The customer must obtain a clearance from the Chief Electric Inspector’s office to set up the substation. To do so, the following documents must be submitted: design plans of warehouse, plan of the substation and the total load requirement. Ideally, this clearance should be obtained immediately, however this can take several weeks and repeated follow-up visits with the office.

    14 calendar days BDT 0
    2

    Obtain permission for installation of underground cable

    Agency: City Corporation

    Once the clearance has been obtained from the City Corporation office for the excavation works, the customer must also inform the local police station for the road works

    21 calendar days BDT 0
    * 3

    Hire electrical contracting firm to purchase substation equipment, get it tested and carry out installation and earthing

    Agency: Outside firm

    All electrical equipment, the distribution transformer, etc, must be purchased and tested by the Bangladesh University of Engineering and Technology (BUET), before submitting the application for a new electricity connection to the utility. Usually, all these equipment are readily available in Dhaka.

    15 calendar days BDT 1,800,000
    4

    Apply for license from Office of Chief Electrical Inspector

    Agency: Ministry of Energy

    This is the official clearance required in order to set up the warehouse and obtain the electric connection (not just for internal wiring). Procedure 1 is at a more "informal" level and happens in practice to keep the relevant officials informed, but this officially takes place once customer have already gone through Procedures 2 and 3.

    Documents required
    • Application form
    • Technical specifications of equipment and test report
    • Land registration deed (on which warehouse is located)
    • RAJUK approval/mutation certificate
    • Fire service permission (for underground cabling)
    • Architectural approval

    28 calendar days BDT 5,000
    5

    Submit application to Dhaka Electric Supply Company (DESCO) and await estimate

    Agency: DESCO

    1. List of documents to be provided with application
    • Two duly certified passport size photos
    • Copy of land deed paper and copy of mutation certificate where necessary.
    • Copy of land tax payment to the municipal/union parishad.
    • Copy of the agreement paper between the landowner and developer, if building is constructed by real estate developer.
    • Design of the building, duly approved by RAJUK/Municipal Corporation.
    • Clear location of the meter room, including the S/S in the plan, duly approved by RAJUK/Municipal Corporation.
    • Certified copy of test result on electrical equipment.
    • Copy of approved/duly certified single line diagram and earthwork diagram of the S/S.
    • Copy of the layout diagram of S/S from the Office of Chief Electrical Inspector.
    • Copy of the license received from Office of Chief Electrical Inspector.
    • Detailed description of present connection status.
    • Copy of the last paid bills.
    2. The applicant needs to bear all the cost of 11.4kV S/S and to be connected with the nearby 11kV supply of DPDC through underground cable.
    3. On submission of application, DESCO will calculate the load requirement for solar panel

    The long duration noted for this procedure is due to the delay in the customer receiving the demand notice from the utility.

    277 calendar days BDT 31,610.67
    6

    Have electrical contracting firm carry out external works

    Agency: Outside firm

    The customer must hire an electrical contracting firm to carry out the external works. This is basically the setting up of the substation on the warehouse premises. All equipment already purchased, electrical contractor firm and builder does the site construction and installation of equipment

    20 calendar days BDT 270,000
    * 7

    Receive installation of solar panels by private firm

    Agency: Private solar panel installation company

    As per the Ministry’s directive to all the utilities, all new connections with demand above 2KW will now require installation of solar panels. For domestic purposes, solar energy should meet at least 2 percent of the demand, for commercial 7 percent and for industrial 10 percent.

    14 calendar days BDT 570,000
    8

    Have electrical contracting firm purchase meter

    Agency: Outside firm

    The meter can be collected once the estimate has been paid, and the utility sends communication to the stores department, and stores department then issues an account number, and the meter is then available for pickup.

    14 calendar days BDT 250,000
    9

    Receive meter testing and installation, final inspection and electricity flow

    Agency: DESCO

    The utility conducts final internal as well as external inspection, tests the meter and electricity starts flowing.

    30 calendar days BDT 0

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer
    Reliability of supply and transparency of tariff index (0-8)
    Total duration and frequency of outages per customer a year (0-3)
    System average interruption duration index (SAIDI) ..
    System average interruption frequency index (SAIFI) ..
    Mechanisms for monitoring outages (0-1)
    Does the distribution utility use automated tools to monitor outages? No
    Mechanisms for restoring service (0-1)
    Does the distribution utility use automated tools to restore service? No
    Regulatory monitoring (0-1)
    Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
    Financial deterrents aimed at limiting outages (0-1)
    Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No
    Communication of tariffs and tariff changes (0-1)
    Are effective tariffs available online? Yes
    Link to the website, if available online www.berc.org.bd
    Are customers notified of a change in tariff ahead of the billing cycle? Yes
    Answer
    Price of electricity (US cents per kWh) 9.3

    Note:

    If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.

    If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.