Act. No.XI of
1980
An Act to provide for the promotion and protection of foreign
private investment in Bangladesh.
WHEREAS it is expedient to provide for the promotion and
protection of foreign private investment in Bangladesh;
It is hereby enacted as follows:-
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1. |
Short
title. — This Act may be called the Foreign Private
Investment (Promotion and Protection) Act, 1980.
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2. |
Definitions
(i) In this Act, unless there is anything repugnant in the
subject or context.-
(a) "foreign capital" means capital invested in Bangladesh
in any industrial undertaking by a citizen of any foreign
country or by a company incorporated outside Bangladesh.
In the form of foreign exchange, imported machinery and
equipment, or in such other form as the government may
approve for the purpose of such investment;
(b) "foreign private investment" means investment of
foreign capital by a person who is not a citizen of
Bangladesh or by a company incorporated outside
Bangladesh, but does not include investment by a foreign
government or an agency of foreign government;
(c) "industrial undertaking" means an industry
establishment or other undertaking engaged in the
production or processing of any goods, or in the
development and extraction of such mineral resources or
products, or in the providing of such services, as may be
specified in this behalf by the government.
(ii) Words and expressions used but not defined in this
Act shall have the same meaning as in the Companies Act.
1913(VII of 1913). |
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Foreign private
investment.- The government may for the promotion of
foreign private investment, sanction establishment with
foreign capital of any industrial undertaking:-
(a) Which does not exist in Bangladesh and the
establishment
whereof, in the opinion of the government, is desirable or
(b) Which is not being carried on in Bangladesh on a scale
adequate
to the economic and social needs of the country or
(c) Which is likely to contribute to-
(i) the development of capital, technical and managerial
resources
of Bangladesh or
(ii) the discovery mobilization or better utilization of
the natural
resources or
(iii) the strengthening of the balance of payment of
Bangladesh or
(iv) increasing employment opportunities in Bangladesh or
(v) the economic development of the country in any other
manner.
(2) Sanction of the establishment with foreign capital of
an industrial undertaking under sub-section (1) may be
subject to such condition as the government may deem fit
to impose.
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4. |
Protection and equitable
treatment.- The government shall accord fair and equitable
treatment to foreign private investment which shall enjoy
full protection and security in Bangladesh. |
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5. |
Terms of sanction, etc.- The
terms of sanction, permission or license granted by
government to an industrial undertaking having foreign
private investment shall not be unilaterally changed so as
to adversely alter the conditions under which the
establishment of such undertaking was sanctioned; nor
shall foreign private investment be accorded a less
favorable treatment than what is accorded to similar
private investment by the citizens of Bangladesh in the
application of relevant rules and regulations.
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6. |
Indemnification, etc.-In the
event of losses of foreign investment owing to civil
commotion, insurrection, or riot, foreign private
investment shall be accorded the same treatment with
regard to indemnification, compensation, restitution, or
other settlement as is accorded by investment by the
citizens of Bangladesh.
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7. |
Expropriation and
nationalization.-
(1) Foreign private investment shall not be expropriated
or nationalized or be subject to any measures having
effect of expropriation or nationalization except for a
public purpose against adequate compensation which shall
be paid expeditiously and be freely transferable.
(2) Adequate compensation for the purpose of
sub-section(1) shall be an amount equivalent to the market
value of investment expropriated or nationalized
immediately before the expropriation or nationalization.
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8. |
Repatriation of investment.
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(1) In respect of foreign private investment, the transfer
of capital and the returns from it and, in the event of
liquidation of industrial undertaking having such
investment, of the proceeds from such liquidation is
guaranteed.
(2) The guarantee under sub-section(1) shall be subject to
the right which, in circumstances of exceptional financial
and economic difficulties, the government may exercise in
accordance with the applicable laws and regulations in
such circumstances.
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9. |
Removal of
difficulty.- If any difficulty arises in giving effect to
any provision of this Act, the government may make such
order, not inconsistent with the provisions of this Act,
as may appear to it to be necessary for the purpose of
removing the difficulty.
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