Bangladesh Bank is reportedly considering awarding a contract to the German company M/s Paperfabrik Louisenthal GmbH to supply security threads for its circulating 10, 20, and 50 Taka banknotes, replacing the current supplier from the United Kingdom. The German firm had previously been selected during the interim government’s tenure. According to bank officials, the switch could reduce annual banknote production costs by approximately 40–50 million Taka.
Contract Process and Government Approval
Sources indicate that Bangladesh Bank submitted a formal letter to the Ministry of Finance on 10 February seeking approval to finalise the contract with the German company. Two days later, on 12 February, the 13th National Parliamentary elections were held, resulting in a Bangladesh Nationalist Party (BNP) government with a two-thirds majority. The contract can only be executed once the new administration provides its official sanction.
The security thread supply tender, issued in 2024, sought proposals for a five-year period. When bids were opened on 17 December, three companies submitted offers. M/s Paperfabrik Louisenthal GmbH emerged as the lowest bidder. Prior to this, on 8 December, the company had sent a sample to Bangladesh Bank. The Note and Currency Design Advisory Committee evaluated the sample, approving it for incorporation into notes provided that the bank’s logo and textual elements remained visible.
Comparative Cost Analysis
Bangladesh Bank’s letter to the Ministry of Finance highlights that the German company’s multicode security threads are 35.55% less expensive than the StarChrome threads supplied by the UK company, De La Rue International Limited.
| Supplier Company | Thread Type | Price per km (€) | Difference from UK (%) |
|---|---|---|---|
| M/s Paperfabrik Louisenthal GmbH | Multicode | 16.60 | -8.8 |
| De La Rue International Limited | StarChrome | 18.20 | — |
Background and Previous Contracts
Under the tender schedule and Note Specification Committee guidelines, contracts are typically awarded to the lowest bidder for five-year terms. The previous government had engaged the UK supplier. Notably, in 2020, De La Rue featured graphics of Bangladesh’s 100 Taka note in one of its newsletters.
Bangladesh Bank spokesperson Arif Hossain Khan stated, “This is a routine procedure. The letter to the Ministry of Finance is solely for approval to contract with the lowest bidder. There are no other considerations involved.”
Once implemented, the new contract is expected to generate substantial savings in banknote production, aligning with Bangladesh Bank’s long-term economic planning objectives.