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Bangladesh Economic Zones Authority Prime Minister’s Office Development of Economic Zones Annual Report 2016

BEZA Annual Report 2016

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Page 1: BEZA Annual Report 2016

0

Bangladesh Economic Zones Authority

Prime Minister’s Office

Development of Economic Zones

Annual Report

2016

Page 2: BEZA Annual Report 2016

Annual Report 2016 Page 1

Glossary Table

ADB Asian Development Bank

ASEAN Association of Southeast Asian Nations

BB Bangladesh Bank

BEZA Bangladesh Economic Zone Authority

BG Broad Gauge

BICC Bangabandhu International Conference Centre

BIFFL Bangladesh Infrastructure Finance Fund Limited

BIWTA Bangladesh Inland Water Transport Authority

BOI Board of Investment

BPDB Bangladesh Power Development Board

BTMA Bangladesh Textile Manufacturers Association

BWDB Bangladesh Water Development Board

CMS Content Management System

DBFOOT Design-Build-Finance-Own-Operate-Transfer

DC Deputy Commissioner

DoE Department of Environment

DPHE Department of Public Health Engineering

EA Environmental Assessment

EBRIDP Eastern Bangladesh Rural Infrastructure Development

Project

ECC Environmental Clearance Certificate

ECR Environmental Conservation Rules

EIA Environmental Impact Assessments

EIRR Economic Internal Rates of Return

EMP Environmental Management Plan

ENPVs Economic Net Present Values

EPZ Export Processing Zone

ETP Effluent Treatment Plant

EZs Economic Zones

FBCCI The Federation of Bangladesh Chambers of Commerce and Industry

FDI Foreign Direct Investment

FGD Focus Group Discussions

FOC Fiber Optic Cable

Ft/ft. Foot/foot

GAFTA Greater Arab Free Trade Agreement

G2G Government to Government

GDP Gross Domestic Product

GoB Government of Bangladesh

Ha/ha Hectare

ICD Inland Clearance Depot

ICT Inland Container Terminal

ICZM Integrated Coastal Zone Management

IDCOL Infrastructure Development Company Limited

IFC International Finance Corporation

IPFF Investment Promotion and Financing Facility

IPP Independent Power Producer

IPs Industrial Parks

IRR Internal Rate of Return

JBIC Japan Bank for International Cooperation

JETRO Japan External Trade Organization

JICA Japan International Cooperation Agency

Page 3: BEZA Annual Report 2016

Annual Report 2016 Page 2

Km Kilometre

KV Kilo-volt

KWH Kilo-watt Hour

LGED Local Government Engineering Department

LIBOR London Interbank Offered Rate

LPAD Law Justice and parliamentary Affairs Division

MCCI Metropolitan Chamber of Commerce and Industry

MSL Mean Sea Level

MW Mega-watt

NCS National Conservation Strategy

NCT New Mooring Container Terminal

NEMAP National Environmental Management Plan

NPV Net Present Value

O&M Operation and Maintenance Costs

ODA Official Development Assistance

ODF Optical Distribution Frame

OSS One-Stop-Service

PAP Project Affected People

PFI Participating Financial Institution

PGCB Power Grid Company of Bangladesh

PIU Project Implementation Unit

PPP Public-Private Partnership

PMO Prime Minister‘s Office

PRG Partial Risk Guarantees

QOL Quality-of-Life

RAP Resettlement Action Plan

REA Rapid Environmental Assessment

RFP Request for Proposal

REB Rural Electrification Board

RMG Ready-made Garments

RSMF Resettlement and Social Management Framework

SEZ Special Economic Zone

SME Small and Medium-sized Enterprises

SOB Survey of Bangladesh

SIA Social Impact Assessment

SRO Statutory Rules and Orders

SPV Special Purpose Vehicle

SWOT Strength, Weakness, Opportunity, and Threat

TEU Twenty-foot Equivalent Unit

UNO Upazila Nirbahi Officer

VAT Value-added Taxes

VGF Viability Gap Financing

WARPO Water Resources Planning Organization

WATSAN Water Supply and Sanitation

WB World Bank

Page 4: BEZA Annual Report 2016

Annual Report 2016 Page 3

Contents Core Values, Vision, Mission ............................................................................................................... 6

Governing and Management Structure of BEZA ................................................................................. 9

2. Corporate InformationGoverning and Management Structure of BEZA ....................................... 9

3. Corporate Information ................................................................................................................... 9

3. Chairman’s ReportCorporate InformationGoverning and Management Structure of BEZA ........ 9

4. Corporate InformationGoverning and Management Structure of BEZA ....................................... 9

Corporate Information ...................................................................................................................... 12

3. Chairman’s ReportCorporate Information .................................................................................. 12

4. Chairman’s Report ....................................................................................................................... 12

4. Snapshot of Key PerformanceChairman’s ReportCorporate Information .................................. 12

5. Chairman’s ReportCorporate Information .................................................................................. 12

Executive Chairman’s Report ............................................................................................................ 13

4. Snapshot of Key PerformanceChairman’s Report ....................................................................... 13

5. Snapshot of Key Performance ...................................................................................................... 13

5. Snapshot of Key PerformanceChairman’s Report ....................................................................... 13

6. Snapshot of Key PerformanceChairman’s Report ....................................................................... 13

5. Snapshot of Key Performance ...................................................................................................... 15

6. Snapshot of Key Performance ...................................................................................................... 15

7. Snapshot of Key Performance ...................................................................................................... 15

8. Snapshot of Key Performance ...................................................................................................... 15

PPP Economic Zones ......................................................................................................................... 17

Ongoing and Upcoming EZs .................................................................................................... 17

Mongla Economic Zone (Powerpac Economic Zone) .................................................................... 17

Mirsarai Economic Zone................................................................................................................ 18

Mirsarai EZ-2 ................................................................................................................................. 19

Shreehatta Economic Zone ........................................................................................................... 20

Sabrang Tourism Park ................................................................................................................... 21

Naf Tourism Park (Jaliardiwp EZ) .................................................................................................. 23

Narayanganj EZ ............................................................................................................................. 25

Dhaka SEZ ...................................................................................................................................... 26

Mirsarai Industrial City -The First Planned City ............................................................................. 27

Moheshkhali –The Next Planned City ........................................................................................... 28

Private Economic Zones .......................................................................................................... 29

A.K. Khan Economic Zone ............................................................................................................. 30

Abdul Monem Economic Zone (AMEZ) ......................................................................................... 31

Meghna Private Economic Zone ................................................................................................... 32

Page 5: BEZA Annual Report 2016

Annual Report 2016 Page 4

Meghna Industrial EZ .................................................................................................................... 33

Aman Economic Zone ................................................................................................................... 34

Bay Economic Zone ....................................................................................................................... 35

Arisha Economic Zone ................................................................................................................... 36

G2G Economic Zones .............................................................................................................. 37

The first meeting of the Bangladesh-India Joint Working Group (JWG) on the establishment of

Indian Economic Zones (IEZs) in Bangladesh was held in Dhaka on May 10, 2016................... 37

Mongla Economic Zone (Indian G2G) ........................................................................................... 38

Chinese G2G EZ ............................................................................................................................. 39

Governing Board Meetings of BEZA ........................................................................................ 40

Strategic aspects of partnering with BEZA ........................................................................................ 42

One-Stop Services ................................................................................................................... 45

Current Developments ...................................................................................................................... 46

Social and Environmental Compliance.............................................................................................. 47

Legal Framework of BEZA ................................................................................................................. 49

Feasibility Study ................................................................................................................................ 56

Initial Site Assessment ............................................................................................................. 57

Investment Promotion abroad and Study Tour ................................................................................ 57

Investment Promotion & Road Show within the country ................................................................ 60

Key messages of the Road-Show ...................................................................................................... 60

Strategic benefits of partnering with BEZA ............................................................................ 60

Competitive incentive package ............................................................................................... 60

One Stope Services ................................................................................................................. 61

Participants Attendance ........................................................................................................... 62

6.5.1 Attendance...................................................................................................................... 63

Up-gradation of Website ......................................................................................................... 66

Memorandum of Understanding Signed with Investors ....................................................... 67

Publications & Campaign of BEZA ........................................................................................... 70

Ongoing project of BEZA ................................................................................................................... 71

Media Coverage ................................................................................................................................ 75

At a glance activities pictures of BEZA .............................................................................................. 76

Page 6: BEZA Annual Report 2016

Annual Report 2016 Page 5

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Page 7: BEZA Annual Report 2016

Annual Report 2016 Page 6

Core Values: Customer satisfaction;

Team working;

Free flow of information;

Participation and involvement;

Never stop learning;

Networking; and

Effective Public Private Partnership

Vision: BEZA aspires to become a sustainable

development driving force and a world class

investment promoter and service provider to

ensure quality of life of the people.

Mission: BEZA‘s mission is to persistently create

value for the investors by establishing

attractive investment facilities in the

economic zones through One-Stop service

and competitive incentive packages.

Core Values, Vision, Mission

Page 8: BEZA Annual Report 2016

Annual Report 2016 Page 7

Bangladesh Economic Zones Authority (BEZA) is attached with the Prime

Minister’s Office (PMO) and is mandated to establish, license, operate,

manage and control economic zones in Bangladesh.

BEZA aims to establish economic zones in all potential areas of Bangladesh

including backward and underdeveloped regions with a view to encouraging

rapid economic development by proliferation and diversification of industry,

employment, production and export.

BEZA intends to develop 100 economic zones across the country and create

employment for 10 million people by next 15 years. The authority also plans to

set corridors in Dhaka-Teknaf, Dhaka-Sylhet, Dhaka-Mongla and Dhaka-

Panchagarh routes for the economic zones

Who we are:

Services offered by BEZA Identification and selection of sites and land acquisition for

economic zones

Appointment of developer and preparation of infrastructure

development plans

Building, developing and leasing economic zones to investors

Development of infrastructure and ensuring efficient use of

land

Promotion of Public-Private Partnership in economic zones

Implementation of industrial policy along with social and

economic commitments

Page 9: BEZA Annual Report 2016

8

The journey of Bangladesh‘s economy is now riding an uptrend, aided by political and

macroeconomic stability, compared to what it had started out in 1970s. In the past

decade, its GDP has grown by ~6% driven by domestic demand as well as price

competitiveness. The government of Bangladesh envisages further growth and improved

employment scenario by establishing a more liberalized trade and investment

environment, thereby attracting large-scale foreign investment. To this end, Bangladesh

government has taken initiatives to build economic zones across the country, under

various implementation models. This vision resulted in the formation of Bangladesh

Economic Zones Authority (BEZA). Issues related to availability of land, high taxation

rates, combined with administrative and logistical hurdles have always been a major

source of challenge for attracting investment. Such issues would be now effectively

dealt with by the single body of BEZA, thus facilitating the investment process amidst

the slow wake of nationwide reforms. The challenge now is to consolidate this by

accelerating economic growth at a harmonic pace, in an inclusive and sustainable

manner.

This first publication of the annual report will provide information, which would enable

to assess the status of current progress in infrastructure and investment, its adequacy

and projection of the future requirements of institutional capacity of BEZA .

I congratulate the staff of Bangladesh Economic Zones Authority (BEZA) , Support to

Capacity Building of BEZA Project, Bangladesh Economic Zone Development Project

(Phase-1) and Prime Minister‘s Office (PMO) in bringing out this publication.

Septembers 2016, 2016 Paban Chowdhury

Executive Chairman

Bangladesh Economic Zones Authority

Foreword

Page 10: BEZA Annual Report 2016

9

Bangladesh Economic Zones Authority (BEZA), attached with the Prime Minister‘s

Office (PMO), was officially instituted by the government on 9 November 2010 as a

nodal agency to establish, license, operate, manage and contr ol economic zones in

Bangladesh. BEZA has a 3-level management structure:

1. Governing Board

2. Executive Board

3. BEZA Office/Secretariat

Governing Board:

Governing Board is the highest body that undertakes overall policy decisions. It is

headed by the Honorable Prime Minister with top-level representations from different

Ministries or Divisions of Industries and the Prime Minister‘s Office including the

apex chambers and private sectors.

The current Governing Board consists of following:

Sl.

No. Position Designation

1 Chairman Honorable Prime Minister

2 Member Minister, Ministry of Finance

3 Member Minister, Ministry of Planning

4 Member Minister, Ministry of Labour and Employment

5 Member Minister, Ministry of Industries

6 Member Minister, Ministry of Communication

7 Member Minister, Ministry of Commerce

8 Member Minister, Ministry of Environment and Forests

9 Member Executive Chairman, Board of Investment

10 Member State Minister, Ministry of Science and Information and Communication

Technology

11 Member State Minister, Ministry of Power, Energy & Mineral Resources

12 Member Principal Secretary, Prime Minister‘s Office

13 Member Governor, Bangladesh Bank

14 Member Senior Secretary, Prime Minister‘s Office

15 Member Senior Secretary, Ministry of Home Affairs

16 Member Senior Secretary, Finance Division, Ministry of Finance

17 Member Senior Secretary, Ministry of Commerce

18 Member Secretary, Ministry of Agriculture

19 Member Secretary, Ministry of Industries

20 Member Secretary, Planning Division, Ministry of Planning

21 Member Secretary, Ministry of Labor and Employment

22 Member Secretary, Ministry of Science and Information and Communication

Technology

23 Member Secretary, Ministry of Foreign Affairs

24 Member Secretary, Energy & Mineral Resources Division

25 Member Secretary, Ministry of Power, Energy & Mineral Resources

Governing and Management Structure of BEZA

Page 11: BEZA Annual Report 2016

Annual Report 2016 Page 10

Sl.

No. Position Designation

26 Member Secretary, Ministry of Shipping

27 Member Secretary, Ministry of Environment and Forests

28 Member Chairman, National Board of Revenue

29 Member Secretary, Ministry Posts & Telecommunication.

30 Member President, The Federation of Bangladesh Chambers of Commerce and Industry

(FBCCI)

31 Member The Representatives of the Chamber of Commerce and Industry of the districts

relevant to economic zones, to be nominated by the Government

32 Member Two women entrepreneurs to be nominated by the Government.

33 Member President of the Specialized Chamber of Commerce and Industry.

34 Member

Secretary Executive Chairman, Bangladesh Economic Zones Authority

Executive Board:

The Executive Board consisting of an Executive Chairman (as Chief Executive) and 3

Executive members to oversee day to day operation of BEZA. The Executive Board

exercises all powers and performs all functions as may be exercised and performed by

the Authority.

BEZA Office/Secretariat:

The BEZA Office/Secretariat performs all day to day activities as guided by the

Executive Board. BEZA has an existing strength of 72 staff and very recently

government approved the revised organogram with an additional manpower of 58 for

Head Office and 100 for 125 site office.

Executive Board

Executive Chairman

Executive Member Executive Member Executive Member

Page 12: BEZA Annual Report 2016

11

Page 13: BEZA Annual Report 2016

12

BEZA Executive Board:

Sl

No Name Designation Contact Picture

1 Paban Chowdhury

(Secretary) Executive Chairman

Email: [email protected]

Phone No: +8802-8180114

2

Muhammad Abdus

Samad ndc

(Additional

Secretary)

Executive Member

(Investment

Promotion)

Email:

[email protected]

Phone No: +8802-8180116

3

Dr. M. Emdadul

Haque (Additional

Secretary)

Executive Member

(Planning &

Development)

Email: [email protected]

Phone:+88028180117

4

Hariprasad Paul

(Additional

Secretary)

Executive Member

(Admin & Finance)

Email: [email protected] Phone:

+88028180127

Head Office:

Bangladesh Economic Zones Authority (BEZA)

Prime Minister‘s Office (PMO)

BDBL Bhawan (Level-15), 12 Karwan Bazar

Dhaka 1215, Bangladesh

E-mail: [email protected]

Phone No.: +88028180114

Corporate Information

Page 14: BEZA Annual Report 2016

Annual Report 2016 Page 13

Bangladesh Economic Zones Authority

Dear Stakeholders,

It‘s a great pleasure in presenting Bangladesh Economic Zone Authority‘s 1st Annual Report for the

financial year ended 30 June,2016 .

Rapid economic development through higher industrial activity and creation of employment

opportunities is one of main agendas for the Government of Bangladesh. The concept of Economic

Zones (EZs) has been adopted as an ‗Open Door Policy‘ to attract investment from both domestic and

foreign investors . BEZA was established to pioneer the establishment of EZs across Bangladesh

There are six implementation models that have been envisaged for establishing EZs:

1. PPP EZ

2. Private EZ (Established by domestic or foreign private organization)

3. Special EZ (E sector specific industry)

4. G2G EZ (EZ established and owned jointly by GOB and any other government.)

5. Government EZ ( EZ established and operated by BEZA)

6. EZs in collaboration with other GOB Authorities.

During this financial year, BEZA has been able to source investments from different Asian countries,

has kicked off activities for several sites and issued developers‘ licenses. Activities have started for

Mongla and Mirsarai (Chittagong) among the PPP EZs. For Mongla Economic Zone, construction on

the site is expected to be completed by December 2016 and the plots are likely to be available from

2017. Mirsarai Economic Zone will be the first multi-sector EZ in the country, with an area of 30000

acres. Starting with an area of 550 acres in the first phase, this site is suitable for industries like

garments and accessories, composite textiles, auto components, cement, food processing, etc.

Requisite electricity and gas supply will be available to the EZ. BEZA also developing Sabrang

Tourism Park and Naaf Tourism Park in Teknaf, Cox‘s Bazar for planned and secured tourism in

Bangladesh.

BEZA has issued 1st private EZ license to Meghna Economic Zone. Meghna Economic Zone (MEZ),

located near river Meghna has signed MoUs with investors based in Thailand and China. Pulp paper,

Executive Chairman’s Report

4. Snapshot of Key

Page 15: BEZA Annual Report 2016

Annual Report 2016 Page 14

oil refinery, power plants, PVC, beverage, packaging industry and petrochemicals will be the

preferred industries in MEZ. BEZA also issued pre-qualification licenses to some of the other private

players who have expressed interest in establishing EZs. AK Khan SEZ, located in Palash

(Narsingdi), has all the potential locational advantages both from local and foreign investors .

Abdul Monem Ltd. (AML) — the leading infrastructure company of Bangladesh, has also been

awarded the Pre-Qualification license for developing Abdul Monem Economic Zone (AMEZ) at a

strategically located land in Gazaria, Munshigonj. Feasibility study and Master plan of the zone have

already been completed, and AMEZ authority expects to start the 1st phase of infrastructure

development as soon as it qualifies for the final license. AMEZ has also set a new milestone in the

Economic Zone regime of Bangladesh by signing an MoU with a Japanese firm as its first unit

investor.

28th February 2016 was a great and eventful day for BEZA, as Honorable Prime Minister Sheikh

Hasina inaugurated the development activities of 10 EZs on this day.

BEZA has taken the initiative to enact One Stop Services Act to ensure delivery of all services from

a single point to the investors. A total of 31 services have been identified which will be provided

from an automated OSS portal integrated in BEZA website.

Steps and initiatives have been taken during the last one year for updating, enriching and

strengthening its legal framework by amending the Act and the Rules and by formulating the Policy

and Guidelines. These have contributed a lot in accelerating the process of materializing the vision

and in achieving the goal of rapid economic development through industrialization and employment

in the economic zones.

We are grateful to the Prime Minister‘s Office , other relevant Ministries and Department of the

Government of Bangladesh ( Particularly Petrobangla, Bangladesh Water Development Board ,

Bangladesh Rural Electrification Board, Power Grid Company of Bangladesh , Bangladesh Power

Development Board , Roads & Highways Division, Local Government Engineering Department, Titas

Gas Distribution Company Ltd., Jalalabad Gas Distribution Company Ltd., Karnophuly Gas

Distribution Company Ltd. ) for their help, guidance and support provided to BEZA and to the

investors for their continued patronage and confidence in BEZA. With continuous learning, skill

upgradation and technology development, we will continue to provide world-class infrastructure and

services to our investors. I wish to convey my appreciation to all the officials of BEZA for the

valuable services and cooperation extended by them and are confident of their continued contribution

towards even better performance in the future.

Dhaka,Bangladesh Paban Chowdhury

29 September , 2016 Executive Chairman (Secretary)

Page 16: BEZA Annual Report 2016

Annual Report 2016 Page 15

Key Objectives:

To foreign direct investment (FDI)

Establishment and development of Economic Zones in all potential areas

Special focus on improving backward and underdeveloped regions

Encouraging rapid economic development through industrialization and

employment generation

Increase in production, better domestic supply and higher diversification

of export

BEZA was established to facilitate the development and operation of the

Economic Zones throughout the country. The main objective of BEZA is to act as

a change agent for faster economic growth by creating investment friendly

environment and attracting FDI. BEZA has issued license for 12 private EZs and

one PPP EZ, with more than 4000 acres land being ready for unit investors.

Meanwhile 8 unit investors already have signed MoU with the private developesr

to invest. Along with a number of projects in the pipeline, BEZA has also achieved

remarkable progress on other ongoing projects. BEZA follows six implementation

models for establishing EZs:

Authorities

During the reporting period this financial year, we have made great progress in

the PPP and Private EZs. Let us have a glimpse of our current performance.

5. Snapshot of Key Performance

Page 17: BEZA Annual Report 2016

Annual Report 2016 Page 16

Figure 2 : Inauguration of Development Activities of 10 EZs by Honorable Prime Minister Sheikh Hasina

Figure 1 Honorable Prime Minister Sheikh Hasina with foreign investors

Page 18: BEZA Annual Report 2016

Annual Report 2016 Page 17

Ongoing and Upcoming EZs

PPP Economic Zones Under the PPP implementation model, EZ on government land will be developed and operated by

private developer selected through competitive bidding

Through well-incentivized EZs, Bangladesh government aims to develop and diversify exports and

encourage domestic manufacturing at the same time, to create jobs, and to pilot new policies and

approaches (for example, in customs, legal, labor, and public-private partnership aspects). These

EZs will also allow for more efficient government supervision of enterprises, provision of off-site

infrastructure, and environmental controls. This will provide immense business and employment

opportunities for all sections of the society in Bangladesh.

BEZA started activities for PPP zones with the support of World Bank and DFID under two

projects within PSDSP. BEZA is focusing on 11 sites under these projects viz. Mongla, Mirsarai

EZ (1st Phase) , Mirsarai EZ-2, Sabrang Tourism Park ,Jaliardiwp EZ, Dhaka SEZ,

Narayanganj,Anwara-2 (CEIZ),Hobiganj and Sreehatta EZ. A reputed Transaction Advisory

Service Firm, PwC and individual consultants are appointed for Transaction Advisory services,

Master Planning, Feasibility study report, Legal issues, Environmental and Social study for these

EZsites.

Mongla Economic Zone (Powerpac

Economic Zone) This zone is located near the Mongla sea port (second

largest sea-port of the country) and it has a common

boundary with Mongla EPZ .With a gross area of 205

acres, the EZ is suitable for apparel / RMG, jute, food

processing, shipyard etc. Construction on the site will be

done phase wise and full construction is expected to be

completed by 2017 and the plots are likely to be

available from 2017

Mongla is the first PPP EZ in Bangladesh. This EZ

is awarded to the developer-PowerPac-PPMKPPL

JV.

Mirsarai Economic Zone (Phase-I)

Item Key Information

Access 200 m from Mongla

Port, 40 km from Khulna

City, 105 km to Jessore

Air Port and 50 km to

Jessore-Khulna-Mongla

Road

Competitiveness Readily available

developed land, power &

water supply, direct

access to sea and river

Employment

Creation

~25,000 workers

(estimated)1

Current

Development

Ongoing

construction of off-

site infrastructure

facilities viz. Access

Road, Bridge,

Boundary Wall,

Admin Building,

Water Supply and

Electric Supply

Suitable

Industries

Textile, Machinery,

Leather, Food

Processing, Shipyard

Figure 3 Master Plan of Mongla EZ

Page 19: BEZA Annual Report 2016

Annual Report 2016 Page 18

Mirsarai Economic Zone

The Mirsarai EZ site is located in the

Mirsarai Upazila of Chittagong . The

zone is planned in a naturally reclaimed

land at the mouth of Feni river and it has

stretched up to Sitakundo along the coast

of Bay of Bengal huth of the site. It is 60

km away from Chittagong port.

BEZA has already completed all kinds of

studies, viz. Feasibility Study,

Environmental and Social Impact

Assessments. The Mirsarai Economic

Zone (EZ) will be the first multi-sectoral

EZ and the second PPP EZ in the

country, with an area 550 acres in Phase-I

.

The selection of developer for Mirsarai

EZ (1st Phase) has already been

completed. The Powerpac-East west –

Gasmin JV has been selected as

developer for this zone.

Item Key Information

Access

67 km from Chittagong

port, 16 km from Dhaka-

Chittagong Highway, 79

km from Chittagong

Airport

Competitiveness

Along the Dhaka-

Chittagong Corridor,

Adequate supply of

electricity and gas

Employment

Creation

~500,000 workers

Current

Development

6.5 km approach

road

Land development

Electricity

connection

Embankment

Suitable

Industries

Garments and garments

accessories, Integrated

Textile,

motorbike assembling,

automobile assembling,

automobile parts

manufacturing, ship-

building

Figure 5 : Executive Chairman of BEZA with utility service provider

Figure 4 : Master Plan of Mirsarai EZ

Page 20: BEZA Annual Report 2016

Annual Report 2016 Page 19

Mirsarai EZ-2

The Mirsarai EZ-2 site is located besides the Mirsarai EZ (Phase-1). Total area is1300 acres .

BEZA BEZA has already completed all kind of studies, viz. Feasibility Study, Environmental

and Social Impact Assessments.

Ongoing Development Activities for Mirsarai EZ-2

Embankment & Site Filling for 2A

Embankment & Site Filling for 2B

Access Road including Bridge and

Culverts

Admin Building

Sluice Gate

Water Supply 2A

Electric Substation

Mirsarai EZ

BEZA approach road to be made by RHD at BDT.

124 crore

Appointment of contractor for 18

Culvert/ Bridge is in progress.

Appointment of contractor for road

construction works will be started

after finalization of land acquisition

Mirsarai/Feni EZ Power Connection

and sub-station

REB provided the electricity

connection line up to Mirsarai EZ

BEZA provided 50 acres land for

PGCB grid substation

BEZA provided 1 acre land to REB

for installation of sub-station 33/11

MW

REB, Feni will provide the electricity

connection up to Feni EZ by

December 2016

Figure 6 Master Plan of Mirsara EZ 2

Page 21: BEZA Annual Report 2016

Annual Report 2016 Page 20

Shreehatta Economic Zone

Sreehatta Economic Zone (EZ) has the potential to

become a successful economic zone under Public

Private Partnership. With the presence of a power

plant, gas connection , and fresh water source

nearby, these EZ site provides a very good

prospect for the establishment of a successful

economic zone. Moreover, the site is located at the

converging point of the Dhaka-Sylhet Highway

and the Dhaka-Maulvibazar Highway. The site

has a total area of 352 acres. Land acquisition and

other primary activities already been completed

and site development will be completed by June

2017.

Item Key Information

Access

55 km from Sylhet

airport, 435 km from

Chittagong port, 43 km

from Sreemangal Railway

Station

Competitiveness

Proximity to highway and

waterway; availability of

power, gas and

telecommunication.

Employment

Creation ~40,000

Current

Development

Gas line to EZ

Land Development

Power Connection to

EZ

Suitable

Industries

Textiles (spinning,

weaving, dyeing, and

finishing),

Ceramics,

Paint and glass

making

Food and beverage

Jalalabad Gas Distribution Company Ltd. working

for gas line connection to the zone . Surface water

is available from the Kushiyara River within 2

km. Appointment of Developer is in progress.

Figure 7: Master Plan of Shrehatta EZ

Page 22: BEZA Annual Report 2016

Annual Report 2016 Page 21

Sabrang Tourism Park

Sabrang Tourism Park will be the first exclusive tourism park in the Cox‘s Bazar district, encompassing

an area of 1027 acres. Sabrang is an amazing hilly and sea beach territory, multifaced, diverse and

admirably beautiful site. The purest air, lofty hill, sea

and lagoon create perfect conditions for the

development of all types of tourism & entertainment.

Connectivity:

Road: The proposed Park is 5 km away from Teknaf

town. Cox‘s Bazar-Sabrang Marine Drive is the access

road to the proposed Park and this connects the

National Highway (N1) .

Air: Cox‘s Bazar Airport is at a distance of 96 km from

the proposed Park. The proposed Park takes around 1.5

hours of travel time by road.

Port: Teknaf Land Port is only 9 km.

River: Naaf River is only 8 km from the zone.

Competitiveness:

• Located with exclusive beach front

• Half an hour Sea cruise to St. Martin- a coral island

• 9 km away from Teknaf land port

• 30 Minutes proximity to Cox‘s Bazar Domestic

International Airport

• Access to the Bay of Bengal

• Well-connected by road and sea

• Availability of local operators in tourism sector

• At the lip of the island Bador Mokam One can

enjoy bot sun rise and sun set , besides having sandy beach.

2 http://www.beza.gov.bd/wp-content/uploads/2015/10/BEZA-Brochure-2015.pdf

Item Key Information2

Employment

Creation ~40,000

Current

Development

Feasibility

Study

EIA

Road Network

Embankment

Land

Development

Suitable

Industries

Hotel complexes,

Eco-tourism,

Recreational

facilities, Business

tourism, theme

parks, Marine

Aquarium, Water

Sports, Water

tourism, Education

& Health Tourism

Figure 8: Layout Plan of Sabrang Tourism Park

Figure 9: Natural view of Sabrang Tourism Park

Page 23: BEZA Annual Report 2016

Annual Report 2016 Page 22

Proposed Master Plan for Sabrang Tourism Park

Figure 10 : Master Plan of Sabrang Tourism Park

Page 24: BEZA Annual Report 2016

Annual Report 2016 Page 23

Naf Tourism Park (Jaliardiwp EZ) Naaf Tourism Park will be the first river based exclusive tourism park in the Cox‘s Bazar district

encompassing an area of 271 acres. Naaf is an amazing island in the middle of the Naf river and it

liesbetween the border of Myanmar and Bangladesh. Have a hill and river view territory, multifaced,

diverse and admirably beautiful. The purest air, lofty hill create perfect conditions for the development of

all types of tourism & entertainment facilities. It hasa nice hill view on both side ( Teknaf of Bangladesh

and Mongdu of Myanmar

Connectivity:

Road Connectivity: The proposed Park is 2 km away from Teknaf town. Cox‘s Bazar-Teknaf

highway is the access road to the proposed Park and this connects the National Highway (N1)

Air Connectivity: Cox‘s Bazaar Airport is at a distance of 90 km. The proposed Park takes around

1.5 hours of travel time by road.

Port Connectivity: Teknaf Land Port is just opposite of the park.

River: In middle of the Naf river

Competitiveness:

Located in the middle of the Naf river

One hour Sea cruise to St. Martin- a coral island

Opposite of Teknaf land port

One hour drive to Cox‘s Bazar Domestic

International Airport

Access to the Bay of Bengal

Well-connected by road and river

Availability of local operators in tourism sector

Offsite Infrastructure facilities:

Hanging Bridge : A hanging bridge to be

completed by December 2017

Site Development Works (land fill) to be

completed by December 2017

Boundary Wall: To be completed by December

2017

Jetty

3 http://www.beza.gov.bd/wp-content/uploads/2015/10/BEZA-Brochure-2015.pdf

Item Key Information3

Employment

Creation ~10,000

Current

Development

Feasibility Study

EIA

Road Network

Embankment

Land Development

Hanging Bridge

Suitable

Industries

Hotel complexes, Eco-

tourism, Recreational

facilities, Business

tourism, theme parks,

Marine Aquarium, Water

Sports, Water tourism,

Education & Health

Tourism

Figure 12: Conceptual Plan of Naf Tourism Park Figure 11: Hanging bridge plan

Page 25: BEZA Annual Report 2016

Annual Report 2016 Page 24

Page 26: BEZA Annual Report 2016

Annual Report 2016 Page 25

Narayanganj EZ

Narayanganj EZ will be the one of the closest EZ from

Capital city Dhaka . Narayanganj is 32 km away from

Dhaka city.

Connectivity:

Road Connectivity:

Narayanganj-Munsiganj Highway (R812);

Bandor-Madonpur Highway (R113); and

Dhaka-Narayanganj Link Road (R111)..

Sitalakhya Bridge is proposed across the Sitalakhya

River, which will link the capital with Sylhet and

Chittagong highway through Demra and

Narayanganj. Once functional, it shall connect

Madanpur-Madanganj-Sayedpur Road (R113) and

Fatullah (Panchaboti)-Munshiganj (Muktarpur)

Lohajang-Mawa Road (R812

Air Connectivity

Narayanganj EZ is located about 48 km from Hazrat Shah Jalal International Airport at Dhaka.

Port Connectivity

Proposed EZ is located at a distance of about 254 km from Chittagong port .

Rail

There are two major railway stations in Narayanganj district viz. Narayanganj and Chashara.

Narayanganj railway station is located at a distance of 7 km from the proposed EZ.

River

The proposed EZ is located adjacent to the confluence of three rivers viz. Meghna, Dhaleswari

and Shitalakhya.

Narayangunj river port is located within 3.5 km (Water way).

Item Key Information4

Area 316 acres

Access 32 km from Dhaka

Competitiveness

Proximity to highway

and waterway;

availability of power.

Employment

Creation ~70,000

Current

Development

Feasibility Study

EIA

SIA

Resettlement Plan

Suitable

Industries

Garments industries,

knitwear garments,

cold storage,

shipbuilding, Cement

etc.

Page 27: BEZA Annual Report 2016

Annual Report 2016 Page 26

Dhaka SEZ

Dhaka SEZ is located in Keraniganj upzila which is 18 km

away from the zero-point of Dhaka City.

Road Connectivity

EZ is located in between Zinzira-Keraniganj-

Nawabganj-Dohar-Srinagara Road (R820) and

Dhaka Mawa highway (N8)Air Connectivity

Dhaka SEZ is located about 30 km North East of

Hazrat Shahjalal International Airport in Dhaka.

Port Connectivity

Dhaka SEZ is located at a distance of about 254 km

from Chittagong port

River Connectivity

The proposed EZ is located adjacent to the

Dhaleswari river.

Dhaka river port is located within 6 km (Water

way).

Item Key Information5

Area 105 acres

Access 18 km from Dhaka

Competitiveness

Proximity to highway

and waterway;

availability of power.

Employment

Creation ~20,000

Current

Development

Feasibility Study

EIA

SIA

Resettlement Plan

Suitable

Industries

Information

Technology,

Packaging,

Pharmaceuticals,

Shipbuilding ,

Cement, Electronics,

and LPG

Figure 13 : Location map of Dhaka SEZ

Page 28: BEZA Annual Report 2016

Annual Report 2016 Page 27

Mirsarai Industrial City -The First Planned City

Mirsarai Industrial City will be

one of the most suitable large

sites of Bangladeshfor setting up

industrial establishments. It is in

the strategic location of Dhaka-

Chittagong industrial corridor. In

Mirsarai, as well as, in Chit-

tagong division, business costs

and cost of living are significantly

lower than those of the other

competing cities of the world.

At present the area of Mirsarai

site is about 20000 acres and

future expansion is possible up to

30000 acres. Mirsarai Industrial

City will drive , forward the

delivery of a truly world-class

business and industrial centre. For

Mirsarai Industrial City, BEZA

would like to build strong

partnership with the private sector

and local entrepreneurs. BEZA

has its time needed planning to

develop a comprehensive master

plan for developing the 1st self-

contained Industrial City in

Bangladesh, incorporating

Airport, Residential Area ,

Tourism Park, Power Plant,

Hospital, School and University.

We are committed to assist,

encourage and facilitate

investment in the Mirsarai

Industrial City. Now, BEZA are

working on detail Master Plan for

Mirsarai Industrial City.

LNG gas Connection Karnophuly gas

distribution Company Ltd.

working for LNG

connection to Mirsarai

industrial city.

Mirsarai EZ protection Embankment

to be constructed by BWDB ECNEC approed a project for

Mirsarai EZ protection . Total

cost of the proejct is BDT. 1182

crore

The duration of the proejct is

upto Dceember 2018

Power Grid Station

PGCB will establish a high voltage power grid station for dedicated power

Page 29: BEZA Annual Report 2016

Annual Report 2016 Page 28

Moheshkhali –The Next Planned City

Moheshkhali will be another planned Industrial city in our Country. A co-ordinated land use plan has

been developed by BEZA for Moheshkhali Upazila to accommodate Deep Sea Port, Utility infrastructure,

Industrial and Entertainment Zone, LNG terminal and Power Plant.

Figure 14: Conceptual Plan of Moheshkhali planned city

Area Distribution in Acre

A = CPGCBL -1414 J = Cox’ Bazar SE Z -11285

B = CPGCBL -1200 L = Gas Transmission Line -83.4

C = CPGCBL -1500 L = LNG terminal -700

D = CPGCBL -2000 M = Eastern Refinery -34

E = BPDB -5647 N = Roads & Highway -88.24

F = Industrial City – 8000 P = Fish Processing Plant -250

G = NAVY -100-1100-450 Q = Tourist Area -255

H = Coast Guards -5.1 R = Deep Sea port -2100

I = Maheshkhali EZ (1)- 1438 S = Coal Berth -250

K = Moheshkhali EZ (2) -827 T = FEZ -15000

O = Moheshkhali EZ (3) -670 W = Tourism EZ 1300

V = Coal Port -300 Y = Water Development Board 1540

Acre

X = Rail Line - 180

• Land use plan has been prepared by BEZA

• 7 EZ sites have been selected in Moheshkhali Island

• BEZA already got ownership of 16,962 acres land for Moheshkhali .

• JICA is funding for coal based power plant, Deep Sea Port and Township in Moheshkhali

• LNG terminal is being constructed to supply 500 MMCFD

• Moheshkhali is moving as a major power hub with 10000-12000 MW

• Railway and 4 lane Road connectivity are underway

Page 30: BEZA Annual Report 2016

Annual Report 2016 Page 29

Private Economic Zones

Private Economic Zones are established individually or jointly by local, non-resident Bangladeshis or

foreign investor, body, business organizations or groups.

The entry of the private sector into zone development has also changed the range of facilities, services

and amenities available within zones. Recent trends tied to the increase in private zone development

include the development of EZs and industrial estates on an integrated basis rather than stand-alone

basis, increased specialization of facilities catering to the unique needs of target industries (hi-tech,

petrochemical, software, among others) and the provision of a greater range of business support services

and specialized facilities.

BEZA has developed Private EZ policy for private developers. In the 1st phase BEZA has issued 4 Pre-

Qualifications license to AK Khan, Abdul Monem and Meghna group of industries . After obtaining pre-

qualification license from BEZA, all private developers have started on-site development activities. In

the 2nd

phase BEZA has issued another 3 pre-qualification license to Bay Private EZ, Aman Private EZ

, Arisha Private EZ and in the 3rd

phase BEZA issued another 4 Pre-Qualification license to United

City IT park,

Bashundhara SEZ

and East West SEZ .

Total USD 488

invested by the private

Economic Zone

developers

PEZ License to A.K. Khan

PEZ license to Abdul Monem

PEZ license to Meghna Economic Zone and Meghna

Industrial Zone

AK KhanEZ

AbdulMonem

EZ

MeghnaEZ

MeghnaIEZ

Aman EZ Bay EZ Arisha EZ

35 65 56 40

68 63

160

Figure 15 Investment trend in PEZs

Page 31: BEZA Annual Report 2016

Annual Report 2016 Page 30

A.K. Khan Economic Zone

Location:

Danga, Palash, Narshingdi.

Total land:

Gross Area 200 Acres.

At a glance (Site Information)

By river:

320 km (171 nautical miles) from Chittagong

port, directly connected with the River

Meghna& thus well connected with

Chittagong &Mongla port.

Employment Projection:

Approximately 40,000 workers

Other Key Information

A Riverside Inland Container Terminal

(RICT), as an Integral part of AKPEZ, will

cater port services to all Industries & Factories

of AKPEZ and it will be additional incentives

of this AKPEZ over the road connectivity for

its all investors whose products will need port

services. The attractiveness and advantages

are the followings:

Big scale logistic center will not be

required for the factories & industries of

AKPEZ due to presence of Container

Terminal at their door step .Only small space

for logistic /container truck will be sufficient

for the investors in AK Khan PEZ.

All the industries & factories of

AKPEZ will get port services at their door

step instead of waiting for few days to get it

from Chittagong Port. Arrangement will be

made to provide BL on boarding the container

on the barges of AKCT which will work as a

part of AKPEZ. Saving of time to get this BL,

which is bankable document, will be a great

advantage for the investors of AKPEZ.

For transportation of their cargo,

factories & industries of AKPEZ will be

benefited by using river route which is more

cost effective, safe & environment friendly as

compared to road transportation.

In house port facility

Quick shipment of goods, raw materials &

finished products

Nominal transport/ logistic cost for shipment

Free from any sort of strike / ‘hartaal’,

resulting in lower lead time

Easier & faster ICD storage facility

Special Storage facility for high-value import &

export items

Substantial reduction of production & operating

costs

Figure 16: Pre-Qualification License to A K Khan EZ

BEZA awarded license to A.K. Khan Group

on 10 February 2015

Construction of boundary wall is almost

completed

A.K. Khan has invested ~US$ 35 million

A.K. Khan has purchased additional land for

further expansion

Sand filling work for the land development is

in progress

A.K. Khan has completed EIA and Feasibility

study

Construction of boundary wall is almost

completed

DoE clearance is under final stage

Page 32: BEZA Annual Report 2016

Annual Report 2016 Page 31

Abdul Monem Economic Zone (AMEZ) EZ Site

AMEZ is located in Gazaria, Munshiganj on a land parcel of 216 acres with an option to expand up to

300 acres

Accessibility

Excellent Location at the Gateway to Dhaka

(Only 37 Km)

61km from Hazrat Shahlajal International

Airport

240 km for Chittagong Sea Port & 313.4 km

from Mongla Sea Port

600m from MeghnaGhat River Port

World Class Infrastructure

Industrial plot for long-term or short-term

lease

Utility Service (Captive Power Plant for 24/365, Water supply, Sewage treatment)

Multi-Modal Logistics & Dry Port (Road, River and Rail)

One-Stop Administrative Services

Commercial facility services (financial institutions, retail shops, restaurant & recreation centers

etc.)

On site Dormitory/Housing for employees, etc

Potential Industries : Textile & Garment and Accessories, Leather Products & Shoe Industry,

Pharmaceuticals, Food Processing, Plastics & Other Consumer Goods, Machinery Parts & Light

Engineering, Automobile & Accessories, etc

BEZA awarded license on 1 March

2015.

Abdul Monem invested US$ 65.42

Million

60% construction of Boundary wall is

completed

MoU is signed with 02 unit investors

Earth filling is almost completed

Feasibility study and Master Plan

have been cleared by BEZA

DoE cleared the EIA

Figure 17 : Construction activities of AMEZ

Page 33: BEZA Annual Report 2016

Annual Report 2016 Page 32

Meghna Private Economic Zone

Meghan EZ is the first private EZ license holder

in Bangladesh . Meghna Economic Zone (MEZ)

is situated at Meghnaghat, Sonargaon,

Narayanganj on the bank of the river Meghna

adjacent to the Dhaka – Chittagong highway.

Meghna Economic Zone is a sister concern of

Meghna Group of Industries-one of the biggest

and leading conglomerates in Bangladesh. This

Economic Zone is suitable for industries like Pulp

& Paper, Tissue Paper, Sanitary Napkin, Baby

Diaper, PVC plant, Oil Refinery, Flour Mill,

Power Plant, Petrochemicals, Ceramics and LPG

plant or any other industry at the choice of the Investor.

Connectivity:

Road Connectivity: Only 1 km away from Dhaka-Chittagong highway;

Rail Connectivity: 27 km away from Kamalapur Railway Station;

Air Connectivity : 38 km away from Hazrat Shahjalal International Airport (HSIA);

Port Connectivity: River port is quite adjacent to

the MEZ and Chittagong Sea Port is 230 km away

from MEZ.

Employment Projection: employment opportunity

is expected to be created more than 20,000.

Total land area of this zone is 68 acres

EIA report has been approved by

Department of Environmental on

03/08/2016 for Meghna EZ,

Environmental Monitoring is going on.

BEZA awarded license to Meghna PEZ

on 11 May 2015.

Meghna group invested US$ 56 Million

Construction of Boundary wall is 80%

completed

Construction of administrative building

is going on

Land development work is going on

Feasibility study and Master Plan have

been cleared by the BEZA

DoE cleared the EIA

Figure 18 : Factory building within the zone

Page 34: BEZA Annual Report 2016

Annual Report 2016 Page 33

Meghna Industrial EZ Meghna Industrial Economic Zone (MIEZ) is located at ChotoShilmandi,

Sonargaon, Narayangonj quite adjacent to the Dhaka – Chittagong highway with a gross area of 80 acres.

This is the 2nd

Economic Zone of Meghna Group.

Key site facts:

Total Land: Gross Area 80 Acres

Connectivity:

Road Connectivity: Quite adjacent to Dhaka-

Chittagong highway;

Rail Connectivity: Only 23 km away from

Kamalapur Railway Station;

Air Connectivity: 34 km away from Hazrat

Shahjalal International Airport (HSIA);

Port Connectivity: River port is 4 km

away from the MIEZ and Chittagong

Sea Port is 234 km away from MIEZ.

Suitable Industries: BOPP, Pharmaceutical Bottle, Ceramics,

Garments, Garments accessories, Auto

Bricks, Beverage, IT, IT Accessories etc.

or any other industry at the choice of the

Investor.

Estimated Cost of Infrastructure: $120

million for On-site Infrastructure and $3.5

million for Off-site Infrastructure.

Employment Projection: More than

10,000 employment opportunities is

expected to be created.

BEZA awarded license to Meghna

Industrial EZ on 11 May 2015

Meghna group invested US$ 14.92

Million

Construction of Boundary wall is in

progress

Appointed TAS firm for Feasibility

study .

Figure 19 : Master Plan of MIEZ

Page 35: BEZA Annual Report 2016

Annual Report 2016 Page 34

Aman Economic Zone

Aman Economic Zone has a gross area of 150 acres (aprox). The zone

has the potentiality to fulfill the conditions to become a successful economic zone with several number of

industries of Aman Group located within this zone . The developer has a plan to attract foreign and other

domestic investment to this zone.

Key Site Facts:

Location:Boidder Bazar, Sonargaon,

Narayangonj zilla in Hariamouza, Choto Daho

Bhugmouza & Sonamoymouza.

Total Land:

Gross area150 acres (approx.), 90 acres are

under construction & rest 60 acres are for

gradual.

Connectivity:

Aman Economic Zone is well

connected to Dhaka & Chittagong.

4 km from Mograpara Chow Rasta

towards Ananda Bazar Road to East,

South east from Loknath Mondir at

Barodi through LGRD road via connecting road to Sylhet

Narsingdi Highway.

Have convenient access through Meghna River.

• Major Milestones:

• BEZA awarded license to Aman EZ on 15

February 2016

• Aman group invested US$ 68 Million

• Construction of Boundary wall, land development ,

administrative building is in progress

• Aman cement invested US$ 120 million

• Feasibility study and Master Plan have been

cleared by the BEZA

• DoE has been cleared the EIA

Figure 20: Unit investment within the Aman EZ

Page 36: BEZA Annual Report 2016

Annual Report 2016 Page 35

Bay Economic Zone

Bay Economic Zone is owned by Bay Group. Bay Group is one

of the largest manufacturer and exporter of leather goods in

Bangladesh. Bay EZ is focusing mainly on manufacturing and export of leather goods from the zone,

followed by other industries.

Key Site Facts

Location: Konabari within Gazipur Sadar Upazila of

Gazipur district besides Dhaka-Tangail road.

Total Land: 60 Acres

Connectivity:

Road: Only 34 Km from Dhaka City & beside

Joydevpur-Tangail Highway.

Airport: Only 22 km from Hazrat

Shahjalal International Airport.

Sea port: Only 292 Km from CTG sea

port

Rail:…………….

Employment: Total Employment 100,000

persons (Appox)

Proposed Industry: Leather product &

Shoe,Shoe material & accessories, Agro

Based,Food processing,IT Chemical,

Electronic,Light Medical Equipment

Bay Economic Zone At a glance……….

Excellent scope of Future Expansion

Land is fully owned by Bay Group.

Smooth Connecting Point with the sea

port & land port through highway.

Designed by highly experienced

architect

Fully supported by BEZA .

Milestones:

BEZA awarded license to Bay EZ dated on

11 February 2016

Bay group invested US$ 63.38 Million

Construction of Boundary wall, land

development is in progress

MoU is signed with 02 unit investors

development , administrative building is in

progress

Feasibility study report submitted to BEZA

Preparation of EIA is in progress

Figure 21: Conceptual Plan of Bay EZ

Page 37: BEZA Annual Report 2016

Annual Report 2016 Page 36

Arisha Economic Zone

Arisha Economic Zone, owned by Maisha Group, is located at outskirt of Dhaka city

and on the bank of river Turag under Keraniganj Upazila of Dhaka.

Key Site Facts

Arisha Economic zone will be a multi-sectoral as well as closest EZ to the Capital city of Dhaka

encompassing on area of 150 acres, plot size of 2000 sqm each.

Location

• Washpur (Basila), Keraniganj Upazila of Dhaka district

• Only approx 4 km away from National Parliament Bhaban

• Desirable location for mid-level professionals and executives for civic facilities availability

Connectivity

• Located along the Mohammadpur-

Keraniganj 120 feet highway

• A major rail track for passenger and

freight transport

Kamlapur Railway junction only 15

km from the zone

• Shahajalal International Airport is

only 17 km from the zone

• Adjacent to the Burigonga river, A

dedicated jetty will be constructed

with the zone

• Chittagong Sea port 250 km,

Mongla Sea port 150 km

Infrastructure Facilities

Site Development Works almost 80% completed, Rest 20% land filling is in progress

Container Depot and Customs Office will be established

Boundary Wall 80% completed, rest 20% construction work is in progress

Admin Building 1st floor completed, another 10 floor will be constructed soon

Fire Station, Medical Centre, STP, Five Star Hotel Facilities, Investor Club

Suitable for Industries

• RMG

• Light Engineering & Auto Parts

• Finished Leather Goods

• Packaging

• Aeronautical Component Industry

• Telecommunication

• IT-enabled services

• Electronics

Automobile/Motorbike Assembly

• Milestones: BEZA awarded license to

Arisha EZ on March14, 2016

• Arisha group invested US$ 160.32

Million

• Construction of Boundary wall is in

progress

• Appointed consultancy firm for feasibility

study and EIA.

• 90% Land development completed

Figure 22 : 3D picture of Arisha EZ

Page 38: BEZA Annual Report 2016

Annual Report 2016 Page 37

G2G Economic Zones

G2G EZs are being established upon initiative by the government of a foreign country or the

Government of Bangladesh and/or in partnership between Government of Bangladesh and Government

of a foreign country.

We have received several requests from

various Asian countries like, Japan,

China, and India to develop G2G EZ.

Up to now India has signed MoU to

invest in 2 EZs, one in Kushtia

(Bheramara), another in Mongla.

Indian G2G:

Kushtia Economic Zone

Located in Bheramara Upazila, Kushtia

EZ has a total area of 477 acres. The

proposed area is situated within the 1

km form Hardinge Rail Bridge and Lalonshah RoadBridge. Proposed EZ is well connected through

river, road, railway and air. It is also near the Irshordi EPZ situated at the opposite side of the Padma

River. The existing India-Bangladesh 500 MW electricity line is within 2 km, water source from Padma

river is 1 Km away and gas line is within 5 km radius. BEZA signed an MoU with India for establishing Kushtia Economic Zones for the Indian investors. Mr. Paban Chowdhury, Executive Chairman, BEZA has signed the MoU on behalf of Bangladesh and Foreign Secretary Jaishankar signed on behalf of India.

The first meeting of

the Bangladesh-

India Joint Working

Group (JWG) on the

establishment of

Indian Economic

Zones (IEZs) in

Bangladesh was

held in Dhaka on

May 10, 2016.

Figure 23 : Meeting of the Bangladesh-India Joint Working Group (JWG)

Page 39: BEZA Annual Report 2016

Annual Report 2016 Page 38

Mongla Economic Zone (Indian G2G)

The proposed site for Mongla economic zone shares close proximity (within 200 meters) with Mongla

port, providing strategic advantage in terms of accessibility to various international market for trade.

The major export commodity handled in Mongla port includes jute, jute products, frozen food/shrimps,

clay tiles, betel nuts majority of which will be handled in containers. The frozen economic goods exports

have been increased since 2002 and is estimated that majority of the entire shrimp exports has been

conducted through Mongla, about 70% of which is destined to Europe and the rest to the US. Further,

there are few commodities such as coal, garments, leather, machineries etc. which are expected to be

handled by the port in coming years on account of thrust and high traffic at Chittagong port. Clinker is

one of the major components general imports through Mongla port‘s for the local cement plants that has

been increased in last few years due to regional infrastructural development projects. Food grains,

fertilizer, slag, fertilizer, gas, machineries and motor vehicles are other major commodities handled at

Mongla Port, together accounting for ~90% of total imports. The potential of Mongla port has not yet

been utilized like that of the Chittagong port. Government of Bangladesh is actively considering

revitalizing the port to become a national port with capacity / activity comparable with Chittagong port.

Mongla also enjoys the advantage of being along the banks of an inland river, especially since inland

water transport is a major mode of transportation in the country. Government plans to construct the

Padma Bridge as part of the Bangladesh Southwest Road Network Development Project. Following the

opening of new bridge road distance between Dhaka and Mongla will be reduced to 189 km, 74 km less

than the present 264 km distance between Dhaka and Chittagong – and the road will be much less

congested. The bridge is expected to revive the Mongla port, which is now operating at very low

capacity due to the long travel time required to reach Dhaka and other key locations.

In order to exploit the above opportunities and advantages India Government has become interested to

develpe one Economic Zone near Mongla Port to host investment exclusively from India.

BEZA signed an MoU with India for

establishing Mongla Economic Zones.

Paban Chowdhury, Executive Chairman,

BEZA signed the MoU on behalf of

Bangladesh and Foreign Secretary

Jaishankar signed on behalf of India.

Honourable PM Sheikh Hasina handed

over a replica map of the Mongla EZ to the

Indian Prime Minister Narendra Modi at

Shapla Hall, PMO. India will extend credit

facility for development of the EZs.

Page 40: BEZA Annual Report 2016

Annual Report 2016 Page 39

Chinese G2G EZ:

Anwara-2 (Chinese Economic and Industrial Zone ) Chinese Economic and Industrial Zone will be the first

specialized G2G economic zone, with an existing area of 774

acres. It has the potential to meet all the necessary conditions

to become a successful Economic Zone. Once the economic

zone is established, it is expected that there will be a huge

demand f or industrial plots, from potential investors.

China Government has nominated China Harbor & Engineering Company Ltd. as the developer and a

draft of SPC has been agreed with BEZA for development and operation of this zone.

The Zone has access to water transportation The site is suitable for export oriented industries due to

proximity of largest sea port of Bangladesh. It is expected to create employment for 1, 00,000 youth.

Location: Anowara Upazila, Chittagong .

Land area (acre) : 774.42

Multilane Tunnel is proposed under the River Karnaphuli. the multilane road tunnel shall reduce the

travel time and distance from Chittagong to the CIEZ

The CIEZ is located at a distance of 15 km from the Chittagong town.

Chittagong railway station is located at a distance of 17 km from the CIEZ.

The Port of Chittagong is the principal

Port of Bangladesh. CIEZ is located at a

distance of 18 km from Chittagong Port

CIEZ is located at a distance of 20 km

from Shah Amanat International

Airport, Chittagong.

Industries to be set up : Chemical ,

Automobile assembly , garments ,

pharmaceutical etc.

Figure 25 Proposed administrative Building of CIEZ

Figure 26 MoU with China Harbor Engineering Company Ltd

Figure 24 : Honorable Prime Minister with China President

Page 41: BEZA Annual Report 2016

Annual Report 2016 Page 40

Governing Board Meetings of BEZA

1st Governing Board Meeting

The Governing Board in its 1st Meeting held on 18 April 2012 with Honorable Prime Minister

Sheikh Hasina in the chair resolved the following;

A committee headed by Sr. Secretary, Economic Division, Ministry of Finance is was formed to

finalize BEZA e Employees s Service r Regulations, 2012 ;

A committee headed by Sr. Secretary, Economic Division, Ministry of Finance was formed to

review the Bangladesh Economic Zones Operation Rules, 2012, to send it to the Economic

Advisor to the Prime Minister and to send it to the Legislative and Parliamentary Affairs Division of Ministry of Law, Justice and Parliamentary Affairs with his observations for vetting;

The following sites were selected for setting up Economic Zones: Mirsarai EZ , Anwara EZ , Sherpur

EZ, Mongla EZ and Sirajganj EZ;

A committee headed by Executive Chairman BOI was formed to primarily select the sites for

future Economic Zones; The General Seal of BEZA was finalized; To avoid duplication in establishing special industrial area in different part of the country,

the Principal Secretary would take appropriate measures for proper coordination among the Ministries/ Authorities working for establishing industrial areas;

BEZA has undertaken initiative like promotional activities and study tours for reviewing development patterns, best practices and economic impacts of economic zones worldwide.

2nd Governing Board Meeting of BEZ

2nd

Governing Board meeting held on 18 February 2015approved- setting up of 17 Economic Zones

including 3 Private EZs;

Incentive package for developers and unit investors;

One stop service package;

Bangladesh Private Economic Zones Policy.

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Annual Report 2016 Page 41

In that meeting decision were made that-

G 2 G EZs with Japan , China and India could be established;.

Bangladesh Economic Zones Act, 2010 and the Bangladesh Economic Zones (Appointmant of

Developer etc.) Rules, 2014 should be amendment;

The Governing Board also fixed up the fees for License, Application for Prequalification Letter and

second Phase application for Final License for PEZ and the tenure of PEZ at 15 years with provision for

its extension.

3rd Governing Board Meeting of BEZA

Following decisions were taken in the 3rd

Governing Board meeting held on 27 July 2016: ;

Beside the existing economic zone in Jamalpur, initiative had to be taken to establish new zone by

creating land from river dredging;

initiative had to be taken to establish zone in Narshingdi District where land could be purchased

at a very low price;

Suitable place was to be identified for establishing economic zone in Sandeep of Chittagong

District;

Beside the existing zone in Bhola District suitable place had to be identified from Government

Khas land for setting up new EZ;

Zone had to be established in new char land on priority basis rather using arable land;

Measures had to be taken to increase the area of land in Patuakhali, Moinamoti, and Fulbaria,

Mymenshing Economic Zones;

Since in Ashuganj Economic Zone there

existed high tension electric line land had to be

searched in nearby place to establish Economic

Zone;

24 sitswere approved for establishment of

Economic Zones;

To accelerate the process of establishing G2G

Economic Zones, BEZA would coordinate with

relevant department and agencies;

Measures would be taken to amend the

Bangladesh Economic Zones Act, 2010 in the

next session of the Parliament;

To activate One Stop Service of BEZA, a Policy had to be framed;

BEZA had to prepare a standard manpower set up and to send it to the Ministry of Public

Administration for approval;

To attract investment, supply of Gas and Electricity and Internet required for the Economic

Zones relevant Ministries would take necessary measures;

To establish EZ in boarder area, Ministry of Foreign Affairs would take necessary initiative to

start discussion with Myanmar and India;

The draft of the Bangladesh Economic Zones(Appointment of Developer) Guidelines, 2015 was

approve with instruction to publish it after vetting and approval of the Prime Minister.

4th

Governing Board Meeting of BEZA

In the 4rth meeting of BEZA governing Board-

• High Power Committee was formed to determine land tariff for EZs managed by BEZA;

• In-Principle Decision was made for enactment of One Stop Service Act covering BEZA, BEPZA,

BIDA, HTPA and PPA;

Administrative power was delegated to BEZA to declare

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Annual Report 2016 Page 42

Strategic aspects of partnering with BEZA

Apart from providing sites for Economic Zones, BEZA also takes care of other strategic aspects needed

for development of these EZs. The

main features of these aspects have

been summarized below. Most of

the land provided are hassle-free;

various preliminary infrastructural

facilities will be provided to the

developers; whole set of attractive

incentive packages awaits for the

investors; BEZA will act a central /

one-stop go-to entity for a vast

gamut of clearances; appropriate

legislations in the form of Acts and

Rules are in place to render

structural strength to the whole process.

(i) Hassle-free Land

BEZA is essentially developing a land-bank all across Bangladesh for developers and unit investors,

resulting in well-connected industrial corridors spreaded across the country. BEZA is in the process of

acquiring lands and will acquire ~25,000 acres of land by the next year. Land for most of the sites are

hassle-free with minimum resettlement / rehabilitation issues. Most of the lands belong to government

without major land acquisition problems. This eliminates any risk of incurring extra cost or socio-

political turbulence for the developers and the unit investors.

(ii) Ready-made Infrastructure

All the sites are in close proximity to existing or planned ports, airports and National Highways,

thereby establishing seamless linkages / connectivity. This is augmented by availability of fresh water,

gas, electricity and readily developed land. BEZA will also provide some ready off-site infrastructure

facilities at the sites, viz. access road, admin building, boundary wall, retaining wall etc. BEZA will also

ensure supply of fresh water, gas and electricity and the construction of access roads and embankments

for the EZ premises. The following entities will ensure the same:

Proposed Economic Zones

Hassle-free Land

Ready-made

Infrastructure

Attractive

Incentives

One-Stop Services

Operations & Maintenance

Manual

Amended Legislati

ons

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Annual Report 2016 Page 43

(iii) Attractive Incentives

BEZA would provide multiple incentives, other than infrastructure provision, to the developer of the

Economic Zone as well as to a particular manufacturing unit. Benefits to the zone developer will range

from income tax exemption to citizenship. The incentive structure for investor unit is also attractive,

ranging from fiscal incentives such as exemption of taxes, custom / excise duties to non-fiscal incentives

such as no FDI ceiling, work permits related and recommendation for Resident ship / Citizenship. BEZA

has taken vast initiatives such as; One Stop Service , attractive Incentive Packages to attract domestic

investors as well.

Incentive to Investors/Developers and its Circular

Table 1 : Incentives for EZ Developer

SL Incentive Explanation References

1 Income Tax Exemption for 12 years 1st 10 years – 100%

11th year – 70%

12th year – 30%

SRO No 227-law/IT/2015

2 VAT Exemption on Electricity Extent -100% Approved in GOB,

SRO yet to be issued.

3 VAT Exemption on local purchase Extent -100% Approved in GOB,

SRO yet to be issued

4 Exemption of CD on import Extent -100% SRO No-208/law/2015/45/

Customs.

MS Rod, Cement, Pre-Fab will

not be exempted

5 Exemption of Stamp Duty & reg.

fees for registration of land transfer

Extent -100% SRO No R-6/IM-8/85(part-1)-

330

dt.23-12-15

6 Exemption of Stamp Duty on

registration of loan document with

Scheduled Bank

Extent -100% SRO No.7-law/2016

7 Exemption of Land Development

Tax

Extent -100% SRO No.5-law/2016

8 Exemption of Local Govt. Tax(

Union Parishad)

Extent -100% SRO No.333-law/2015

9 Exemption from enforcement of BOI

Act in EZ

Extent -100% SRO No.108-law/2015

Table 2 : Incentive to investors

SL Incentive Explanation References

1 Income Tax Exemption for 10

years

Extent -100%

(for 1st, 2nd

, 3rd

year)

4th year – 80%

5th year – 70%

6th year – 60%

7th year – 50%

8th year – 40%

9th year – 30%

SRO No 226-law/IT/2015

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Annual Report 2016 Page 44

10th year – 20%

2 VAT free Import of Machinery,

Construction Materials.

Extent -100% SRO No 209-

law/2015/46/Customs.

3 Duty free Import of Vehicle (One

Car, One Microbus- 2000 cc)

Extent -100% SRO No 210-

law/2015/47/Customs.

4 Declaration of EZ as Ware

housing Station- Duty free import

& Export of Raw material etc.

Extent -100% SRO No 221-

law/2015/48/Customs.

5 IT Exemption on salary of

Expatriates

Extent -50%

-3 years

SRO No 298-law/IT/2015

6 Exemption from Dividend Tax &

Royalty, Technical fees

Extent -100%

-10 years

SRO No 299-law/IT/2015

7 Exemption from Local Govt.

Tax(Union Parishad)

Extent -100% SRO No.333-law/2015

8 Exemption from land

development Tax

Extent -100% SRO No.05-law/2016

9 Exemption from registration fees

on land transfer & loan document

Extent -100% Circular -R-6/1 M-8/85(part-1)-

330

10 Exemption from stamp duty for

loan document created by

Scheduled Bank

Extent -100% SRO No.07-law/2016

11 Exemption from stamp duty on

lease of land/space

Extent -50% SRO No- 06-law/2016

12 Exemption of VAT Extent –Gas - 80%

Water - 80%

Electricity - 80%

Supplies - 100%

SRO No.168-law/2015/735-

VAT

Table 3 : Unit Investors – Non-Fiscal

SL Incentive Explanation Reference

13 Repatriation of Capital & Dividend Extent -100%

FE CircularNo.04

dt.14-2-16

14 No Ceiling of FDI Extent -100% FE Circular No (general )/

Industrial Policy

15 100% Backward Linkages of raw

materials to sell for E0I

Extent -100% FE Circular No. 04

16 Sale of finished product to DTA

from EPA

Extent -20% Approved in GoB. Customs

rules (EZ) yet to be published

17 Sub-Contracting with DTA Extent -100%

Approved in GoB. Customs

rules (EZ) yet to be published

18 Exemption of Double Taxation Subject to Double

Taxation arrangement

General IT Rules

19 Foreign Loan Extent -100% FE Circular (general) FE

Circular no. 04

20 Remittance of salary by expatriates Extent -75% FE Circular no. 04

21 Repatriation of Sale proceeds of

non-resident owned equity

Extent -100% FE Circular- 32

22 Repatriation of Royalty, Technical

fees

Extent -6% of Import

value of Machinery

FE Circular

23 FC Account for non-resident Extent - Full FE Circular (general)

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24 FC Account for local & JV Extent - Full FE Circular (general)

25 Formation of JV Extent - Full Industrial policy

26 Issuance of work permit 5% of total employee Approved in GoB

27 Transfer of shares by foreign

shareholder to local

Extent - Full SEC circular

28 Re-investment of remittable

dividend as new investment

Extent - Full Industrial Policy

29 Resident Visa with $1,00,000 Extent - Full Industrial Policy

30 Citizenship with $10,00,000 Extent - Full Industrial Policy

One-Stop Services ‗One stop services‘ (OSS) is one of the ways employed around the globe to facilitate investment. It is the

way to enable domestic as well as international investors to submit regulatory documents at a single

location and/or to a single entity, which in turn facilitate

the investor to obtain necessary clearances. PwC (India),

a consultant firm appointed by BEZA, has designed OSS

services outlines based on which an OSS Act is being

drafted now.

BEZA has taken the initiative to develop and initiate one

stop service for investors. A total of 31 services has been

identified which will provided by an automated OSS

portal integrated in BEZA website. To provide OSS

services, as some of the Zones are going through

development, BEZA has planned to develop and initiate

OSS in a phase by phase manner, initially services will

be provided by a third party solution provider with per

service per investor basis rental. It will be started with

small number of initially required services then scale up

as required. A research and development work will go on

parallel for designing, development and testing of

BEZAs own OSS system. Hardware like basic network

solutions, server and storage units are on procurement

stage which will initially act as the platform for the rental

OSS and R&D.

On the initial stage a MoU has been signed with a software development company to develop and provide

five OSS service (Project Clearance, VISA recommendation, Work Permit Recommendation, Import

Permit and Export Permit) on rental basis.

Establishing investment friendly environment

To make the regulatory / clearance system investor friendly, BEZA is conceptualizing One-Stop-Service

(OSS) mechanism which will provide the investor with a single point of contact for necessary regulatory

clearances/registration required for setting up business in Bangladesh. BEZA will in turn coordinate with

respective authorities to ensure time bound clearances and approval. The aim of the service will be to

streamline and ease out the process of establishing business in its EZs. Also, having to deal with single

authority is likely to get more transparency in the system. The figure below illustrates the key value

proposition of OSS.

Investors (Developers and Unit Investors) Government

Reduction in time and effort

Cost saving through reducing potential

Ease in ‘Starting a Business’: Bangladesh

is ranked 115th by World Bank, ahead of

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Annual Report 2016 Page 46

delays

Smoother investment facilitation

Easy access to information

Transparent system of tracking the status of

approval

a few neighbouring countries; OSS may

result in attracting investment and

further stimulate industrial growth

Bringing transparency and efficiency in

the system

Removal of redundancy as information is

collected through Single Window

Better adherence to government

regulations

Current Developments 1. List of Services under BEZA’s Single Window

BEZA has performed detailed study to shortlist services it would provide under its OSS. The authority

appointed external party to study various Bangladeshi Laws, rules and regulation to identify

clearance/approval required to set up business in Bangladesh. The study identified around 31

clearances/approvals from different government authorities and agencies. Some of these clearances are

one-time in nature whereas the other requires renewal at defined intervals.

It also conducted consultation with private organization and with government authorities to understand

the challenges in the current approval processes. Their inputs provided insights on the challenges in the

current process and hence, supported in shortlisting the list of services.

Moreover, an international benchmark study was conducted to ensure that the services at BEZA are at

par with OSS provided by authorities in other developing countries. The table below provides the

shortlisted services that have been suggested to be included in BEZA‘s OSS.

2. Operational model for OSS

Apart from shortlisting the list of services, BEZA liaised with other government authorities and

conducted workshop to design the operational model for OSS. The services under OSS will be delivered

via one of the following modes:

(a) In-house Clearance/Approval

BEZA will develop in-house capacity and capability to provide few clearances. This would include

services like Boiler Registration, approval for captive power plant, VISA recommendation etc.

(b) Clearance to be provided by the developer with supervision from BEZA BEZA has a defined Building Plan Rules which provides directive on the structure of the building, on

the electrical and water plumbing plan. Under BEZA‘s OSS, BEZA may provide developer the

responsibility to ensure adherence to the code and hence, developer would provide clearance on

building plan, water plumbing plan and electrical plan clearance to the unit investors. BEZA, in turn,

will retain the rights to conduct audits to ensure adherence to the defined code.

(c) Liaison with other Government Authority/Department

For few clearances, BEZA would liaison with other government authorities. For instance, it would

coordinate with department of environment for location and environment clearance, local authorities

for VAT registration etc.

Establishment of OSS would create an investment friendly environment and helps investors to avoid the

hassle of dealing with multiple authority. Moreover, BEZA recognizes that OSS is an evolving process

which needs to respond to policy alteration, technology improvements and change in the requirement of

the investors. Hence, BEZA intends to regularly revisit and update the portfolio of services provided

under OSS along with incorporating the impact of technological improvement on service delivery.

To a great extent, the fate of zone initiatives has been determined from the outset, by the choices made in

the establishment of policy frameworks, incentive packages, and various other provisions and

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Annual Report 2016 Page 47

bureaucratic procedure. We hope that the introduction of OSS and attractive incentive package will

perform their purpose of attracting investments for Bangladesh.

(v) Operations, Maintenance and Quality Assurance Manual

BEZA has conceptualized preparation of Operations & Maintenance (O&M) Manual in order to set up

guidelines pertaining to operations, management & maintenance and quality assurance for economic

zones in Bangladesh. PwC (India) prepared separate manual for Mongla, Mirsarai-1, Mirsarai-2 and

Sreehatta EZ.

In any economic zone, area is demarcated into two parts viz. processing zone (development of land or

premises for the intended industrial usage) and non-processing zone (development of support activities

such as medical, educational, residential, lifestyle facilities). O&M Manual intends to provide standard

guidelines of development and operation activities for land use pattern in both the processing and non-

processing zone areas. Detailed provisions have been captured in this manual on various aspects such as:

Industrial use, Commercial and amenities, Transportation use, Utilities and Green zoning etc.

Social and Environmental Compliance The Economic zones are set to contribute immensely in the economy in Bangladesh as well as socio

economic development of the country. The Social Impact Assessment is one of the important

compliances for establishment of Economic Zone. The SIA help to understand positive and negative

social impacts of zone. The mojow social studies carried out by BEZA are in the followings:

Prepared 08 social Screening Report e.g. Mongla , Shrehatta,

Mirsarai, Dhaka SEZ , Sabrnag Tourism Park, Jaliardiwp SEZ,

Narayanganj EZ and Anwara-2 (CIEZ)

Prepared Social Impact Assessment (SIA) for Mongla ,

Shreehatta EZ , Mirsarai EZMirsarai-2, Sabrang Tourism Park,

Jaliardiwp SEZ, Dhaka SEZ, Narayanganj EZ, Anwara-2 EZ

(CEIZ).

Prepared Abbreviated Resettlement Plan for Mongla EZ

Prepared Resettlement Plan for Shreehatta EZ, Mirsarai-2,

Dhaka SEZ, Narayanganj EZ, Anwara-2 EZ (CEIZ).

Preparation of Resettlement and Social Management Framework

BEZA has agreed RSMF and Ethnic Minorities People Plan with World Bank as a precondition to utilize

the fund under PSDSP loan agreement

Social Compliance for Mongla EZ

BEZA have already been implemented the Abbreviated Resettlement Plan for Mongla EZ as a part of

social Compliance. BEZA formed a grievance Redress Committee to answer queries and address

complaints and grievances about any irregularities in using the guidelines adopted in the RSMF and for

implementation of this ARP. Grievance Redress Committee (GRC) for the EZ consisting of

members as suggested in the ARP to ensure proper presentation of complaints and grievances, as

well as impartial hearings and transparent decisions. Based on consensus, the procedure will help to

resolve issues/conflicts amicably and quickly, saving the aggrieved persons resorting to expensive, time-

consuming legal actions. The RSMF contains certain procedural conditions, which BEZA will observe to

safeguard integrity of the GRM.

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Environmental Compliance In the Environmental Arena of the ‗Bangladesh Economic Zones Authority‘ capacity had been

built up in regard to environmental management and pollution control measures. Assistance was also

carried in proper implementation of industrial pollution control measures, to coordinate with the TAS

firms in carryout and approval process of Environmental Impact Assessment (EIA) studies for various

proposed EZs. Coordination & supervision of the environmental safeguard actions as per the legal

framework between WB & GOB was done as well as onsite guidance to the master Developers and

the contractors on the implementation of EMP and the EMF.

4.2 Environmental Clearance status:

Economic Zone Status of

ToR of EIA

Status of EIA Approval Remarks

PPP Zones

Mongla Approved by DoE

on 29/03/2015

Approved by DoE on

21/07/2015

Monitoring is going on as

per EMP of EIA

Mirsharai Approved by DoE

on 11/05/2015

Approved by DoE on

26/11/2015

Monitoring is going on as

per EMP of EIA

Sreehatta

(Sherpur) Approved by DoE

on 11/05/2015

Approved by DOE on

03/08/2016

Monitoring will be going

on as per EMP of EIA

Mirsharai-2 Approved by DoE

on 02/05/2016

Prepared by TAS firm and

Reviewed by the respective

committee

Feasibility study is going

and EIA has been

submitted to DoE

Jaliar Deep EZ Approved by DoE

on 13/06/2016

Prepared by TAS firm and

Reviewed by the respective

committee

Feasibility study is

ongoing and EIA has been

submitted to DoE

Sabrang Tourism

Park Approved by DoE

on 13/06/2016

Prepared by TAS firm and

Reviewed by the respective

committee

Feasibility study is

ongoing and EIA has been

submitted to DoE

Anwara-2 Approved by DoE

on 13/06/2016

Prepared by TAS firm and

Reviewed by the respective

committee

Feasibility study is

ongoing after that EIA will

be submitted to DoE

Dhaka SEZ Approved by DoE

on 13/06/2016

Prepared by TAS firm and

Reviewed by the respective

Feasibility study is

ongoing after that EIA will

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Economic Zone Status of

ToR of EIA

Status of EIA Approval Remarks

committee be submitted to DoE

Narayaganj Proposed TOR has

been submitted to

DOE, will

approved by

August, 2016

Prepared by TAS firm and

Reviewed by the respective

committee

Feasibility study is

ongoing after that EIA will

be submitted to DoE

PEZs

Abdul Monem Approved by DoE

on 02/05/2016

Approved by DOE on

03/08/2016

Aman Approved by DoE

on 02/05/2016

Approved by DOE on

03/08/2016

Meghna Approved by DoE

on 02/05/2016

Approved by DOE on

03/08/2016

Legal Framework of BEZA For rapid economic development of Bangladesh through industrialization, Employment

generation, upgrading the production level, earning foreign currency by expanding the export it was an

unavoidable necessity to establish an Authority to control and manage the setting up and operation of

economic zones planned to be developed and maintained on Public -Private Partnership basis, by

private sectors and Government initiatives. With that view, Bangladesh Economic Zones Act, 2010 (the

Act) was enacted with provision, among others, for establishing an authority naming Bangladesh

Economic Zones Authority, popularly known as BEZA. BEZA was established under Section 17 of the

Act. For smooth administration and proper management of the activities in respect of Economic Zones,

BEZA framed rules and formulated policy. Also for widening the scope of its activities, the Act and rules

have been amended. For attracting the investors, a competitive incentive package has been declared.

BEZA, with the support of the Project, has always been striving to bring improvement in the existing

provisions of laws and rules-regulations and also to formulate new rules and policies for meeting the

needs of the day, for protection of rights and interest of the investors and ,on the other hand, for

facilitating BEZA to properly perform its regulatory functions.

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The Project took up the program for updating and enriching BEZA‘s legal instruments of for the

purpose aforesaid, a Legal Consultant has been appointed. All the legal instruments, as of today, except

Bangladesh Economic Zones Act, 2010 (Act No. 42 of 2010) have been Prepared and after observing the

required process including discussion and sharing of views in the in-house meeting, inter-ministries

meeting, scrutiny by special purpose committees, and vetting as was required case to case, those have

been brought in to operation.

The Bangladesh Economic Zones Act was passed in 2010. Thereafter its Authentic English Text was

published as per requirement of Section 38 of this Act.

The following are the major achievements of project’s legal wing during last three years:

Framing of “Bangladesh Economic Zones (Appointment of Developer et.) Rules’

Section 38 of the Act, provides that, the Government, for achieving the objectives of the Act, may frame

Rules. Accordingly, Bangladesh Economic Zones (Appointment of Developer etc. Rules, 2014 have been

framed in Bangla version. For making it easily understandable to the foreign investors, its Authentic

English Text, at the initiative of the Project, has been published. The rules covers many important

principles including transparent competitive appointment of developer, tenure of the appointed

developer, Qualification, Rights, privileges and Duties of developers, suspension and cancellation of

developer‘s permit, Appointment of substitute developer, remedies of developer and Authority, interim

management of the Economic Zones in case of cancellation of Developer‘s permit etc.

A provision for formulation of guidelines for appointment of developers was very wisely incorporated

in these Rules with another enabling provision that until guidelines are formulated, the Authority may,

after obtaining approval of the Prime Minister, appoint developers in accordance with the Guidelines for

Formulation, Appraisal and Approval of Large Projects, the Guidelines for Formulation, Appraisal and

Approval of Medium Projects and the Guidelines for Formulation, Appraisal and Approval of Small

Projects formulated under the Policy and Strategy for Public-Private Partnership (PPP), 2010 issued by

the Prime Minister‘s Office‘s letter No. 03.068.014.03.00.005.2010 (Part-2) -323dated 1 August, 2010.

However, the Authority did not sleep over the matter and, with the assistance of the Project, took up the

task of formulation of guidelines before any unreasonable delay.

The Guidelines for Appointment of developer:

As required under Section 4 0f the Act, The guidelines for Appointment of Developer was drafted. The

Draft was finalized after sharing the views of a committee formed in an Inter-ministrial meeting, it being

vetted by the Law and Parliamentary Affairs Division of the Ministry of Law Justice and parliamentary

Affairs (LPAD of MoLJPA). the Guidelines has been publish though S.R.O. No. 44- Law/ 2016. The

guidelines was finally titled as ―The Bangladesh Economic zones ―(the Procedure of Appointment of

Developer) ― Rules, 2016, popularly Known as the Guidelines.

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This Guidelines is applicable to the Economic Zones and Special Economic Zones on Design, Build,

Finance, Operate and Transfer (DBFOT) basis through Public-Private Partnership (PPP). Noteworthy that

for Developer Agreement and permit etc. the guiding principles are contained in the Private Economic

Zones Policy, 2015. keeping in tact the eligibility, rights, privileges and duties of the developer, the

provisions of Rules 2014, these Guidelines are a complete set of rules to be followed from starting to end

of the process of appointment of developer.

To make the process of appointment of developer transparent, a prohibitory clause against Corrupt,

fraudulent, collusive, coercive, obstructive Practices have been incorporated and on the other hand

principle of competitiveness has been ensured in these rules. The Rules provides for two stage process (

RFQ and RFP) with discretion of the Authority to follow only one Stage inviting process, where

applicable. Provisions relating to Pre-application or pre-proposal meeting, site visit, addressing the

request for clarification, amendment of RFQ, opportunity of Modification, substitution or withdrawal of

application or proposal, etc. have made these rules flexible and on the other hand, the provision in respect

of strict evaluation process basing on the set criteria has enriched these Rules to the optimum standard.

The outline of what should be within the draft developer Agreement and moreover, the provisions of

Vetting of draft Agreement has ensured a quality daft of the developer agreement acceptable internally

and internationally. The Final approval by the Cabinet committee for Economic Affairs, as contained in

the process of appointment of developer, will make the process more transparent and free from any kind

of blemishes of arbitrariness on the part of the Authority.

Amendment of Law and Rules: A time needed steps

Amend of Bangladesh Economic Zones (Appointment of developer) (Rules, 2015.

Background: In the original Rules there were two major hurdles one of the Qualifications for being a

Developer was ―(i) at least 3 (three) years‘ experience in establishing and operation of sole, multiproduct

economic zone, special economic zone, industrial park or free port; and (ii) experience in designing of or

financing in at least one economic zone, special economic zone, industrial park or free port within last

3(three) years (iii) the amount of gross revenue of 25 million US Dollar per year within last 3 (three)

years for operation of economic zone, special economic zone, industrial park or free port ; and (iv) net

worth of at least 10 (ten) million US Dollar‖.

It was foreseen that none of the Bangladeshi person or enterprise would be able to come forward to

participate in the bidding process with the above two qualification Criteria, as none of them have such

experience as sought for t in the rules. Hence, initiative was taken for bringing changes in the rules

incorporating also other criteria also make the opportunity of competing in the bid only by economically

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Annual Report 2016 Page 52

sound person or enterprise modification in the amount of gross revenue has been made. After

amendment, the present qualification Criteria is “(a) experience in establishing and operation of sole,

multiproduct economic zone, special economic zone, industrial park or free port and operation thereof, or

experience in development, construction of infrastructure, management and operation of any large project

; (b) experience in designing of or financing in at least one economic zone, special economic zone,

industrial park or free port or any large project (c) the amount of gross revenue of 10 (ten) million US

Dollar per year within last 3 (three) years for operation of economic zone, special economic zone,

industrial park or free port or any large project ; and (iv) net worth of at least 25 (twenty five) million US

Dollar‖.

The positive impact of the above amendment is a large number of Bangladeshi enterprises, in

consortium with other local entities have been coming forward to participate in the bids for appointment

of developer with an intent to establish economic zones in Bangladesh.

Amendment of Bangladesh Economic Zones Act: A well thought endeavour for G2G initiatives

between Government of Bangladesh and government of Foreign countries and also between BEZA

and other Government organizations.

As envisaged under original Section 4 of the Act, there were four categories of Economic Zones,

namely- (i) Economic Zones established through public and private partnership by local or foreign

individuals, body or organizations;(ii)Private Economic Zones established individually or jointly by local

non-resident Bangladeshi or foreign investors, body, business organizations or groups; (iii) Government

Economic Zones established and owned by the Government; and (iv) Special Economic Zones

established privately or by public-private partnership or by the Government initiative, for establishing any

kind of specialized industry or commercial establishments. As the Government of some foreign countries

including Japan, China and India were showing their interest for joining hands with the Government of

Bangladesh for setting up, operation and expansion of Economic zones in Bangladesh, the Government of

Bangladesh found reasons, for rapid economic development of the country, to procced together with a

further view that Bangladesh may Take G2G initiatives with Government of any foreign country, if found

beneficial for Bangladesh. Secondly, BEZA took into consideration the fact that some Government

organizations have un-utilized fund and/or land and/or expertise that can well be utilized for the interest

of country‘s economy by developing and operating Economic Zones in collaboration with those

organizations.

But the Law, as cited above, was not supportive of establishing Economic Zones on G2G basis and on

joint initiative of BEZA and other Government organizations. Necessity therefore arose to go for

amendment of Law. As BEZA required, full assistance from the legal wing of the project was provided

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for drafting the amending Act. Overcoming all the procedural stages, the draft Act was presented as a

Bill which has been passed by the Parliament as the Bangladesh Economic Zones (Amendment)Act,

2015 (Act No. 29 of 2015) and it has come into force at once.

By the abovementioned amendment wide scope has been created to establish, operate and expand

Economic Zones in Bangladesh at the initiative by or in partnership between the Government of

Bangladesh and the Government of other countries or any Industrial entrepreneur and also at the initiative

by and in collaboration or partnership between BEZA and one or more Government Corporation,

Authority or Enterprise.

While under ther the original provision no land under jurisdiction of any City corporation,

Paurashava and Cantonment Board could be declared as Economic zone , now after bringing change to

that provision, any such land can be declared as economic zone for the public interest exclusively for the

purpose of establishing Information Technology related Economic Zone has been brought by the

amending law that also any land can be

By the said amendment a special procedure has been laid down for implementation of any of the above

initiatives.

Publication of Authentic English Text of the Bangladesh Economic Zones(Appointment of Developer

et.) Rules.

To meet the gradually increasing demand particularly from the representatives of interested foreign

investors, and also to fulfill the requirement of rule 15 of the original Bangla Version, the Authentic

English Text of Bangladesh Economic Zones(Appointment of Developer et.) Rules, has been published, it

being Drafted with the project Assistance and finally vetted by the LPAD of MoLJPA. the English

version of the Rules is equally authentic as its Bangla Version , but in case of any contradiction between

the two the Bangla text shall prevail. the English Version of the rules has made the easily understandable

to the interested foreign investors.

Promulgation of Private Economic Zones Policy: A self-contained guidance for Private Economic

Zones:

A remarkable achievement of BEZA and the Project is that the Project at the reuirement of BEZA

could complete the Draft Pivate Economic Zones Policy in Banglaaand finalized it after getting it

vetted from the LPAD of MoLJPA. The Policy entitled ―Bangladesh Private Economic

ZonesPolicy,2015‖ was published in April, 2015 by S.R.O No. 82- law/2015. Its English Text was

published by S.R.O No.354 law/ 2015.

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In the Policy , Emphasis has been given, among others, to the provisions relating to application

procedure, Principle to be followed in declaring Private Economic Zones and awarding License to the

applicant, rights and obligations of the Licensee, developer, Operator, User and Residents, causes for

cancellation of license, providing all necessary permits, clearances et. through one Stop Service

Office, Environmental Protection, safeguards of rights of the workers etc.

This Policy has been facilitating the prospective applicants willing to establish Private Economic

Zones in properly following the process and, on the other hand, indicating the appropriate ways to

the concerned officials of BEZA to perform their regulatory functions in respect of Private Economic

Zone under the set policy and procedure.

Legal Reforms Underway

One Stop Service Act:

According to Section 12 of the Bangladesh Economic Zones Act the Authority has a responsibility

to make arrangements to facilitate the economic zone developers and industrial units in respect of

legal documents which include permission for Economic zone site selection, declaration of economic

zones, clearances, certificates, certificate of origin, permits for repatriation of capital and dividents,

resident and non-resident visa, work permit, construction permit etc through One Stop Service Office.

Also Articles 18, 19 and 20 of the Bangladesh Private Economic Zones Policy have laid down a

narrative guidelines for ensuring all kinds of services for the Private economic Zones by the One Stop

Service Office to be established by the Authority at its Head office and Branch Offices. With a view

to provide time-bound accelerated services as required by the act and Policy by One Stop Service

Office, A draft One Stop Service Act has already been prepared ans it is in the Process of finalization.

Hopefully this Act, will diminish the unreasonable delay in getting necessary permissions and

clearances needed for setting up, operation, maintenance and expansion of the economic Zones.

Building Construction Rules:

Sensing the necessity of ensuring the quality construction in developing the Economic Zones a set of

regulatory rules have been drafted in the name ―Bangladesh Economic Zones (Construction of

Building) Rules‖ keeping in view the special requirements for construction of building and other

infrastructure. It is under process of finalization. Expectedly these rules will guide the Developers

and the Authority in construction of building and infrastructure according to the international

standard.

Improvement of legal documents: a target which is being achieved with the experiences acquired

gradually:

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The draft ―Request for Proposal‖ document was prepared earlier. while applying it in practice it was

examined and modified as required for the particular Economic Zone.

The draft Developer Agreement being a very important document, it was taken care of before

finalization. examination re-examination and vetting by the LPAD has made this document well

workable.

A plan is there to bring further modification in the Draft RFP and Developer Agreement in case of

zone-specific necessity and also strive to prepare a standard RFP documents containing a draft of

standard Developer agreement , and as required by Clause7 of the Bangladesh Economic zones (the

Procedure of Appointment of Developer) ― Rules, 2016.

Preparing the format of Letter of Award, Pre-qualification letter etc.

By the assistance of the Project BEZA has developed the format of letter of award which has been

awarded for Mongla Economic Zone. It will be used for other Economic Zones with necessary

modification.

The format of Pre-qualification letter to be issued to the applicants for establishing Private Economic

Zone has been prepared by the project‘s assistance.

Providing legal opinion on matters involving legal issues: a readily available legal assistance provided

through the Project.

In performing the functions BEZA and Project Authority had to face matters involving legal issues where

legal opinion was asked for. The Legal Consultant of the project has provided legal opinion on various

legal issues both in writing and sometimes verbally while sharing in the meetings.

Drafting memorandum of Understanding (MoU):

While rapidly proceeding ahead, BEZA had to sign MoU with other entitie(s). The Draft of MoU have

been prepared and finalized after necessary modification by the legal side of the Project. The Draft MoU

sometimes sent by the counterpart entity was examined and finalized by project‘s legal wing.

Steps for disposal of court cases:

As required by BEZA, the Legal Consultant of the project took necessary steps in the Courts. as a

result, two long pending writ cases could be disposed of protecting the interest of the Government.

Preparation and publication of the SROs for Exemptions, incentives and benefits : A well-timed

declaration for attracting the developers and investors:

Section 13 of the of the Bangladesh Economic Zones Act has empowered the Government to exempt any

Economic Zone or any organization thereof from application of all or any provision of all or any act as

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listed in that section or to pass order that any Act or any provision thereof, in its application in the

Economic Zone, be subject to such modification or amendment as may specified therein. According to

the spirit of the said provision a number of draft notification was prepared by the legal wing of the project

and the Government has published in the official gazette.

The incentives declared by the Government has created an investment friendly environment

encouraging thereby the local and foreign investors to invest in the Economic Zones of Bangladesh.

The Project has always been supporting BEZA in updating and enriching its legal framework.

The Legal Consultant has performed his part in the above activities. The opinion and views of all other

concerned officials of BEZA has contributed a lot in the process. The Present Project director by sharing

his knowledge and experience and by his valuable advice fortified by relentless personal care has

accelerated all the process. The present Executive Chairman has explored the innovative ideas and

instructed to initiate the reforms without any delay. His prudent guidance, sharp scrutiny, active

supervision and dynamic leadership with a sense of patriotism has encouraged al concerned to

strengthen BEZA‘s Laws rules ,policy and other legal documents.

The appreciable support of the World Bank has facilitated the legal wing of the Project in

properly and efficiently discharging the duties.

Enriching the law is a continuing process. BEZA‘s case is not any exception. Still, so far BEZA as a

new-borne institution has achieved, BEZA may legitimately claim that it has now a stronger legal

framework.

Feasibility Study BEZA has already completed 4 feasibility study for Mirsarai, Shreehatta , Anwara EZ by Japan

Development Institute and Mongla EZ by PwC. BEZA has also engaged 03 (three) reputed consulting

firms: i) The Consortium of DOHWA Engineering Co. Ltd., SGI Consulting Incorporated and Young

Consultants Ltd. from South Korea for Anwara EZ-2 (CIEZ) and Sabrang Tourism Park ii) The

Consortium of Unicunsult and SPC. from Germany for Jaliradiwp EZ and Narayanganj EZ and iii) IIFC

from Bangladesh for Mirsarai EZ-2 and Dhaka SEZ.

Review of Private Economic Zone Feasibility Study Report

As per private EZ policy, private EZ will prepare feasibility study report and BEZA will approve the

feasibility report. Support to Capacity Building of BEZA project assisting to BEZA to review the

feasibility study report.

A K Khan Economic Zone , Abdul Monem Economic Zone, Meghna Economic Zone and Aman

Economic Zone and another 03 feasibility study report (Bay Economic Zone, Arisha Economic

Zone and Meghna Industrial Economic Zone ) approval is under process.

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Initial Site Assessment BEZA conducted Initial Site Assessments for 21 sites by the TAS Firm – PricewaterhouseCoopers, PwC,

India (Mahindra Consulting Engineers Ltd, MACE) was the sub-consultant. The assignment covered site

survey, context surrounding each site, landscape, soil, climate, vegetation, industry activity, on-site and

off-site infrastructure available, environmental issues, social aspects, interaction with government

officials and private sector, ranking of the sites, and indicative cost estimations. The sites were as follows:

SN EZ/SEZ Location (Upazila & District) Approximate Land

Area (Acre)

1 Narayangonj Narayangonj 885

2 Panchgarh Panchgarh 610

3 Anowara-2 Chittagong 774

4 Dhaka SEZ Karanigonj, Dhaka 105

5 Sabrang Tourism Teknaf, Cox‘s Bazar 1,027

6 Dhaka (Dohar) Dohar, Dhaka 316

7 Bhola Sadar Bhola 304

8 Kushtia Bheramara, Kushtia 477

9 Nilphamari sadar Sadar, Nilphamari 323

10 Manikgonj Shibalaya, Manikgonj 300

11 Shariatpur Jajira, Shariatpur 525

12 Jaliar dip Teknaf, Cox‘s Bazar 271

13 Ashugonj Ashugonj, B.Baria 328

14 Agailjhara Agailjhara, Barisal 300

15 Shariatpur Goshairhat, Shariatpur 750

16 Cox‘sbazar Moheshkhali, Cox‘sbazar 8,784

17 Moheshkhali-1 Moheshkhali, Cox‘sbazar 1,438

18 Moheshkhali-2 Moheshkhali, Cox‘sbazar 827

19 Moheshkhali-3 Moheshkhali, Cox‘sbazar 676

20 Narayangonj-2 Sonargaon, Narayangonj 1,000

21 Natore Lalpur, Natore 3,220

Investment Promotion abroad and Study Tour Introduction

BEZA is committed to attract Foreign Direct Investment (FDI), promote export and create employment

through establishment of Economic Zones in Bangladesh. To bring the industrial investments in our

country and the best practices of operations, ―Support to Capacity Building of BEZA‖ Project conducted

so many international tours to enhance its understanding of industrial development around the world. As

part of this endeavor, this project has taken several visits to several industrial zones/facilities of develop

and developing countries. Through those tour there is a strong opportunity to share the experience to

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establish EZs in our country. Further, those visits was also utilized to meet with the foreign investors of

those visited countries and to attract them in choosing Bangladesh as an investment destination.

Objectives/ Aims of Study Tour

Meet with potential investors from the Non-Resident Bangladeshi (NRB) and encourage them to

invest in the EZs of Bangladesh.

Attract the Foreign Investors and motivate them to invest in the EZs of our country and become a

developing partner.

Meet with government representative for G to G level negotiation for the foreign investment in

our country.

Gather practical knowledge for establishing EZs in Bangladesh.

Share the experiences regarding EZs management system and one-stop service.

Visited Countries & Economic Zones (EZs)

BEZA delegates has visited the Economic Zones of United Kingdom (UK), Indonesia, Malaysia,

Singapore, India, Thailand, Philippines, Japan, United States of America (USA), China & Hong Kong

and also share the experience with the EZ’s authority of those countries. Key Takeaways from Study Tour Program

Key takeaways from the “Study Tour/ Investment Promotion Program” organized by this

Project is given below and BEZA may consider it for the development of EZs in our country.

Most of the visited EZ‘s/Industrial Estates are an integrated city with all the facilities (such as

residential complex, hospitals, educational institutes etc.) inside the city. BEZA may plan to develop

the proposed EZ‘s in the similar way where all the facilities can be planned within one campus. BEZA may consider aggressive marketing and investment promotion strategies to attract some

anchor units in the EZ‘s. There can be secondary revenue sources from the SEZ apart from selling/ leasing/ renting the land/

premise. BEZA may consider of similar alternate revenue sources (utilities, internal transportation). Customs Clearance and Regulating Authority‘s office present in all EZ‘s/Industrial Estates visited.

The same are constructed by the developer of the SEZ. The developer also provides accommodation

for officials of the Regulatory Authority and Customs who operate out of the SEZ. Most of the zones had CCTV surveillance systems located at strategic locations across the SEZ. One Stop Service centers are completely operational in both these countries. Philippines has

everything electronically managed and Thailand manually. Clark Freeport zone had an international airport located inside the zone. EZA may evaluate such

options by identifying land parcels which could house an International airport within the zone. The Non-Processing areas of the zones were exceptionally well utilized by the developers. Banks, 5

star hotels, housing complexes, malls, casinos, other recreational facilities all present in the SEZ. Regulatory Authority Call centers operate 24x7 inside the SEZ. Thereby reducing the chances of a

major accident at the SEZ. Employees operate in shifts. BEZA may evaluate considering the same. IEAT, Thailand had a fully operational ―Operations Centre‖ located at their head office in Bangkok.

This operation center works 24x7 and closely monitors activities through CCTV cameras across the

Industrial Estates. As a pilot, IEAT has done this in 2 Industrial estates. This center monitors

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industrial estate and factories inside them for efficient management of environment and safety

issues. Fire brigade and Police station were present inside the zone.

Marketing of the zones to attract locators/unit investors was jointly carried out by the regulating

authority and the private developers. BEZA may also consider working jointly with the developer of

EZ‘s in Bangladesh

For IT/ ITES industry, India is progressing by leaps and bounds. Bangladesh needs to develop on the

IT/ ITES front and for that it needs to promote the IT and High-Tech SEZ‘s aggressively.

In the next NASSCOM event, Bangladesh may think of organizing/ sponsoring a separate workshop

topic on opportunities in Bangladesh- this will provide extensive coverage to Bangladesh in the

global IT arena.

Bangladesh may consider aggressive investment promotion and marketing activities for IT/ ITES

industry in the country and for the planned/ developed IT SEZs.

MWC is the first integrated city of India and the functional aspects of the SEZ PPP model (11%-

89% share between TIDCO-Mahindra) followed there can be replicated in Bangladesh.

MWC is a multi-sectorial SEZ with focus on three broad sectors: IT/ITES, Textile and Auto-

ancillary. The evolution of this SEZ and the practices/ standards adopted there can be benchmarked

in the case of the SEZs proposed by BEZA.

MWC is an integrated city with all the facilities (such as residential complex, hospitals, educational

institutes etc.) inside the city. BEZA may plan to develop the proposed EZ‘s in the similar way

where all the facilities can be planned within one campus.

BEZA may consider aggressive marketing and investment promotion strategies to attract some

anchor units in the EZ‘s. BEZA may consider discussions with the private EZ owners/ developers to plan EZ‘s inside the

main Dhaka city &/or in the suburbs where small land parcels are available adjacent to the

residential areas. These land parcels can be developed as commercial hub, single sector SEZ

(especially IT/ ITES SEZ). There can be secondary revenue sources from the SEZ apart from selling/ leasing/ renting the land/

premise. At Hiranandani SEZ, bus service is available, which is a profit making source of earning

for the developers. BEZA may think of similar alternate revenue sources. Rental rate is INR 95 to 120/ sq. ft. for IT firms and for the non-processing zone, land price is USD

500 to 750/ sq. ft.

Ease of doing business:

Unique in offering Free Zone and Non Free Zone jurisdiction.

One Stop Shop for business formation.

Quick and effective service.

Political and economic stability.

Non restrictions of hiring expatriates.

Fixed exchange rate against US$.

Duty free trade across GAFTA (Greater Arab Free Trade Agreement) countries.

UAE has double taxation avoidance agreements with 55 countries.

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Investment Promotion & Road Show within the country Stakeholder consultation and investment promotion are important elements behind development of

economic zones to define or adapt project configurations. An economic zone developed in public-private

partnership mode is typically an inter-government responsibility, as it involves several infrastructure

linkages (such as connectivity and utility connection etc.) like road, rail, air, power, water supply, optical

fiber etc. Further to the same, active participation of the private sector is pivotal for the development of

economic zones. BEZA‘s role to enhance inter-government interactions effectively, in communication

with other government agencies, is also important.

The process of regular contact with government stakeholders and business communities would enable

BEZA to understand business and incentive needs and investment trends and subsequent action can be

formulated accordingly.

Investment Promotion Road-Shows and Stakeholder Consultation activities undertaken by BEZA are

crucial to develop congenial relationship between the private sector and the government authority.

Chittagong road-show is envisaged to be organized for achieving the following stated objectives:

Spreading Awareness about:

Development of EZs under Public-Private Partnership (PPP) and Private implementation models

for prospective developers

The various ongoing activities and initiatives of BEZA

Exploring potential opportunities w.r.t. prospective developers and unit investors who will be

invited at the road-show

Information dissemination among the investors about economic zones in Bangladesh

Obtaining feedback from the investors to assess their requirements, factors influencing

investment decisions and support sought by the private sector from the government

Key messages of the Road-Show

Strategic benefits of partnering with BEZA

Apart from providing sites for Economic Zones, BEZA also takes care of other strategic aspects needed

for development of these EZs. The main

features of these aspects have been

summarized below. Most of the lands

provided are hassle-free; various

preliminary infrastructural facilities will

be provided ready-made to the developers;

a whole set of attractive incentive

packages awaits the investors; BEZA will

act a central / one-stop go-to entity for a

vast gamut of clearances; a detailed

operations & maintenance manual has

been designed specifying each operational

parameter; appropriate legislations in the

form of acts and rules are in place to render structural strength to the whole process. Such benefits will

reduce the upfront cost of the investors to a great extent, and will help in enhancing their returns. The

features of incentives, one-stop services and infrastructural facilities would be discussed in greater detail

in the road-show.

Competitive incentive package

BEZA, within the scope of the enabling provisions of sections 10, 11, 12 and 13 of the BEZA Act, has

taken measures to provides multiple incentives to the developer of the EZs as well as the investors in a

particular industrial unit which includes, among others, fiscal benefits, such as exemption of taxes,

custom/excise duties and non-fiscal incentives, such as no FDI ceiling, work permits and residentship /

Proposed Economic

Zones

Hassle-free Land

Ready-made Infrastructur

e

Attractive Incentives

One-Stop Services

Operations & Maintenance

Manual

Amended Legislation

s

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citizenship. As initiated by BEZA, the Governing Board has approved incentive packages under 8 heads

for the Developers and under 26 heads for the EZ Users/ Unit Investors. 6 SROs have already been

notified in the official Gazette, while others are under the ongoing active process of such notification.

This attractive Incentive Packages will encourage Developers and the Investors.

One Stope Services

The OSS services can either coordinate with other agencies to obtain the approval or attain legal authority

to provide approvals on behalf of other government authorities. The decision to undertake either of the

courses depends on multiple factors, including political willingness, competency and capacity of the OSS

center or nodal agency. Additionally, documents (as highlighted in figure above) for any approval or any

registration can either be submitted in physical or electronic format.

As can be seen, BEZA offers quite competitive incentive packages w.r.t. its neighbouring economies.

BEZA also referred to the EZ packages usually offered at its neighbouring economies like India and

China and has adopted some best practices as enunciated below:

Investment in world-class infrastructure for smooth operation of upcoming EZs

Offering of tax incentives to the participants in the EZs

Redesign of the bureaucratic approval structure to reduce complexity

Limiting the times required for each step in the approval, accelerating the procedure

Ability to invest for manufacturing products in SEZ for domestic distribution

Allowing foreign entrepreneurs as well as individuals to invest in the EZs

Privileges on import of machines, raw materials, components and instant products

Discounts and tax exemption, foreign currency account balances

Transferring profits outside the country, land use rights

Benefits for Residents of foreign business, family and followers, etc.

Encouraging foreign investment by SEZs in Shenzhen, Zhuhai, Shantou and Xiamen

Investment Promotion Road-Show, Chittagong

This was the one of the success event conducted by BEZA on 29 November 2015 for promoting its EZs

to the investor community, mainly located in and around Chittagong. The event was attended by more

than 170 invitees including the private sector, government officials and the media personelle. The event

mainly centered on the need for EZs in the present economic scenario of Bangladesh and how these can

be potential tools for propelling the economic engine of the country. At the same time, it would be a win-

win situation for the investors who would receive attractive incentives from the one-stop service offred

by BEZA. The event was well-covered by the media.

Cabinet Secretary Mr. Mohammad Shafiul Alam attended the

programme as chief guest. Md Shahidul Haque, secretary of Legislative

and Parliamentary

Affairs Division, and

Mahbubul Alam,

president of

Chittagong Chamber

of Commerce and

Industry, were present

as special guests,

presided over by

BEZA executive chairman Mr. Paban Chowdhury.

Cabinet Secretary Mohammad Shafiul Alam said the

Inaugural Session

Business Session 1

Business Session 2

Figure 28: Investment Promotion Road Show at Chittagong

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EZs could be the key driver of economic growth and employment generation, and could be the major

factor in transforming Bangladesh into a middle-income country by 2021. He also said, The availability

of large hassle-free lands is important to set up EZs.

BEZA executive Chairman MR. Paban Chowdhury Said, Industrial units can be set up within two years

in the first economic zone developed on 550 acres in Mirsarai upazila. He also said that the construction

of an access road to the zone has already started and Mirsarai EZ will be first planned industrial district in

Bangladesh.

Participants Attendance The show was attended by

various delegates from Private,

Govt. organizations as well as

people from print media. It was

dominated by Private

companies; 47% people were

from private sector.

Investment Promotion Road-Show, Dhaka

The key objective of the road show was to create awareness among private-sector investors from home

and abroad and to promote the upcoming economic zones' projects to the potential zone developers and

unit investors.

Principal Secretary Mr. Md Abul Kalam Azad

attended the programme as chief guest. Senior

secretary at the Finance Division Mahbub Ahmed,

Secretary of the Prime Minister's Office (PMO)

Suraiya Begum and Bangladesh Garment

Manufacturers and Exporters Association

(BGMEA) president Md Siddiqur Rahman also

attended the inaugural session, presided over by

BEZA executive chairman Paban Chowdhury

Dr Qazi Kholiquzzaman Ahmad, chairman of Palli

Karma Sahayak Foundation (PKSF), chaired its

business session titled 'investment opportunities

in EZs and role of economic zones'.

Professor Mustafizur Rahman, executive

director of the Centre for Policy Dialogue

(CPD), spoke on investment climate in

Bangladesh. Mohammed Shoheler Rahman

Chowdhury, manager of BEZA, presented a

paper on 'EZ regime and its dimension'. Manish

R Sharma, partner, Pricewaterhousecoopers Ltd,

described 'financing EZ development and its

commercial aspects'. ASM Mainuddin Monem,

Private(Foreign) 2%

Government(Non BEZA)

14%

Media 23%

Private(Domestic) 47%

TAS firm 6%

BEZA 8%

Number of Attendees (%)

Private(Foreign)

Government(NonBEZA)

Figure 29 : Participant at the Road-show, Dhaka

Figure 30: Business session of Road Show , Dhaka

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Managing Director of Abdul Monem EZ Ltd, gave a presentation on role and importance of private

EZ.Shoichi Kobayashi, chairman of Japan Development Institute (JDI), gave detailed work plans on

infrastructure development and FDI in EZ.

Participants from government and business community, including representatives from the

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Metropolitan Chamber of

Commerce and Industry (MCCI), and development partners like the World Bank (WB), the Asian

Development Bank (ADB), the International Finance Corporation (IFC) and Japan International

Cooperation Agency (JICA) attended the investment conference.

.

6.5.1 Attendance

The show was attended by various delegates from Private, government organizations as well as

people from print media. It was dominated by Private

companies; 52% people were from private

sector.

Collaboration with others an Investment Road Show

International Investment Promotion & Road Show

Bangladesh Roadshow UK 2015 has got underway

at London‘s Winter Garden Canary Wharf in a bid

to attract foreign investment.

The two-day event started on 10th September

2015 with the welcome address from Bangladesh‘s

High Commissioner to the UK Md Abdul Hannan

Mr. Abul Kalam Azad, Principal Secretary, Prime

Minister‘s Office spoke on the investment

opportunities in the country at the event. He made a

pitch for environment-friendly investment in

Bangladesh.

High Commissioner Hannan said many investors had shown interest to bring funds to power, energy

and infrastructure sectors in. Bangladesh Economic Zones Authority was co-organizer of the event.

Figure 31: Mr. Md. Abul Kalam Azad, Principal Secretary at Dhaka Road Show.

Figure 32. Bangladesh Investment Roadshow UK 2

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Bangladesh Investment and Policy Summit

To support the government‘s initiatives to enhance investment environment and attract investors, BUILD,

Board of Investment and the Prime Minister‘s Office have come together to jointly organize a forum for

both private sector investors and the government to engage in dialogue and exchange latest policy

developments, promote investment opportunities in Bangladesh and explore ways to make the business

climate more business-friendly.

Objectives

To highlight latest policy developments for private sector growth in Bangladesh

To showcase private sector investment opportunities in key sectors in Bangladesh and

demonstrate opportunities for potential value addition in those sectors for a sustained economic

growth of Bangladesh.

Outcomes of the conference Bangladesh Investment & Policy Summit 2016 aims to secure public and private sector commitment for

catalyzing an integrated approach to policy and to obtain the institutional and investment changes

required to reduce the policy gaps prevail in the country. Besides there are some other following

outcomes was:

Better knowledge on business- sensitive policy design and implementation;

Exchange of ideas among policymakers and policy reformers and increased trust between them;

National and international investors with better knowledge on investment opportunities and

policies on foreign/regional investments.

Venue and Date

Board of Investment (BOI), Bangladesh Economic Zones Authority BEZA), Business Initiative Leading

Development (BUILD) and Prime Minister‘s Office (PMO) are jointly organizing Bangladesh Investment

& Policy Summit: on January 24-25, 2016. The summit will be held in Radisson Blu Water Garden Hotel

Dhaka. Honorable Prime Minister of Bangladesh, Sheikh Hasina was the Chief

Guest of the conference.

4th Bangladesh Investment Summit, Asia

The 4th Bangladesh Investment Summit is take place in Hong Kong on

Tuesday (26 April 2015) to examine trade and investment opportunities for

Asia‘s sovereign wealth funds, public and private pension funds and other

financial investors in Bangladesh‘s market.

Finance minister Abul Mal Abdul Muhith was present the keynote speech on

the vision for Bangladesh‘s future, while the prime minister‘s energy advisor

Tawfiq-e-Elahi Chowdhury was present a keynote on the energy outlook for

Bangladesh. Chief economist of Bangladesh Bank Biru Pakksha Paul spoke on

monetary policy for the future in Bangladesh. Mr. Paban Chowdhury ,

Executive Chairman of spoke on investment opportunities in Bangladesh .

The panel discussions at the summit cover power and energy, export potential

and ICT development, investing in the economic zones, investment

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opportunities for foreign investors in Bangladesh, PPP and their role in Bangladesh, and Bangladesh

capital markets.

Inauguration of Development Activities of 10 Economic Zones

The key objective of the inauguration was to create awareness among private-sector investors from home

and abroad and to promote the upcoming

economic zones' projects to the potential

zone developers and unit investors.

The inauguration of development activities

of 10 economic zones held on 28 February

2016 , aiming to boost both foreign and

domestic investment in the country.

Honorable Prime Minister Sheikh Hasina

formally inaugurated the development

activities at a function at Bangabandhu

International Conference Centre (BICC).

The

eco

no

mic

zon

es are -- Mirsarai Economic Zone, Sabrang Tourism Park,

Srreehatta Economic Zone, Mongla Economic Zone, AK

Khan Economic Zone, Abdul Monem Economic Zone,

Meghna Economic Zone, Meghna Industrial Economic

Zone, Bay Economic Zone and Aman Economic Zone.

Industries Minister Amir Hossain Amu and Planning

Minister AHM Mustafa Kamal addressed the function as

the special guests, while Housing and Public Works

Minister Engineer Mosharraf Hossain joined the videoconferencing from Mirsarai Economic Zone,

Chittagong.

Honorable Prime Minister‘s Sheikh Hasina said: ‗I would like to urge local people to extend cooperation

so that the investors could build the (economic) zones in a faster pace and 'beautiful atmosphere', and thus

would help establish a hunger and poverty-free prosperous Bangladesh.‘

Prime Minister‘s also said "I would like to inform you all that as many as 100 economic zones will be

established across the country in the next 15 years. That will increase export earnings by 40 billion U.S.

dollars and generate about 10 million additional employments.

Honorable Prime meet with foreign investors where more than 100 foreign investors from Japan , China,

Hong Kong, Taiwan, UK, India, USA, Thailand , Malaysia was present . Honorable Prime Ministers

spoke with all of investors regarding their investment plan. This was one of the successful event of

BEZA as well as Bangladesh.

Among others, Mr. Abul Kalam Azad , Principal Secretary, Prime Minister‘s Office , Ms. Suraiya

Begum ndc, Secretary , PMO , Mr. Paban Chowdhury , Executive Chairman(Secretary) was present .

Figure 33: Honeralbe Prime Minister Sheikh Hasina formally inaugurates the development activities of 10 economic zones at a function at BICC in Dhaka on Sunday, February 28, 2016

Figure 34 : Investors participate a photo session with Honorable Prime Minister Sheikh Hasina

Page 67: BEZA Annual Report 2016

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Up-gradation of Website

BEZA web site is aimed to disseminate information and data that will attract promising investors. The

portal will give information about the BEZA and its activities, services, all committees and other

information. The website will enhance the flow of information between the prospect economic zone

license applicant, investors and mother stake holders. It

will ensure accountability and transparency for the

Economic Zone related activities for all its stakeholders.

The structural design of the previous website was not up to

the mark and the structure was not allowing modular

information block which is essential for organization like

BEZA. BEZA website (www.beza.gov.bd) has been

completely re-designed to meet the need of investors.

Current BEZA website contains separate section for

Tender, RFP‘s, Publication, Legal Documents and

microsites for each of the Zone. The site has been

converted from static site to dynamic word press based

site which gives the leakage for quick update and content

management. BEZA web site is also device sensitive; it

changes its size and orientation depending on the size of

the screen.

Under the support to capacity development project of BEZA , the website has been redesigned as modern

Content Management System (CMS) based dynamic site. The Architectural Design, Sitemap and content

creation was done internally. The developer company developed and migrated existing contents to the

new site. Also the hosting was moved from local service provider to one of the world‘s renowned web

hosting service provider hostgator.com, which is more reliable, secure and faster. The website is

constantly under maintenance and up-gradation process.

Page 68: BEZA Annual Report 2016

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Memorandum of Understanding Signed with Investors

According to BEZA act 2010 and Private EZ policy 2015, BEZA will ensure utility connection for

economic zones . As a part of this project assisting to BEZA to make memorandum of understanding with

utility services provider. We have already completed MoU with PGCB, DPHE, BRDB, Titas Gas ,

distribution company ltd. We have also assist to BEZA to signed MoU with China Harbor Engineering

Company Ltd. to develop G2G economic zone in Bangladesh and Zejanung Zindun , China for 1320 MW

Power plant in Mirsarai EZ .

MoU with China Harbor Engineering Company Ltd to develop G2G EZ in Anwara (CEIZ)

Bangladesh Economic Zones Authority (BEZA) signed a deal with China Harbor Engineering Company

Ltd (CHEC) on June 16,2016 for the development of an exclusive China economic zone at Anwara

Upazila in Chittagong.

According to Memorandum of Understanding

(MoU), the Chinese state-owned firm CHEC will be

assigned to develop the site for Chinese Economic

and Industrial Zone (CEIZ) on a 774-acre land in

Anwara. Prime Minister‘s Office Principal

Secretary Mr. Md Abul Kalam Azad, China Harbour

Engineering Company Vice-President Mr. Bai

Yinzhan, Bangladesh Garment Manufacturers and

Exporters Association (BGMEA) President Mr. Md

Siddiqur Rahman and BEZA Executive Chairman

Mr. Paban Chowdhury will attend the MoU signing

ceremony.

A MoU signing ceremony was held on 12

March 2015 on the development of Sabrang

Tourism Park between Bangladesh

Parjatan Corporation & BEZA. Mr. Rashed

Khan Menon, Minister, Ministry of Civil

Aviation and Tourism; Mr. Abul Kalam

Azad, Principal Secretary of Prime

Minister‘s Office; Mr. Paban Choudhury,

Executive Chairman of BEZA and Mr.

Aparup Chowdhury, Chairman of

Bangladesh Parjatan Corporation were

present in the ceremony.

Page 69: BEZA Annual Report 2016

Annual Report 2016 Page 68

MoU with Zhejiang Gross Seamless Steel

Tube Co, Jindun Holding Group of China

BEZA has been Signed a MoU with Mr. Jancan

Zhou, Chairman, Zhejiang Jindun Holding

Group of China and discussed about investment

opportunities in our Economic Zones . To

achieve rapid economic growth of Bangladesh

through sufficient Power Supply in the

industrial and other potential sectors, has been considering in the positive, setting up a power plant in the

Mirsharai Economic Zone by the requiring Company, subject to necessary approvals for setting up the

Power Plant and for investment in Bangladesh and other formalities by the requiring Company;

MoU signed with utility Service Providers

MoU with PGCB

BEZA and Power Grid Company of Bangladesh Ltd.

signed a Memorandum of Understanding on 21 April 2016

to establishing a Grid Substation in Mirsarai Economic

Zone. BEZA have agreed to provide PGCB 50 acres of

land to construct the substation. PGCB also have a plan to

construct grid line station another 12 EZs within the 2018.

As we know that dedicated and uninterrupted quality

electricity is one of the main instrument of business. PGCB

will ensure dedicated grid substation for economic zones.

MoU with DPHE

This Memorandum of Understanding (MoU) is

made on this 11th day of October, 2015, 2015

between the Department of Public Health

Engineering and Bangladesh Economic Zone

Authority towards installation of water supply

facilities by DPHE for BEZA in Mirersharai,

Chittagong and Sreehatta (Sherpur), Maulavibazar.

DPHE is working for water supply pipeline of

Mirsarai . DPHE already been completed a study

regarding sweet water source of Mirsarai EZ .

Page 70: BEZA Annual Report 2016

Annual Report 2016 Page 69

MoU with BREB

This Memorandum of Understanding

(MoU) is made on 14 January, 2016

between Bangladesh Rural

Electrification Board and

Bangladesh Economic Zone

Authority towards electricity supply

facilities by BREB for BEZA in

Mirersharai, Chittagong and

Moheshkhali, Cox‘s bazar. REB also

will supply electricity to upcoming

economic zones .

MoU with TGTDCL

This Memorandum of Understanding (MoU is

also made on 14 January, 2016 between Titas Gas

Transmission and Distribution Company Ltd and

Bangladesh Economic Zone Authority towards

Natural Gas Connection to Private Economic

Zone, Abdul Monem Economic Zone, Gazaria,

Munshiganj.

MoU with BWDB

BEZA and Bangladesh Water

Development Board signed a

Memorandum of Understanding on

26 July 2016 to construct sluice gate ,

embankment and bridge in Mirsarai

Economic Zone as a deposit work.

Page 71: BEZA Annual Report 2016

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Publications & Campaign of BEZA

Publication is one of the important activities to aware the stakeholders about development activities of

BEZA. As a part of publication BEZA published different type of brochure, poster, billboard,

advertisement, booklet and souvenir about project which is;

Brochure of BEZA.

Brochure of Tourism Park.

Brochure of Sabrang, Mongla , Mirsarai and Shreehatta EZ.

Vision documents of BEZA.

A Souvenir for inauguration of 10 EZs development activities.

Booklet for Principal secretary tour to Cox‘s Bazar, Mirsarai and Mongla.

Billboard for BEZA development activities.

Advertisement about BEZA‘s incentives and OSS.

Video documentary on government economic zones.

Video documentary of private EZs.

Video documentary on BEZA‘s activities

Figure 35 : Opening Ceremony of vision document of BEZA

Page 72: BEZA Annual Report 2016

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Ongoing project of BEZA 1. Support to Capacity Building of Bangladesh Economic Zones Authority Project.

Project Title : Support to Capacity Building of Bangladesh Economic

Zones Authority Project.

a)Sponsoring

Ministry/Division

b) Executing Agency

Prime Minister‘s Office (PMO)

Bangladesh Economic Zones Authority (BEZA)

Objectives of the Project:

I. Overall

The overall objective of the project is to develop Bangladesh Economic Zones Authority

(BEZA) in to a fully functional organization equipped with all rules and regulations needed to

develop zones that will facilitate growth in investment in the emerging manufacturing and

services sectors of the economy with the aim of generating employment.

II. Specific

The Specific objectives of the project are to :

(i) Select and design zones according to well-planned and specified criteria ;

(ii) Ensure Private sector involvement and participation in the development and management for

the zones;

(iii) Establish adequate operational guidelines to monitor performance of the master developer

under the concession agreement for zones development;

(iv) Provide the conducive business environment by developing a dispute resolution mechanism

(DRM) to monitor disagreements within the zones and one-stop shop system to deal with firm

requirements for registrations, permitting etc. ; and

(v) Builds better linkages between firms within zones and related suppliers by providing training

and supporting collaboration in applied research and improved standard.

Project Implementation

period

a) Original: i) Date of commencement : November, 2011

ii) Date of completion : June 30, 2016

b) Revised: i) Date of completion : June 30, 2019

Revised Cost of the

Project

(In lakh Taka)

i) Total : 13982.61

ii) GOB : 463.90

iii) P.A. (RPA) : 13518.71

Page 73: BEZA Annual Report 2016

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2. Bangladesh Economic Zones Development Proejct (Phase-1)

Project Title : Bangladesh Economic Zones Development

Project (Phase 1)

Sponsoring Ministry/Division : Prime Minister‘s Office (PMO)

Executing Agency : Bangladesh Economic Zones Authority (BEZA)

Objectives of the Project:

I. Overall

Encouraging rapid economic development, creation of employment opportunities through attracting

Foreign Direct Investment (FDI) and transfer of advanced technology are the main policy directives

from government of Bangladesh. This will provide immense economic opportunities for all sections

of the society in Bangladesh. The Bangladesh Economic Zones Act, 2010 (Act No. 42 of 2010)

aims to promote Economic Zones (EZ) in the Private sector, Government led EZs or EZs through

public and private partnership, G2G and specialized EZs. The long term objectives of this project is

to establish and develop Economic Zones in all potential areas including backward and

underdeveloped regions for the purpose of encouraging rapid economic development through

industrialization, employment generation, production and increase diversification of export.

The objectives are to provide basic infrastructure (off-site) for establishing economic zones in

Mongla, Sirajgonj, Mirshorai, Anwara and Sherpur on public-private partnership, provide a

conducive business environment and attract international and local entrepreneurs to develop the

economic zones and invest in Bangladesh.

II. Specific

To promote balanced development of multiproduct industries in different regions of the country;

To create basic infrastructure for the establishment of Economic Zones;

To develop Economic Zones with on-site and off-site infrastructure and other utilities for the

local and foreign investors;

To create a conducive business environment to attract SPV/SPC to develop and operating

Economic Zones;

To create employment opportunities for the people of Bangladesh;

To promote industrialization and apprehend the Vision 2021 of the government.

Major Location/Components/Cost centers of the project: Division District Upazila Status

Chittagong Chittagong Mirsarai In Progress

Chittagong Chittagong Anwara

Chittagong Teknaf, Cox’s Bazar Sabrang

Chittagong Mirshorai 2 B EZ Sonagazi

Chittagong Teknaf, Cox’s Bazar Jaliardip

Dhaka Dhaka Karanigonj

Khulna Bagerhat Mongla In Progress

Sylhet Moulvibazar Moulvibazar Sadar

Sylhet Hobigonj Chunarughat

Dhaka Narayanganj Bander &Sonargaon

Project Implementation period:

a) Original : i) Date of commencement : January 01, 2014

ii) Date of completion : June 30, 2016

b) 2nd Revised: i) Date of completion : January 31, 2021

Page 74: BEZA Annual Report 2016

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Information regarding Budget: i) Total Budget: 90531.88 Lac ( GOB- 1912.53 Lakh and IDA

88619.35 Lakh)

Expenditure statement : Total Expenditure: 1684.57 Lakh ( GOB- 142.3 Lakh and IDA- 1542.27 Lakh)

3. Establishment of Jamaplur Economic Zone

Project Title: Establishment of Jamalpur Economic Zone

a) Sponsoring Ministry/Division: Prime Minister‘s Office (PMO)

b) Executing Agency: Bangladesh Economic Zones Authority (BEZA)

Objectives of the Project:

Overall

The objectives of this project is to establish an ‗Economic Zone‘ in Jamalpur District to attract

foreign & local investment to industrialize the country for export promotion and to meet up the

requirements of local areas that leads to employment generation and economic development of

the country.

II. Specific

i) To acquire land and some on-site and off-site infrastructure development for establishment of

Jamalpur Economic Zone;

ii) To promote development and create multiproduct Industries within the EZ;

iii) To create a favorable business environment to attract Indian and local companies to develop

and operate in industrial units;

iv) To generate employment opportunities for sustainable economic development through

establishment of SME units in the zone and expansion of forward and backward linkage

industries of other economic zones within the country.

Location of the Project and Map :

Division District Upazila Name of EZs (Comments)

Mymensingh Jamalpur Jamalpur Sadar Jamalpur Economic Zone,

Estimated Cost of the Project: i) Total : 30258.00

(In lakh Taka) ii) GOB : 30258.00

Project Implementation period: i) Date of commencement : January 1, 2016

ii) Date of completion : December 31, 2017

Approval Status: Approved

Implementation Status: In 2016-17 ADP, 169.99 crore taka allocated for implantation of

this project. Land acquisition process is going on and Project

Director and Deputy Project Director's appointment

are in final stage.

Page 75: BEZA Annual Report 2016

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4. Acquisition of Land for Development of Anwara-2 Economic Zone (Chinese Economic &

Industrial Zone)

Project Title: Acquisition of Land for Development of Anwara-2 Economic Zone

(Chinese Economic & Industrial Zone)

Sponsoring Ministry/Division: Prime Minister‘s Office (PMO)

Executing Agency: Bangladesh Economic Zones Authority (BEZA)

Objectives of the Project:

Overall The economic dimension of Bangladesh‘s bilateral relations with China has rapidly grown from the bilateral

agreement was signed in 1976. Chinese impressive economic growth is an opportunity for Bangladesh and it

can gain a lot of benefit from the increased cooperation with China. Under this project government will

ensure land as an incentive for Special Purpose Vehicles (SPV) / Special Purpose Company (SPC)/ G2G

funding of on-site infrastructure and facilities.

There are currently 2,301 zones in 119 developing and transition countries, clustered mainly in Asia and the

Pacific and the Americas. China alone accounts for about 19 percent of these zones. Over half of them are

privately owned and operated. Altogether, these zones account for approximately $200 billion in gross

exports per annum and directly employ some 40 million workers and perhaps some 60 million indirectly.

Massive employment generation, industrialization through attracting Foreign Direct Investment (FDI),

transfer of advanced technology and reduce pressure of public investment for economic development are the

major policy thrust of government. To ensure sustainable economic development considering these

phenomena Government enacted BEZA Act 2010, aims to promote of Economic Zones in the Private sector,

government led EZs or EZs through public and private partnership and specialized EZs in exercise of the

powers conferred under section 4 of the Act.

The project will provide land and basic infrastructure for establishing Economic Zone in Anwara-2 to attract

Chinese Special Purpose Vehicles (SPV) / Special Purpose Company (SPC) to develop the economic zones

and invest in Bangladesh. It will concrete the way of industrialization to comprehend the Vision 2021 of the

Government.

II. Specific i) To provide land for establishing Anwara – 2 Economic Zone (Chinese Economic Zone)

ii) To promote stable development and create multiproduct Industries within the EZ

iii) To create a conducive business environment to attract Chinese companies to develop and operate in

industrial units

iv) To generate employment opportunities for sustainable economic development.

Location of the Project :

Division District Upazila Name of EZs (Comments)

Chittagong Chittagong Anwara Anwara-2 Economic Zone,

(Chinese Economic Zone)

Estimated Cost of the Project: i) Total : 42036.94

(In lakh Taka) ii) GOB (interest free loan) : 42036.94

Project Implementation period: i) Date of commencement : July 01, 2015

ii) Date of completion : December 30, 2016

Approval status: Approved ( by ECNEC)

Implementation Status: Land acquisition process completed. Iplementation of

some infrastructure related works are in

progress.

Page 76: BEZA Annual Report 2016

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Media Coverage The print and electronic media coverage were impressive to highlight the BEZA‘s activities nationally

and internationally most of the articles were hopeful about BEZA‘s EZs to bring huge progress and

prosperity in the industrial landscape of Bangladesh. News of the BEZA was widely reported in both

English and Bangla in Bangladesh. This resulted in widespread publicity and promotion of BEZA as

newly developed organization. Headlines were available on popular print and electronic media on a

regular basis. All sectors of the media were involved, from print & electronic area focusing the interest

and collaboration of the government and the private sector as a whole about the potential revolutionary

implications of EZ.

Page 77: BEZA Annual Report 2016

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At a glance activities pictures of BEZA

Figure 36.28 Executive Chairman (BEZA) exchanging views with the villagers in Mirsarai and explained to them about the benefits of establishing a EZ in their Upazila.

Figure 38. Executive Chairman visiting Meghna Industrial EZ

Figure 37.27 Pre-Qualification license to Akij EZ

Figure 39. Mr. Mirza Azam, Honorable State Minister for Textile & Jute visited the office of BEZA. He expressed his satisfaction on progress made in establishing Jamalpur Economic Zone.

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Figure 4029 : Ms. Heba Shams, Lead Specialist, Investment Climate, World Bank Group made a Call on the Executive Chairman

Figure 4130 : POWERCHINA International Group Limited is exploring the possibility of establishing an Industrial Park in Mirsarai Economic Zone. Mr. Pan Dengyu, Vice President-Eurasia led the POWERCHINA delegation during their meeting with the Executive Chairman, BEZA.

Figure 43. Workshop On Pre-feasibility Study of Sabrang Tourism Park and Conceptual Planning of the Chinese Economic and Industrial Zone (Anowara-2)

Figure 42.31 Pre-Qualification License to Sonargoan EZ

Page 79: BEZA Annual Report 2016

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Figure 44.32 Mr. B. S. Agrawal, President, The Southern Gujrat Chamber of Commerce & Industry and his delegation with Deputy High Commissioner, Bangladesh Deputy High Commission, Mumbai, India .

Figure 4533 : 1st

License Private License Awarding Ceremony to Meghna EZ

Figure 46 : Honorable Commerce Minister Mr. Tofael Ahmed visiting Powerac EZ stall at Thailand

Page 80: BEZA Annual Report 2016

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Figure 47.34 Young Entrepreneurs from Kunming, China visit BEZA office for invest in EZ.

Figure 48: Yunnan Yunnei Power Group, China

Figure 359: Mr. Tofael Ahmed, Honorable Minister for Commerce and Executive Chairman BEZA visiting proposed Bhola EZ

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Figure 5136 Pre-Qualification license to Bashundhara SEZ and East-west EZ

Figure 50 : Mr. Abdul Matlub Ahmad, President, FBCCI and Mr. Mohd. Noor Ali, Managing Director, Unique Group meet with Executive

Chairman BEZA for investment opportunity

Figure 372 : Executive Chairman visiting Jamalpur EZ Figure 53 : Pre-Qualification License to United City IT Park

Figure 5438 : Mr. Ibrahim Mansaray, Deputy Minister of Trade & Industry, Sierra Leone visit BEZA office for investment

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Figure 5539 : senior executives of Sumitomo Corporation, Tokyo visited BEZA Office

Figure 56.40 Executive Chairman, BEZA at Bangkok for Bangladesh Trade & Investment Conference 2016

Figure 57 Ministry of Commerce and EXIM Bank in Beijing, China to discuss about financing the offsite infrastructure of CEIZ.

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Figure 58 : Meeting with Mr. Bai Yinzhan, Vice-president, China Harbour and Engineering Company and discussed about the progress of CIEZ

Figure 41 : Meeting with the Hong Kong General Chamber of Commerce

Figure 5942 : Principal Secretary Md. Abul Kalam Azad with Mr. Dominichi Hideaki, SVP, JICA in JICA Headquarter , Tokyo.

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Figure 61 : Bangladesh-Japan Public Private joint Economic Dialogue and Bangladesh Investment Seminar held in Tokyo, Japan

Figure 60: Officers of the Embassy of Switzerland visited the BEZA office

Figure 62: Developer agreement for Mongla EZ

Figure 62: World Bank Delegation with Executive Chairman, BEZA

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Figure 44 meeting with the representatives from Bangladesh Women Chamber of Commerce and Industry.

Figure 6745 : Bangladesh Investment and Policy Summit 2016

Figure 63: Pre-qualification License to the Bay EZ Figure 64: Pre-Qualification to Aman EZ 43

Figure 66: meeting with a IFC delegation headed by Ms. Wendy Werner, Country Manager, Bangladesh, Bhutan & Nepal

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Figure 68: Exchanged views with leaders of Chandpur Tea Garden Workers Association (Habiganj) on smooth implementation of Habiganj EZ

Figure 69: Major General Mohd Habibur Rahman Khan, ndc, psc visited BEZA office on 01 November 2015

Figure 69 : Mongla EZ visit by Principal Secretary , PMO

Figure 70:46 Honorable Prime Minister presided over the 3rd Governing Board meeting of BEZA at Chameli, Prime Minister's Office on 21 October 2015.

Page 87: BEZA Annual Report 2016

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Approved Economic Zones

SL.

No

Name of Economic Zone District Upazila

1 Anwara Economic Zone Chittagong Anwara

2 Anwara- 2 Economic Zone Chittagong Anwara

3 Mirsharai Economic Zone Chittagong Mirsharai

4 Shrihatta Economic Zone Moulavibazar Sherpur Sadar

5 Mongla Economic Zone Bagerhat Mongla

6 Shripur Economic Zone Gazipur Shripur

7 Sabrang Tourism SEZ Cox‘sbazar Teknaf

8 Dhaka SEZ Dhaka Keranigonj

9 Jamalpur Economic Zone Jamalpur Jamalpur sadar

10 Narayanganj Economic Zone Narayanganj Bandar & Sonargaon

11 Bhola Economic Zone Bhola Bhola Sadar

12 Ashuganj Economic Zone Brahmonbaria Ashuganj

13 Panchaghar Economic Zone Panchaghar Debiganj

14 Narsindi Economic Zone Narsindi Narsindi Sadar

15 Nilphamari Economic Zone Nilphamari Nilphamari Sadar

16 Kustia Economic Zone Kustia Veramara

17 Agailjara Economic Zone Barishal Agailjara

18 Manikganj Economic Zone Manikganj Sibaloi

19 Dhaka Economic Zone Dhaka Dohar

20 Habiganj Economic Zone Habiganj Chunarughat

21 Shariatpur Economic Zone Shariatpur Jajira

22 Shariatpur Economic Zone-2 Shariatpur Gosaerhat

23 Jaliardiwp EZ (Naf Tourism) Cox‘sbazar Teknaf

24 Cox'sbazar SEZ-2 Cox‘sbazar Moheskhali

25 Moheskhali Economic Zone Cox‘sbazar Moheskhali

26 Moheskhali Economic Zone-2 Cox‘sbazar Moheskhali

27 Moheskhali Economic Zone- 3 Cox‘sbazar Moheskhali

28 Narayanganj Economic Zone Narayanganj Sonargaon

29 Natore Economic Zone Nator Lalpur

30 Gopalganj Economic Zone Gopalaonj kotalipara

31 Araihazar Economic Zone Narayanganj Araihazar

32 Moheskhali SEZ Cox‘sbazar Mohaskhali

33 Rajshahi Economic Zone Rajshahi Paba

BEZA wants to establish 100 Economic Zones on 30000 hectares of land in the next 15 years with

an employment generation for 10 million people. As a part of 100 zone development, BEZA have

already identified 74 Economic Zones.

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34 Serpur Economic Zone Serpur Serpur Sadar

35 Feni Economic Zone Feni Sonagaji

36 Mongla Special Economic Zone Bagerhat Mongla

37 Gopalganj Economic Zone- 2 Gopalganj Gopalganj Sadar

38 Patia Economic Zone Chittagong Patia

39 Moheskhali SEZ- 4 Cox'sbazar Moheskhali

40 Sundarban Tourism Park Bagerhat Sharankhola

41 Bogra Economic Zone- 1 Bogra Sajahanpur

42 Khulna Economic Zone- 1 Khulna Batiaghata

43 Khulna Economic Zone- 2 Khulna Terakhada

44 Sylhet Special Economic Zone Sylhet Goainghat

45 Kurigram Economic Zone- 1 Kurigram Kurigram Sadar

46 Netrokona Economic Zone-1 Netrokona Netrokona Sadar

47 Moheskhali Economic Zone-4 Cox'sbazar Moheskhali

48 Mymensingh Economic Zone, Mymensingh Ishsargonj

49 Mymensingh Economic Zone Mymensingh Mamensingh Sadar

50 Alotila Special Economic Zone Khagrachari Matiranga & Khagrachari

51 Araihazar Economic Zone- 2 Narayangonj Araihazar

52 Jamalpur Economic Zone- 2 Jamalpur Jamalpur Sadar

53 Rampal Economic Zone Bagerhat Rampal

54 Gajaria Economic Zone Munsigonj Gazaria

Private EZ

SL Name of EZ District Upazila

1 A.K Khan Economic Zone Narshindi Polash

2 Abdul Monem Economic Zone Munsigonj Gazaria

3 ''Garments Silpa Park'' BGMEA Munsigonj Gazaria

4 Megna Industrial Economic Zone Narayangonj Sonargaon

5 Megna Economic Zone, Narayangonj Sonargaon

6 Famkam Economic Zone Bagerhat Rampal

7 Comilla Economic Zone Comilla Megna

8 Aman Economic Zone Narayangonj Sonargaon

9 Bay Economic Zone Gazipur Konabari

10 Sirajganj Economic Zone Sirajganj Sirajganj Sadar & Belkuchi

11 Alliance Economic Zone Comilla Daudkandi

12 Arisha Economic Zone Dhaka Saver & Karanigonj

13 United IT Park Ltd. Dhaka Dhaka Vatara, Badda

14 East Cost Economic Zone, Habigonj Bahubal

15 Sonargaon Economic Zone Narayangonj Sonargaon

16 Bashundhara Economic Zone Dhaka Keranigonj

17 East-West Special Economic

Zone

Dhaka Keranigonj

18 City Economic Zone Narayanganj Rupganj

19 City Special Economic Zone Dhaka Demra

20 Akiz Economic Zone Mymensingh Trishal

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Economic Zones in Bangladesh The Ultimate Investment Destination

Bangladesh Economic Zones Authority

www.beza.gov.bd