Beza plans low-cost housing for workers in special EZs

Highlights:

• Special EZs cover 33,805 acres of land across Sitakunda, Mirsarai, Sonagazi
• Land in the zone will be allocated for housing
• A Tk1,000cr loan fund for investors is under consideration
• Entrepreneurs who already have land in the zone can access 5% interest loans
• The project is in early stages, awaiting approval

The Bangladesh Economic Zones Authority (Beza) plans to develop low-cost housing in the National Special Economic Zone (NSEZ), the country's largest industrial zone, to address the shortage of adequate housing for workers amid growing industrial activities.

To make this possible, Beza will allocate land within the zone to investors and facilitate access to low-interest loans for constructing worker accommodations. 

A meeting between Beza and the Bangladesh Bank was held on Wednesday to discuss the initiative. 

According to sources, a dedicated loan fund of approximately Tk1,000 crore is being considered. The housing scheme will be implemented in collaboration with entrepreneurs who already own land in the zone. These investors will be eligible to receive home construction loans at a simple interest rate of 5%. 

However, officials said the project remains at an early stage and requires further discussion before finalisation.

"We are working to ensure affordable housing for workers," said Abdullah Al Mahmud Faruk, project director of the National Special Economic Zone Development Project. 

"Investors will be provided land within the zone for developing low-cost housing, and Bangladesh Bank will support the initiative through reduced-interest financing."

Spanning 33,805 acres across Sitakunda and Mirsarai in Chattogram, and Sonagazi in Feni, the NSEZ is being developed as a flagship industrial hub. Eleven factories are currently in operation, with several more under construction.

Housing shortage, transportation issues

According to investors, despite the growing industrial activity, inadequate housing for workers has emerged as a major obstacle for investors, delaying full-scale operations. Due to poor transportation links, many companies are forced to recruit workers from distant areas – a costly and time-consuming process.

In the absence of formal housing, locals have begun constructing unregulated structures along roadside areas to rent to workers. 

Stakeholders warn that such unplanned development could lead to future complications, including the need for expensive road expansions.
Although Beza's master plan includes designated residential areas, particularly in the Feni Economic Zone, the required land acquisition is yet to be completed.

On Tuesday, representatives of the Bangladesh Economic Zones Investors Association (Bezia) met Beza Executive Chairman Chowdhury Ashik Mahmud Bin Harun to express concern over the worsening housing situation. 

Bezia CEO Aparup Chowdhury told The Business Standard, "We've urged Beza to fast-track the development of critical infrastructure, including housing and worker transportation."

The issue was also discussed during Beza's 8th Governing Board meeting on 13 October, chaired by board president and Chief Adviser Muhammad Yunus. 

The board stressed the need to speed up land acquisition for housing in line with the zone's master plan and proposed involving commercial banks in distributing low-interest loans through the Bangladesh Bank.

Additionally, the board recommended establishing a branch or booth of the Bangladesh House Building Finance Corporation in Mirsarai to support housing finance for investors.

The NSEZ has attracted around $19 billion in local and foreign investment proposals so far. 

Beza reports that 155 investors are currently active in the zone, which is projected to accommodate up to 500 industrial units in the coming years.