Chinese economic zone to break ground in Ctg tomorrow

Highlights:

• Construction of Chinese economic zone begins after decade-long project delays
• Zone expected to attract $500 million in foreign investment
• Project aims to create over 100,000 direct and indirect jobs
• Chinese and Bangladeshi governments jointly fund major infrastructure development
• Zone targets export industries including textiles, pharmaceuticals, and information technology
• Strategic location strengthens Bangladesh-China trade and manufacturing cooperation

After more than a decade of delay, construction of the long-awaited Chinese Economic and Industrial Zone (CEIZ) in Chattogram's Anwara is finally set to begin tomorrow.

Authorities expect the project to attract around $500 million in foreign direct investment (FDI) and create more than 1 lakh direct and indirect jobs.

The groundbreaking ceremony for the economic zone will be held at 10am at the project site in Anwara, marking the formal start of the construction of the zone's core infrastructure.

Finance Minister Amir Khosru Mahmud Chowdhury, Home Minister Salahuddin Ahmed, Chinese Ambassador to Bangladesh Yao Wen, and Bangladesh Economic Zones Authority (Beza) Executive Chairman Ashik Chowdhury are expected to attend the event.

The government-to-government project is being developed on around 800 acres of land and is considered one of Bangladesh's flagship initiatives to deepen economic cooperation with China while expanding the country's export-oriented manufacturing base. The project is expected to be completed by 31 December 2031.

Business leaders have welcomed the government's move to expedite the long-delayed project, saying it could significantly boost investment, employment, and industrial growth.

Amirul Haque, president of the Chittagong Chamber of Commerce and Industry (CCCI), hoped a dedicated economic zone for Chinese companies would further strengthen trade and economic partnership between the two countries. "Besides creating employment opportunities, the zone will help expand international trade and attract more foreign investment," he told The Business Standard.

SM Abu Tayyab, a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the zone will bring substantial benefits to the country's readymade garment industry.

"We import fabrics, accessories and other raw materials from China, which increases both lead time and production costs. If Chinese manufacturers produce and supply these inputs from the economic zone in Chattogram, it will save both time and money, reduce production costs and enhance the competitiveness of our apparel sector," he said.

Officials said the zone is expected to host Chinese as well as domestic and other foreign investors in sectors such as advanced textiles, pharmaceuticals, light engineering, information technology and other export-oriented industries.

Major General (Retd) Md Nazrul Islam, executive member (planning and development) at Beza, said the project is scheduled for completion by 31 December 2031.

"Although the implementation period is five years, we expect to make at least 60% of the industrial plots ready for factory construction within the first three years," he said.

Fresh momentum after PM's China visit

The project gathered pace following Prime Minister Tarique Rahman's official visit to China on 22-26 June, during which the two countries signed several investment-related deals.

On 25 June, Beza exchanged a developer agreement with China Road and Bridge Corporation (CRBC) for the development of the economic zone.

Following the visit, Ambassador Yao Wen said the long-delayed project had achieved tangible progress, with almost all required documentation completed within four months of the new government's tenure. According to him, more than 30 Chinese companies have already committed around $500 million in investment for the zone. 

The ambassador also said meetings between the prime minister and leading Chinese companies in Beijing and Dalian generated strong investment interest, describing the progress of CEIZ as a signal that Bangladesh is open for Chinese investment.

Tk4,189cr infrastructure project

The Executive Committee of the National Economic Council (Ecnec) approved a Tk4,189 crore supporting infrastructure project for the economic zone on 16 June, shortly before the prime minister's China visit.

Under the arrangement, the Chinese government will provide Tk2,467 crore through concessional financing, while the Bangladesh government will fund the remaining amount.

The supporting infrastructure includes a 1,235-metre jetty link road, a 330-metre bridge, a 1,181-metre four-lane road, a 25-million-litre Central Effluent Treatment Plant (CETP), a 20,000 deadweight-tonne multipurpose jetty, gas transmission facilities, power substations and transmission lines, water reservoirs, and nearly 12 kilometres of boundary wall.

Strategic location

Located near the Karnaphuli Tunnel, Chattogram Port and Shah Amanat International Airport, the economic zone is expected to benefit from strong transport and logistics connectivity, making it an attractive destination for export-oriented industries.

The government believes the project will play a key role in accelerating industrialisation, creating employment and increasing foreign investment inflows.

Bangladesh and China signed a memorandum of understanding on the project in 2014, while land acquisition was completed in 2016.

However, the project remained stalled for years due to delays in appointing a developer, finalising financing arrangements and resolving administrative issues.

Initially, China Harbour Engineering Company (CHEC) was considered for the role of developer, but negotiations did not progress.

In 2022, the Chinese government nominated CRBC to take over the development of the project, paving the way for its implementation.