State-run economic zones get $22b investment

State-run economic zones – Bangabandhu Sheikh Mujib Shilpa Nagar, Srihatta Economic Zone, Jamalpur Economic Zone, Maheshkhali Economic Zone and Sabrang Tourism Park – have so far drawn some $22.17 billion in investments, authorities have said. 

Some 177 investors from home and abroad are putting the money to manufacture a wide range of products – from garment accessories to paints – on 6,084 acres of land in the five zones, Bangladesh Economic Zones Authority (Beza) Executive Chairman Shaikh Yusuf Harun disclosed during a view-exchange meeting in Dhaka on Sunday.

The investment is expected to generate some 8 lakh new jobs, he added. 

The executive chairman also noted that Prime Minister Sheikh Hasina is scheduled to inaugurate the operation or construction of 50 factories and infrastructure in 9 private and government-run economic zones on Wednesday (26 October) marking the golden jubilee of the country's independence.

Infograph: TBS

"The government is providing electricity and gas connections to economic zones on a priority basis. Although we currently have a shortage in power supply owing to global crises, the new power plants in Ruppoor and Matarbari will hopefully bring the resolution," he said and added that they are strict about compliance. 

Taking part in the discussion jointly organised by the Beza and Economic Reporters' Forum,  Project Director for Bangabandhu Sheikh Mujib Shilpa Nagar development Abdullah Al Mahmud Faruk said a number of 29 factories in different public and private economic zones have already gone into commercial production. About 61 more are under construction.

 "Significant foreign investments came from Japan, China, India, Australia, Netherlands, Germany, America, United Kingdom, Singapore, South Korea, and Norway," he added and noted that the Beza is providing one-stop services to the investors. 

ERF President Sharmin Rinvi and General Secretary S M Rashidul Islam, among others, were present at the event.

The five state-run EZs

According to Beza, four industries  – McDonald Steel, Nippon and McDonald Steel, Asian Paints and Samuda Construction – at the Bangabandhu Sheikh Mujib Shilpa Nagar have already started their operations. Prime Minister Sheikh Hasina will officially inaugurate those on Wednesday. 

Nine other factories are also being constructed in the largest economic zone in South Asia, being constructed in an area of ​​30,000 acres of land in Mirsarai and Sitakunda upazila of Chattogram and Sonagazi upazila of Feni. 

Of them, Janese McDonald Steel produces prefabricated structural steel with its $35 million of investment, while the Japan-Bangladesh joint venture Nippon & McDonald Steel invested $15 million to manufacture structural steel plates.

Indian firm Asian Paints manufactures allied products and emulsions with $34 million and local conglomerate TK Group's Samuda Construction produces construction materials with an $8.2 million investment.

In the 352-acre Srihatta Economic Zone, situated in the country's eastern tea district Moulvibazar, DBL Group has been allotted 167.6 acres to build DBL Industrial Park. It is investing $650m to produce ceramic tiles, sanitary ware, glass, textile items, and so on. 

Besides, Abdul Monem Limited got 19 acres and Double Glazing 3 acres of land at the zone. Double Glazing has already started its production of sound-reducing doors and windows. 

In the 436-acre Jamalpur Economic Zone, 15 investors proposed to invest some $174 million. They have already been allotted 262 acres of land. Prime Minister Sheikh Hasina will lay the foundation for 3 factories there – MAZ Textile, Resaschemie Bangladesh and Silken Fabric.

Beza data also says Sabrang Tourism Park on 1,027 acres of land in Cox's Bazar has so far received some $271 million in investment from 17 investors. They have been awarded 81 acres of land. 

Most of them are preparing for their site construction. 

The Beza is working toward establishing 100 economic zones across the country by 2030. The government has approved 97 economic zones, 28 of which are currently under development.

So far, 12 privately-owned economic zones have received licences to operate and nearly $4 billion have been invested in these economic zones.