Twelve private economic zones in the pipeline

Bangladesh Economic Zones Authority or Beza reviews proposals for 12 more private economic zones, a step further in creating jobs and attracting investment from both home and abroad.

If the proposals get through, Beza will provide prequalification licences to the private companies to set up the economic zones in parts of the country.

“Local companies have expressed their intention to set up and operate private economic zones,” said Paban Chowdhury, executive chairman of Beza.

But it does not mean that all of them will be allowed to develop an economic zone. “We will give prequalification licences to only those who can meet all regulatory requirements.”

Huge investment is required to develop an economic zone, he said. “So, the groups of companies who have their own industrialisation ability, financial strength and are connected with other entrepreneurs at home and abroad are much more eligible and will be successful in setting up and running an economic zone.”

A prequalification licence will be awarded to one of the 12 economic zones this month. “The rest will be awarded in phases,” said Chowdhury.

An economic zone is a designated area in a country with special economic regulations that differ from the rest of the country. An entrepreneur can enjoy various benefits, including tax incentives from the authorities, by setting up an industrial unit in an economic zone.

The entrepreneurs can also enjoy Bangladesh's significant market access to developed and neighbouring countries, demographic dividends, the domestic consumer market and most importantly, a cheap labour force.

Receiving a prequalification licence from Beza depends on fulfilling certain requirements that includes proper documentation of land, company information and financial strength, project description, development plan, development cost and source of financing.

After receiving the prequalification licence, the company or group will carry out an environmental impact assessment, feasibility study and prepare a master-plan in the next one year to get the final nod from Beza.

Beza has so far awarded licences to eight local private companies to set up 10 economic zones -- one each to AK Khan and Company, Abdul Monem Ltd, Bay Group, Aman Group, Maisha Group, United Group and two each to Meghna Group and Bashundhara Group.

The government is also setting up four economic zones in the public sector -- Mirsarai Economic Zone in Chittagong, Mongla Economic Zone in Bagerhat, Srihatta Economic Zone in Moulvibazar and Sabrang Tourism Park in Cox's Bazar.

The government plans to develop 100 such zones by 2030 on 75,000 acres to create jobs for one crore people and produce products and services worth $40 billion.