Implementation of the Sherpur economic zone project in Moulvibazar is set to gather pace as a government-owned finance company has agreed to disburse Tk 3.65 billion (365 crore) for purchase of land for the project.
The Bangladesh Infrastructure Finance Fund Limited (BIFFL), a specialised non-bank finance company owned by the ministry of finance, approved the fund in its recent meeting.
Finance Division senior secretary Mahbub Ahmed, who is the chairman of the BIFFL board, approved the deal on behalf of the board in the meeting.
Principal Secretary to Prime Minister's Office Abul Kalam Azad, acting chief executive officer of the company Nazmus Sakib and other board members attended the meeting on February 23 last.
The work on implementing the economic zone (EZ) had remained pending for long in the absence of required funds.
People familiar with the deal signing at the Bangladesh Economic Zones Authority (BEZA) told the FE that the deputy commissioner of Moulvibazar had already served notices on the land owners.
"We're expecting that the remaining work in respect of land acquisition will be completed within the next couple of months," said Sohelur Rahman Chowdhury, a manager at the BEZA.
He said the money being taken from the BIFFL would be given to the land owners as compensation.
The BEZA earlier decided to acquire 353 acres of land for the EZ to prepare at least 86 industrial plots.
The EZ will be developed and operated on the build-own-transfer basis. It will be a public-private partnership (PPP) project.
Mr Chowdhury said they had started working on hiring bidders for development of the EZ.
"We want speedy implementation of it. For this reason we are doing two jobs simultaneously -- land acquisition and inviting bids for its development," Mr Chowdhury added.
BEZA sources said the EZ offered some competitive advantages both in fiscal and non-fiscal terms compared to other regional economic zones.
They said the Sherpur EZ would see lower land lease prices and tax incentives.
They also said the EZ would be connected with the Dhaka-Sylhet highway apart from its railway connectivity with major cities including Chittagong.
The EZ will also have access to the river Kushiara.
People conversant with the EZ advantages said it would be an ideal place for building textile, ceramic, glass, pharmaceutical, agro and small-scale food industries.
However, BIFFL officials said the loan would be repaid by the BEZA in 10 years with a grace period of three years.
Mohammed M Khan, company secretary at the BIFFL said the government got the mandate to fund such a project.
"We believe the funding will help accelerate implementation of the EZ," he said.
However, the government in 2012-13 studied a number of sites in greater Sylhet region and identified Sherpur as an ideal place for the economic zone.
The Japan Development Institute (JDI) was assigned to assess the feasibility of the site in 2013 and it had submitted the report in July in 2014.
jasimharoon@yahoo.com
