Chinese co seeks details on land status, payment

FE Report | Published: July 04, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

A Chinese state-owned multinational company has sought details on 29 issues relating to acquisition of land and payment before setting up the Bausia Garment Park in Munshiganj district.
The Chinese Orient International (Holding) Co Ltd, which earlier signed a Memorandum of Understanding (MOU) with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) for setting up the park, has sent a letter in this connection to the apex apparel sector trade body.
In the letter the company sought to know about the land status, its registration, payment modalities and such other issues prior to launching a feasibility study on the project, BGMEA Vice President SM Hannan ( Kochi) told the FE Thursday.
The company earlier signed the MOU in Beijing in presence of Prime Minister Sheikh Hasina during her recent visit to China in the first week of June.
The Baushia project, undertaken to help relocate the garment factories from the city areas there, equipped with all safety standards, had been hanging in the balance for years mainly due to the failure to find a financier.
Under the deal, the Chinese company will invest $1.2 billion for setting up the garment park. The costs include payment for land acquisition and development, internal road and infrastructure development and administrative building, factory shades and construction of a captive power plant.
It will be located on 490 acres of land beside the Dhaka-Chittagong highway in Munshiganj district and offer spaces for 300 factories.
SM Hannan said the Chinese company was now set to carry out a feasibility study prior to mobilisation work.
Earlier there was a pre-feasibility study done by the company in March last and they are already involved in the process.
To begin with, the company will pay for the land. Its cost has been estimated at Tk 7.80 billion (780 crore). The government has already acquired the land from local owners. As per the MOU, the company will hand over the money to government of Bangladesh for making the payment to land owners.
BGMEA officials said Orient International Co might take three to four years to complete the project and was scheduled to recover the investment by selling spaces to factories or renting out the spaces and providing such other services to local factory owners. It would be a win-win project for both sides, the BGMEA officials said.