A substantial private investment of US$ 1.5 billion is underway to establish petrochemical refinery, petroleum storage, LPG terminal and power plants in Bangladesh.
Local company Super Petrochemical Private Limited (SPPL) jointly with a South Korean conglomerate is set to invest in the petrochemical and energy sector projects on more than 300 acres of land at Moheskhali in Cox's Bazar.
Bangladesh Economic Zones Authority (BEZA) signs a memorandum of understanding (MoU) with the SPPL in this regard today (Sunday).
The joint investment projects will be implemented in the area of Economic Zone-3 (EZ-3) being developed on over 1,500 acres of land in Moheskhali under Dholghata and south Dholghata mouja.
A business conglomerate of petrochemical sector, SK Gas South Korea, is exploring the opportunities to come under the joint initiatives with SPPL and make the investment in the EZ, said Md Mustafizur Rahman, director of SPPL.
A team of the foreign investors will come to the country next week and visit the location shortly, he said. Initially, the foreign company showed its willingness to invest here.
Necessary land allocation and BEZA support will be needed to attract the investment, he added.
BEZA sources said such heavy industries needed coastal access and navigability. So, the land selection in Moheskhali would be perfect.
SPPL is involved in petroleum and petrochemical related businesses. It is supplying international standard fuel oil to the Bangladesh Petroleum Corporation (BPC). The company is contributing to reduce the country's import dependency of octane and diesel.
Some 60 per cent of the demand for octane is met by the company, according to the industry sources. Colour, printing ink and adhesives are also produced by the petrochemical industry.
As per proposal by the company, some 10,000 employment would be created directly and indirectly with an investment volume worth US$ 1.5 billion.
The joint initiative will develop a LPG terminal, contributing to save the country $ 40 million annually after implementation of the project.
"We are also working on establishing a LPG terminal in Moheshkhali area," the SPPL director said.
With the leadership of the company, a large scale petrochemical refinery plant will be set up with the cooperation of USA and France.
The SPPL has got an exclusive contract with Eastern Refinery Limited (ERL) on purchase and sell of naphtha. The surplus naphtha is exported to other countries.
The country would be able to save foreign currency by producing import-substitute products like LDPE, HDPE, PVC, PP and polyester with those imported and surplus naphtha of ERL.
BEZA officials said the Moheshkhali EZ-3 will be set up in over 1,500 acres of area and the process was already going on.
The BEZA has also received some $10 billion investment proposals for Mirshorai and Feni EZs.
Until now, the authority has awarded pre-qualification licence to establish 15 private EZs and provided final licences to four private EZs.
It has also appointed developer for the Mongla EZ. BEZA has handed over letter of award to the selected developer of Mirshorai EZ (phase-1).
Development works of Sabrang and Naf Tourism Park were also going on.
BEZA is also hopeful about $1.3 billion investment in 212 acres of area in Shrihatta.
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