BEPZA draws Tk 4.80b plan for Comilla EPZ expansion
Mahmuda Shaolin | Thursday, 14 August 2008
Bangladesh Export Processing Zones Authority (BEPZA) has completed its plan for expansion of the Comilla Export Processing Zone (EPZ) at a cost of Tk 4.80 billion (480 crore).
'Comilla EPZ is going to be the country's biggest EPZ with the large-scale expansion as we have received a large number of investment offers from foreign countries,' Brig Gen Jamil Ahmed Khan, BEPZA executive chairman, told the FE Wednesday.
To mobilise funds for the expansion project, the BEPZA has started negotiations with the World Bank (WB) that has expressed its willingness to finance the project along with three other projects, namely, a Readymade Garments Park, an Active Pharmaceutical Park, and a Hi-tech Park.
'We've undertaken the expansion project of the Comilla EPZ, because it is located between Dhaka and Chittagong,' the chairman said.
Under the Private Sector Development Support Project (PSDSP), the WB is donating the fund to the Comilla EPZ.
'For expansion of the EPZ, we need to examine some components like land acquisition, land development, service building and security arrangement, road, drain and footpath, water supply system, etc,' informed the official.
'A Draft Project Proposal (DPP) has already been submitted to the Planning Commission and a feasibility study on the Comilla EPZ has been undertaken. After submitting the feasibility study report to the World Bank Board, funds may be channelised and the DPP will be approved by the Planning Commission,' the BEPZA chairman said.
The BEPZA is in the process to acquire 450 acres of land in the southwestern part of the present EPZ and set up 531 new industrial plots.
Export earnings from the Comilla EPZ accounted for US$ 129.996 million in the fiscal 2007-08 against the target of US$ 93 million.
The EPZ was set up in April, 1999 on 267.46 acres of land in the old airport area, according to the BEPZA.
At present, there are 211 industrial plots in the EPZ, while work on setting up 52 more industrial plots is going on. Of the total, the authority has already allocated 150 plots while the rest are awaiting allocation.
The amount of total investments in the Comilla EPZ is $71.674 million. Of the total, foreign investments are worth $ 21.347 million, joint venture investments $42.965 million and local investments $7.32 million.
Presently, about 7,824 officials, employees and labourers are working in the industrial units operating in the EPZ. Of them, 52 are foreigners.
The proposed expansion will create jobs for 13,000 more labourers.
Apart from the local factories, there are eight industrial units fully financed by investors from South Korea, Hong Kong, Britain, Malaysia, India, Taiwan and Japan.
China, Taiwan and South Korea have also set up five factories in the EPZ under joint ventures with Bangladeshi entrepreneurs.
The investors were given lease of the plots by BEPZA for 30 years, on payment of $ 2.20 per square metres every year.
The industrial units operating from the EPZ's own building have to pay US$ 2.75 monthly per square metres. Also they have to pay separately for other facilities like water, power and gas.
A BEPZA official expressed the hope that the Comilla EPZ expansion would start next year if everything goes properly.
'Comilla EPZ is going to be the country's biggest EPZ with the large-scale expansion as we have received a large number of investment offers from foreign countries,' Brig Gen Jamil Ahmed Khan, BEPZA executive chairman, told the FE Wednesday.
To mobilise funds for the expansion project, the BEPZA has started negotiations with the World Bank (WB) that has expressed its willingness to finance the project along with three other projects, namely, a Readymade Garments Park, an Active Pharmaceutical Park, and a Hi-tech Park.
'We've undertaken the expansion project of the Comilla EPZ, because it is located between Dhaka and Chittagong,' the chairman said.
Under the Private Sector Development Support Project (PSDSP), the WB is donating the fund to the Comilla EPZ.
'For expansion of the EPZ, we need to examine some components like land acquisition, land development, service building and security arrangement, road, drain and footpath, water supply system, etc,' informed the official.
'A Draft Project Proposal (DPP) has already been submitted to the Planning Commission and a feasibility study on the Comilla EPZ has been undertaken. After submitting the feasibility study report to the World Bank Board, funds may be channelised and the DPP will be approved by the Planning Commission,' the BEPZA chairman said.
The BEPZA is in the process to acquire 450 acres of land in the southwestern part of the present EPZ and set up 531 new industrial plots.
Export earnings from the Comilla EPZ accounted for US$ 129.996 million in the fiscal 2007-08 against the target of US$ 93 million.
The EPZ was set up in April, 1999 on 267.46 acres of land in the old airport area, according to the BEPZA.
At present, there are 211 industrial plots in the EPZ, while work on setting up 52 more industrial plots is going on. Of the total, the authority has already allocated 150 plots while the rest are awaiting allocation.
The amount of total investments in the Comilla EPZ is $71.674 million. Of the total, foreign investments are worth $ 21.347 million, joint venture investments $42.965 million and local investments $7.32 million.
Presently, about 7,824 officials, employees and labourers are working in the industrial units operating in the EPZ. Of them, 52 are foreigners.
The proposed expansion will create jobs for 13,000 more labourers.
Apart from the local factories, there are eight industrial units fully financed by investors from South Korea, Hong Kong, Britain, Malaysia, India, Taiwan and Japan.
China, Taiwan and South Korea have also set up five factories in the EPZ under joint ventures with Bangladeshi entrepreneurs.
The investors were given lease of the plots by BEPZA for 30 years, on payment of $ 2.20 per square metres every year.
The industrial units operating from the EPZ's own building have to pay US$ 2.75 monthly per square metres. Also they have to pay separately for other facilities like water, power and gas.
A BEPZA official expressed the hope that the Comilla EPZ expansion would start next year if everything goes properly.