Govt to finalise policy on spl economic zones soon
Monday, 12 November 2007
A Z M Anas
The government is going to finalise a policy soon designed to regulate the country's proposed special economic zones (SEZs) that will link both domestic and international markets, thereby moving away from the exclusive export-oriented industrial park concept.
The Board of Investment (BoI) has assigned the Infrastructure Investment Facilitation Centre (IIFC), a state-owned consultant, to craft the 'Bangladesh Economic Zone Policy,' a draft of which has been prepared, BoI officials said.
"The policy is expected to be adopted by the end of this year … If finalised, the interim administration will gazette it to a law that could revolutionise the way the country's traditional industrial parks are being financed and managed," a senior BoI official said Sunday.
"We've already drafted the policy and sent it to the International Finance Corporation (IFC) for further review," chief executive officer of IIFC Nazrul Islam told the FE.
"If the IFC provides comments on the draft, those will be incorporated into the improved version. Then, the BoI will organise a consultative meeting with stakeholders, mainly government officials and trade body leaders, before its adoption," he added.
The IFC, the private sector arm of the World Bank, is financing formulation of the policy that recommends a transitional period of two to three years within which a special wing of the Chief Adviser's Office will be responsible for overseeing the creation of SEZs.
The draft policy has suggested that the government should move toward forming an Economic Zone Development Company (EZDC) for creating such zones that will be "comprehensive" in nature.
Unlike the exclusive export-oriented industrial parks, industrial units at SEZs will be allowed to sell their products to the local market in a move to boost the domestic economy.
It has also recommended establishing the Bangladesh Economic Zone Regulatory Commission (BEZRC), to be modelled after the existing commissions, with a view to overseeing the future SEZs.
"If established, the BEZRC will be the third of its kind in Bangladesh and it will be responsible for shaping the potential economic zone industry," IIFC chief said in an interview.
The draft can be dubbed "light-handed", persons involved in preparing it noted, given its flexibility of exploring different options in setting up SEZs.
"The government can acquire land and develop zones and hand those over to investors. It will not give the responsibility of zone development to any unsolicited investor or company, but trade bodies will be allowed to do the job," said one IIFC expert, referring to the draft.
The policy statement will give a direction to the interim administration, enabling it to determine the future status of the Bangladesh Export Processing Zones Authority (BEPZA) and the Bangladesh Small and Cottage Industries Corporation (BSCIC).
In cases of BEPZA and BSCIC, the policy says both the bodies will be given choices-they can either move to the model of economic zones or retain their current models.
Currently, the BEPZA is charged with managing eight publicly-financed EPZs dotted across the country, while the Korean Export Processing Zone (KEPZ), a private industrial park, is being regulated by a special wing at the Chief Adviser's Office.
On the other hand, BSCIC is managing its scores of small-scale industrial estates spread throughout the country.
The government is going to finalise a policy soon designed to regulate the country's proposed special economic zones (SEZs) that will link both domestic and international markets, thereby moving away from the exclusive export-oriented industrial park concept.
The Board of Investment (BoI) has assigned the Infrastructure Investment Facilitation Centre (IIFC), a state-owned consultant, to craft the 'Bangladesh Economic Zone Policy,' a draft of which has been prepared, BoI officials said.
"The policy is expected to be adopted by the end of this year … If finalised, the interim administration will gazette it to a law that could revolutionise the way the country's traditional industrial parks are being financed and managed," a senior BoI official said Sunday.
"We've already drafted the policy and sent it to the International Finance Corporation (IFC) for further review," chief executive officer of IIFC Nazrul Islam told the FE.
"If the IFC provides comments on the draft, those will be incorporated into the improved version. Then, the BoI will organise a consultative meeting with stakeholders, mainly government officials and trade body leaders, before its adoption," he added.
The IFC, the private sector arm of the World Bank, is financing formulation of the policy that recommends a transitional period of two to three years within which a special wing of the Chief Adviser's Office will be responsible for overseeing the creation of SEZs.
The draft policy has suggested that the government should move toward forming an Economic Zone Development Company (EZDC) for creating such zones that will be "comprehensive" in nature.
Unlike the exclusive export-oriented industrial parks, industrial units at SEZs will be allowed to sell their products to the local market in a move to boost the domestic economy.
It has also recommended establishing the Bangladesh Economic Zone Regulatory Commission (BEZRC), to be modelled after the existing commissions, with a view to overseeing the future SEZs.
"If established, the BEZRC will be the third of its kind in Bangladesh and it will be responsible for shaping the potential economic zone industry," IIFC chief said in an interview.
The draft can be dubbed "light-handed", persons involved in preparing it noted, given its flexibility of exploring different options in setting up SEZs.
"The government can acquire land and develop zones and hand those over to investors. It will not give the responsibility of zone development to any unsolicited investor or company, but trade bodies will be allowed to do the job," said one IIFC expert, referring to the draft.
The policy statement will give a direction to the interim administration, enabling it to determine the future status of the Bangladesh Export Processing Zones Authority (BEPZA) and the Bangladesh Small and Cottage Industries Corporation (BSCIC).
In cases of BEPZA and BSCIC, the policy says both the bodies will be given choices-they can either move to the model of economic zones or retain their current models.
Currently, the BEPZA is charged with managing eight publicly-financed EPZs dotted across the country, while the Korean Export Processing Zone (KEPZ), a private industrial park, is being regulated by a special wing at the Chief Adviser's Office.
On the other hand, BSCIC is managing its scores of small-scale industrial estates spread throughout the country.