Study finds Beani Bazar suitable for first SEZ
Saturday, 29 December 2007
FE Report
The government has selected Beani Bazar in Sylhet as the most suitable site for creating a special economic zone (SEZ) that could draw substantial private capital, especially from the Bangladeshi expatriates.
The pioneering SEZ in Sylhet area will be established on 300 acres of land, which will be linked to both local and international markets, officials at the Board of Investment (BoI) said.
"We've just received the feasibility study report on the proposed SEZ in Sylhet and will decide on the matter soon," a senior official of the Board of Investment (BoI) said.
"Under the study, the consultants employed by the International Finance Corporation (IFC), has found Beani Bazar the most suitable, given its location, the availability of land, and the concentration of Bangladeshi diaspora," the BoI official told the FE.
Once developed, the proposed Special Economic Zone in Sylhet will be the first of its kind in Bangladesh, to be replicated on similar "successful" zones located in other countries such as China, South Korea, Dubai, Jordan and Dominican Republic.
BoI officials say the establishment of such new generation zones may also signal the country's radical shift toward modernising its zone regime, now subsidised by the government.
Unlike the existing export processing zones (EPZs)-still owned and run by the government--an SEZ will be larger in scale and be linked to the domestic market as well.
The Sylhet economic zone will be built on the basis of public-private partnership and the government will no longer finance development of such zones, the officials added.
"We may consider allowing the industry associations to develop the zones for foreign investors. If industry associations get the job, the zone development will be done according to the needs of investors," a senior BoI official said.
The sources said the local and foreign consultants responsible for conducting the study has also identified demands of potential investors and their priority sectors.
BoI officials said they have already interacted with representatives of British-Bangladesh Chamber of Commerce and Sylhet Chamber of Commerce and Industry to identify the needs of potential investors.
They noted that the investment board was advancing carefully to avoid the pitfalls of BSCIC industrial estates.
Besides foreign direct investment, officials believe, the proposed economic zone will bring in tens of millions of dollars in diaspora investment, thereby generating substantial jobs and boosting the local economy.
Referring to a recent investment promotion meeting in the United Kingdom, officials said Bangladeshi diaspora from Sylhet region increasingly showed their interest to invest in real estate, tourism and hospitality, apparel and electronics sectors.
Experts believe the spillover effects-in the form of job creation, investments, transfer of management skills and technology-of SEZs will be much greater compared to those of traditional industrial parks.
In another development, the BoI is close to finalising the Bangladesh Economic Zone Policy aiming to allow the establishment of economic zones, which are conceptually different from the traditional industrial parks.
The economic zone policy, drafted by the Infrastructure Investment Facilitation Centre, has recommended formation of a zone development agency and an economic zone commission to oversee the future SEZs.
The government has selected Beani Bazar in Sylhet as the most suitable site for creating a special economic zone (SEZ) that could draw substantial private capital, especially from the Bangladeshi expatriates.
The pioneering SEZ in Sylhet area will be established on 300 acres of land, which will be linked to both local and international markets, officials at the Board of Investment (BoI) said.
"We've just received the feasibility study report on the proposed SEZ in Sylhet and will decide on the matter soon," a senior official of the Board of Investment (BoI) said.
"Under the study, the consultants employed by the International Finance Corporation (IFC), has found Beani Bazar the most suitable, given its location, the availability of land, and the concentration of Bangladeshi diaspora," the BoI official told the FE.
Once developed, the proposed Special Economic Zone in Sylhet will be the first of its kind in Bangladesh, to be replicated on similar "successful" zones located in other countries such as China, South Korea, Dubai, Jordan and Dominican Republic.
BoI officials say the establishment of such new generation zones may also signal the country's radical shift toward modernising its zone regime, now subsidised by the government.
Unlike the existing export processing zones (EPZs)-still owned and run by the government--an SEZ will be larger in scale and be linked to the domestic market as well.
The Sylhet economic zone will be built on the basis of public-private partnership and the government will no longer finance development of such zones, the officials added.
"We may consider allowing the industry associations to develop the zones for foreign investors. If industry associations get the job, the zone development will be done according to the needs of investors," a senior BoI official said.
The sources said the local and foreign consultants responsible for conducting the study has also identified demands of potential investors and their priority sectors.
BoI officials said they have already interacted with representatives of British-Bangladesh Chamber of Commerce and Sylhet Chamber of Commerce and Industry to identify the needs of potential investors.
They noted that the investment board was advancing carefully to avoid the pitfalls of BSCIC industrial estates.
Besides foreign direct investment, officials believe, the proposed economic zone will bring in tens of millions of dollars in diaspora investment, thereby generating substantial jobs and boosting the local economy.
Referring to a recent investment promotion meeting in the United Kingdom, officials said Bangladeshi diaspora from Sylhet region increasingly showed their interest to invest in real estate, tourism and hospitality, apparel and electronics sectors.
Experts believe the spillover effects-in the form of job creation, investments, transfer of management skills and technology-of SEZs will be much greater compared to those of traditional industrial parks.
In another development, the BoI is close to finalising the Bangladesh Economic Zone Policy aiming to allow the establishment of economic zones, which are conceptually different from the traditional industrial parks.
The economic zone policy, drafted by the Infrastructure Investment Facilitation Centre, has recommended formation of a zone development agency and an economic zone commission to oversee the future SEZs.