WB offers $140m for three SEZs
Monday, 13 December 2010
FHM Humayan Kabir
The World Bank has offered US$140 million for three special economic zones (SEZs) that the government plans to build in Dhaka, Comilla and Chittagong in an effort to woo foreign investment. Finance ministry officials said a delegation of the Washington-based lender offered the fund in an ongoing visit to Dhaka and a deal could be struck by January next year.
"We will sit with World Bank officials next month to discuss terms and conditions. We hope to sign an agreement by end of January," an official of the economic relations division (ERD) told the FE.
Officials said fund assurance from the development lender comes after a four-year gap as the Bank sees the SEZs as key to boost Bangladesh's export competitiveness and attract foreign direct investment.
The SEZs mark key departure by the government in its efforts to court foreign investors. The government had earlier built eight export processing zones (EPZs) where more than 300 factories have been set up.
But the industrial parks have proved to be a big fiscal burden as they offered tax holiday status to the investors, which now annually cost the government tens of millions of dollars in lost revenue.
The World Bank has offered US$140 million for three special economic zones (SEZs) that the government plans to build in Dhaka, Comilla and Chittagong in an effort to woo foreign investment. Finance ministry officials said a delegation of the Washington-based lender offered the fund in an ongoing visit to Dhaka and a deal could be struck by January next year.
"We will sit with World Bank officials next month to discuss terms and conditions. We hope to sign an agreement by end of January," an official of the economic relations division (ERD) told the FE.
Officials said fund assurance from the development lender comes after a four-year gap as the Bank sees the SEZs as key to boost Bangladesh's export competitiveness and attract foreign direct investment.
The SEZs mark key departure by the government in its efforts to court foreign investors. The government had earlier built eight export processing zones (EPZs) where more than 300 factories have been set up.
But the industrial parks have proved to be a big fiscal burden as they offered tax holiday status to the investors, which now annually cost the government tens of millions of dollars in lost revenue.