WB to provide $120m for developing economic zones
Monday, 23 May 2011
FE Report
The World Bank (WB) signed Sunday a US$ 120 million credit agreement with the government to facilitate investment to set up economic zones (EZs) for the emerging manufacturing and services sectors to boost the economy and create more jobs. The Washington-based multilateral donor agency will provide the fund under 'Bangladesh Private Sector Development Support Project,' a WB statement said Sunday. The WB has partnered with the UK-Department for International Development (UK-DFID) to implement the project. Economic Relations Division (ERD) Secretary M Musharraf Hossain Bhuiyan and World Bank Bangladesh Country Director Ellen Goldstein signed the loan agreement on behalf of the government of Bangladesh and the WB respectively. The WB will provide the fund from the International Development Association (IDA), the WB's concessionary lending arm. Government's new EZ policy builds on results of the export processing zones which began in the 1980s and today employ nearly 292,000 people, the WB statement said. The World Bank Group has supported the Bangladesh Export Processing Zone Authority (BEPZA) both in terms of physical investment to create new zones and also in institutional strengthening. Economic zones provide supporting infrastructure and streamlined procedures for setting up and operating manufacturing and service industries. Zones contributed to rapid growth of exports, worth US$2.9 billion last year, the WB statement noted. Extension of economic zones will accelerate growth to help Bangladesh reduce poverty from 40 per cent to 15 per cent by 2021. "The project will address the lack of serviced land and quality infrastructure that hampers private sector development in Bangladesh," World Bank Bangladesh Country Director Ellen Goldstein said Sunday. "It will also serve as a platform for a stronger integration between exporters and domestic suppliers." The project will support the government in establishing EZs and provide financing for off-site and last mile infrastructure, starting with the Kaliakoir Hi-Tech Park. The project will also support firm-level training and process development to enable better collaboration between enterprises in the economic zones and their suppliers. "The government of Bangladesh is committed to sustaining high economic growth and generating employment opportunities for the people of Bangladesh," M Musharraf Hossain Bhuiyan said. "Economic zones will also create increased linkages with the domestic economy by broadening and building on Bangladesh's positive experience with export processing zones," he said. The WB credit has 40 years to maturity, including a 10-year grace period, and carries a service charge of 0.75 per cent.
The World Bank (WB) signed Sunday a US$ 120 million credit agreement with the government to facilitate investment to set up economic zones (EZs) for the emerging manufacturing and services sectors to boost the economy and create more jobs. The Washington-based multilateral donor agency will provide the fund under 'Bangladesh Private Sector Development Support Project,' a WB statement said Sunday. The WB has partnered with the UK-Department for International Development (UK-DFID) to implement the project. Economic Relations Division (ERD) Secretary M Musharraf Hossain Bhuiyan and World Bank Bangladesh Country Director Ellen Goldstein signed the loan agreement on behalf of the government of Bangladesh and the WB respectively. The WB will provide the fund from the International Development Association (IDA), the WB's concessionary lending arm. Government's new EZ policy builds on results of the export processing zones which began in the 1980s and today employ nearly 292,000 people, the WB statement said. The World Bank Group has supported the Bangladesh Export Processing Zone Authority (BEPZA) both in terms of physical investment to create new zones and also in institutional strengthening. Economic zones provide supporting infrastructure and streamlined procedures for setting up and operating manufacturing and service industries. Zones contributed to rapid growth of exports, worth US$2.9 billion last year, the WB statement noted. Extension of economic zones will accelerate growth to help Bangladesh reduce poverty from 40 per cent to 15 per cent by 2021. "The project will address the lack of serviced land and quality infrastructure that hampers private sector development in Bangladesh," World Bank Bangladesh Country Director Ellen Goldstein said Sunday. "It will also serve as a platform for a stronger integration between exporters and domestic suppliers." The project will support the government in establishing EZs and provide financing for off-site and last mile infrastructure, starting with the Kaliakoir Hi-Tech Park. The project will also support firm-level training and process development to enable better collaboration between enterprises in the economic zones and their suppliers. "The government of Bangladesh is committed to sustaining high economic growth and generating employment opportunities for the people of Bangladesh," M Musharraf Hossain Bhuiyan said. "Economic zones will also create increased linkages with the domestic economy by broadening and building on Bangladesh's positive experience with export processing zones," he said. The WB credit has 40 years to maturity, including a 10-year grace period, and carries a service charge of 0.75 per cent.