Cash crunch slows zones development

Rezaul Karim | Published: January 25, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

Fund crisis has slowed implementation of planned economic zones, a priority project of the government officials said.
The overall activities of the BEZA (Bangladesh Economic Zones Authority) are going at a slow pace and, especially, the rate of implementation of its different projects is poor for lack of adequate funds, they said.
Fund constraint for land acquisition is the major obstacle to setting up the EZs in various parts of the country, they added.
Recently, the Prime Minister's Office (PMO) asked the Ministry of Finance (MoF) to provide Tk 10.20 billion in favour of the BEZA on a priority basis, a competent source said.
The office has instructed the MoF to finance the BEZA for acquisition of land for some of its EZs. A letter has been sent from the PMO to the MoF in this connection to take necessary steps urgently, he said.
Some Tk 5.70 billion has been sought for the Anwara-2 EZ of Chittagong, Tk 2.0 billion for Sherpur in Moulvibazar and Tk 2.50 billion for Dhaka IT Special Economic Zone (SEZ) in the current fiscal year (FY), he said.
The land areas of the zones are 353 acres in Sherpur (Moulvibazar), 883 acres at Anwara-2 (Chittagong) and 105 acres at Dhaka IT SEZ, according to the BEZA data.
Â "We must set up all the zones. Negotiation is going on with the MoF for necessary funding for some EZs and the MoF has managed fund for Sherpur (Moulvibazar) site," Executive Chairman of the BEZA Paban Chowdhury told the FE on Thursday.
He said an application has been submitted by a Japanese entrepreneur while local Monem Group has also expressed interest to establish the EZs. Besides, the government will set up an exclusive tourism zone.
The government has guaranteed Tk 1.32 billion loan for the BEZA from Bangladesh Infrastructure Finance Fund Ltd (BIFFL) to acquire land for setting up a proposed EZ at Sherpur in Moulvibazar, a finance ministry official said.
The decision has recently been taken at a meeting of the treasury and debt management wing of the MoF. Senior secretary of finance division under the ministry Mahbub Ahmed chaired the meeting.
As per the decision, the MoF would guarantee the loan to be taken from BIFFL, a non-bank financial institution (NBFI).
The BEZA can borrow money at 5.0 per cent interest rate. The MoF and the BEZA each will have to pay 50 per cent of interest. The BEZA will be able to enjoy a reasonable grace period, according to a competent source.
"We have requested the MoF to take necessary steps for funding three sites on a priority basis. Already, the MoF has arranged finance for proposed Sherpur in Moulvibazar EZ for acquisition of land," Secretary of the BEZA Muhammad Abdus Samad told the FE.
The sites finally selected to be set up in the first phase are Mirsarai in Chittagong, Gohira in Anwara of Chittagong, Sirajganj, Sherpur in Moulvibazar and Mongla seaport area in Bagerhat.
Besides, some 21 areas have been selected initially by the site selection committee of which 3 will be established with the participation of private sector.
The government established the BEZA to regulate and oversee the new zones under the Economic Zones Act 2010. The BEZA started working on establishing economic zones in 2012 in different areas of the country having potential to contribute to the national economy.
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