Fresh tender soon to pick developer for Mongla SEZ

Kamrun Nahar | Published: August 27, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The government will float fresh tender shortly to appoint a site developer for the proposed Special Economic Zone (SEZ) at Mongla in Bagerhat after the past invitation got poor response from international contractors, an official said.
Bangladesh Economic Zones Authority (BEZA) invited request for financial proposal (RFP) in June this year to select the site developer from the two companies, short listed through a 2013 Expression of Interest (EoI).
Dubai Holding Commercial Operation Groups and Wishark Enterprises Ltd, Shanghai did not submit any investment proposal.
"We have asked for the permission of the cabinet committee on economic affairs (CCEA) to float fresh tender this time and not expression of interest (EOI) to avoid lengthy process," BEZA executive member Mizanur Rahman told the FE recently.
Moreover, through the open tender there will be scope for both local and international developers to participate by meeting the specifications, experience, terms and conditions mentioned in the RFP, he added.
A CCEA meeting was to be held on Tuesday in this connection, sources said.
The Prime Minister's Office gave nod to set up five economic zones in the country in April 2012 to be implemented in two years to expand industrialisation and enhance the living standards of rural people by attracting both foreign and domestic investments.
Initially, the five SEZs will be set up in Anwara and Mirersarai of Chittagong, Sherpur of Moulvibazar, Mongla of Bagerhat, and areas near Bangabandhu Bridge in Sirajganj.
On budget allocation for the SEZs, the government will provide the land by acquiring them and utility in five areas, while investing companies will develop the infrastructure on their own and bring foreign investors to set up industries there. The Executive Committee of the National Economic Council (ECNEC) approved the five SEZs in June this year.
The government has bought 205 acres of land from Mongla Economic Processing Zone authority at a cost of Tk 474 million. The World Bank (WB) will provide about Tk 800 million for offside development project, the official said.
"We hope the activities for setting up of the Mongla SEZ will start after appointment of the developer within the next six months," said Mizanur Rahman.
Sources said the government has not carried out any fresh feasibility study while establishing an SEZ in Mongla after the PMO office gave nod to set up one there and followed the previous study of Mongla EPZ.
Mongla EPZ is still underutilised and port activities have been suffering a lot due to the navigation problem of Pashur River for which most of the transportation is done through the Chittagong Port. The country has already created a bad example in the case of Korean EPZ in Chittagong.
While commenting on the government's initiative of establishing SEZs in the country, World Bank lead economist Dr Zahid Hussain said there is no other way of attracting investment but setting up of the SEZs.
"For this the government must ensure serviced land which is the biggest constraint of investment. This is of course the right direction but the process should be expedited," he told the FE.
Dr Hussain said specialised zones will; help set examples in terms of investment, technology and management, which will have a "learning effect" on local entrepreneurs.
Dhaka University economics professor Dr MA Taslim told the FE the idea of establishing special economic zones is very good if these can attract investment in those areas. Besides the government will be able to solve land crisis for setting up industries through the SEZs.
"The big challenge for establishing SEZs is to provide infrastructure and utility services. Communication and location of the site also should be considered," said Dr Taslim. Citing example of Iswardi EPZ, he said it could not be functional due to the odd location.
Mr Taslim said the government should keep the SEZs open for both the domestic and foreign investors as overseas investors should not enjoy all the special facilities and "a level playing field should be there for all."