Government authorities have sought low-interest loans for project financing in private economic zones from the World Bank's Investment Promotion and Financing Facility (IPFF) window to nudge the EZs into takeoff.
Officials said the Bangladesh Economic Zones Authority (BEZA) under the Prime Minister's Office (PMO) has placed the request for the soft credits in project-financing mode.
The government has undertaken a mega-plan for setting up a hundred such special economic zones across the country in a bid to put the economy onto a higher trajectory of growth by tapping area-specific potential. And BEZA has been working "relentlessly" to develop economic zones, they said.
Over the last two years, 12 licences have been issued to renowned corporate houses. Six more are expected to be handed out over next six months, a senior official of the BEZA said.
"Development activities for the private zones are progressing at a good pace. Monthly meetings are being held with the zones. The last meeting discussed financing the zones in presence of a World Bank representative," he said.
The representative mentioned that the private zone developers may borrow from the IPFF project being implemented by the Bangladesh Bank (BB), he added.
"As the investors are new to such EZ activities, it is very important to support them initially so that they can easily take the risks of long-term investment and make the zoning programme a success," another high official said.
Moreover, the rate of interest should also be favorable for the entrepreneurs. It is recommended that interest rate be fixed lower under the project for zone development. It can be settled in consultation with the World Bank and the BB, he mentioned.
The executive chairman of the BEZA sent an official letter to the ministry of finance (MoF) recently for taking necessary steps for the low-rated financing, the sources said.
The government has taken initiative to set up EZs across the country aiming to expedite industrialisation and attract foreign direct investment (FDI), the official said.
Currently, EZs are being built under public-private partnership-a latest development paradigm being pursued in many countries to avert shortcomings of purely nationalized and private ventures in major undertakings.
"We met with the World Bank and private entrepreneurs on IPFF loan for the private zones. We will sit again in this connection," the Executive Chairman of BEZA, Paban Chowdhury, told the FE Sunday.
The BEZA aims to establish economic zones in all potential areas in the country, including backward and underdeveloped regions, with a view to encouraging rapid economic development through increase in and diversification of industry, employment, production and export, he said.
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