Chinese EZ set to develop fast with new developer onboard

The Chinese Economic and Industrial Zone in Chattogram is set to develop fast with the appointment of a new developer – China Road and Bridge Corporation – nearly six years after its development began.

"The Chinese government has appointed the developer to replace the previous one, China Harbour Engineering Company, following our request. China Harbour failed to complete due works in time. Moreover, it kept the construction activities suspended for a long time," said Shaikh Yusuf Harun, executive chairman of the Bangladesh Economic Zones Authority (Beza), told The Business Standard.

With the appointment of the new developer, the construction of the economic zone is expected to get momentum, he hoped, adding that they have already inked a memorandum of understanding with the newly-appointed entity.

"We have had two negotiation meetings with them. Discussions are underway to finalise other required deals, including joint venture one," Yusuf Harun said and noted that the distribution of ownership stakes will be fixed after the deals.

The 805-acre Chinese Economic and Industrial Zone, located at Anwara upazila of Chattogram, has been under development on a government-to-government (G2G) basis since 2016 – the year when Chinese President Xi Jinping visited Bangladesh and laid its foundation.

The Beza is working to develop 100 economic zones, including this one, across the country by 2041 to support the country's development and employment generation.

The economic zone is just two kilometres away from the under construction Bangabandhu Sheikh Mujibur Rahman Tunnel which is expected to bring a revaluation in road communication in the area. The economic zone will also benefit from the improved communication system.

Interestingly, the new developer for the economic zone, Chinese Road and Bridge Corporation, is also engaged with the construction of the tunnel, which makes Beza officials more optimistic about fast development of the zone.

"We expect that the Chinese economic zone will employ around 30,000 people once it goes into full operation," Yusuf Harun hoped.

"China is interested to invest in various Bangladeshi industries, especially in high-tech, leather, and garments, and the backward and forward linkage industries," Bangladesh-China Chamber of Commerce and Industry Secretary General Al Mamun Mridha told The Business Standard.

"China is the leader in manmade fibre. It can invest to establish such factories in Bangladesh as we import the fibre in large amounts."

The secretary-general said their association has 750 members, while 430 are direct Chinese investors.

Collaboration deal to attract more Chinese FDI

The Bangladesh Economic Zone Authority and the Bangladesh-China Chamber of Commerce and Industries have inked a new collaboration deal to further attract foreign direct investment from China.

Secretary General of the association Al Mamun Mridha and Beza General Manager Md Moniruzzaman inked the agreement, titled "Collaboration on promoting and branding Bangladesh globally and attracting foreign investment at Economic Zones in Bangladesh", on behalf of their respective organisations at the Beza office in the capital yesterday.

"We will work together to encourage Chinese companies to further invest in Bangladesh," Sheikh Yusuf Harun said.

"When we started working in 2003, Bangladesh's bilateral trade with China was a little over $1 billion, which has now grown to $25 billion thanks to our coordinated efforts," said Al Mamun. "Yet, there is huge investment potential from China. We will work to draw that, particular to economic zones."