Beza cannot ensure gas, electricity supply to private EZs: Executive chair

While a roadmap has been prepared to ensure gas and electricity supply for government economic zones, the new Bangladesh Economic Zones Authority (Beza) administration has not developed a similar plan for private zones.

Private investors argue that this is discriminatory toward them as they have been raising concerns regarding the lack of facilities at the zones for some time now.

Talking on the issue, the Beza authority has said they cannot guarantee uninterrupted gas and electricity for factories in private economic zones but recommendations will be made to the relevant departments to ensure services for these factories.

Beza Executive Chairman Chowdhury Ashik Mahmud Bin Harun made the remarks while speaking at a press briefing held at the Bangladesh Investment Development Authority (Bida) Multipurpose Hall in Dhaka yesterday.

In response to questions, Ashik Mahmud further said there is some ambiguity over who is responsible for ensuring gas and electricity services in private zones. 

However, he assured that a roadmap will be prepared to address this issue and ensure services.

To boost local and foreign investment, the previous government made a plan to establish 100 economic zones across the country and to aid in the plan, the private sector came forward as well.  

According to Beza, 13 private economic zones have been approved so far, of which at least eight are operational with factories in production. However, many factories are unable to begin production due to gas and electricity shortages, despite hundreds of crores already invested.

In response to another question, the Beza executive chairman said, "Of course, private economic zones are important to us. When final approval is granted, there is a promise made to provide gas and electricity at the doorstep of the zones – although it may not be documented formally, the promise is made."

"However, Beza will not take responsibility for delivering gas and electricity to private economic zones. Instead, we will advocate on their behalf," he added.

"We will prepare a roadmap outlining when gas and electricity will be provided to private economic zones in the future," Ashik Mahmud said, when reporters questioned him about the lack of plans for private economic zones.

The questions came up at the event following an announcement that Beza aims to ensure water, gas, and electricity in five economic zones, including one in Mirsarai, within the next two years. Among these, four are government-run zones, and one is a government-to-government (G2G) economic zone.

Investors' complaints

Asked about the complaints of investors, Beza executive chairman said they have raised several complaints, including the lack of uninterrupted gas and electricity supply, inadequate road connectivity, and insufficient water access for factories. 

Concerns were also voiced about the poor quality of services and the lack of policy continuity, which they said is hindering investments.  

"We are working to address these issues and ensure a more conducive environment for investors," he assured.

Korean EPZ set to come under BEZA

The Korean Export Processing Zone (KEPZ) will soon be brought under the jurisdiction of Beza, said Ashik Mahmud.

"Some official formalities remain to be completed. We are currently focusing on the legal aspects. Our goal is to ensure we provide better services to them," he added.

Earlier on 2 December, the governing body of the KEPZ, headed by the chief adviser, decided to fast-track its land registration and ease its bond licensing procedure to turn the key industrial park into a foreign direct investment hub.

The committee also unanimously decided to decentralise authority and fast-track service by moving KEPZ out of CAO's direct administration to the Beza.

Paban Chowdhury, former executive chairman of the Beza and Chief Adviser of City Group, told The Business Standard that bringing theKEPZ under Beza's jurisdiction is a positive step.  

"The law for establishing private export processing zones was enacted in 1996, leading to the creation of the country's first private export processing zone, KEPZ, in Chattogram's Anwara upazila. However, due to land-related complications, the progress did not match expectations," he explained.  

Spanning about 2,400 acres, KEPZ was envisioned as a hub for export-oriented industries. 

Paban noted that unresolved issues with land mutation caused long delays, which could have been addressed earlier. 

He commended the current government for finally resolving these problems, paving the way for further development.  

"If implemented effectively, KEPZ could attract foreign investment like Vietnam. Unfortunately, we often initiate good projects but fail to provide adequate support and consistent policy backing," he said, emphasising the importance of policy continuity for sustained progress.