Coordinated government initiative can make BEZA's initiative successful

The present government and management of BEZA initiated discussions with all categories of stakeholders, including BEZA's internal officials, domestic and foreign investors, developers of economic zones, various embassies in Bangladesh, business organisations such as FBCCI, BGMEA, BEZIA, FICCI, and development partners and business bodies (e.g., The World Bank, ADB, JICA, JETRO, KOTRA), as well as journalists, to identify the main challenges in establishing economic zones. 

Several positive decisions have already been made in areas such as the inclusion of the Korean EPZ within BEZA, the use of land owned by other government departments for economic zone development, and the collaboration of various government departments with BEZA to develop the necessary infrastructure. The fact that changes have begun to take place in such a short period is encouraging for investors. If this trend continues, achieving the initiatives BEZA is working on will become very achievable and realistic in the future.

BEZA has currently prepared a priority list for the development of economic zones, with five zones (National Special Economic Zone, Srihatta Economic Zone, Jamalpur Economic Zone, Maheshkhali Economic Zone, and Japanese Economic Zone) having a time-bound plan to ensure infrastructure and utility services. This will create opportunities for the construction of 133 industries, with an expected investment of $5.5 billion and employment for around 238,000 people in the coming years. Additionally, BEZA is assessing five more economic zones (Sabrang Tourism Park, Chinese Economic Zone, Chadpur Economic Zone, Kurigram Economic Zone, and Kushtia Economic Zone), which are planned to be developed in phases after completing ongoing studies. If these ten economic zones are successfully implemented, they will play a crucial role in enabling the government to undertake many more initiatives. Furthermore, there are currently 13 private economic zones under BEZA, nine of which are in production, with the remaining ones gradually coming into production. If all these initiatives are realised, BEZA will forge a new path towards becoming a genuinely investment-friendly organisation, and investors will be able to implement their investment plans in line with BEZA's timeline.

If the Japanese, Chinese, and Jamalpur economic zones are successfully implemented, they will pave the way for the establishment of many more zones in the future

The executive chairman of BEZA, in a "Meet the Press" event on 7 January, 2025, stated that investors who have acquired land but have yet to begin activities are being encouraged to build industries and inform BEZA of their investment plans. If these investors are unable to start development work in line with BEZA's plans, they have been asked to return the land to BEZA. BEZA has already started seeing success in this regard. The organisation is also planning to establish economic zones on government-owned land in various locations, such as former jute mills and sugar mills.

One of the main challenges to investing in Bangladesh is the supply of quality gas. The government needs to prioritise and implement a plan for gas supply to the economic zones. Investors would benefit if the government created a roadmap outlining when and where gas can be supplied. Furthermore, there needs to be a clear plan to gradually bring all services online. While the government is currently initiating the National Single Window, this initiative will allow BEZA investors to operate their businesses without hassle. Another major challenge in the economic zones is the inability to carry out infrastructure development projects on time due to a lack of funding. In this regard, the government should allocate necessary funds in the development budget for economic zone projects, just as it does for other infrastructure sectors such as roads, electricity, education, and health, as providing employment is also a crucial government task. Relevant government departments need to begin working on this now, as the process of initiating infrastructure development projects is complex and time-consuming.

As part of the initiative to implement solar power projects on unused land owned by BEZA, a feasibility study has been initiated. Additionally, as part of housing facilities for workers in the National Special Economic Zone, a bridge will be constructed over the Feni River with support from LGED. BEZA has taken various initiatives to develop planned housing arrangements for workers in the areas surrounding the five economic zones. It will not be necessary to establish 100 economic zones in the country. 

If ten economic zones are fully operational in the next ten years, the purpose of the economic zones will be fulfilled. Especially if the Japanese, Chinese, and Jamalpur economic zones, along with the National Special Economic Zone, are implemented, it will pave the way for many more zones in the future. 

If BEZA can properly implement the plans for these five zones in the next five years, it will be better equipped to take on future initiatives, drawing from this experience. However, this will require coordinated efforts from all government departments.

By fostering inter-agency collaboration, streamlining processes, and addressing infrastructure and policy gaps, the government can significantly enhance BEZA's capacity to attract and retain investments, driving economic growth and industrialisation in Bangladesh.

The author is a consultant for Economic Zones Development, Environment and Social Development in Bangladesh.