The move follows growing Chinese interest in investing in Bangladesh and a meeting of the BEZA governing board, to be chaired by Chief Adviser Muhammad Yunus, is expected to approve the proposal soon, a domestic newspaper reported citing officials from the Bangladesh Economic Zones Authority (BEZA).
Bangladesh is planning to set up two additional economic zones exclusively for Chinese investors, apart from the existing Chinese Economic and Industrial Zone in Anwara, Chattogram.
State-owned Power Construction Corporation of China Ltd will develop the Chandpur Economic Zone-1.
The second, the Bhola Eco-Development Economic Zone will be developed by China’s Leez Fashion Industries Limited.
State-owned Power Construction Corporation of China Ltd (PowerChina) will develop the Chandpur Economic Zone-1 in Matlab North sub-district in Chandpur district under a government-to-government agreement.
The second, the Bhola Eco-Development Economic Zone, will be located in Bhola Sadar and Daulatkhan sub-districts of Bhola district and will be developed by Leez Fashion Industries Limited, a Chinese company that has operations in the country.
The upcoming governing body meeting may also take a call to allocate land from abandoned jute and textile mills under BEZA’s management to fast-track foreign investment, ensuring gas and electricity availability to make these areas investment-friendly.
The expected investment for the Chinese Economic Zone in Anwara is $1.5 billion, while the Bhola Eco-Development Economic Zone may attract $1.8 billion. The final investment amount for the Chandpur Economic Zone-1 will be determined following a technical feasibility study.
As the Chandpur Economic Zone-1 will be situated on an island in the Meghna river, lacking waterway infrastructure connecting it to the mainland, renewable energy projects and agriculture-based industries will take priority over traditional manufacturing and industrial set-ups there.
BEZA anticipates that the Bhola Eco-Development Economic Zone has strong potential to attract foreign investment in garment, textile, electronics and ceramics, which could create nearly 40,000 jobs.
Rising US tariffs on Chinese products have led several export-oriented Chinese firms to explore alternative investment destinations. Chinese firms supplying raw materials for textiles and readymade garments are increasingly considering relocating factories to Bangladesh.
Fibre2Fashion News Desk (DS)