Bepza Economic Zone gearing up for production
The zone is expected to draw approximately $2.70 billion in FDIs
Bangladesh Export Processing Zone Authority (Bepza) Economic Zone (EZ) in the Bangabandhu Sheikh Mujib Shilpa Nagar Chattogram's Mirsarai is gearing up to go into production early next year.
"The zone is expected to draw approximately $2.70 billion in Foreign Direct Investments (FDI) once it is fully operational," Bepza Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman told The Business Standard.
So far, 14 foreign and local companies have inked lease deals with the Bepza to establish their factories at the economic zone and three of these companies have already started construction.
Chinese company Fengqun Composit Material Co (BD) Ltd, one of these three companies, is expected to be first to enter manufacturing early next year at the economic zone, which is the first of its kind being developed under Bepza, spanning 1138.55 acres of land in the Bangabandhu Sheikh Mujib Shilpa Nagar.
The barren land, which once used to be under tidal water, is now very close to becoming a vibrant industrial enclave of 539 industrial plots.
The constructions of internal roads, drains, office and service buildings are also nearing completion.
The 14 companies, including 9 foreign owned, 4 joint-ventures and one local, have put forth an investment proposal of $323.9 million in total with proposed employment of 65,651 people.
Fengqun Composit Material, which began their construction work in April 2022, will produce shoe accessories and packaging items including duct tape, cartoon, paperboard boxes, inner boxes, corrugated boxes, rigid boxes, foil sealed bags and chipboard packing.
The other two companies, currently constructing their production units, are Chinese firm KPST Shoes (BD) Co Ltd, a Canada-China-owned venture Goodwood (Dhaka) Company Limited.
Of the 100 companies, which have sought allotment of industrial plots at the Bepza EZ, 17 have been allotted plots while rest of the applications are under process.
These companies will produce a wide range of products including shoe accessories, packaging items, finished lubricants, apparel, camping equipment, garments accessories and paper conversion, outdoor garments, hair fashion and accessories, disposable cutlery and medical products, women's undergarments, garments accessories and ready-made garments.
"Bepza evaluates a number of things including proposed investments, employment opportunities, export potential, as well as production factors such as product types, whether the production process will leave any negative impact on the environment and how much electricity, water and gas will be required, before approving any application," said Bepza chairman.
According to Bepza, 53.37% of the total 1138.55-acre land will be left vacant while empty areas outside the plot area will be used for roads, drains, footpaths, green space, a 45-acre central reservoir and service lanes.
Bepza officials say the masterplan includes every amenity required to make the Bepza EZ a smart and green zone.
Bepza Executive Chairman Ziaur Rahman said product diversification as well as high-end and tech-based products are being priorities at the economic zone.
Construction of the Bepza Economic Zone, Mirsarai- Phase 1 (1st Revised) project, which is worth Tk1302.91 Crore, started in 2018 and is currently in the final stages with the deadline in June 2023.
Bepza is currently overseeing 8 operational Export Processing Zones (EPZ) including Chattogram EPZ, Dhaka EPZ, Mongla EPZ, Ishwardi EPZ, Cumilla EPZ, Uttara EPZ, Karnaphuli EPZ and Adamjee EPZ.
