THE government has selected three new economic zones as pilot projects to be completed in different phases by 2025. According to a report published on Monday in a local English daily, a study commissioned by the Bangladesh Economic Zone Authority suggests these three projects, one at Sherpur in Maulovi Bazar, and two others in Mirershorai and Anowara in Chittagong are feasible and economically most viable. The feasibility study was jointly conducted by the Japan Development Institute, Maxwell Stamp and Sheltech Private Ltd with the financial support of World Bank and DFID of the British government.The three projects apparently bear huge potential from an economic viewpoint. The Sherpur Economic Zone is expected to create jobs for 40,706 workers and accommodate industrial facilities for textile, ceramic, pharmaceutical, paint and food processing plants. The project has almost all infrastructural facilities with power, water and gas utilities in place. The construction work of the Sherpur EZ will start in 2015, as per the government’s plan, and be commissioned in 2018. The project will cost $90 million. Only five households will need to be relocated. The construction work for Mirershorai EZ will start in 2017 and is scheduled for completion by 2025. It will create jobs for 578,751 workers. About 650 households will have to be rehabilitated. The Mirershorai EZ will cost of $847 million.The Anowara project is expected to create jobs for 53,420 workers, while 980 households will have to be relocated. It will cost $239 million.These projects with a total cost of $1176 million are viable and undoubtedly a praiseworthy initiative by the government since economic zones can be a boost for our economy. It can fetch foreign direct investment (FDI), generate new employment opportunities and enable townships to have better access to education and medical facilities. Bangladesh Economic Zones Act, 2010 has the legal framework for investing in economic zones, which allow the private sector to own, develop, and/or manage economic zones, as well as establish infrastructure and services for the companies in the zones as a separate business. According to the Economic Zones Act, the economic zone should have an export processing area specified for export oriented industries, a domestic processing area for manufacturing products in line with the demands of the local market, a commercial area specified for business organizations, banks, warehouses and finally it should have a non-processing area for residence, health, education and amusement. However, experts suggest a comprehensive Environment Impact Assessment for the preservation of natural resources so that they are not damaged due to the construction of the economic zones. The final draft must have a direction about the ecological impact of these new setups. Meanwhile, in November last year, BEZA was uncertain due to fund shortages for the acquisition of land while setting up an economic zone in Mongla. To avoid such fund crisis, Sherpur, Mirershorai and Anowara projects can be developed on the public-private partnership (PPP) basis. The government hopes for investments from the developers and operators. But to acquire private land, it needs some earlier investment which the government can recoup from the investors later. The government should give priority to the local entrepreneurs who will do the job on the PPP basis.Besides, to ensure the public interest, the tax and tariffs from the plants in the new economic zones should be ensured from the very beginning. The profit tax must be collected at source.At the top of all, since the projects are to be financed externally, the prospective investors would naturally look for an investment-friendly political stability, which is very much lacking in the country now, before making the hard choice of putting the funds in investment. And for that, the incumbent government should first restore political stability soon and ensure good governance.
