Land development at Japanese EZ begins next month

DHAKA Bangladesh Economic Zones Authority (BEZA) is

going to begin the land development works of the Japanese Economic Zone (EZ)

from next month of this year as all necessary procedures in this regard have

almost been completed.

We are going to finance for the new Japanese EZ at Araihazar area in

Narayanganj district. BEZA has almost completed its land development

contractor selection process. We hope that contract with land development

contractor will be signed within this month and construction work will be

started by next month, Japan International Cooperation Agency (JICA)

Bangladesh Office Representative Wataru Osawa told BSS here.

Earlier, the Cabinet Committee on Government Purchase (CCGP) approved a

Taka 1081.45 crore proposal for conducting land development and other

necessary works for the Japanese EZ being built at Araihazar in Narayanganj

on some 1,000 acres of land.

According to the approval, TOA Corporation of Japan has been awarded the

contract for conducting the necessary land development, erecting boundary

walls, constructing connecting roads, excavating retention canals and

building pumping stations at the Araihazar EZ.

Wataru Osawa said JICA will finance for the off-site infrastructure of the

economic zone, like power plant, sub-station, access road, land development

and some cannels.

He said BEZA and Japanese developer has already established a new special

purpose company (SPC) to manage the new EZ.

Wataru Osawa informed that JICA is funding in the EZ under the Foreign

Direct Investment (FDI) Promotion Project and the project will also finance

the Japanese and other FDI companies for their short-term, midterm and long-

term capital investment and operations to promote investment in Bangladesh.

Under the project, he said, investors in Japanese EZ, Japanese and

Bangladeshi or other foreign joint venture enterprises and Bangladeshi

companies which are expected to have more than $1 million of deal with the

Japanese firms will get low interest loan.

Wataru Osawa hoped that higher level industries will be set up in the EZ

as all sorts of modern facilities will be ensured there.

Through establishment of this EZ, planned industrialization would be

ensured side by side many new employment opportunities would be created.

After the exchange of visits of the Prime Ministers between the two

countries in 2014, the number of Japanese inventors in Bangladesh is

increasing day by day. Now, Japanese business community has started to pay

attention to Bangladesh as the next destination of investment.

The zone is expected to attract US$20 billion worth foreign investments,

most of which will be from Japan. The investment is likely to play an

important role in creating employment and also in transferring technologies

to this country. The zone will have an appropriate recycling plant to remove

industrial wastes.

Industries from the agro-food, light engineering, chemical, automobile

assembly, garments and pharmaceutical sectors will be set up in the EZ. The

economic zone is likely to create around 100,000 employments.

Source: Bangladesh Sangbad Sangstha (BSS)