http://www.thebangladeshtoday.com/archive/January%2009/29-1-2009.htm#back%20page
Two new EPZs as investment flows increase
Staff Correspondent
Bangladesh Export Processing Zones Authority (BEPZA) is expecting to attract more investments in the country’s Export Processing Zones (EPZs) as it has received positive signals from the newly elected Awami League (AL) government to go for expansion, officials said.
They said the government has already approved one of their two proposals for setting up EPZs and they have already received approval for Feni EPZ, but the approval of Meghna EPZ is under process.
When Feni and Meghna are set up, the total number of such zones will reach 10. Now the country has eight EPZs in Uttara (Nilphamari), Ishwardi, Adamjee, Mongla, Dhaka, Comilla, Chittagong and Karnaphuli.
“We have received approval from the government for establishing the Feni EPZ, but no decisions have yet been taken about the Meghna EPZ. Hopefully, we will receive it soon.” said a high official.
Officials said the BEPZA is looking to go for extension as there is positive mood among both local and foreign investors and the demand for such zones is increasing day by day.
They said better law and order situation, good infrastructure, reduction of lead time, less cost of doing business, friendly policy of the government, attractive incentives and success story are all contributing to such eagerness.
Bangladesh is known to be Asia’s most competitive production base due to its cheap and large labour-force, they said. Currently 2 28,932 labourers are working in the EPZs, of them 82,416 are male and the rest are female. Officials said decision of expansion was mainly based on high demand and flow of investment.
In the fiscal year 2007-2008, total investment was $302.19 million, almost double than that of fiscal year 2006-2007 when it was $152.37 million, official data showed. During the first six months of the current fiscal year, the BEPZA saw an investment of $74.70 million and at the end of the current fiscal year it will, the officials hope, be at least equal to that of last fiscal.
Prasanta Bhusan Barua, member (Investment Promotion) of BEPZA said that BEPZA last year signed agreements with a number of investors worth $1.4 billion. “The investors will implement their projects phase by phase in around three years. A lot of money is involved here” Barua said.
Data showed the contribution of BEPZA to national export is increasing gradually. In the fiscal year 2007-2008, total export of EPZs was worth $2.40 billion which was $2.06 billion in the fiscal year 2006-2007. In the first half of the current fiscal, export earnings stood at $1.26 billion.
A total of 292 enterprises are operating in eight EPZs and there are 125 plants in the process of implementation, officials said. Of the 292 industrial plants, 173 are totally foreign-owned, 48 are joint ventures and the rest 71 are owned by local investors.
