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Govt drops 3 EPZ development plan on poor investor response

NAZMUL AHSAN
The government has decided to suspend all future infrastructure development in three export processing zones (EPZs) at Ishwardi, Mongla and Nilphamari.
Official sources said the government decision came on the heels of poor responses from investors.
The decision was recently taken at a meeting of the Board of Governor of the Bangladesh Export Processing Zones Authority (BEPZA) in Dhaka. The meeting was presided over by Prime Minister Khaleda Zia who is also the chairperson of the BEPZA Board.
As per the decision, the government will not release any further fund against these EPZs, which still need more than Tk 8,000 crore to complete their remaining development works.
Sources in the BEPZA said the existing units already set up in the Ishwardi EPZ in Pabna, Mongla EPZ in Bagerhat and Uttara EPZ in Nilphamari will not be affected by
the recent decision. New entrepreneurs willing to set up factories will also be welcome, the sources added.
The meeting also decided to form a high-powered committee to work out the next course of action relating to the issue. Committee members will evaluate the entire situation, past activities and future planning of these EPZs.
The incumbent and past governments have spent about Tk 11,500 crore in development works of the three EPZs. The amount was mostly spent on land purchasing, earth filling and electricity supply.
The remaining works include gas and water supply, installation of sewerage line and making plots ready for construction.
Out of the three EPZs, supply of both gas and electricity is only available at the Ishwardi EPZ. The EPZ, inaugurated in 2001, is still to house any industrial unit, although some 43 plots are ready for allotment.
The EPZ has failed to attract the attention of the investors due to
lack of investors' confidence and global recession, sources said.
Inaugurated in 1998, the Mongla EPZ is situated on 460 acres of land. The government has spent Tk 4,500 crore in development work of the zone which has only two units.
As far as the EPZ at Nilphamari is concerned, only one unit has been in operation since its inauguration in 2001. Established on 233 acres of land, the government has so far spent Tk 2,950 crore to prepare the EPZ.
Besides the above mentioned three EPZs, Bangladesh has three more EPZs, located in Chittagong, Savar and Comilla.
Bangladesh fetched Tk $1.2 billion export earnings during 2001-2002 from the industries set up in Dhaka and Chittagong EPZs. The EPZ in Comilla, established in 2000 and with only one factory currently in operation, luckily has escaped the government's recent decision.