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Fresh investment in ERZs clocks 85pc rise in FY 03

Zahidul Haque
Fresh investment in the export processing zones (EPZs) registered an 85 per cent growth in 2002-03 fiscal year over the previous year.
The six EPZs saw new investment of $103.13 million in 2002-03 against $55.70 million in 2001-02, sources in the Bangladesh Export Processing Zones Authority (BEPZA)said.
"The success came mainly because of building more awareness on existing facilities of BEPZA among local and foreign investors," BEPZA Executive Chairman Brig Gen (Retd) M Mofizur Rahman told The Daily Star.
Exports from the EPZs also increased by 11.42 per cent in the last fiscal year when goods worth $1.20 billion were exported. The previous year's figure was $1.07 billion.
"Apart from providing electricity, water, gas and telecommunication facilities to the investors, BEPZA also runs a one stop service centre from where the investors can receive all types of services required for investment," said
Rahman.
But the BEPZA executive chairman regretted that only a few local investors were aware of the facilities. Most of the local investors know a little about EPZs and think these are exclusively for foreigners, he said.
"That's why we have given more emphasis on increasing awareness among local investors. We arranged seminars in different districts to talk with the local businessmen and motivate them," he added.
At the same time, BEPZA tried to keep existing foreign investors satisfied. "We believe their views on the facilities in Bangladesh would encourage other foreigners. This will be more effective than our campaign," said the executive chairman.
Rahman said they held presentations on BEPZAfacilities at different embassies and foreign organisations in Dhaka with a view to promote investment in EPZs.
About law and order situation in EPZs he said it is better than other parts of the country.
Besides the Dhaka and Chittagong EPZs, the government
has set up four new zones at Mongla, Comilla, Ishwardi and Nilphamari. The BEPZA is now making vigorous efforts to attract investors in these zones.
The BEPZA executive chairman said they offer some special facilities in the four new EPZs. The investors can take plots on lease at 50 per cent less rate.
The other facilities include issuance of export-import permit by the zone authority within 24 hours and issuance of work permits by BEPZA.
The fiscal incentives provided by BEPZA include ten years tax holiday, 50 per cent income tax rebate on export sales after expiry of ten years and exemption of income tax on interest on borrowed capital and relieffrom double taxation.
The prospective entrepreneurs can also enjoy the facility of duty free import of machinery, equipment and raw materials for construction of factory buildings in the zones area and duty free export of goods produced in the zones.
The EPZs so far attracted investment worth $634.04 million, BEPZA sources said.