Jasim Uddin Haroon:

The Mongla Export Processing Zone (EPZ) is set to turn into an economic zone (EZ), as the EPZ has failed to attract expected investment since its inception.

The government has already selected five sites for setting up economic zones, including Mongla.

The other selected sites are Anwara and Mirersarai of Chittagong, Sherpur of Moulvibazar, and areas near the Bangabandhu Bridge in Sirajganj.

"The government has instructed us to provide a detailed report of the Mongla EPZ, as entrepreneurs' investment is rather meagre in it," Md Nurannabi Mridha, project director of Bangladesh Economic Zones Authority (BEZA), told the FE.

The Bangladesh Export Processing Zones Authority (BEPZA) officials said according to investors the percentage of salinity of underground water at the EPZ is high, leading to high production cost of textiles and RMG products.

Besides, the EPZ has no gas connectivity, which is very fundamental to industrialisation.

The Mongla EPZ, nearly 400 kilometres away from Dhaka, attracted a total of over US$ 5.0 million investment since 2001.

"It fetched only $ 0.08 million investment during the July-March period of the fiscal year 2011-12," said another official of the project.

Factories at the EPZ have so far exported products worth $ 113 million, and during the last nine months they have earned just over $ 38 million.

The BEPZA has revised downward its tariff for Mongla to attract investment, which, however, has failed to bring any positive result.

The BEZA senior officials said the government wants to utilise the unused land of the EPZ.

The officials said the government wants to set up economic zones at the areas where poverty and unemployment rates still remain high.

The BEZA has already invited expression of interest (EOI) for conducting a study on the proposed sites, including Mongla.

They said the government does not want to set up of economic zones on arable lands and even on roadside lands.

"The Prime Minister, in establishing economic zones, has asked us to carefully consider the environmental factors of the areas as well as to minimise loss of the local people," said an official.