First phase of work completed ahead of schedule

Entrance of the Karnaphuli EPZ at Patenga

Out of 100 plots under first phase on 74 acres of land, the EPZ allocated 87 plots, including 14 large investors with 350 million US dollar (equivalent to Tk 2450 crore) investment, sources said.

Karnaphuli EPZ is the 8th state owned Export Processing Zone (EPZ) in the country on some 222 acres of land.

Most of the entrepreneurs are now setting up industrial units on their allocated plots to create jobs for over 25,000 people.

Bangladesh Export Processing Zone Authority (BEPZA) is implementing the project in two phases at an estimated cost of Tk 84 crore.

The land that once belonged to now defunct Chittagong Steel Mills Limited at Patenga in the city was handed over to BEPZA for setting up the second state-owned EPZ in Chittagong on April 1 in 2005.

Development of 100 plots involving Tk 34 crore financed by the government have been completed ahead of schedule that expires on June 30, said Project Director AMM Shamsuddin Chowdhury.

"We are trying to make the Karnaphuli EPZ as a model for other EPZs in the country," he added.

Fourteen firms from home and abroad were allocated 87 plots while allotment process for the rest 13 plots under first phase have been finalised.

Of them, seven firms from US, Japan, Taiwan, Hong Kong and Malaysia got around 60 plots.

The seven foreign include M/s Kenpark Bangladesh Apparels of USA, M/s Cosmo (Bangladesh) Limited and M/s Precision Optics (BD) Ltd of Japan, M/s Paolo Footwear (BD) Ltd and M/s Eusebio Sporting (Bangladesh) Ltd of Taiwan and M/s Hong Kong Denim (Pvt) Ltd and Malaysian M/s Whitex Garments (BD) Pvt Ltd of Hong Kong.

They have commitment for investment of around 350 million US dollar, which can be raised later on, sources at Karnaphuli EPZ said.

Besides, M/s Denim Expert Ltd, a joint venture company of Holland and Bangladesh, continues construction work on four plots.

Twenty-three plots were allocated to six local companies, including M/s Liss Jeans Manufacturing Limited, M/s Shah Amanat Accessories, M/s Arrow Fabrics Ltd, M/s Bantasa Apparels (Pvt) Limited, M/s Rythm Dressmaker Ltd and M/s Mostafa Knitting & Dying Industries Ltd.

The US based M/s Kenpark Bangladesh Apparels (Private) Ltd will build apparel factories on 17 A-type plots. It will produce jackets, trousers, shirts, shorts, skirts, sportswear and other knitted garments, creating jobs for around 3500 local workers with an investment of around 16 crore US dollar, said Jashim Uddin Khan, technical engineer of Kenpark.

Around 70 per cent construction work of the factory buildings has already been completed, he said, adding that they might go for operation by September.

M/s Arrow Fabrics Limited has already started its production initially in a building of the EPZ on April 12 with 100 workers, General Manager Sakhawat Hossain Chowdhury Arju said. He said they are expected to start their full operation within four months after completion of construction of factory buildings on two plots.

Malaysian Whitex Garments will invest over 1.25 crore US dollar at the EPZ.

A contract has been signed between BEPZA and Whitex Garments on May 10 in this regard.

Meanwhile, implementation of the second phase is going on in full swing to develop 110 plots on 148 acres of land involving Tk 50 crore with 80 per cent to come from the World Bank as financial assistance.

An international tender will be floated to remove the structures on the Chittagong Steel Mill on 148 acres of land this month, sources said.

The development work of the plots will begin after removal of the structures, Karnaphuli EPZ Project Director AMM Shamsuddin said.

Many foreign companies are in a queue for plots in the EPZ, he added.

"Besides, we will extend the EPZ to the abandoned CSD Godown of Food Department at Halishahar on 59.28 acres of land," he said.