The journey of Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) from a swamp towards one of the largest industrial cities in the South Asian region continues at a steady pace. This flagship project for Bangladesh will be a game changer for the economy.
This massive project is located on 33,804 acres of land in Sitakunda and Mirsarai upazilas of Chattogram and Sonagazi upazila of Feni, beside the Sandwip channel of Bay of Bengal. The Bangladesh Economic Zones Authority (BEZA) currently controls 16,769 acres of land.
BEZA is leasing per acre of developed land to investors for Tk 2 crore, and undeveloped land for Tk 1 crore for a timeframe of 50 years. The authority has already allocated 5,271 acres of land to 152 investors, and $1.23 billion has been invested in the zone so far.
BSMSN has a proposed investment of $18.5 billion, and there is a prospect of generating 14 lakh employment opportunities.
On a recent visit, The Business Post found that half of the land in the BSMSN has already been developed, and the making of an industrial city is now visible to the eye.
The developed infrastructure includes the Sheikh Hasina Sarani, 150MW power plant for initial electricity supply. Meanwhile work is underway to introduce water and gas connectivity across the zone.
Five factories have already started production at the BSMSN, and 22 industries are under construction. The country’s first electric vehicle (EV) industry is being established on 100 acres of land in the zone.
BEZA is working to develop the BSMSN, alongside another 100 economic zones (EZs), across the country by 2030. The authority aspires to become a sustainable development driving force, a world class investment promoter, and service provider.
Speaking to The Business Post, BEZA Executive Chairman Shaikh Yusuf Harun said, “This is an on-going development project and we are optimistic that the country will benefit from the initiative.
“We are hopeful that the number of industries established here will provide employment opportunities to more than 14 lakh people, which will have a positive impact on the entire economy.”
Bangladesh posted an average 6 per cent GDP growth in the last decade as it graduated to the lower middle income group in 2015 – under the World Bank income classification.
The country is slated to graduate from the LDC category in 2026 and aims to become an upper middle-income country by 2031. It aims to achieve a high-income country status by 2041. To achieve this goal, Bangladesh needs to triple its per capita income compared to current figures.
Commenting on the issue, former president of Dhaka Chamber of Commerce and Industry (DCCI) Abul Kasem Khan said, “The location of BSMSN is attractive, as the distance to Chattogram port is short, and the distance to Dhaka is not too much.
“Such a project near the Dhaka-Chattogram economic corridor is sure to attract investors. Alongside industrialisation, the zone will also help the country achieve decentralization of urbanisation. It could even turn into a satellite town of Chattogram.”
5 factories now in production
With 20 acres of land and investments worth $26 million, Asian Paints Bangladesh is currently running production in BSMSN. Located on 100 acres, a factory of Nippon and McDonald Steel Building Products Ltd is producing pre-fabricated steel with $59 million in investments.
Bashundhara Industrial EZ Ltd, one of the largest conglomerates in Bangladesh, is investing around $500 million in the BSMSN. A Bashundhara factory is currently producing industrial chemicals.
Marico Bangladesh is producing coconut oil in the zone, with an investment of $27 million. Samuda Construction Ltd – a sister concern of TK Group – is producing PHC piles with an investment of $34.70 million.
Speaking to reporters at the factory premises, Samuda Construction Director Mustafizur said, “Previously, we used to import such piles, but it is no longer needed. The use of such quality piles will reduce both the construction time and costs, as well as save foreign currency.
There are now several factories under construction at the zone – Arman Haque Denims with an investment of $8.79 million, Berger Paints with $19.3 million, Healthcare Pharma with $26 million, Samuda Food Products with $205 million, Modern Syntex Ltd $150 million, Zhuzhou Jinyuan Chemical with $28 million, and Techno Electrical & Vicar Electricals – a sister concern of SQ Group – with $34.7 million.
SQ Cables Project Development Director Amal Kanti Barua said, "Our company is working on a plan to produce 150 km of electric cable per month.
"Hopefully, we can supply our product this year. We are getting warm support from BEZA."
At the BSMSN, the most interesting factory under construction is the country's first electric vehicle (EV) manufacturing plant. Bangladesh Auto Industries Ltd invested $99 million to produce EVs in its three plants.
A Mannan Khan, chairman of the company, said, “Homegrown green cars are a demand of time. We will produce two, three and four wheelers in three factories. We will offer a sedan EV for Tk 12 lakh, and a SUV for Tk20 lakh.
The BSMSN will have the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Garments Village on 500 acres land with 41factories, and a Bangladesh Export Processing Zone Authority (BEPZA) Economic Zone on 1,138.55 acres land.
That zone will have 539 plots and 350 foreign investors. Moreover, there will be an Indian Economic Zone on 856 acres of land, and SBG Economic Zone on around 500 acres of land.
BSMSN Pride Project
BEZA has taken up a project titled “Bangabandhu Sheikh Mujib Shilpa Nagar Development Project (PRIDE)” with a cost of Tk 4,347 crore. The World Bank (IDA) will provide Tk 3,967 crore, and the Bangladesh government will spend Tk 380 crore.
The project will run between 2021 and 2025.
Under this project, BEZA is developing 30km roads, a 31km drainage network, power, gas and telecom network, skill development centre, child care facility, investors club, environmental lab, emergency response centre and security systems.
BEZA has set a Green and Resilient Economic Zone (GREZ) guideline and grant support for construction and production of Green Industries in EZ, IMD Green Zone, Central Effluent Treatment Plant, Solid Waste Treatment Plant, Renewable energy, Sewage management and flood management, Development of green belt, and Development of lakes and water bodies.
BEZA has also set an initial target of planting 20 lakh trees in the industrial hub, and 40 per cent of the trees have already been planted.
BSMSN at a glance
According to the BEZA, in early 2011, a local lawmaker informed Prime Minister Sheikh Hasina about the benefits of establishing an economic zone in Mirsarai. On April 14, 2012 BEZA’s first governing board meeting decided to establish an economic zone in such an area.
On March 31, 2015, BEZA first took possession of 900 acres of land. In the same year, BEZA acquired another 6,000 acres of land. Land development work started in 2015 under an infrastructure development project.
In 2018, the construction of power supply line, super dike, and gas connection, main road of the project and PGCB grid line started.
In that same year the first industrial construction started in BSMSN (Jinyuan Chemical), but the first to start production were Asian Paints and McDonald Steel.
