Japanese Economic Zone in Araihazar to get improved infrastructure facility

The government is modifying the design of under construction Japanese Economic Zone in Narayanganj’s Araihazar area to bring several improvements, including an expansion of the project area, and construction of a power station to allow uninterrupted supply of electricity.

It will also get a road transportation system capable of supporting heavy vehicles under the planned improvements, says a recent report of the zone’s Project Implementation Committee working under the Bangladesh Economic Zones Authority (BEZA).

According to this report, the newly planned power station will initially provide 35MW, and then 100MW to companies invested in the Japanese Economic Zone. The original plan had listed the Bangladesh Rural Electrification Board as the electricity supplier. Meanwhile, Jica Bangladesh Office’s Special Assistance for Project Implementation (SAPI) mentions an allocation of Tk 618.76 crore for installing generators in the zone to produce a total of 46MW electricity.

Of the power, 31MW will be generated by a gas turbine generator, 12MW by two 6MW gas engine generators, 3MW by a diesel engine generator. This capacity will be upgraded to 100MW if needed, based on project consultant Nippon Koei Ltd’s assessment.

The new plan states that a straight road will be necessary to facilitate the movement of heavy vehicles in this zone, along with a retaining wall on the roadside. Insiders told The Business Post that the economic zone will be expanded to meet the demand of developer firm Sumitomo Corporation, Japan. Under the same initiative, the infrastructure, and mechanical and electrical works will be expanded too.

Sources say BEZA, in collaboration with Sumitomo Corporation, wanted to build the power station and electricity transmission lines under the zone’s infrastructure development plan.

But the Bangladesh government did not give permission, and tasked Bangladesh Power Development Board (BPDB) to do the job instead. The board has already agreed to finish this task, insiders added.

Meanwhile, as delegated work, the Titas Gas Transmission and Distribution Company Ltd will install/shift supply lines and build central gas supply systems (CGS) in the zone, while the Bangladesh Telecommunications Company Ltd will install a telecommunication network there.

Activities related to the project including calls for tender to install/shift gas supply lines and build CGS is currently underway. Project consultants have sent the primary design and tender proposal to the BPDB and Power Grid Company of Bangladesh (PGCB) for review. These copies have also been sent to the Prime Minister’s Office for its opinion.

Skilled manpower needed

A recent survey conducted on the Japanese Economic Zone by German firm CertifID points out that the heavy industries set to be built in the area will need a large number of workers with technical knowledge.

However, Bangladesh lacks such a volume of qualified human resources, and will face difficulty in supplying the necessary manpower needed to manufacture electronic equipment. So, it might have to bring in skilled manpower from abroad to meet this demand.

Speaking to The Business Post, Beza’s Executive Chairman Shaikh Yusuf Harun said, “The special economic zone in Araihazar will have a huge positive impact on the foreign direct investment (FDI).

“We are working to provide Japanese investors with gas, electricity and water supply. They have put their trust on us, and we will uphold their trust. This economic zone will also send a positive message about Bangladesh to investors from across the globe.”