The construction work of Bangladesh Special Economic Zone (BSEZ) dedicated for Japanese investors in Araihazar upazila of Narayanganj has been delayed due to coronavirus pandemic although the government is expecting to bring in Japanese investment worth US$20 billion.
Officials of BSEZ informed the Finance Division that JICA is set to disburse first instalment of fund worth Tk 775 crore for the construction of Japanese Economic Zone in Araihazar but the things faced some early hiccups due to coronavirus.
Problems including trade and business issues faced by Japanese investors in Bangladesh have been identified along with possible solutions at a meeting held at the Prime Minister’s Office (PMO) presided over by Principal Secretary Ahmad Kaikaus, officials said.
Out of the 27 issues, most of the highlighted problems include increasing efficiency of the ports including the land and airports. National Board of Revenue (NBR) will take special measures for dispatching export and import products from the land and sea port within 16 days and from airport within 8 days.
Executive Committee of National Economic Council (ECNEC) on March 05 approved a project costing Tk 2,582.18 crore for the development of Japanese Economic Zone within 2022. Out of the total project cost, JICA will provide Tk 2127.82 crore and rest of the fund will be managed from government exchequers.
Finance division will look into the incentive package loan to the Japanese investors who have factories and business in Bangladesh because they have also been affected by coronavirus pandemic. NBR will also look into tax holiday and tax exemption facilities for the Japanese businessmen in Bangladesh. Besides, the factory owners of Japanese investors will enjoy relaxed labour law provision applicable in Bangladesh. PMO’s meeting also discussed about tax benefits for the Japanese investors as far as shifting their factories from China to Bangladesh is concerned.
Before the outbreak of coronavirus in December 2019, Japanese firm TOA Corporation won the contract for developing land and other related works for the construction of an exclusive economic zone for Japanese investors in Araihazar upazila of Narayanganj.
Two Japanese firms TOA Corporation and Tokyu Construction vied the tender floated by BEZA under the Prime Minister’s Office for the job of developing one of the country’s largest economic zones. Later two companies signed a contract with the BEZA and developed the 1000 acres of land within two years.
BEZA chairman Paban Chowhdury said after the development of the Japanese economic zone number of Japanese firms will be doubled by 2022. Number of Japanese firms in Myanmar is 480 while in Bangladesh the number is 279.
BEZA will have a 24 percent stake in the project while Sumitomo Corporation of Japan will have 76 percent stake. Sumitomo, a renowned Japanese company has successfully implemented such projects in Vietnam, Indonesia and Myanmar. There are also activities of more Japanese firms in Bangladesh. If Sumitomo is involved in establishing a new economic zone, it is expected that there will be great progress in Japanese investment in the country. The land will initially be leased to Sumitomo Corporation of Japan for 50 years.
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