Chinese Economic Zone to Bring $1.3bn Investment

Flags of Bangladesh and China

A Chinese Economic and Industrial Zone will be developed on 783 acres in Anwara, Chattogram, with the project expected to attract US$1.3 billion in investment and create more than 100,000 direct and indirect jobs, according to the Bangladesh Investment Development Authority (BIDA).

The zone will be strategically located near Chattogram Port, the Karnaphuli Tunnel, Shah Amanat International Airport and the under-construction Matarbari Deep-Sea Port, positioning it as a major industrial and logistics hub.

Its location is expected to provide efficient connectivity to Chattogram Port through the Karnaphuli Tunnel. A planned road linking Anwara with Matarbari via Banshkhali and Pekua will further strengthen freight movement between the industrial zone and the country's two major seaports.

Business leaders, however, said the project's success would depend not only on its location but also on ensuring reliable gas, electricity, water supply, waste management and efficient investment services.

After nearly a decade of delays, the foundation stone of the project was laid on Monday, formally launching the development. Infrastructure work is scheduled to begin in January next year and be completed by December 2031.

The project is a joint initiative of the governments of Bangladesh and China. It was first agreed upon during Chinese President Xi Jinping's visit to Dhaka in 2016 but was delayed due to disagreements over the developer, financing arrangements and contractual issues.

China Road and Bridge Corporation (CRBC) was later appointed as the developer. During Prime Minister Tarique Rahman's visit to China in June, the Bangladesh Economic Zones Authority (BEZA) and CRBC exchanged the developer agreement.

Earlier, the Executive Committee of the National Economic Council (ECNEC) approved a Tk41.89 billion project to build supporting infrastructure. Of the total cost, Tk17.22 billion will be financed by the government, while Tk24.67 billion will come from foreign loans.

Speaking at the foundation stone-laying ceremony, Finance and Planning Minister Amir Khasru Mahmud Chowdhury said investment in the zone would eventually exceed US$1 billion and generate significant economic benefits for southern Chattogram.

The project includes construction of a multipurpose jetty capable of handling 20,000-deadweight-ton vessels, access roads, a bridge, a four-lane road, a central effluent treatment plant, gas transmission pipelines, electricity substations, water reservoirs, a solid waste management facility and boundary walls.

BEZA plans to make at least 60% of the industrial plots factory-ready within the first three years, allowing many factories to begin construction by 2030.

The industrial zone is expected to become a key part of an emerging economic corridor stretching from Mirsarai through Anwara to Cox's Bazar, integrating ports, industrial zones, power plants and transport infrastructure.

Officials expect the zone to boost freight movement through the Karnaphuli Tunnel once factories begin production, although significant traffic growth is likely only after infrastructure is completed and industrial operations commence.

Business leaders said timely completion of transport links and uninterrupted utility services would be essential for the zone to realise its full investment potential and emerge as a major manufacturing and export hub.