Initial Site Assessment for five economic zones Final

Final Report

Initial Site Assessment for Five Economic Zone Sites

Narayanganj, Panchagarh, Anowara-II, Sabrang Tourism EZ and Dhaka IT EZ

Submitted to Bangladesh Economic Zones Authority September 2015

Bangladesh Economic Zones Authority (BEZA)

PwC 1 Initial Site Assessment for five economic zones Final

Disclaimer

The report has been prepared by PricewaterhouseCoopers Pvt Ltd (PwC) for Bangladesh Economic Zones Authority (BEZA). This is pursuant to the Scope of Work under the contract document "Initial Site Assessment for Five Sites" issued by BEZA. PricewaterhouseCoopers Pvt Ltd (PwC) has been appointed to undertake an initial site assessment for five selected economic zones in Bangladesh. Any third party should obtain prior consent of PwC before copying or reproducing, in whole or in part, the contents of this report. PwC disclaims any responsibility for any loss or damage suffered by any third party by taking reliance of this report. Furthermore, PwC will not be bound to discuss, explain or reply to queries raised by any agency other than the intended recipients of this report. All information in the report is intellectual property of the BEZA. PwC does not accept any liability or responsibility for the accuracy, reasonableness or completeness of, or for any errors, omissions or misstatements, negligent or otherwise and does not make any representation or warranty, express or implied, with respect to the information contained in this document. The information contained in this document is selective and is subject to updating, expansion, revision and amendment. It does not, and does not purport to, contain all the information that a recipient may require. Further this is not an audit report and no reliance should be based on this report for the purposes of audit.

PwC 2 Initial Site Assessment for five economic zones Final

Important message to any person not authorized to have access to this report

Any person who is not an Addressee of this report or who has not signed and returned to PricewaterhouseCoopers Pvt Ltd a Release Letter is not authorized to have access to this report. Should any Unauthorized Person obtain access to and read this report, by reading this report such person accepts and agrees to the following terms: 1. The reader of this report understands that the work performed by PricewaterhouseCoopers Pvt Ltd. was performed in accordance with instructions provided by our Addressee Client and was performed exclusively for our Addressee Client’s sole benefit and use. 2. The reader of this report acknowledges that this report was prepared at the direction of our Addressee Client and may not include all procedures deemed necessary for the purposes of the reader. 3. The Reader agrees that PricewaterhouseCoopers Pvt Ltd., its Partners, Principals, Employees and Agents neither owe nor accept any duty or responsibility to it, whether in contract or in tort (including without limitation, negligence and breach of statutory duty), and shall not be liable in respect of any loss, damage or expense of whatsoever nature which is caused by any use the reader may choose to make of this report, or which is otherwise consequent upon the gaining of access to the report by the reader. Further, the reader agrees that this report is not to be referred to or quoted, in whole or in part, in any prospectus, registration statement, offering circular, public filing, loan, other agreement or document and not to distribute the report without prior written consent of PricewaterhouseCoopers Pvt Ltd., the World Bank and BEZA.

PwC 3 Initial Site Assessment for five economic zones Final

Table of Contents

ListofFigures 10 List of Tables 13 1. Executive Summary 17

1.1.Introduction 17 1.2. Key Objectives of Initial Site Assessment 17 1.3. Approach & Methodology 18 1.4. Salient Features of the five sites 19 1.5. Infrastructure Linkages of the five sites (Connectivity) 21 1.6. Utility Connections 28 1.7. Environmental and Social / Resettlement Issues-Constraints and Mitigations 32 1.8. High level assessment of industrial development potential 35 1.9. Ranking of the sites 37

2. Project Background 50

2.1. Background of the Engagement 50 2.2. Introduction of the Engagement 52 2.3. Earmarking of the Consultant Team 53 2.4. Scope of Work for Initial Site Assessment 53 2.5. Our Approach and Action Plan 56

3. Snapshot of Infrastructure Linkages in Bangladesh 62

3.1. Road Connectivity 62 3.2. Rail Connectivity 65 3.3. Airport Connectivity 67 3.4. Ports and harbours Connectivity 69 3.4.1. Sea Ports 69 3.4.2. River Ports 72 3.4.3. Inland Waterways 73 3.4.4. Land Ports 74

3.5. Infrastructure Linkages- Intermodal Cargo Transfer 74 3.6. Utility connection- Gas 74 3.7. Utility connection- Power 76 3.8. Utility connection- IT/ Telecom 78

4. Multi-Product Economic Zone 81

PwC 4 Initial Site Assessment for five economic zones Final

4.1 About Multi-Product Economic Zone 81 4.1.1. Concept 81 4.1.2. Major Infrastructure facilities required to develop a Multi-Product EZ 81

5. Narayanganj Economic Zone 85

5.1. Location Details and Salient Features 85 5.1.1. General Profile of the District 85 5.1.2. ReconfirmationoftheproposedEZ 88

5.2. Environment section 96 5.2.1. Air quality 96 5.2.2. Floods and Water Logging 96 5.2.3.Noise 96 5.2.4. Land filling 96

5.3. Infrastructure Linkages to the Proposed Site 97 5.3.1. Physical Infrastructure- Availability of Utility Connection 97 5.3.2. Social Infrastructure 99 5.3.3. Connectivity 101

5.4. Resettlement issues 105 5.4.1. Social impacts 105 5.4.2. Constraints and its mitigation 107 5.4.3. Block Cost Estimation for development of Offsite Infrastructure 108

5.5. VoiceontheGround 110 5.5.1. Stakeholder consultation 110 5.5.2. Consultation with Private Sector 110

5.6. Overall Adequacy of the EZ Site in Narayanganj 113

1. Panchagarh EZ 118 6. Panchagarh Economic Zone 119

6.1. Location Details and Salient Features 119 6.1.1. General Profile of the District 119 6.1.2. Reconfirmation of the proposed EZ 121

6.2. Environment 129 6.2.1. Air quality 129 6.2.2. Floods and Water Logging 129 6.2.3.Noise 129

PwC 5 Initial Site Assessment for five economic zones Final

6.2.4. Land filling 129

6.3. Infrastructure Linkages of the Proposed Site 130 6.3.1. Physical Infrastructure- Availability of Utility Connections 130 6.3.2. Social Infrastructure 132 6.3.3. Connectivity 133

6.4. Resettlement issues 140 6.4.1. Social impacts 140 6.4.2. Constraints and its mitigation 142 6.4.3. Block Cost Estimation for development of Offsite Infrastructure 142

6.5. Voice on the Ground 144 6.5.1. Stakeholder consultation 144 6.5.2. Consultation with Private Sector 144

6.6. Overall Adequacy of the EZ Site in Panchagarh 147

2. Annexures 151 7. Anowara-2 Multi-Product Economic Zone 153

7.1. Location Details and Salient Features 153 7.1.1. General Profile of the District 153

7.2. Chittagong, the “Commercial Capital” of Bangladesh 156 7.2.1. Bangladesh Vision 2021- Role of Chittagong 157 7.2.2. Major projects undertaken by Government of Bangladesh 158 7.2.3. Export Processing Zones in Chittagong 159 7.2.4. Economic Importance of Chittagong Port 159

7.3. Reconfirmation of the proposed EZ 161 7.4. Environment section 170 7.4.1. Air quality 170 7.4.2. Floods and Water Logging 170 7.4.3.Noise 170 7.4.4. Land filling 170

7.5. Infrastructure Linkages for the Proposed Site 170 7.5.1. Physical Infrastructure- Availability of Utility Connections 170 7.5.2. Social Infrastructure 172 7.5.3. Connectivity 174

7.6. Resettlement issues 179 7.6.1. Social impacts 179

PwC 6 Initial Site Assessment for five economic zones Final

7.6.2. Constraints and its mitigation 180 7.6.3. Block Cost Estimation for development of Offsite Infrastructure 181

7.7. VoiceontheGround 183 7.7.1. Stakeholder consultation 183 7.7.2. Consultation with Private Sector 183

7.8. Overall Adequacy of the EZ Site in Anowara-2 185

8. Market Assessment of Multi-Product Economic Zones 192

8.1. Global economic review 192 8.1.1. Trade scenario 192 8.1.2. FDI Trends 193 8.1.3. Mergers and Acquisitions (M&A) 194

8.2. Parametric analysis of Bangladesh’s key industrial sectors 195 8.2.1. Change in Industrial Landscape of Bangladesh 195 8.2.2. Employment and Productivity aspect in Industrial Sectors of Bangladesh 197

8.3. Supply side analysis of the Industrial sectors in Bangladesh 198 8.3.1. AgricultureResources 198 8.3.2. Mineral Resources 198 8.3.3. Summary of sectors exhibiting growth potential in Bangladesh 199

8.4. Description of regional economic and industrial landscape for the three proposed proposed EZs 201 8.4.1. Narayanganj 201 8.4.2. Panchagarh 202 8.4.3. Anowara-2 203

8.5.Conclusion 206 8.5.1. Narayanganj 206 8.5.2. Panchagarh 206 8.5.3. Anowara-2 207 8.5.4. Summary 207

9. Sabrang Economic Zone 209

9.1. About Tourism Economic Zone 209 9.1.1. Concept 209 9.1.2. Components 209 9.1.3. Benefits of Tourism Economic Zone 209 9.1.4. Case – Tourism Economic Zones in Philippines 210

PwC 7 Initial Site Assessment for five economic zones Final

9.1.5. Case – Tourism Economic Zones in Thailand 210

9.2. Market Assessment 211 9.2.1. Tourism industry in Bangladesh 211

9.3. Location Details and Salient Features 213 9.3.1. General Profile of the District Cox’s Bazaar 213 9.3.2. Reconfirmation of the proposed EZ 217

9.4. Climate and Environmental Data 230 9.4.1. Air Quality 230 9.4.2. Floods and water logging 230 9.4.3. Noise 230 9.4.4. Land filling 231

9.5. Infrastructure Linkages of the Proposed Site 231 9.5.1. Physical Infrastructure- Availability of Utility Connections 231 9.5.2. Social Infrastructure 233 9.5.3. Connectivity 233

9.6. Resettlement issues 237 9.6.1. Social Impacts 237 9.6.2. Constraints and Mitigations 239 9.6.3. Block Cost Estimation for development of Offsite Infrastructure 239

9.7. Voice on the ground 241 9.8. Overall adequacy of the site to be developed as a Tourism EZ 243

10. Dhaka IT Economic Zone 250

10.1. About IT Economic Zone 250 10.1.1. Concept 250 10.1.2. Major Infrastructure Components in IT EZ 250 10.1.3. IT/ ITES Industry in Bangladesh 250

10.2. Location Details and Salient Features of the Proposed Site 256 10.2.1. General Profile of Dhaka District 256 10.2.2. Details of Keraniganj Upzilla and Reconfirmation of the Location of EZ Site 257

10.3. Environment Section 267 10.3.1. Air quality 267 10.3.2. Floods and Water Logging 267 10.3.3.Noise 267 10.3.4. Land filling 267

PwC 8 Initial Site Assessment for five economic zones Final

10.4. Infrastructure Linkages of the Proposed Site 268 10.4.1. Physical Infrastructure- Availability of Utility Connections 268 10.4.2. Social Infrastructure 269 10.4.3. Connectivity 270

10.5. Resettlement issues 272 10.5.1. Social impacts 272 10.5.2. Constraints and its mitigation 274 10.5.3. Block Cost Estimation for development of Offsite Infrastructure 275

10.6. Voice on the Ground 277 10.6.1. Stakeholder consultation 277 10.6.2. Consultation with Private Sector 277

10.7. Overall Adequacy of the proposed EZ to Develop as IT Economic Zone 279

11. Ranking of the sites 285

11.1. Relative scoring and their rationale 285 11.2. Summary of the relative rankings 295

Annexure A. - Questionnaire 298 Annexure B. – Success story of Adani Ports and Special Economic Zones 311 Annexure C. - Physiography map of Bangladesh 315 Annexure D. - Geological map of Bangladesh 316 Annexure E. - Seismic Zoning map of Bangladesh 317 Annexure F. - Basic Wind speed map of Bangladesh 318 Annexure G. - Cyclone affected areas Bangladesh 319 Annexure H. - Disaster prone areas in Bangladesh 320 Annexure I. - Bangladesh Gas Transmission pipeline system 321 Annexure J. - Ground Water Zoning Map in Bangladesh 322

PwC 9 Initial Site Assessment for five economic zones Final

List of Figures

Figure 1-1: Principal objectives of Initial Site Assessment...... 17 Figure 1-2: Stages of the Initial Site assessment...... 18 Figure 1-3: Five proposed economic zones along with the locations of the EPZs...... 19 Figure 1-4: Connectivity of five proposed EZ...... 21 Figure 1-5: Different type of Industries fit for the respective Multiproduct EZs...... 36 Figure 1-6: Industries fit for Sabrang and Dhaka proposed EZs ...... 36 Figure 2-1: Principal Objectives of the Engagement ...... 52 Figure 2-2: Team Composition for the Engagement...... 53 Figure 2-3: Broad Approach for the proposed Engagement...... 57 Figure 3-1: Development activities undertaken from 2009 to 2013 in road sector...... 62 Figure 3-2: The road network (RHD) of Bangladesh ...... 63 Figure 3-3: Rail network of Bangladesh...... 65 Figure 3-4: Airport connectivity of Bangladesh...... 68 Figure 3-5: Chittagong Port facilities ...... 69 Figure 3-6: Mongla Port facilities...... 71 Figure 3-7: Bangladesh Sea Ports...... 72 Figure 3-8: Bangladesh Inland water transport network ...... 73 Figure 3-9: Titas Gas franchise area...... 75 Figure 3-10: Major power plants in Bangladesh...... 77 Figure 3-11: Companies involved in power production in Bangladesh ...... 77 Figure 3-12: Power grid network of Bangladesh...... 78 Figure 3-13: Optical Fiber Network (June’ 2014) of BTCL ...... 79 Figure 5-1: Irrigation Status (2010-11)...... 87 Figure 5-2: Mouza Map of proposed Narayanganj EZ ...... 89 Figure 5-3: Mouza map superimposed on google map (Bandar-Narayanganj) ...... 90 Figure 5-4: Location of the proposed proposed EZ...... 91 Figure 5-5: Existing land use pattern for 10 km radius (Bandar-Narayanganj)...... 92 Figure 5-6: Contour map of the proposed EZ for 5 km radius (Bandar-Narayanganj)...... 93 Figure 5-7: Contour map of the proposed EZ for 10 km radius (Bandar-Narayanganj) ...... 94 Figure 5-8: Major cyclones that had hit Bangladesh...... 96 Figure 5-9: Location of power plants in the vicinity of proposed EZ ...... 97 Figure 5-10: Sources of drinking water in Bandar and Sonargaon upzila ...... 98 Figure 5-11: Utility Map for proposed Narayanganj EZ ...... 99 Figure 5-12: Road Network for 10 km radius (Bandar-Narayanganj)...... 102 Figure 5-13: Connectivity of the proposed Economic Zones via Road, Rail and Airport ...... 103 Figure 5-14: Land Ownership and Usage pattern...... 106 Figure 6-1: Irrigation Status (2010-11), Panchagarh District ...... 120 Figure 6-2: Mouza Map of the proposed Panchagarh EZ site...... 122 Figure 6-3: Location of the proposed Panchagarh EZ proposed EZ ...... 123 Figure 6-4: Mouza map superimposed on google map (Panchagarh) ...... 124 Figure 6-5: Existing land use pattern for 10 km radius (Panchagarh)...... 125 Figure 6-6: Contour map of the proposed EZ for 5 km radius (Panchagarh)...... 126 Figure 6-7: Contour map of the proposed EZ for 10 km radius (Panchagarh) ...... 127 Figure 6-8: Utility Map for proposed Panchagarh EZ...... 131 Figure 6-9: Road Network for 10 km radius (Panchagarh) ...... 134 Figure 6-10: Trade through Banglabandha LCS (metric tons) ...... 135 Figure 6-11: Banglabandha LCS and Asian Highway 2 ...... 136

PwC 10 Initial Site Assessment for five economic zones Final

Figure 6-12: Layout of Banglabandha Port ...... 137 Figure 6-13: Layout of Banglabandha Port ...... 138 Figure 6-14: Burimari Land port google image ...... 139 Figure 6-15: Road, Rail and Airport connectivity of proposed EZ...... 139 Figure 6-16: Land Usage and Land Ownership Pattern...... 141 Figure 7-1: Irrigation Status (2010-11)...... 155 Figure 7-2: Revenue Income & Expenditure of Chittagong Port (in Million USD) ...... 160 Figure 7-3: Mouza Map of Anowara-2 EZ...... 162 Figure 7-4: Mouza map superimposed on google map (Anowara-2) ...... 163 Figure 7-5: Location of the proposed Anowara-2 EZ site ...... 164 Figure 7-6: Existing land use pattern for 10 km radius (Anowara-2) ...... 165 Figure 7-7: Contour map of the proposed EZ for 5 km radius (Anowara-2)...... 166 Figure 7-8: Contour map of the proposed EZ for 10 km radius (Anowara-2) ...... 167 Figure 7-9: Tracks of major cyclones crossed Bangladeshi coast during the period 1960 – 2007 with information on landfall date and maximum wind speed ...... 169 Figure 7-10: sources of drinking water in Anowara upzila ...... 171 Figure 7-11: Utility Map of proposed Anowara-2 EZ...... 172 Figure 7-12: Road Network for 10 km radius (Anowara-2) ...... 175 Figure 7-13: connectivity of the proposed EZ via Road, Rail and Airport...... 177 Figure 7-14: Land Usage pattern (Anowara-2) ...... 179 Figure 8-1: Sector-wise export trend 2013, USD Bn ...... 193 Figure 8-2: CAGR (2003 - 2013) and 2013 Global export share ...... 193 Figure 8-3: Sectorial shares in Greenfield FDI projects globally...... 194 Figure 8-4: Top 10 economies with highest FDI rate of returns (%) 2011 ...... 194 Figure 8-5: Sectoral contribution to GDP in Bangladesh (in percentage) ...... 195 Figure 8-6: Changing Composition of the Industrial Sector in terms of GDP Share ...... 196 Figure 8-7: GVA & Output (in million Tk.) and Employment by industry type in 2012...... 196 Figure 8-8: Employment Indices of Industrial Workers in Select Industries in Bangladesh...... 197 Figure 8-9: Productivity Indices of Industrial Labor in Select Industries in Bangladesh...... 197 Figure 8-10: Agricultural landscape of Bangladesh ...... 198 Figure 8-11: Mineral landscape of Bangladesh ...... 199 Figure 8-12: Economic advantage of proposed Anowara-2 EZ ...... 204 Figure 8-13: Proximity of Anowara to Chittagong port...... 205 Figure 8-14: Industrial landscape of Bangladesh ...... 205 Figure 9-1: Special Economic Zones in Thailand...... 211 Figure 9-2: Direct contribution of travel and tourism to GDP (Constant 2013 Bangladeshi Taka)...... 212 Figure 9-3: International Tourist traffic (thousands) ...... 212 Figure 9-4: Total contribution of travel and tourism to GDP (billion BDT)...... 213 Figure 9-5: Cox's Bazaar district...... 213 Figure 9-6: Land use pattern (2008) ...... 215 Figure 9-7: Irrigation status as on 2010-11 ...... 215 Figure 9-8 – Cox Bazaar’s tourist projections (Domestic +Foreign)...... 217 Figure 9-9: Mouza map (Sabrang EZ)...... 219 Figure 9-10: Mouza map superimposed on google map (Sabrang EZ)...... 220 Figure 9-11: Location of proposed Sabrang EZ and Saint Martin Island ...... 222 Figure 9-12: Location of proposed Sabrang EZ, Saint Martin Island and its vicinity ...... 223 Figure 9-13: Land ownership...... 224 Figure 9-14: Existing land use pattern for 10 km radius (Sabrang EZ) ...... 225 Figure 9-15: Contour map of the proposed EZ for 5 km radius (Sabrang EZ) ...... 226 Figure 9-16: Contour map of the proposed EZ for 10 km radius (Sabrang EZ)...... 227

PwC 11 Initial Site Assessment for five economic zones Final

Figure 9-17: Tracks of major cyclones crossed Bangladeshi coast during the period 1960 – 2007 with information on landfall date and maximum wind speed ...... 229 Figure 9-18: Utility Map for proposed Sabrang EZ ...... 232 Figure 9-19: Healthcare facilities In Teknaf Upazilla...... 233 Figure 9-20: Road Network for 10 km radius (Sabrang EZ) ...... 235 Figure 9-21: Proposed Sabrang EZ and its vicinity ...... 236 Figure 9-22: Connectivity of proposed Sabrang EZ ...... 237 Figure 9-23: Land usage and ownership pattern...... 238 Figure 10-1: Growth of Call Centers ...... 253 Figure 10-2: Average salary cost of IT resources at entry level and 5 year experience, All values in ‘000 USD 254 Figure 10-3: Average office rental cost in CBD; all values in USD/sq. ft. per annum ...... 254 Figure 10-4: Mouza Map...... 259 Figure 10-5: Mouza map superimposed on google map (Dhaka IT EZ)...... 260 Figure 10-6: Existing land use pattern for 10 km radius (Dhaka IT EZ)...... 263 Figure 10-7: Contour map of the proposed EZ for 5 km radius (Dhaka IT EZ) ...... 264 Figure 10-8: Contour map of the proposed EZ for 10 km radius (Dhaka IT EZ)...... 265 Figure 10-9: Tracks of major cyclones crossed Bangladeshi coast during the period 1960- 2007 with information on landfall date and maximum wind speed ...... 266 Figure 10-10: Utility Map for proposed Dhaka IT EZ ...... 269 Figure 10-11: Connectivity of proposed Dhaka IT EZ via Road, Rail and Air ...... 272 Figure 10-12: Land usage and ownership pattern (proposed Dhaka EZ) ...... 273

PwC 12 Initial Site Assessment for five economic zones Final

List of Tables

Table 1-1: Location details and type of respective land parcels available ...... 20 Table 1-2: Connectivity of proposed Narayanganj EZ...... 22 Table 1-3: Connectivity of proposed PanchagarhEZ ...... 23 Table 1-4: Connectivity of proposed Anowara-2 EZ...... 24 Table 1-5: Connectivity of proposed Sabrang EZ...... 25 Table 1-6: Connectivity of proposed Dhaka IT EZ...... 26 Table 1-7: Assessment of Intermodal Cargo Transfer for Three Multiproduct EZs ...... 26 Table 1-8: Utility connections of proposed Narayanganj EZ ...... 28 Table 1-9: Utility connections of proposed Panchagarh EZ...... 29 Table 1-10: Utility connections of proposed Anowara-2 EZ ...... 30 Table 1-11: Utility connections of proposed Sabrang EZ...... 30 Table 1-12: Utility connections of proposed Dhaka IT EZ ...... 31 Table 1-13: Environmental and Resettlement Issues-Constraints and Mitigations of proposed Narayanganj EZ ...... 32 Table 1-14: Environmental and Resettlement Issues -Constraints and Mitigations of proposed Panchagarh EZ33 Table 1-15: Environmental and Resettlement Issues -Constraints and Mitigations of proposed Anowara-2 EZ 34 Table 1-16: Environmental and Resettlement Issues -Constraints and Mitigations of proposed Sabrang EZ ..... 34 Table 1-17: Environmental and Resettlement Issues -Constraints and Mitigations of proposed Dhaka IT EZ ... 35 Table 1-18: Summary of the comparisons of multi product EZs based on different parameters used for determining relative scoring...... 37 Table 1-19: Summary of the relative rankings and weighted scores for the three proposed multi-product EZs.. 48 Table 2-1: Field visit to the 5 proposed EZs ...... 53 Table 3-1: Details of Road network and Bridges/ Culverts in Bangladesh ...... 62 Table 3-2: Details of access roads to each of the proposed EZs...... 64 Table 3-3: Bangladesh Railway Routes Network in kilometer ...... 66 Table 3-4: Bangladesh Railways- Number of trains...... 66 Table 3-5: Details of Rail connectivity of Proposed EZs ...... 66 Table 3-6: Airport connectivity of the proposed EZs ...... 69 Table 3-7: Open space available for general bulk cargoes...... 70 Table 3-8: Storage space available outside protected area for general bulk cargoes ...... 70 Table 3-9: Storage space available for Containers at general cargo berth area ...... 70 Table 3-10: Storage space available for Containers at container terminal...... 70 Table 3-11: KGDCL gas supply for 2012-13 and 2013-14 (million cubic meters) ...... 76 Table 5-1: Upzila wise population details of Narayanganj District...... 85 Table 5-2: Distribution of Industries of Narayanganj district ...... 87 Table 5-3: Reconfirmation of site details ...... 88 Table 5-4: Healthcare Facilities...... 100 Table 5-5: Passenger train service from Narayanganj to Dhaka...... 101 Table 5-6: Major Constraints and Mitigation measures ...... 107 Table 5-7: Block Cost estimate for proposed Narayanganj EZ ...... 109 Table 5-8: Stakeholders consulted ...... 110 Table 5-9: Summary of the results of the Private Sector consultation...... 110 Table 5-10: Overall Adequacy of the Narayanganj EZ Site ...... 113 Table 6-1: Upzila wise population details of Panchagarh district...... 119 Table 6-2: Reconfirmation of site details...... 122 Table 6-3: healthcare facilities in Debiganj Upzila...... 132 Table 6-4: Railway lines in Panchagargh and Nilphamari district...... 136

PwC 13 Initial Site Assessment for five economic zones Final

Table 6-5: constraints and its mitigation measures ...... 142 Table 6-6: Block Cost estimate for proposed Panchagarh EZ...... 143 Table 6-7: Stakeholders consulted...... 144 Table 6-8: Summary of the results of the Private Sector consultation...... 145 Table 6-9: Overall Adequacy of the EZ Site in Panchagarh ...... 148 Table 7-1: Upzila wise population details of Chittagong District...... 154 Table 7-2: Industrial landscape of Chittagong district...... 156 Table 7-3: Economic importance of Chittagong at a glance...... 156 Table 7-4: Export Processing Zones of Chittagong...... 159 Table 7-5: Reconfirmation of site details of Anowara-2 EZ ...... 161 Table 7-6: Major cyclones occurrences in Bangladesh...... 169 Table 7-7: Educational Institutions in Chaittagong district...... 172 Table 7-8: Healthcare facilities In Anowara ...... 174 Table 7-9: Railway lines of Chittagong District ...... 176 Table 7-10: Dhaka Chittagong line capacity and train details ...... 176 Table 7-11: Connectivity from Chittagong to other parts of Bangladesh (apart from Dhaka) ...... 177 Table 7-12: Constraints and Mitigation (Anowara-2) ...... 180 Table 7-13: Block Cost estimate for proposed Anowara-2 EZ...... 182 Table 7-14: Stakeholders Consulted ...... 183 Table 7-15: summary of the results of the Private Sector consultation ...... 183 Table 7-16: Overall Adequacy of the Anowara-2 EZ Site...... 186 Table 8-1: Top sectors based on global industrial analysis ...... 199 Table 8-2: Top sectors based on Bangladesh industrial analysis ...... 200 Table 8-3: Knitwear export growth of Bangladesh...... 201 Table 8-4: Key crops produced in Panchagarh...... 202 Table 8-5: Feasible Industries in the three sites...... 207 Table 9-1: Upzila wise population details...... 214 Table 9-2: Distribution of other industries across upazilas...... 216 Table 9-3: Reconfirmation of site details of Sabrang EZ ...... 218 Table 9-4: Proximity of the site to various nearby tourist destinations ...... 221 Table 9-5: Major Cyclone occurrence in Bangladesh ...... 229 Table 9-6: Temperature, Rainfall and Humidity during the year 2008-2011 ...... 230 Table 9-7: Road Connectivity details...... 234 Table 9-8: constraints and mitigations (proposed Sabrang EZ) ...... 239 Table 9-9: Block Cost estimate for proposed Sabrang EZ...... 240 Table 9-10: Summary of the results of Private Sector consultations...... 241 Table 9-11: Overall Adequacy of the site ...... 244 Table 10-1: Bangladesh IT Industry at a Glance ...... 251 Table 10-2: Export Trends in IT industry ...... 251 Table 10-3: Major IT/ ITES players currently operational in Bangladesh...... 253 Table 10-4: Key Performance Indicators for Dhaka IT SEZ ...... 255 Table 10-5: Upzilla wise population details of Dhaka District...... 257 Table 10-6: Reconfirmation of the site details...... 258 Table 10-7: Salient features of the proposed Dhaka IT SEZ ...... 261 Table 10-8: Healthcare facilities in Keraniganj upzila ...... 269 Table 10-9: Length of existing railway line in Dhaka district ...... 270 Table 10-10: Details of Trains running from Dhaka district...... 271 Table 10-11: Approximate travel time to major locations from Dhaka station ...... 271 Table 10-12: Constraints and mitigation...... 274 Table 10-13: Block Cost estimate for proposed Dhaka IT EZ...... 276 Table 10-14: List of stakeholder details...... 277

PwC 14 Initial Site Assessment for five economic zones Final

Table 10-15: Summary of results of Private Sector consultation ...... 278 Table 10-16: Overall adequacy of the proposed Dhaka IT EZ...... 280 Table 11-1: Summary of the comparisons of multi product EZs based on different parameters used for determining relative scoring...... 285 Table 11-2: Summary of the relative rankings and weighted scores for the three proposed multi-product EZs 296

PwC 15 Initial Site Assessment for five economic zones Final

Executive Summary

PwC 16 Initial Site Assessment for five economic zones Final

1. Executive Summary

1.1. Introduction

The Government of Bangladesh has launched an effort to develop a new Economic Zone (EZ) paradigm for the country, with the objective of inclusive economic growth and job creation through development of industries. As part of the Private Sector Development Support Project (PSDSP), supported by the World Bank, PricewaterhouseCoopers Private Limited (PwC) was appointed by Bangladesh Economic Zones Authority (BEZA) to carry out the initial site assessment for the five Economic Zone sites as outlined below to comprehend the overall adequacy for these sites to evolve as an economic zone site.

Narayanganj

Dhaka IT EZ, Keraniganj

Anowara-2

Sabrang Tourism EZ (Cox's Bazar)

Panchagarh

1.2. Key Objectives of Initial Site Assessment

The objective of the engagement is to educate BEZA & the World Bank on the preliminary assessment of the five identified EZs and to assist BEZA and World Bank in selection of suitable land parcels to be considered for future economic zones development. Figure 1-1 shows the principal objectives of this engagement. Figure 1-1: Principal objectives of Initial Site Assessment

Assessment of Infrasturcture physical and details of the meteorological site features of the site Study on Environment the site issues and environs social aspects

Broad Confirm the Ranking of sites Objectives key details and of the of the sites recommendation Engagement

PwC 17 Initial Site Assessment for five economic zones Final

1.3. Approach & Methodology

Our approach and methodology to deliver the key objectives of this engagement has been designed to align with the plans and timelines of BEZA and the World Bank. Accordingly, the following sections delve with the overall framework for execution and highlight the key milestones which are aligned towards the requirements of the key stakeholders (i.e. BEZA, World Bank and the Consultants) and our detailed approach and methodology providing a blueprint of our activities and deliverables over the proposed engagement period. This approach & methodology aims to formulate the Terms of Reference for the proposed engagement and explains the envisaged approach in carrying out the engagement. While formulating this methodology, we have ensured that the final deliverables are oriented towards sustainable development and subsequent operations with innovative and implementable concept. The questionnaire to be utilized during site visit is annexed with this report. We have used a three-pronged approach to carry out this engagement viz. (1) Site visit for initial site assessment; (2) Primary data collection from the UNO office and other respective Govt. organizations and private sector for each of the sites and (3) Secondary data collection/ secondary research. Some of the major parameters which have been considered while carrying out this engagement is as illustrated below:  Access to the proposed EZs  Connectivity of the proposed EZs  Infrastructure linkages (such as utility connections)  Neighborhood development (Social infrastructure available in the vicinity) for each of the proposed EZ  Visibility  External Infrastructure facilities  Opportunities in the proposed EZs  Core offerings of the proposed EZs  Major constraints and solutions for each of the proposed EZs

The engagement was carried out in various stages as illustrated in the figure 1-2. Figure 1-2: Stages of the Initial Site assessment •Stage-1: Reconfirm each site survey and their respective key details

•Stage-2: To assess the context surrounding the site

•Stage-3: To carry out the assessment of the site with reference to parameters such as connectivity, utility connection, other infrastructre linkages etc.

•Stage-4: Infrastructure Assessment

•Stage-5: To assess the environmental issues pertaining to the sites

•Stage-6: To assess the social aspects pertaining to the sites

•Stage-7: Interaction with Government officials and private sector

PwC 18 Initial Site Assessment for five economic zones Final

1.4. Salient Features of the five sites A team comprising of professionals from various backgrounds such as civil engineering, infrastructure specialists, environmental and social specialists and market assessment specialists etc. along with the official(s) from BEZA carried out the site visits for all the five sites. The team interacted with Upzilla Nirbahi Officer (UNO) and other government officials at the sites and gathered various information and data regarding the physical, location details, industry details, infrastructure linkages etc. to comprehend about the suitability of each site. The prime objective was to undertake close interactions with various government officials, local UNO team and stakeholders to gather firsthand information and knowledge about the site and its features. Figure 1-3 shows the locations of the five proposed economic zones are shown along with the locations of the EPZs. Figure 1-3: Five proposed economic zones along with the locations of the EPZs

Source: PwC Analysis The location details and types of land parcels available for all the five proposed EZs are presented in Table 1-1. The details of the same are provided in the main report.

PwC 19 Initial Site Assessment for five economic zones Final

Table 1-1: Location details and type of respective land parcels available

Name of the Narayanganj Panchagarh Anowara-2 Sabrang Dhaka IT EZ Proposed EZ EZ EZ EZ Tourism EZ

Date of visit 14th May 2015 21st May 2015 17th May 2015 19th May 2015 13th May 2015

Location and Narayanganj Debiganj Anowara Tenkaf upzila, Keraniganj upzila, co-ordinates of district, Dhaka upzila, Upzila, Cox’s Bazar Dhaka district site boundaries division Panchagarh Chittagong district Co-ordinates: district division Co-ordinates: Co-ordinates: 23° 39' 47.11"N to Co-ordinates: Co-ordinates: 23° 34' 26.41"N 20° 46' 23° 39' 57.72"N 22° to 23° 35' 26° 04'23.29"N 22.50"N to latitude, 90° 18' 12'04.44"N to 35..06"N to 26° 20°48'43.81"N 28.95"E to 90° 19' 22° latitude, 90° 05'42.66"N latitude, 7.74"E longitude 13'18.02"N 30' 48.88"E to latitude, 88° 92°17'28.81"E latitude, 91° 90° 33'25.28"E 44'08.12"E to to 51'28.25"E to longitude 88°45' 23.69"E 92°18'42.42"E 91° 52'41.82E longitude longitude longitude Land area 885.840 595.010 774.425 1027.000 105.000 (acre) Break-up in  Residential  Residential  Water  Agricultural  Residential terms of land- 103.70 land- 9.04 bodies- land- land- 1.05 acre existing land acre acre 7.83 acres 2.88acre (approx.) usage  Aquaculture (approx.)  Settlement (approx.)  Agricultural - 16.69 acre  Canal- land-  Water land- Rest (approx.)  Agricultural 12.14acre 323.54 logged area- land- (approx.) acres Rest 526.09 acres  Agricultural  Khas land- land- Rest 270.88 acres  Private Break-up in  Government  Govt. Khas property-  Government  Government terms of land - 276.15 land- 295.67 160.01 - 935 acres Land- 40.31 ownership acres of land acres acres  Private land acres under  Private - Rest  Private Land- vested land- 64.69 acres property 299.34  Alluvial acres land- 279.37 acres  Private land - 330.30 acres Indicative Block Cost Estimate for off-site 24,327 27,747 20,475 40,619 10,352 Infrastructure development (Lakh BDT) Area (acre) 885.84 595.01 774.425 1027 105 Block cost estimate (Lakh 27.46 46.63 26.44 39.55 98.59 BDT per acre)

PwC 20 Initial Site Assessment for five economic zones Final

1.5. Infrastructure Linkages of the five sites (Connectivity)

For any site to be developed as an economic zone, access through various modes of transport including roads, railways, waterways and air is important. Accordingly, each site has been assessed to understand the current condition of these connectivity linkages (for various modes), ease of constructing these linkages and possibility of capacity expansion in future.

Road

Inland Water Rail Ways Connectivity

Airport Port

Figure 1-4, depicts the connectivity of all the five sites by road, rail, airport and port modes of transportation.

Figure 1-4: Connectivity of five proposed EZ

Source: PwC Analysis

PwC 21 Initial Site Assessment for five economic zones Final

Narayanganj EZ

The connectivity aspect of proposed Narayanganj EZ is illustrated in Table 1-2. Table 1-2: Connectivity of proposed Narayanganj EZ

Mode of Details of connectivity of the proposed EZ transportation Road (Trunk Narayanganj is 32 km (approx.) away from Dhaka city. There are three major connectivity) roads which connect Narayanganj to the rest of the country. These roads are: (1) Narayanganj-Munsiganj Highway (R812); (2) Bandor-Madonpur Highway (R113); and (3) Dhaka-Narayanganj Link Road (R111).

Naryanganj is easily accessible from Dhaka city by bus service (frequent bus service available by Ashian, Bandhan, Utsav, Ananda, Setu and BRTC etc.). Preliminary assessment suggests that some stretches of access road could be renovated for smooth passage of heavy vehicles along: (i) Madanpur-Madanganj- Syedpur road, originating from Dhaka Chittagong highway and (ii) Bridge across the Sitalakhya river. At present, these stretches witness heavy traffic congestion and road condition is poor. Approach Road (last The existing approach road is adjacent to Bashundhara cement plant. It is a single- mile connectivity to / lane road and heavy commerical vehicles face difficulty to move through this road. from the site) Widening of the approach road would result in significant resettlement issues owing to Basundhara cement plant (located on one side of the road) and residential units (located on the other side).

Sitalakhya Bridge is proposed across the Sitalakhya River, which will link the capital with Sylhet and Chittagong highway through Demra and Narayanganj. Once functional, it shall connect Madanpur-Madanganj-Sayedpur Road (R113) and Fatullah (Panchaboti)-Munshiganj (Muktarpur) Lohajang-Mawa Road (R812).

This bridge would provide direct access to the Northwest parcel of the proposed EZ. Access to the other land parcel (of the proposed EZ) located on the south east side of the Bashundhara cement plant is restricted owing to the presence of berth facility of Bashundhara cement plant on the river.

A high level initial assessment suggests that providing new access road along the river bund from Dhaka-Chittagong highway (N1) for a length of 10 km (approx.) to the proposed EZ may be explored. This new access road may have minimum resettlement requirement as compared to the widening of present access road via Bashundhara cement plant and summit power plant. Rail There are two major railway stations in Narayanganj district viz. Narayanganj and Chashara. Narayanganj railway station is located at a distance of 7 km from the proposed EZ.

Bangabandhu Sarak connects the proposed EZ to the railway station and traffic congestion is minimal throughout this stretch. Port Proposed EZ is located at a distance of about 254 km from Chittagong port & about 304 km Mongla Port.

The proposed EZ lies on the bank of inland water way connecting from Chittagong port to Mongla port. Narayangunj river port, one of the oldest in Bangladesh is about 3.5 km through Water way and 28 Km through Road way from the proposed EZ. Various types of cargos are transported through Narayanganj Port. But there is no regular cargo service for carrying commodities. Commodities are generally carried

PwC 22 Initial Site Assessment for five economic zones Final

by private arrangements and berthing facilities provided by the BIWTA are used for loading and unloading purposes. Many local business houses or industries use private berthing facilities. Airport Narayanganj EZ is located about 48 km from Hazrat Shah Jalal International Airport at Dhaka. The travel time by road to Dhaka International Airport is 2.5-3 hours (approx.). Govt. of Bangladesh intends to construct a new international airport (Bangabandhu Sheikh Mujib International Airport) with a view to create a hub airport in close proximity to Dhaka and to meet the demand of future growth in aviation sector. The Civil Aviation and Tourism Ministry is in the process to finalise the location of the proposed international airport. Some of the locations which are being considered as prospective locations for the development of new airport are: (1) Char Janajat under Shibchar Upazila in Madaripur district, (2) Keyain and Latobdi under Shirajdikhan Upazila in Munshiganj district and (3) Char Bilashpur under Dohar Upazila of Dhaka district. All these locations are located within 50 km radius of the proposed EZ.1

Inland waterways Proposed EZ is well connected with the major ports of Bangladesh by inland water ways.

Panchagarh EZ

The connectivity aspect of proposed Panchagarh EZ is illustrated in Table 1-3. Table 1-3: Connectivity of proposed PanchagarhEZ

Mode of Details of connectivity of the proposed EZ transportation Road (Trunk The distance between Debiganj town and the proposed EZ is 5 km (approx.). Connectivity) The site is abutting the Asian highway (AH2, which connects Dhaka to Banglabandha in a stretch of 512 km). Boda – Domar via Debiganj Upazilla Road (Z5003) connects the site with Asian highway (AH2). Approach Road (last The site is connected to the Boda – Domar via Debiganj Upazilla Road (Z5003) by mile connectivity to / a Katcha Road of stretch ~ 300 m, and Z5003 in turn further connects the site to from the site) AH2. Z5003 is a single lane road. It runs for ~ 2km from AH2 to the Katcha Road connecting the site to it.On either side of the road, there are private lands, however as such no houses or any permanent structures adjacent to the road were observed and hence there is a scope of widening Preliminary assessment suggests that on either side of the stretch of the Katcha Road there are no permanent structures and there is a scope for widening the stretch Rail The Domar railway station (in Nilphamari district) is located about 9 km from proposed EZ. The railway station is connected to the proposed EZ by Debiganj road. In the vicinity of the rail station, some traffic congestion is observed during normal time. The frequency of passenger trains from this area to Dhaka is not good (approx 2-4 daily trains).

1 http://www.dhakatribune.com/business/2015/jun/19/construction-bangabandhu-airport-again- cards#sthash.6QEaRDCi.dpuf

PwC 23 Initial Site Assessment for five economic zones Final

Port Banglabandha Land Port is located at the tip of north-western Bangladesh and neighbouring countries (such as India, Nepal and Bhutan) are accessible by the land port. Proposed Panchagarh EZ is located at a distance of 98 km (approx.) from Banglabandha land port. Burimari Land Port is located near Chengrabanda Border in India. Panchagarh EZ is located about 95 km from this landport. Airport Proposed Panchagargh EZ is located 45 km (approx.) south west of Saidpur Airport. It is a domestic airport and Saidpur Airport is well connected with Dhaka, Capital city of Bangladesh for passengers. No major international airport exists in vicinity to the proposed EZ. Cross-border trade The Banglabandh road (Bangladesh) leading to the LCS provides an important facilitation by LCS, MVA trade link with Bhutan, Nepal and India. and Asian Highway-2 On 15th June 2015, the BBIN group of countries (Bangladesh, Bhutan, India and Nepal), signed a sub-regional Motor Vehicles Agreement (MVA) with the objective of enabling a seamless movement of cargo across their borders. The MVA would provide access for local products to neighbouring markets (India, Bhutan and Nepal). The presence of well-functioning LCS could further facilitate the trade amongst these countries. The Asian highway 2 runs through Panchagarh connecting Dhaka to Banglabandha at India border via Panchangarh. The stretch through Panchagarh is yet to be developed. Once developed, it will improve the connectivity of Panchagarh with neighbouring countries and enable seamless movement of goods from Panchagarh to major local markets and markets in neighbouring countries (India, Bhutan and Nepal).

Anowara-2 EZ

The connectivity aspect of proposed Anowara-2 EZ is illustrated in Table 1-4. Table 1-4: Connectivity of proposed Anowara-2 EZ

Mode of Details of connectivity of the proposed EZ transportation Road (Trunk The proposed EZ is located at a distance of 15 km (approx.) from the Chittagong Connectivity) town. Proposed EZ is abutting the Chittagong - Anowara- Banshkhali highway (R170) which is the main access road to the proposed EZ. Bangladeshi national highway (N1) connects the country capital Dhaka and Chittagong. N1 is located at a distance of 10 km (approx.) from the proposed EZ. Proposed EZ is connected to N1 through Chittagong - Anowara- Banshkhali highway (R170). Mutilane Road tunnel is proposed under the River Karnaphuli. The proposed Tunnel will connect the Chittagong Port City directly with the other side of the Karnaphuli River & indirectly with other parts of the country through Dhaka- Chittagong-Cox’s Bazar Highway. The feasibility study for the same is in progress. Once functional, the multilane road tunnel shall reduce the travel time and distance from Chittagong to the proposed EZ.2 Approach Road (last Proposed EZ is connected to N1 through Chittagong - Anowara- Banshkhali mile connectivity to / highway (R170). A 200 m Katcha Road from the site) stretch connects the site to a blacktop single lane road. The black top single lane road in turn connects the Katcha Road to R170, through a stretch of ~ 500 m. Both the Katcha Road and the blacktop road are ~ 3 m. Preliminary assessment suggests that on either side of these roads there are private lands, however there are no houses or any permanent strucutres and hence there is a scope for widening these

2 http://www.bba.gov.bd/construction-of-multi-lane-tunnel-under-the-river-karnaphuli-at-chittagong-city/

PwC 24 Initial Site Assessment for five economic zones Final

roads for a better approach Rail Chittagong railway station is located at a distance of 17 km (approx.) from the proposed EZ. Port The Port of Chittagong is the principal Port of Bangladesh. Proposed Anowara-2, EZ is located at a distance of 18 km (approx.) from Chittagong Port. Airport Proposed EZ is located at a distance of 30 km (approx.) from Shah Amanat International Airport, Chittagong. It takes about an hour to reach the airport from the proposed EZ.

Sabrang- Tourism EZ

The connectivity aspect of proposed Sabrang EZ is illustrated in Table 1-5. Table 1-5: Connectivity of proposed Sabrang EZ

Mode of Details of connectivity of the proposed EZ transportation Road . A highway (Teknaf – Shahparirdwip road (Z1009)) runs parallel and adjacent to the site; there are 4 approach roads from the existing highway to the site. The roads are mostly village roads. . A highway called the Marine Drive running parallel to the world’s longest beach from Cox’s Bazar to Bangladesh’s south eastern most tip is under construction. The highway runs adjacent and parallel to the site Rail . The whole district of Cox’s Bazzar doesn’t possess any railway connectivity . Nearest existing railway station is Chittagong railway, which is at a distance of 210 km (approx.). . A new railway station has been proposed at Gundun, which is 50 km from the site. The proposal has already received approval from the Railway Ministry Airport . Cox’s Bazaar domestic airport is at a distance of 96 km (approx.) from the proposed EZ. National Highway (N1) connects the proposed EZ to Teknaf and Teknaf-Shahparirdwip Road (Z1099) is the main access road to the proposed EZ. The connectivity from airport to the proposed EZ takes around 2-2.5 hours of travel time via road. . The Airport is being considered for an upgrade by the Civil Aviation and Tourism Ministry. . The objective is to develop the airport into an international airport by upgrading its runaway to enable large aircrafts coming from Europe, America and East Asia to land directly in Cox’s Bazaar. This is part of the larger agenda to attract foreign tourist to the area. Prime Minister of Bangladesh has inaugurated (Jul’ 2015) the commencement of construction works for International Airport in Cox’s Bazar.

PwC 25 Initial Site Assessment for five economic zones Final

Dhaka IT EZ

The connectivity aspect of proposed Dhaka IT EZ is illustrated in Table 1-6. Table 1-6: Connectivity of proposed Dhaka IT EZ

Mode of Details of connectivity of the proposed EZ transportation Road Proposed Dhaka IT EZ is located in Keraniganj upzila, which is located 18 km away from the zero-point of Dhaka city. The road distance between the centre of Keraniganj upzilla and the proposed EZ is about 2 kms. Proposed EZ is located in between Zinzira-Keraniganj-Nawabganj-Dohar-Srinagar Road (R820) and Dhaka Mawa highway (N8). Rail Dhaka is connected with the rail network to other parts of the country. The Dhaka railway station is located at a distance of 20km (approx.) from proposed EZ. At present around 329 trains per day stops at Dhaka railway station for transporting passengers to Chittagong and Kolkata. Airport The proposed Dhaka IT EZ is located about 30 km North East of Hazrat Shahjalal International Airport in Dhaka. Dhaka Airport is the largest airport in the country. The travelling time from the proposed site to Dhaka Airport is 2 to 2.5 hours (approx.). Govt. of Bangladesh intends to construct a new international airport (Bangabandhu Sheikh Mujib International Airport) with a view to create a hub airport in close proximity to Dhaka and to meet the demand of future growth in aviation sector. Not only the air traffic in Bangladesh has increased, but also the cargo traffic has escalated and none of the airports in the country are currently equipped to handle the massive flow of trade and passengers. The location of this proposed airport is not yet finalized; however the new proposed airport shall be located in Dhaka division (within 50-70 km radius of the proposed EZ). Approach Road Zinzira-Keraniganj-Nawabganj-Dohar-Srinagar Road (R820) passes adjacent to the proposed EZ. Connecting road for a length of 750 m from R820 need to be widened and strengthened. Dhaka Mawa highway (N8) is accessible from the proposed EZ via Dhamsur- sonakanda road at a length of 5 km. Preliminary assessment highligts that widening of this road could attract more resettlement issues as there are several market place(s), educational institution(s), religious places and residential areas located on both the sides of the road.

Assessment of Intermodal Cargo Transfer A broad level assessment of intermodal cargo transfer is undertaken in table 1-7, where each of the proposed multiproduct economic zones has been assessed to understand how the integration of various modes of transportation could take place. However, this assessment is indicative in nature and any decision on the same should be taken upon completion of detailed feasibility report for each of the proposed multiproduct Ezs. Table 1-7: Assessment of Intermodal Cargo Transfer for Three Multiproduct EZs

Parameters Narayanganj Panchgarh Anowara-2

Nearest Rail Narayanganj rail station is Domar railway station (in Chittagong railway station is located at a distance of 7 Nilphamari district) is located at a distance of 17 km km (approx.) from the located 9 km (approx.) from (approx.) from the proposed proposed EZ. Bangabandhu the proposed EZ. Debiganj EZ. Station Road connects Sarak connects the road connects the proposed the proposed EZ to the proposed EZ to the railway EZ to the railway station and railway station and the traffic

PwC 26 Initial Site Assessment for five economic zones Final

station and the traffic the traffic congestion is congestion is heavy congestion is minimal moderate throughout the throughout the stretch. throughout the stretch. stretch. Nearest Proposed Narayanganj EZ Proposed Panchagargh EZ is Proposed Anowara-2 EZ is Airport is located 48 km (approx.) located at a distance of 45 located at a distance of 30 km from Hazrat Shah Jalal km (approx.) from Saidpur (approx.) from Shah Amanat International Airport at Airport. International Airport, Dhaka. Travel time by road Chittagong. Travel time from Saidpur airport is a domestic to this airport is 2.5-3 hours the proposed EZ to this airport. No major (approx.). airport is 2.5-3 hours international airport exists (approx.). in vicinity to the proposed EZ. Nearest Port Proposed EZ is located at a No river/ sea port is located Chittagong port is the distance of 254 km in vicinity to the proposed principal Port of Bangladesh. (approx.) from Chittagong EZ. Proposed Anowara 2 EZ is port and 304 km (approx.) located at a distance of 18 km Proposed Panchagarh EZ is Mongla Port. (approx.) from Chittagong located at a distance of 98 Port. Proposed EZ lies on the km (approx.) from bank of inland water way Banglabandha land port. connecting from Chittagong Travel timeby road is 2.5-3 port to Mongla port. hours (approx.). Narayangunj river port is located within 3.5 km (Water way) / 28 Km (Road way) from the proposed EZ. Possibility of Proposed EZ has access to No river/ sea port is located Proposed EZ has access to all Integration all modes of transportation; in vicinity to the proposed modes of transportation. (indicative) however Dhaka EZ. Chittagong Port is located at a International airport is Saidpur airport is located at distance of 6 km (approx.) relatively far (48 km a distance of 47 km (approx.) from Chittagong railway approx) as compared to from Domar rail station. station. Travel time is 15 -30 other modes of Travel time is 1.5 hours minutes (approx.) through transportation. (approx.) through Saidpur- Mooring Road and Strand Integration for intermodal Nilphamari road. Road and traffic congestion is cargo transfer between Priliminary assessment minimal throughout the Narayanganj river port and suggests that integration stretch. Narayanganj rail station between rail and airport Chittagong port is located at a would be possible as both could be a possibility. distance of 10 km (approx.) the facilities are located in Domar rail station is from Chittagong airport. close proximity (approx 1- connected to Banglabandha Travel time is 30 minutes 1.5 km). The Narayanganj land port by N-5 national (approx.) through M A Aziz river port and rail station is highway. Distance between road and traffic congestion is linked by Nawab Banglabandha land port and moderate throughout the Sirajudullah Road, Sahid Domar rail station is 100 km stretch. Suhrwadi Sarak and Port (approx.) and travel time is Road. These stretches Chittagong rail station is 2.5 hours (approx.) experience moderate traffic located at a distance of 15 km congestion. However, the Access between Saidpur (approx.) from Chittagong possibility of intermodal airport and Banglabandha airport via M A Halisahar cargo transfer between land port takes place by N-5. road. Traffic congestion is river port and rail station Distance between Saidpur heavy throughout stretch. needs to be undertaken airport and Banglabandha Basis preliminary during pre-feasibility stage. land port is 100 km assessment, the location of (approx.) and travel time is 4 the proposed EZ could be

PwC 27 Initial Site Assessment for five economic zones Final

hours (approx.) strategic for intermodal cargo transport. Integration of different modes of transportation seems possible, but the unit cost associated towards cargo transfer could be relatively higher as compared to proposed Narayanganj EZ. Last Mile Preliminary site assessment The site is connected to the Bangladeshi national Connectivity suggests that two accesses Boda – Domar via Debiganj highway (N1) connects the are possible. Upazilla Road (Z5003) by a country capital Dhaka and Kutcha Road of stretch ~ Chittagong. N1 is located at a 1. Proposed Sitalakhya 300 m. z5003 further distance of 10 km (approx.) Bridge across connects the site to AH2. from the proposed EZ. Sitalakhya River could provide direct access Basis preliminary site Proposed EZ is abutting the to the Northwest assessment, widening could Chittagong - Anowara- parcel of the proposed be possible for this kutcha Banshkhali highway (R170) EZ. road. However, the decision which connects the proposed 2. Access to the south of widening needs to be EZ to N1. east parcel (of the undertaken during pre- proposed EZ) is feasibility stage. restricted owing to the presence of berth facility of Bashundhara cement plant on the river. Basundhara cement plant is located adjacent to the proposed EZ.

1.6. Utility Connections For any site to be developed as an economic zone, it should have access to all the utility connection so that it is prone to any kind of industrial set up. The following tables summarize the access to utility connections (i.e. electricity, gas, water, telecom/ IT connectivity) to the five sites: Narayanganj EZ The utility connection aspect of proposed NarayanganjEZ is illustrated in Table 1-8 Table 1-8: Utility connections of proposed Narayanganj EZ

Utility Connections Details of the proposed EZ Power Bandar substation is located 2 km (approx.) from the proposed EZ. Basis interaction with the UNO officials, this substation has excess capacity of 5 MW. Preliminary assessment suggests that a new 132/33 kV substation could be explored or the existing substation could be upgraded for meeting the requirement of power at the proposed EZ.

Water Basis the interaction with the local inhabitants, ground water is available at a depth of 60 feet from natural ground level. The proposed EZ is located adjacent to the confluence of three rivers viz. Meghna, Dhaleswari and Shitalakhya. Preliminary assessment suggests that the water requirement could be met with the intake from either extracting water from the Dhaleswari River or Sitalakhya River

PwC 28 Initial Site Assessment for five economic zones Final

Utility Connections Details of the proposed EZ or from deep tubewell which could be developed within the project area. The possibility of of extracting water from the river located on the western boundary of the proposed EZ may be explored by providing suitable intake system and water treatment plant.

Gas A gas pipeline is located in close proximity from the proposed EZ (2 km. approx). The Possibility of tapping gas from the existing line to the proposed EZ could e explored by obtaining necessary clearances from Titas Gas.

Telecom/ IT The capacity of Narayanganj Telephone Exchange has been extended with the connectivity installation of 16000 new digital telephone lines. Several Sub Exchange Offices have been setup at different locations resulting in improved service by Telephone Company Limited (erstwhile BTTB). At present, the internet and telecom services are provided by mobile companies such as Grameen Phone, Bharti Airtel, Banglalink, Teletalk in this region. Service by private operators has significantly improved the telecom connectivity in the district. At present there is no area around Narayanganj which is not covered by cellular phone network by private operators.

Panchagarh EZ

The utility connection aspect of proposed Panchagarh EZ is illustrated in Table 1-9. Table 1-9: Utility connections of proposed Panchagarh EZ

Utility Connections Details of the proposed EZ Power Khotamara, Debiganj 132/33 kV substation is located at distance of 5 km (approx.) from the proposed EZ. Basis discussion with UNO officials, this substation has an excess capacity of 5 MW after catering to the demands of local population and industry. Preliminary assessment suggests that the possibility of setting up a new 132/33 kV substation at Khotamara, Debiganj could be explored for meeting the requirement of power at the proposed EZ.

Water There is no water supply system at the proposed EZ. The people are dependent on tube well water for drinking purpose. Karatoya River passes adjacent to the proposed EZ. Basis the interaction with the local inhabitants, ground water is available at a depth of 75 to 100 feet from natural ground level. Preliminary assessment suggests that the water requirement could be met with the intake from either extracting water from the Karatoya River or from deep tube wells which could be developed within the project area. Preliminary assessment suggests that extracting water from the Karatoya River located on the western boundary of the proposed EZ may be explored by providing suitable intake system and water treatment plant. Proposed EZ is located on the bank of karatoya river and hence the intake well could be positioned anywhere in the river adjacent to the project boundary. However the location would need to be finalized during master planning stage. The approximate location as suggested above has been earmarked in the utility map shown in Figure 6-8.

PwC 29 Initial Site Assessment for five economic zones Final

Gas No gas station is available within 100Kms radius of the proposed site and nearest gas station Bogra is located 250Km from the proposed EZ.

IT/ Telecom Private telecom service providers provide extensive service in this region. Internet Connectivity and telecom services are provided by mobile companies such as Grameen Phone, Bharti Airtel, Banglalink, and Teletalk in this region. Most of the area around Panchagarh is covered by unineruppted network connectivity by private operators.

Anowara-2 EZ

The utility connection aspect of proposed Anowara-2 EZ is illustrated in Table 1-10. Table 1-10: Utility connections of proposed Anowara-2 EZ Utility Connections Details of the proposed EZ Power Julda power plant of 100MW capacity is located 4 Km (approx.) away from the proposed EZ. Preliminary assessment sugest that the power requirement of the proposed EZ may be sourced from this existing 132/33KV grid substation located at Julda. Water There is no existing water supply system at the proposed site. The local inhabitants are dependent on tube wells for the purpose of drinking water. Basis the interaction with local people, ground water is available at a depth of 100 - 200 feet from natural ground level. Basis preliminary assessment, the water requirement for the proposed EZ could be met with the intake from either extracting water from the Karnaphuli River located at a distance of 15-20 km (approx.) from site or from deep tubewell which could be developed within the project area. However detailed feasibility study need to be carried out for pinpointing the exact location. Utility map for the proposed EZ shown in Figure 7-12 illustrates the approximate location of the water source. Gas Gas pipeline is available near Korean EPZ (KEPZ) which is located at a distance of 2Km (approx.) from the proposed EZ. Basis interaction with General Manager-KGDCL, the demand of the proposed EZ would not be met from KGDCL owing to supply issues; thus some alternate arrangement for the gas connection needs to be evaluated. Further interactions could be undertaken by the authority with KGDCL to explore supply of gas in the proposed EZ. IT/ Telecom Private telecom service providers provide extensive service in this region. Internet Connectivity and telecom services are provided by mobile companies such as Grameen Phone, Bharti Airtel, Banglalink, and Teletalk in this region. Most of the area around Anowara is covered by unineruppted network connectivity by private operators.

Sabrang- Tourism EZ

The utility connection aspect of proposed Sabrang EZ is illustrated in Table 1-11. Table 1-11: Utility connections of proposed Sabrang EZ

Utility Connections Details of the proposed EZ Power Teknaf substation (10 MW capacity) is located at a distance of 7 km (approx.) from the proposed EZ. Basis interaction with UNO officials, there is no electricity supply within 2 km of the proposed site. Basis interaction with the local inhabitants and the UNO officials, the demand of electricity in the region is 6.4 MW. Based on preliminary assessment, the supply of electricity is more than the demand and this excess electricity could be used for the project development

PwC 30 Initial Site Assessment for five economic zones Final

Utility Connections Details of the proposed EZ activities of the proposed EZ. A new solar based power plant of capacity 20 MW has been proposed at Huyakong (located at a distance of 20km from the proposed EZ). Basis interaction with local inhabitants, the proposed solar power plant is expected to be built over an area of 700 Acres. At the moment the project is at site assessment stage. Water Groundwater is the major source of drinking water in the region. It is also an important source of irrigation water for the area. The project area has good groundwater potential, as groundwater recharge is not a problem. Basis interaction with the local inhabitants, there is no water supply system in the proposed EZ. The local inhabitants are dependent on tube well water for drinking purpose. Basis interaction with UNO officials, the water source is located in Huyakong union- I and water is being fed through gravity from this union up to Sabraang for a distance of 35 Km. Based on the interactions with local inhabitants, the ground water (Potable) is available at a depth of 120-150 feet from natural ground level. The water requirement for the proposed EZ can be met with the deep tube wells to be developed at suitable location.

Dhaka IT EZ

The utility connection aspect of proposed Dhaka IT EZ is illustrated in Table 1-12. Table 1-12: Utility connections of proposed Dhaka IT EZ

Utility Connections Details of the proposed EZ Power 33/11 kV Sonakanda substation (with 20 MVA capacities) is located 3 km (approx.) from the proposed EZ. This substation has excess capacity which could be utilized for the initial phase. 150 MW Hasnebod power station is located 30 km from proposed EZ. 100mw power plant operated by M/s. Power pac is located just 3.5 km on the east side near Dhaka Mawa road. New 33/11 kv substation is also proposed adjacent to the site. Preliminary assessment suggests that possibility of drawing power from Hasnebod power station or PowerPac power plant could be explored. Water Basis interaction with local inhabitants  Water line is available upto BSCIC industrial complex.  Local inhabitants are dependent on tube well water for drinking purpose. There are a total of 5,574 tube wells in Keraniganj Upzilla. Dhaleshwari and Buriganga are the main rivers situated in this region.  Ground water (Arsenic Free and Potable) is available at a depth of 150-200 feet from natural ground level. Preliminary assessment suggests that possibility of creating intake well and pumping station in Dhaleswari River to extract the surface water of the river could e explored or deep tube wells could also be developed within the project area to meet the demand. IT/ Telecom Bangladesh's landline telecommunications system is owned by the state. The Bangladesh Telephone and Telegraph Board (BTTB) is the organization that controls telecommunications in the country. Besides BTTB, which operates in all urban areas, there are two private operators. Bangladesh Rural Telecom Authority and Sheba Telecommunications provide telephone services to rural areas. Digital telephone systems are being introduced into Bangladesh. VSAT technology is used to connect to the Internet in Bangladesh. Around 54

PwC 31 Initial Site Assessment for five economic zones Final

Internet Service Providers operate in the country. Satellite Internet in Bangladesh enables individuals to access the internet in remote areas through terrestrial means. In 2014, Bangladesh Submarine Cable Company Limited (BSCCL) had 200Gbps (88MIU-km) bandwidth available and Bangladesh was using only 32Gbps or 16% of it.3 Thus, Bangladesh Govt. had approved a proposal for exporting around half of the country’s internet bandwidth to the North Eastern states of India as Bangladesh was utilizing only 16% of its total bandwidth. Bangladesh has a total of 82 MIU-km of unused bandwidth and Govt. has given approval to BSCCL for renting or leasing of internet bandwidth. Hence, it can be concluded that the supply of internet bandwidth is far larger than the demand for this.

1.7. Environmental and Social / Resettlement Issues- Constraints and Mitigations For each of the five proposed EZs, a matrix of constraints and mitigations has been prepared from the perspective of environmental and social/ resettlement issues. A snapshot of the same is presented below for all the five proposed EZs. For further details, the main report is to be referred. Narayanganj EZ

Table 1-13: Environmental and Resettlement Issues-Constraints and Mitigations of proposed Narayanganj EZ

Sl. Constraints Mitigation measures No. 1 Flood and Waterlogging Basis the interaction with the UNO Officials and local inhabitants, it was communicated to us that the flood level during monsoon season varies from 4 feet to 5 feet within the area of the proposed EZ. 2 Landfilling Basis preliminary assessment, landfilling of depth 6-8 feet needs to be undertaken. 3 Residential units inside the project area Basis preliminary assessment, appoximately 200 households4 are residing inside the project area. 4 Loss of trees Trees existing in the site can be retained and earmarked as green area during the preparation of master plan. 5 Loss of water bodies Land filling need to be undertaken for two fish ponds located within the proposed EZ. 6 Loss of income/livelihood Basis preliminary assessment and details shared by UNO office, currently around 400 households (maximum)5 are undertaking agricultural activities in the site. These households could stand to lose their income/livelihood as a result of the development of the project. 7 Resettlement Issues due to construction The option of approach road connecting the proposed EZ of approach road located on the south east side of the Bashundhara cement plant is restricted owing to the presence of berth facility of Bashundhara cement plant on the river. Preliminary assessment suggests that a new access road along the river bund from Dhaka-Chittagong highway

3 Dhaka Tribune Article (http://www.dhakatribune.com/sci-amp-tech/2014/feb/15/govt-approves-export-half-internet- bandwidth) 4 Data obtained from Bangladesh Economic Zones Authority 5 Data obtained from Bangladesh Economic Zones Authority

PwC 32 Initial Site Assessment for five economic zones Final

(N1) for a length of 10 km (approx.) to the proposed EZ could be constructed. This new approach road shall have minimum resettlement with respect to the former option. 8 Air Pollution During the field visit, it was observed that the ambient air quality in regard to the Suspended Particulate Matters (SPM) of the area is very dusty. This may be due to the fact that several cement plants and other industrial units are located in close proximity to the area around the proposed EZ. Also, in the area adjacent to the Shitalakhya River noise was observed as many cement plants are located in close proximity.

Panchagarh EZ

Table 1-14: Environmental and Resettlement Issues -Constraints and Mitigations of proposed Panchagarh EZ

Sl. Constraints Mitigation measures No. 1 Flood and Waterlogging Basis the interaction with the UNO officials and local inhabitants, flood level during monsoon season varies from 5 feet to 6 feet depth inside the proposed EZ area. 2 Landfilling Basis preliminary assessment, landfilling of depth 8-10 feet needs to be undertaken. 3 River protection and existing canal Bund could be constructed to avoid the water inflow from river. The existing canal could be rerouted along the boundary of the proposed EZ to maximize the available land area. 4 Loss of trees Trees exist adjacent to a pathway within the proposed EZ which could be retained during preparation of master plan. 5 Loss of income/livelihood Basis preliminary assessment and details shared by UNO office, currently around 150 households6 are undertaking agricultural activities in the site. These households could stand to lose their income/livelihood as a result of the development of the project. 6 Residential units inside project area Basis preliminary assessment, appoximately 50 households7 are residing inside the project area.

6 Data obtained from Bangladesh Economic Zones Authority 7 Data obtained from Bangladesh Economic Zones Authority

PwC 33 Initial Site Assessment for five economic zones Final

Anowara-2 EZ

Table 1-15: Environmental and Resettlement Issues -Constraints and Mitigations of proposed Anowara-2 EZ

Sl. Constraints Mitigation measures No. 1 Flood and Waterlogging Basis the interaction with the UNO officials and local inhabitants, the proposed EZ area is free from flooding. 2 Unduly land Basis preliminary assessment, necessary platforms could be created for accessing the site by cutting and filling for about 2 m to 3 m. 3 Loss of income/livelihood Basis preliminary assessment and details shared by UNO office, currently around 100-115 households8 are undertaking agricultural activities in the site. These households could stand to lose their income/livelihood as a result of the development of the project. 4 Residential units inside project area Basis preliminary assessment, appoximately 50 households9 are residing inside the project area.

Sabrang EZ

Table 1-16: Environmental and Resettlement Issues -Constraints and Mitigations of proposed Sabrang EZ

Sl. Constraints Mitigation measures No. 1 Flood and Waterlogging Basis the interaction with the UNO Officials and local inhabitants, it was communicated to us that the flood level during monsoon season varies from 4 feet to 5 feet within the area of the proposed EZ. 2 Landfilling Land Filling needs to be undertaken for a depth of 6 to 8 feet. 2 Protection from sea and backwater From preliminary assessment, necessary protection to avoid the erosion by sea front may be undertaken. 3 Existing backwater canal From preliminary assessment, Necessary strengthening and bund protection may be carried out for avoiding flooding. 4 Loss of income/livelihood Basis preliminary assessment and details shared by UNO office, currently around 50-100 households10 are undertaking agricultural activities in the site. These households could stand to lose their income/livelihood as a result of the development of the project.

8 Data obtained from Bangladesh Economic Zones Authority 9 Data obtained from Bangladesh Economic Zones Authority 10 Data obtained from Bangladesh Economic Zones Authority

PwC 34 Initial Site Assessment for five economic zones Final

Dhaka IT EZ

Table 1-17: Environmental and Resettlement Issues -Constraints and Mitigations of proposed Dhaka IT EZ

Sl. Constraints Mitigation measures No. 1 Flood and Waterlogging Basis the interaction with the UNO Officials and local inhabitants, it was communicated to us that the flood level during monsoon season varies from 5 feet to 6 feet within the area of the proposed EZ. 2 Landfilling From preliminary assessment, landfilling of depth 6-10 feet needs to be undertaken 3 Existing storm water drain To be diverted along the boundary 4 Residential units Basis preliminary assessment, 3-5 kutcha structures may be relocated 5 Factory building Basis preliminary assessment, the factory building may be excluded from the proposed EZ area during preparation of master plan 6 Loss of Trees Trees existing along the kutcha road in the site may be retained during the preparation of master plan 7 Loss of income/livelihood Basis preliminary assessment and details shared by UNO office, currently around 70-130 households are undertaking agricultural activities in the site. These households could stand to lose their income/livelihood as a result of the development of the project. 8 Resettlement issues pertaining to From preliminary assessment, construction of approach road construction approach road via Dhaka-Mawa Highway (N8) shall attract significant resettlement. The other option of construction of approach road via Zinzira-Keraniganj-Nawabganj-Dohar-Srinagar Road (R820) may not have similar resettlement issues.

1.8. High level assessment of industrial development potential To analyze the industrial segments which may be considered fit to develop in the proposed multi-product economic zones under discussion; a high level assessment for industrial development potential is carried out. This study doesn’t take into consideration the viability aspect of the industrial segments for the economic zones. Further, this analysis is carried out at a very macro level to understand whether there is certain industrial activity in the region and also the propensity of industrial segments which could be better suited for the respective regions. The list appended in the sections below is not conclusive and is subject to the detailed feasibility analysis for each of the proposed proposed EZs. The industrial scenario in the vicinity of the project area has been thoroughly analyzed based on the availability of natural resources, industrial development and connectivity aspects etc. Now, based on the global scenario,

PwC 35 Initial Site Assessment for five economic zones Final

country specific and region specific analyses, a broad set of industries have been shortlisted which deem to be fit for setting up in the proposed economic zones. However, this set of industries is indicative in nature and it is subjected to detailed feasibility analysis. The proposed EZs in Narayanganj, Panchagarh and Anowara are multiproduct economic zones and the types of industries fit for these EZs are shown in the figure 1-5. Figure 1-5: Different type of Industries fit for the respective Multiproduct EZs

Narayanganj EZ Jute and Cotton mills; Textile and Readymade Garments (RMG); Warehousing; Shipbuilding; Construction materials ; Agro, Food and Fish processing; Light engineering

Panchagarh EZ Food processing; Agro processing; Sugar processing; Tea ; Textile and RMG; Light Engineering

Anowara-2 EZ Textile and related industries; RMG; Leather and footwear; Pharmaceuticals; Plastic & chemicals; Ship building; Light Engineering

The other two proposed EZs in Sabrang and Dhaka are industry specific EZs and the figure 1-6 shows the types of industries deemed fit for these two EZ sites. Figure 1-6: Industries fit for Sabrang and Dhaka proposed EZs

•Hotels/ Resorts Sabrang Tourism Economic Zone •Adventure Sports •Marine Drive and River Cruise

•IT/ ITES Dhka IT EZ •Electronics and semiconductors

PwC 36 Initial Site Assessment for five economic zones Final

1.9. Ranking of the sites Lastly, the report endeavours to relatively compare the sites on all the parameters discussed above. This endeavour, however, has been limited to three sites viz. Narayanganj, Panchagarh and Anowara as the remaining sites (viz. Dhaka IT EZ and Sabraang Tourism EZ) are not exactly comparable to the multiproduct zones across all the parameters11.

The following table 1-18 summarizes the comparison of multi product EZs across different paramters:

Table 1-18: Summary of the comparisons of multi product EZs based on different parameters used for determining relative scoring

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters The proposed EZ is well Relative scoring for connected by road to the capital Narayanganj is 4 city and other major cities of The proposed EZ is 5 km The proposed EZ is located Bangladesh. It is around 32 km Although the region is well (approx.) away from the at a distance of 15 km away from Dhaka City. connected to commercial Debiganj town. Asian Highway (approx.) from the Preliminary assessment and urban hubs like Dhaka (AH2) is the major highway Chittagong town. Connectivity suggests that some stretches of and Chittagong, the site itself located in close proximity to the Proposed EZ is abutting (1) Connectivity Road to nearest access road could be renovated has issues with the last mile propoed EZ. Boda – Domar via the Chittagong - Anowara- major city for smooth passage of heavy connectivity. The existing Debiganj Upazilla Road (Z5003) Banshkhali highway vehicles along: (i) Madanpur- road faces constraints for connects the site with Asian (R170) which is the main Madanganj-Syedpur road, expansion. However, there is highway (AH2). The length of access road to the originating from Dhaka a possibility of alternative the Z5003 stretch is 2 km. proposed EZ. Chittagong highway and (ii) routes. Bridge across the Sitalakhya river. At present, these stretches Relative scoring for

11 As an illustration, on connectivity parameter in case of Dhaka IT EZ, road and airport will have more weightage as compare to Inland waterways and railways. On the other hand, no preferencial weightage may be awarded to any mode of transportation in case of multi product EZs (Narayanganj, Panchagarh and Anowara). Similarly, Social infrastructure and availability of manpower would have significantly higher weightage for Dhaka IT EZ and Sabraang Tourism EZ vis-à-vis other multiproduct EZs.

PwC 37 Initial Site Assessment for five economic zones Final

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters witness heavy traffic congestion Panchagarh is 4.5 and road condition is poor. The scenario of Panchagarh is relatively better than Narayanganj in terms of both trunk as well as last miles connectivity. The last Proposed EZ has access to mile connectivity of 2 km has Chittagong, industrial hub to be developed There are three major roads in Bangladesh. which connect Narayanganj to Bangladeshi national Proposed EZ is far way from Relative scoring for the rest of the country. These highway (N1) connects the Dhaka city (approximately 450 Anowara - 5 roads are: country capital Dhaka and km)- AH2 connects Debiganj to External (i) Narayanganj-Munsiganj Chittagong. N1 is located at Dhaka. The proposed EZ is The connectivity scenario is Connectivity Highway (R812); a distance of 10 km located in close proximity to better for Anowara EZ when (ii) Bondor-Modonpur Highway (approx.) from the Indian border (Northern part of compared to other sites. The (R113); and proposed EZ. Proposed EZ West-Bengal state). last miles connectivity of (iii) Dhaka-Narayanganj Link is connected to N1 through only 500 m needs to be Road (R111). Chittagong - Anowara- developed, with minimal Banshkhali highway resettlement issues (R170).

PwC 38 Initial Site Assessment for five economic zones Final

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters The site is connected to the Proposed EZ is connected Boda – Domar via Debiganj to N1 through Chittagong - Upazilla Road (Z5003) by a Anowara- Banshkhali The existing approach road is Katcha Road of stretch ~ 300 m, highway (R170). adjacent to Bashundhara and z5003 in turn further A 200 m Katcha Road cement plant. It is a single-lane connects the site to AH2. stretch connects the site to road and heavy commerical a blacktop single lane road. vehicles face difficulty to move z5003 is a single lane road. It The black top single lane through this road. Widening of runs for ~ 2km from AH2 to the road in turn connects the the approach road would result Katcha Road connecting the site Katcha Road to R170, in significant resettlement to it.On either side of the road, through a stretch of ~ 500 Last Mile issues owing to Basundhara there are private lands, however m. Both the Katcha Road Connectivity cement plant (located on one as such no houses or any and the blacktop road are side of the road) and residential permanent structures adjacent ~ 3 m. Preliminary units (located on the other side). to the road were observed and assessment suggests that hence there is a scope of on either side of these The Sitalakhya Bridge is widening roads there are private proposed to be developed in Preliminary assessment lands, however there are close proximity to the site, once suggests that on either side of no houses or any functional shall provide access the stretch of the Katcha Road permanent strucutres and to the proposed EZ. there are no permanent hence there is a scope for structures and there is a scope widening these roads for a for widening the stretch better approach

PwC 39 Initial Site Assessment for five economic zones Final

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters Mutilane Road tunnel is proposed under the River Asian highway 2 runs through Karnaphuli. The proposed Panchagarh connecting Dhaka Tunnel will connect the Sitalakhya Bridge is proposed to Banglabandha at India border Chittagong Port City across the Sitalakhya River, via Panchangarh. The stretch directly with the other side which would link Dhaka with through Panchagarh is yet to be of the Karnaphuli River & Sylhet and Chittagong highway developed. Once developed, it indirectly with other parts through Demra and will improve the connectivity of of the country through Future Plans Narayanganj. Once functional, it Panchagarh with neighbouring Dhaka-Chittagong-Cox’s shall connect (R113) and (R812). countries and enable seamless Bazar Highway. The This bridge once functional shall movement of goods from feasibility study for the provide access to the North- Panchagarh to major local same is in progress. Once west parcel of the proposed EZ. markets and markets in functional, the multilane neighbouring countries (India, road tunnel shall reduce Bhutan and Nepal). the travel time and distance from Chittagong to the proposed EZ. Domar railway station (in Relative scorings: Narayanganj railway station is Nilphamari district) is located Naryanganj - 5 located about 7 km from about 9 km (approx.) from Panchagarh - 3 proposed EZ. Chittagong railway station Distance of proposed EZ. Anowara - 5 Bangabandhu Sarak connects is located at a distance of nearest rail The railway station is connected The train connectivity for the proposed EZ to the railway 17 km (approx.) from the station to the proposed EZ by Debiganj Narayanganj and Anowara is station. Traffic congestion is proposed EZ. road. In the vicinity of the rail comparable to each other minimal throughout this Train station, traffic congestion is and is better than stretch. observed during working hours. Panchagarh. This is also true Frequency of trains connecting in case of last mile Narayanganj to Dhaka and The frequency of passenger Chittagong railway station connectivity of the site to the Frequency of other major cities is good trains from this area to Dhaka is has regular trains running stations train (around 13 trains per day from not good (approx 2-4 daily to Dhaka and other major connectivity Narayanganj to Dhaka and trains). cities of Bangladesh. return)

PwC 40 Initial Site Assessment for five economic zones Final

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters (1) The Port of Chittagong Relative scorings: is the principal Port of Naryanganj - 3 Bangladesh. Proposed EZ Panchagarh - 1 is located at a distance of Anowara - 5 Proposed EZ is located at a 18 km (approx.) from Distance distance of about 254 km from Chittagong Port. Panchagarh has been ranked from port Chittagong port & 304 km (2) Chittagong Port is a lowest (relatively) as there is Mongla Port. deep water sea port and no IWT terminal or port. most of the export and import of the country are Narayanganj on the other handled by this port. hand has Inland water connectivity, but the distance of Narayanganj to (1) The proposed EZ lies on the the sea ports of Chittagong bank of inland water way and Mongla is higher than connecting Chittagong port to Sea/ Anorwara site. Further, with Mongla port. River N/A IWT terminal, there are Narayangunj river port, one of Port additional multimodal the oldest in Bangladesh is transhipment involved, located within 3.5 km (Water which in turn not only way) / 28 Km (Road way) from increases time but also the the proposed EZ. Inland water- total logistics cost for (2) Various types of cargos are N/A ways transporting the goods transported through (when compared to Narayanganj Port. But there is Anowara). no regular cargo service for On the other hand, Anowara carrying commodities. has been ranked best Commodities are generally (relatively to other sites) due carried by private arrangements to its proximity to sea port and BIWTA's berthing facilities and minimal multimodal are availed for loading and transhipment (which in turn unloading. reduces the total logistics cost)

PwC 41 Initial Site Assessment for five economic zones Final

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters Proposed EZ is located at a Relative scorings: Narayanganj EZ is located at a distance of 30 km Naryanganj - 4 distance of about 48 km Proposed Panchagargh EZ is (approx.) from Shah Panchagarh - 3 (approx.) from Hazrat Shah located 45 km (approx.) south Distance Amanat International Anowara - 5 Jalal International Airport at west of Saidpur Airport. It takes from airport Airport, Chittagong. It Panchagarh has been ranked Dhaka. The travel time by road about 1.5-2 hours to reach the takes about an hour to the lowest (relatively) to to Dhaka International Airport airport from the proposed EZ. reach the airport from the other sites, as there is is 2.5-3 hours (approx.). proposed EZ. domestic airport that is International located 45 km away from the Yes No Yes facility site. In addition, there is Cargo limited connectivity to handling Yes No Yes Dhaka and other parts of the facility country. Narayanganj, on the other Airport Govt. of Bangladesh intends to hand is better placed than construct a new international Panchagarh in terms of airport (Bangabandhu Sheikh airport connectivity (35 km Mujib International Airport) from site and presence of with a view to create a hub international airport) but the airport in close proximity to travel time to the airport is Future plans Dhaka and to meet the demand N/A N/A 2.5-3 hrs (which is relatively of future growth in aviation higher than in case of sector. The prospective Anowara) locations for the new Anowara has been rated best international airport are located on this parameter due to the within 50 km radius of the presence of international proposed EZ. airport and connectivity and least travel time (1 hr). Khotamara, Debiganj 132/33 kV Julda power plant of Relative scorings: Distance Bandar substation is located at 2 (2) Utility substation is located at distance 100MW capacity is located Naryanganj - 5 Power from sub- km (approx.) from the proposed Connection of 5 km (approx.) from the 4 Km (approx.) away from Panchagarh - 5 station EZ. proposed EZ. the proposed EZ. Anowara - 4.5

PwC 42 Initial Site Assessment for five economic zones Final

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters Not known, but there is a There is excess capacity Excess possibility that the power reported in Narayanganj and This substation has an excess capacity Basis interaction with the UNO requirement of the Panchagarh, where the same capacity of 5 MW after catering available at officials, this substation has proposed EZ could be could not be confirmed in to the demands of local the sub- excess capacity of 5 MW. sourced from this existing case of Anowara population and industry. station 132/33KV grid substation located at Julda. Basis the interaction with Relative scorings: Basis the interaction with the Basis the interaction with the Depth of the local inhabitants, Naryanganj - 5 local inhabitants, the ground local inhabitants, ground water water from ground water is available Panchagarh - 4 water is available at a depth of is available at a depth of 75 to natural at a depth of 100 to 200 Anowara - 3 60 feet from natural ground 100 feet from natural ground ground level feet from natural ground The water table at Anowara level. level. level. is 100-200 ft vis-à-vis 75- 100 ft at Panchagarh and 60 Water ft at Narayanganj. Further, in case water extraction from The proposed EZ is located Karnaphuli River located tubewell is not found to be Proximity to adjacent to the confluence of Kartoya river is located in close at a distance of 15-20 km suitable at the DPR stage, river(s) three rivers viz. Meghna, proximity to the proposed EZ (approx.) from the there would be an additional Dhaleswari and Shitalakhya. proposed EZ capex for constructing water supply line of 15-20 km in case of Anowara Basis interaction with Relative scorings: General Manager-KGDCL, Naryanganj - 5 the demand of the Panchagarh - 1 No gas station is available proposed EZ would not be Anowara - 2 Availability of Gas Yes within 100Kms radius of the met from KGDCL; thus In case of Narayanganj, there gas proposed EZ. some alternate is presence of infrastructure arrangement for the gas and possibility of gas supply. connection needs to be In case of Panchagarh, there taken is no infrastructure and

PwC 43 Initial Site Assessment for five economic zones Final

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters Gas pipeline is available supply of gas. In Anowara, near Korean EPZ (KEPZ) while the infrastructure is Nearest gas station Bogra is which is located at a present, the prospects of gas Distance A gas pipeline is located in close located 250Km from the distance of 2Km (approx.) supply appears to be bleak from nearest proximity from the proposed EZ proposed EZ. There is no from the proposed EZ. gas pipeline (2 km. approx) exisinting gas supplying Although the Gas infrastructure or any gas supply supplying infrastructure is present, however there is not enough gas to supply. (i) The prominent Relative scorings: industrial sectors in Naryanganj - 4.5 (i) Narayanganj is the pioneer in Chittagong are textile Panchagarh - 3.5 merchandising and related industries, Leather Anowara - 5 manufacturing of Knitwear, (i) Agro-based industry is the and Footwear, There is a presence of jute, yarn, and dying items. major industry in the district. Pharmaceuticals, Ship industrial activities in (ii) International trading, Tea cultivation is predominant building, Plastics etc. Anowara and Narayanganj. import and export business, in this part of the country. (ii) Around 23% of total On the other hand, garments industries, knitwear (ii) Some other major industrial manufacturing units of Panchagarh is far from the Existing industrial (3) Suitability garments, cold storage, establishments in this upzilla Bangladesh are located in main commercial and urban ecosystem and Possible for Industrial shipbuilding, brickfield, cement are: rice mills, sugar mills and Chittagong. Around two- hubs of the country. In Backward linkages for Development etc. are some other major jute mills etc. thirds of the 3000 plastic future though, by virtue of its industries industries present in this region. (iii) These industries may act as units are in location, Panchagarh may (iii) These factors may provide backward linkage for Chittagong/Dhaka region. have a potential to act as backward linkages for establishment of food/ agro (iii) These industries may gateway for BBIN trade development of industries such processing industries, tea act as backward linkages network. as shipbuilding, textile, industry etc. for development of construction materials and light industries such as RMG, engineering etc. light engineering, leather/ footwear, bottling/ packaging etc.

PwC 44 Initial Site Assessment for five economic zones Final

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters Proposed EZ is located at a distance of 254 km from LCS- only 100 km (approx.) Access to Chittagong port- Chittagong port. away from the proposed EZ; Gateway for foreign trade; Import/ Export Proposed EZ is located about Proposition of MVA-BBIN shall Chittagong international facilitation 304 km Mongla Port. facilitate cross-border trade to airport is around 30 km (1 Proposed EZ has access to neighbouring countries like hour journey) from the Dhaka international airport India, Nepal and Bhutan; proposed EZ. (approx 48 km away) Broad level block cost Relative scorings: Broad level block cost estimate Broad level block cost estimate estimate is BDT 20475 Naryanganj - 4.8 is BDT 24327 lakh. Hence, block is BDT 27747 lakh. Hence, block lakh. Hence, block cost per Panchagarh - 2.8 Block cost estimate is cost per acre of land=27.5 lakh cost per acre of land=46.6 lakh acre of land=26.4 lakh Anowara - 5 (4) Cost of off- referred and per acre BDT. Since, this is the lowest BDT. Since, this is the lowest BDT. Since, this is the site cost of off-site unit cost, a score of 5 is given to unit cost, a score of 5 is given to lowest unit cost, a score of Infrastructure infrastructure is Anowara- 2 and on a Anowara-2 and on a 5 is given to Anowara-2 development considered proportionate basis, the scores proportionate basis, the scores and on a proportionate for the other two zones are for the other two zones are basis, the scores for the determined. determined. other two zones are determined. Number of household Relative scorings: Around 200 household Around 50 household structures to be Around 50 household structures Naryanganj - 1 structures structures relocated Panchagarh - 3 Private land to be acquired Anowara - 5 Private land to be acquired Private land to be acquired (5) Social and Private land to be amounts to be approx 21% The number of affected amounts to approx 37% (330.30 amounts to approx 50% (299.34 Resettlement acquired (160.01 acre) of total land households in case of 12 acre) of total land area acre)of total land area Aspects area Narayanganj are the highest Households dependent Approximate 400 numbers of 150 numbers of households 100-115 numbers of followed by Panchagarh and on agricultural activities households (maximum) (approx.) households (approx.) Anowara respectively in the site

12 Data for number of household structures to be relocated and number of households dependent on agricultural activities has been obtained from Bangladesh Economic Zones Authority (BEZA)

PwC 45 Initial Site Assessment for five economic zones Final

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters Several trees and 10 acre Several trees and two fishponds No water bodies present, Trees and water bodies (approx.) of area in the site are located inside the project but the site has abundance located inside the site covered by canals, fishing ponds area of trees and associated water bodies For economic zones to Relative scorings: have access to quality Naryanganj - 5 manpower (skilled and Panchagarh - 3 Proposed EZ is located in unskilled), vicinity of Anowara - 5 proximity to an already set industries in the region The avenues for better Proposed EZ is located in up industrial area where is important as already quality of education and proximity to an already two EPZs are functional. established ecosystem of training institutes are more established industrial area Panchagarh has realtively less Chittagong being the industries in the vicinity in Dhaka and Chittagong where several SME units are supply manpower (skilled and Industrial Hub of (6) Access to could provide access to than Panchagarh. functional. The proposed EZ unskilled labour sources) as Bangladesh has adequate quality manpower in the stands to get benefitted from the there is no such established supply of manpower. The manpower proposed economic same as the already established industrial cluster in the vicinity proposed EZ would have zones. Further, ecosystem of industries shall to the proposed EZ. access to established Bangladesh having a provide access to manpower ecosystem of industries demographic dividend (labour sources). which could provide access stands to gain from the to manpower (labour adequate supply of sources). young manpower vis a vis other Asian countries.

PwC 46 Initial Site Assessment for five economic zones Final

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters (i) The labours working in Relative scorings: (i) The labours working in the the proposed EZ shall have Naryanganj - 5 proposed EZ shall have access to access to the dwelling units Panchagarh - 3 the dwelling units and (i) The labours working in the and residential areas Anowara - 4 residential areas within 5-10 km proposed EZ shall have access to within 5-10 km radius of The avenues for better radius of the proposed EZ. the dwelling units and the proposed EZ; quality of social life more in (ii) There are several medical residential areas within 5-10 km (ii) There are few medical Dhaka followed by Presence of medical and facilities available within 10 km radius of the proposed EZ. facilities available within Chittagong and then (7) Social residential facilities radius of the proposed EZ to (ii) There are few medical 10 km radius of the Panchagarh. Infrastructure cater to the healthcare facilities available within 10 km proposed EZ to cater to the requirements of the workforce. radius of the proposed EZ to healthcare requirements of Major healthcare facilities are cater to the healthcare the workforce. Major available in Dhaka city and requirements of the workforce. healthcare facilities are some in Narayanganj/ Bandar available in Chittagong city town. (20 km away from proposed EZ). Proximitytomajorcities NeartoDhaka NeartoDebiganjtown NeartoChittagong Rate of land (Lakh BDT Relative scorings: 200 12 200 per acre) Naryanganj - 0.3 Area of private land Panchagarh - 5 330.3 299.34 160.01 (acre) Anowara - 0.6 Due to lowest cost of land (8) Cost of Cost related to land 66060 3592.08 32002 acquisition for Panchagarh, (private) land acquisition (lakh BDT) it has been rated highest. acquisition The scorings for the other Note: Cost of land acquisition is lowest in Panchagarh. Hence, it is given a score of 5. The scores to other two sites have been sites are proportionately distributed proportionately. reduced

PwC 47 Initial Site Assessment for five economic zones Final

Table 1-19 summarizes the relative rankings and weighted scores of the three comparables sites:

Table 1-19: Summary of the relative rankings and weighted scores for the three proposed multi-product EZs

NarayanganjEZ PanchgarhEZ Anowara-2EZ Param eters Weightage Score Weightage×Score Score Weightage×Score Score Weightage×Score

Rank Rank-2 Rank-3 Rank-1 100% 3.88 3.58 4.38 (1) Connectivity 15.0% 0.60 0.43 0.75

,

s

s Road 3.8% 4 0.15 4.5 0.17 5 0.19 e s

g e Rail 3.8% 5 0.19 3 0.11 5 0.19 c a ) c k Sea/RiverPort 3.8% 3 0.11 1 0.04 5 0.19 % A n t i 5 e

d Airport 3.8% 4 0.15 3 0.11 5 0.19 7 L k ( n

e r

a (2) Utility Connection 15.0% 0.75 0.50 0.48 s r a r y u t e t M Powerconnection 5.0% 5 0.25 5 0.25 4.5 0.23 i t c v e o i u t Gasconnection 5.0% 5 0.25 1 0.05 2 0.10 t r m c t a e s Waterconnection 5.0% 5 0.25 4 0.20 3 0.15 r a n a r n f P

(3) Suitability for industrial o n y 15.0% 4.5 0.68 3.5 0.53 5 0.7 5 C I r development a s s s

e (4) Off-site Infrastructure e

c 15.0% 4.8 0.721090909 2.8 0.43 5.0 0.7 5 g e Development n N e l l

a (5) Social &Resettlement 15.0% 1 0.15 3 0.45 5 0.7 5 h Aspects C

s

(6)Access to quality manpower 8.3% 5 0.42 3 0.25 5 0.42 r o e ) t t e e v % d

a 5 (7) Social Infrastructure 8.3% 5 0.42 3 0.25 4 0.33 o m 2 o a H ( r G a (9) Cost ofland acquisition 8.3% 1.0 0.15 5.0 0.7 5 1.0 0.15 p

PwC 48 Initial Site Assessment for five economic zones Final

Project Background

PwC 49 Initial Site Assessment for five economic zones Final

2. Project Background

2.1. Background of the Engagement

Bangladesh has been growing at a sustained annual GDP growth of over 6 percent since FY 2010. Growth was underpinned by stable macroeconomic and prudent monetary policies, rising industry, services output and continued high levels of remittances. Going forward, Government of Bangladesh’s objective is to develop a growth trajectory that will support an overall increase in real GDP growth to 8 percent per annum and reduce poverty from 40 percent to 15 percent by 2021. The sustained growth in Bangladesh’s labor force of nearly 2 million a year is an asset that nevertheless increases the country’s vulnerability. Creating productive employment will largely depend on creating an environment conducive to private sector investment, particularly for labor-intensive manufacturing and services sector. The Government of Bangladesh has successfully provided tailored infrastructure services and business environment conditions through Export Processing Zones (EPZs). EPZs were used as a strategic instrument for attracting FDI and dealing with the shortcomings of the overall investment climate, business registration, licensing, etc. The Bangladesh Export Processing Zone Authority (BEPZA) was established in 1980, with the first EPZ built in Chittagong in 1983. The EPZ program was the first systematic initiative to provide fully- serviced land and a better business environment for investors, targeting large scale, export-oriented manufacturing. EPZs have triggered impressive growth in exports, mainly in the RMG sector, at an average annual rate of 23 percent since 1993, reaching nearly US$2.9 billion by FY2010, and employing almost 28,000 people. Bangladesh’s current EPZ model has its limits both in terms of cumulative impact and in terms of spillover to the domestic economy. As an exporting enclave, EPZs have provided little in the way of linkages with the domestic economy, up-stream or down-stream, resulting in low technology and efficiency spillover which accompany foreign investment. Investments in other sectors beyond the low capital investment RMG segment have also not materialized. The Government’s objective is therefore to maximize the potential direct and indirect impacts through a more modern, generalized regime for Economic Zones (EZs). The Government has launched an effort to develop a new EZ paradigm for Bangladesh, drawing from numerous successful examples from around the world as well as Bangladesh’s own positive experience with the EPZ model. The expectation is that more spillover will be harnessed by local firms from foreign direct investment, additional investments will be encouraged within value chains, more local produce will be procured and better linkages established between firms and educational institutions. A faster adaption to international environmental and social practices in the private sector should also be encouraged through the new EZ policy. The new EZ regime provides for a new approach both in management and investment. The policy allows the Government to develop and pilot an approach that is less reliant on Government fiscal subsidies, while leveraging comparative advantages and private sector capability where possible. The Economic Zone Act was passed in the Bangladesh Parliament in August 2010, providing the overall framework for establishing EZs throughout Bangladesh. Under this Act, the Bangladesh Economic Zone Authority is established under the Prime Minister’s Office (PMO) and governed by a Board chaired by the Prime Minister. The law provides the legal coverage for attracting and leveraging private investment in the development of zones as zone developers or operators, and in the provision of tailored infrastructure services, such as private provision of power, effluent treatment, etc.

PwC 50 Initial Site Assessment for five economic zones Final

In the background of the above, the Government of Bangladesh is implementing the Private Sector Development Support Project (PSDSP) with support from the World Bank and United Kingdom – Department for International Development (UK-DFID) to support pilot projects under the new Economic Zone model. The objective is to demonstrate the viability and efficacy of new models to remove key constraints facing the private sector in business investment. In implementing the PSDSP, Bangladesh Economic Zone Authority (BEZA), the nodal authority for Economic Zone development and World Bank are currently considering the following five sites for undertaking the initial site assessment.

Narayanganj

Dhaka IT EZ, Keraniganj

Anowara-2

Sabrang Tourism EZ (Cox's Bazaar)

Panchagarh

This report endeavors to undertake an initial analysis to assess the relative attractiveness of these sites

PwC 51 Initial Site Assessment for five economic zones Final

2.2. Introduction of the Engagement

The objective of the engagement is to educate BEZA & the World Bank on the preliminary assessment of the five identified EZ’s and to assist BEZA and the World Bank in selection of suitable land parcels to be considered for future economic zones development. The principal objectives of this engagement are shown in the figure 2-1.

Figure 2-1: Principal Objectives of the Engagement

Assessment of physical and Infrasturcture meteorological details of the features of the site site

Environment Study on the issues and site environs social aspects

Broad Confirm the key Ranking of sites Objectives of details of the and the sites recommendation Engagement

PwC 52 Draft Report- Initial site assessment for five economic zone sites ______2.3. Earmarking of the Consultant Team The following team has been earmarked for carrying out the engagement as shown in the figure 2-2.

Figure 2-2: Team Composition for the Engagement

Water Supply & Infrastructure Experts Civil Engineers Utilities Sewerage

Market Assessment Electrical Engineers Environment Engineers Experts

The team visited the five economic zone sites to carry out the initial site assessment. The timeline of the visit is shown in the table 2-1.

Table 2-1: Field visit to the 5 proposed EZs

Name of Narayanganj Panchagarh Anowara-2 EZ Sabrang Dhaka IT EZ the EZ EZ Tourism EZ Proposed EZ

Date of 14th May 2015 21st May 2015 17th May 2015 19th May 2015 13th May 2015 visit

2.4. Scope of Work for Initial Site Assessment

The consultant shall review the background information provided by BEZA for of five sites (viz. Narayanganj EZ, Panchagarh EZ, Anowara – 2 EZ, Dhaka IT EZ & Sabrang Tourism EZ), shall visit each site with their team of experts, and shall carry out a site examination. The Consultant’s team shall be evaluating each site based on the following considerations: It is the Consultant’s responsibility to procure site coordinates, map of the sites etc. from the relevant govt. local departments and related agencies and reconfirm the site locations and the following information.  Site location, size and area  Ownership of land i.e. Govt. owned, private (nos. of private owners) etc.  The context surrounding the site  On-site and off-site infrastructure  Environmental and social issues  Identify any fatal flaws (“deal-breakers” that are impossible or financially prohibitive to mitigate and would eliminate the site from consideration)

The Consultant’s main tasks are the following:

53 Draft Report- Initial site assessment for five economic zone sites ______

Task 1: Conduct each site survey

 Reconfirm the site locations and the following information:  Reconfirm location (mouza, upzila, district, division)  Reconfirm coordinates of sites  Reconfirm the boundaries of the sites  Reconfirm size of sites (acre and m2)  Reconfirm ownership of land i.e. whether it is Govt. owned, Govt. agency, private etc. (nos. of private owners, holding size and other pertinent details)  Reconfirm the land use and conversion constraints, if any

Task 2: The context surrounding each site

 Assess the areas (neighbourhood) around the sites, and identify any issues deemed important to the outcome of the evaluation. In addition, the following must be undertaken:  Describe the area surrounding the sites  List nearest urban and rural communities and their distances from the sites (km from the site)  List the nearest hospitals and schools and their distances from the sites  List distance in km to key regional infrastructure (airport, rail, seaport, river port, inland waterways, national highways etc.) and the operational condition of the identified infrastructure  Identify any land uses (residential, commercial etc.) in close proximity to the sites that would be negatively affected by a large scale economic zone  Identify the possibility of forward and backward linkages to the economy  Identify if there are any environmental or social problems surrounding the sites that would negatively affect the development of the site  Identify any fatal flaws in the surrounding areas around the sites

Task 3: Assess each site

 The consultant will assess the individual sites. This will include, but not be limited to:  The landscape (rolling hills, flood plain, water bodies, trees, rivers etc.)  Type of soil (no soil testing)  Is it in an earthquake zone  Type of climate (rain, monsoon etc.)  Type and density of vegetation on sites (trees, crops etc.)  Types of land uses on the sites (commercial, residential, parks, industrial, agricultural etc.)  Identify if there are any industrial activities on the sites  Are crops grown on the sites. If so, how often and what kinds  Identify if any, infrastructure (bridges, dams, retaining walls etc.) or building on sites (houses, mosques, historical structures, graveyards etc.) which currently exists  Identify any illegal settlements  Identify any fatal flaws

Task 4: Assess the on-site and off-site infrastructure for each site Assess the infrastructure both onsite and offsite. This will include, but not be limited to:

 Identify the location, size and type of roads closest or entering into the sites  Identify the location of off-site key infrastructure and its connections for power, water, gas, water treatment, sewage, telecommunications etc.  Identify existing quantity and quality of off-site infrastructure (i.e. power voltage existing and can the power be brought to the boundary of the sites etc.)

54 Draft Report- Initial site assessment for five economic zone sites ______

 List proposed new infrastructure developments around the site which may have an impact on the site  Identify the location size and type of roads inside the sites  Identify the location of on-site key infrastructure, if any, and its direct connection i.e. power voltage existing and location of existing connection  Identify any fatal flaws  The location of all on-site and off-site connections should be identified by physical site survey

Task 5: Identify the environmental issues for each site Assess the site’s environment and identify any issues or concerns. The following is a brief checklist of issues to be assessed. The issues are:

 Does the site have frequent erosion or flooding  Are earthquakes frequent; if so what is the magnitudes  Rivers and lakes-whether they are on-site and where. If so, then what are the implications and impact of that  What impact will rivers around the areas have on the site (high and low tides)  Whether raising the level of land (land filling) is required, if so then how high and estimate of the cost  Whether there are wetlands or any protected areas within the site and/or within 10 km radius. This may include mangrove or other specific areas that is specific to the locality 4 of 5  Source and type of existing pollution (if any) and the nature of the pollution  Whether there is clean water available on the site or in the area, and from where and in what quantity? What are the alternative sources  Is the site contaminated  Are the lands around the site contaminated  Can the contamination be mitigated  Is there wastewater discharge or treatment in the area  Is there a solid waste disposal in close proximity to the site  Is it a forest land or will it involve tree cutting  Identify any fatal flaws  The consultant is welcome to add any other issues that might be relevant or emerge in the course of performing this exercise.

Task 6: Assess the social aspects of each site and its surrounding area Assessment of the social issues of the site will also be necessary for the evaluation. The following will need to be looked into:

 Size of urban and rural populations  Type of housing on site, if any (wood, brick, corrugated iron etc.)  Whether women and their livelihood will be affected because of the economic zone  Available community facilities (schools, hospitals, shops, mosques etc.) and services  List the main livelihood of the inhabitants – fishing, farming, grazing cattle, small business etc.  Is resettlement required. If so, for approximately how many people, families etc.  Identify any fatal flaws

Task 7: Meet with government officials After evaluating the sites, the consultant should meet with government agencies and officials to gather the missing technical information required to undertake the final component of the site prioritization.

55 Draft Report- Initial site assessment for five economic zone sites ______

Land use maps, location and capacity of power, water, gas, telecom etc. will be required to finalize this work.

Task 8: Interaction with private sector After evaluating the sites, the consultant should meet/discuss over telecom/video conference with private players (at least 3 domestic and 7 international – primarily Japanese, Chinese, Korean etc.) zones developers to gauge their primary interest on the preferred location for the site, attractiveness of the site in terms of marketability as a single product EZ or a multi-product EZ etc.

Task 9: Ranking of sites The sites must be ranked:

 Against each other to determine the priority sites across the country  A brief report must be prepared assessing all sites individually with a chapter discussing the ranking process and its outcome  Arrange a presentation one day session on the draft report potentially attended by BEZA, World Bank, ERD, PMO key officials and selected private sector players, and participate in discussion, take feedback and reflect in the Final Report

2.5. Our Approach and Action Plan Our approach and methodology to deliver the key objectives of this engagement has been designed to align with the plans and timelines of BEZA and the World Bank. Accordingly, the following sections delves with the overall framework for execution and highlights the key milestones that needs to be achieved understanding and alignment of scope and deliverables between all the key stakeholders (i.e. BEZA, World Bank and the Consultants) and our detailed approach and methodology providing a blueprint of our activities and deliverables over the proposed engagement period. This approach methodology aims to formulate the Terms of Reference for the proposed engagement and explains the envisaged approach in carrying out the engagement. While formulating this methodology, we have ensured that the final deliverables are oriented towards sustainable development and subsequent operations with innovative and implementable concept. The questionnaire to be utilized during site visit is annexed with this report. The broad approach proposed to be adopted is shown in the figure 2-3.

56 Draft Report- Initial site assessment for five economic zone sites ______

Figure 2-3: Broad Approach for the proposed Engagement

Access

Connectivity

Linkages

Neighbourhoo Site Visit d Development

Site Survey and Primary Data Visibility Assessment Collection

External Secondary Infrastructure Data Collection Facility

Opportunities

Core Offering of the Site

Constraints & Solutions

It is proposed to carry out the engagement in following stages as detailed below:

Stage I: Reconfirm each Site Survey and their respective key details Major activity Detailed activity proposed during stage Reconfirm site survey and  Based on the information obtained from BEZA, the following key details specific details of the site would be checked and confirmed to their veracity and accuracy. In case the details are not available with BEZA, the same would be collected from the concerned Government departments and the exercise would be carried out to confirm the correctness of the following details:  Location ( mouza, upzila, district, division)  Site coordinates  Site boundaries  Area of the site  Land tenure details – Government owned, Government agency, private etc.  Existing land use  Methodology – Site visit, primary data collection, secondary data collection, interaction with various Government departments and agencies etc.

57 Draft Report- Initial site assessment for five economic zone sites ______

Stage II: The context surrounding each site Major activity Detailed activity proposed during stage Assessment of site environs  As a part of the stage, the site and its environs shall be studied to understand the context surrounding each site. The following aspects would be considered while carrying out this stage of the study.  Area description surrounding the sites  Access to the nearest urban and rural settlement to take the advantage of the existing social infrastructure  Proximity to schools and hospitals  Connectivity linkages in terms of road, highways, rail, air, seaport, river port, inland water ways etc.  Existing land use pattern in close proximity to the sites to understand and assess the effect of EZ development on them  Exploring the possibility of backward and forward linkages to the economy in the context of the proposed development  Identification of environmental and social issues of the site that may affect the development of the site  Identification of fatal flaws in the adjoining areas  Methodology – Site visit, primary data collection, secondary data collection, interaction with various Government departments and agencies etc.

Stage III: Site assessment

Major activity Detailed activity proposed during stage Assessment of site  As a part of the stage, all the sites would be evaluated considering the following vital aspects:  General landscape (hills, water bodies, trees, vegetation, rivers )  Type of soil based on visual inspection  Confirmation on the presence of site in seismic zone or otherwise  Meteorological data on the climate – rainfall, monsoon periods and extent  Type and density of vegetation  Existing land use of the site – residential, commercial, industrial, agricultural  Any industrial development and activities in the identified sites  Presence of agriculture activity – crops grown, cropping pattern  Existing infrastructure and buildings  Illegal settlements  Any fatal flaws  Methodology – Site visit, primary data collection, secondary data collection, interaction with various Government departments and agencies etc.

58 Draft Report- Initial site assessment for five economic zone sites ______

Stage IV: Infrastructure assessment Major activity Detailed activity proposed during stage Assessment of offsite and  As a part of the stage, all the sites would be evaluated considering onsite infrastructure for the the following vital aspects: site  Location, size and type of roads leading to the sites, within the sites and in close proximity to the sites  Location of offsite infrastructure including power source, water source, gas source, water treatment facility, sewage disposal mechanism, telecommunications etc.  Assessment of the existing offsite infrastructure in terms of surplus quantity available and the quantity that can be committed for the proposed development so as to look for alternate sources to supplement the requirement  New infrastructure development around the sites that may have impact on the site  Requirement of Land filling  Identification of any on site infrastructure in the site  Any fatal flaws  Methodology – Site visit, primary data collection, secondary data collection, interaction with various Government departments and agencies etc.

Stage V: Environmental issues Major activity Detailed activity proposed during stage Environmental issues for the  As a part of the stage, all the sites would be evaluated on sites environmental considerations considering the following vital aspects:  Possibilities and occurrence of soil erosion and flooding  Occurrence and frequency of earth quakes and their magnitude  Presence of rivers, lakes, waterbodies on the site and the impact of tides on the development  Requirement of site grading – level raising or filling – cost implication of the activity  Presence of environmentally sensitive areas such as wetlands, protected areas, mangroves within the site or within 10 km radius  Type of exiting pollution, nature and sources of pollution  Availability of clean water within the site – Alternative sources for clean water  To check whether the site and areas surrounding the site are contaminated and possible mitigation measures  Availability of waste water discharge and treatment in the area  Availability of solid waste disposal in proximity  To ascertain whether the site is a forest land or the development would involve tree cutting exercise  Any fatal flaws

59 Draft Report- Initial site assessment for five economic zone sites ______

 Methodology – Site visit, primary data collection, secondary data collection, interaction with various Government departments and agencies etc.

Stage VI: Social aspects Major activity Detailed activity proposed during stage Social aspects of the sites  As a part of the stage, all the sites would be evaluated on social aspects considering the following vital aspects:  Size and distribution of urban and rural population  Presence of residential units on the site – wooden structures, brick structures, corrugated metal structures  Participation of women in the family earning process and the impact of the development on their livelihood  Availability of community facilities – schools, hospitals, shops, mosque  Livelihood nature of the inhabitants  Identification of project affected persons and project affected families – resettlement requirements – quantification on the number of people and families for the resettlement  Any fatal flaws  Methodology – Site visit, primary data collection, secondary data collection, interaction with communities, NGOs, various Government departments and agencies etc. Stage VII: Interaction with Government officials and private sector Major activity Detailed activity proposed during stage Interaction with Government  As a part of the stage, the following activities would be carried out. officials and private sector  On completion of the site evaluation, a meeting would be held with Government officials and agencies to discuss the possible outcomes of the study  Pursuant to the discussion, missing links (if any) or information identified would be gathered and incorporated in the study  Interaction with private players would be undertaken to gauge their interest on the preferred locations and willingness to participate in the development of these EZ’s  Methodology – Interaction with various Government departments and agencies, leading private sector players etc.

60 Draft Report- Initial site assessment for five economic zone sites ______

Snapshots of Infrastructure Linkages in Bangladesh

61 Draft Report- Initial site assessment for five economic zone sites ______3. Snapshot of Infrastructure Linkages in Bangladesh

3.1. Road Connectivity The road mode of transportation has significantly evolved in Bangladesh over the past forty years. Prior to independence (1971), there were very few regional or national highways in the country. During that time the extensive network of inland water ways served almost entire country as the main mode of transportation. The Roads and Highways Department (RHD) is the nodal agency in Bangladesh which is responsible for communication and maintenance of the major roads and bridge network of Bangladesh. RHD was established in 1962 and the road network under RHD has grown from approximately 2,500 km (in 1960s) to approximately 21,000 km (present).13 Table 3-1 illustrates the details of RHD road network and bridges/ culverts in Bangladesh:14 Table 3-1: Details of Road network and Bridges/ Culverts in Bangladesh

Details Number National Highway 3,812.78 Km Regional Highway 4,246.97 Km Zilla Road 13,242.33 Km Total Road Length 21,302.08 Km Number of Bridges 4,507 Number of Culverts 13,751 Source: Development Report (2009-2013) of Roads and Highway Department (RHD), Bangladesh

The snapshot of the development activities undertaken from 2009 to 2013 pertaining to road sector is captured in the Figure 3-1.

Figure 3-1: Development activities undertaken from 2009 to 2013 in road sector

120.00%

Construction of RCC Culvert 100.00% 13.66% 15.02% Construction of concrete bridge 80.00% 40.69% 46.58% 46.58% Surfacing 60.00%

75.91% 74.20% Reconstruction, widening and 40.00% 36.06% strengtheing 41.44% 41.44% Upgradation to 4-lane 20.00% 18.81% New Construction 5.14% 5.14% 4.61% 5.46% 4.85% 4.85% 4.15% 3.04% 0.00% 4.07% 2009 2010 2011 2012 2013

Source: Development Report (2009-2013) of Roads and Highway Department (RHD), Bangladesh

13 http://www.rhd.gov.bd/newweb.asp 14 Website of Roads and Highways Department, Bangladesh

62 Draft Report- Initial site assessment for five economic zone sites ______

The road network (RHD) of Bangladesh is shown in the figure 3-2 which indicates the alignment of national highways, regional highways and zilla roads in Bangladesh. Figure 3-2: The road network (RHD) of Bangladesh

Source: Website of Roads and Highways Department, Bangladesh

In order to establish international and regional connectivity, Bangladesh has integrated with the following initiatives to develop the road network.15

 Asian Highway Network  South Asian Sub-regional Economic Cooperation (SASEC) Road Corridors

15 Development Report (2009-2013) of RHD, Bangladesh

63 Draft Report- Initial site assessment for five economic zone sites ______

 Bangladesh-China-India-Myanmar (BCIM) Economic Corridors  Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Road Corridors  South Asian Association for Regional Cooperation (SAARC) Highway Corridors

The five proposed EZs under discussion are located in five different parts of Bangladesh. In Table 3-2, the access roads to each of the proposed EZs are listed. For details on the same, please refer to the respective sections of the EZs. Table 3-2: Details of access roads to each of the proposed EZs

Name of the proposed EZ Details of access roads Narayanganj R113 (Madanpur-Madanganj-Sayedpur Road and N1 (Dhaka Chittagong highway) connect Narayanganj with Dhaka and other major cities of Bangladesh. Panchagarh The site is abutting the Asian highway (AH2, which connects Dhaka to Banglabandha in a stretch of 512 km). Asian Highway is at a distance of 5 km from the proposed EZ. Boda – Domar via Debiganj Upazilla Road (Z5003) connects the site with Asian highway (AH2). Anowara-2 R170 (Chittagong - Anowara- Banshkhali highway) connects the proposed EZ with the national highway N1. The length of this connecting stretch is 10 km. Dhaka R820 (Zinzira-Keraniganj-Nawabganj-Dohar-Srinagar Road) and N8 (Dhaka Mawa highway) connect the proposed EZ in Keraniganj with Dhaka and other major cities of Bangladesh. Sabrang The proposed EZ is 5 km away from Teknaf town. Z1099 (Teknaf- Shahparirdwip) Road is the only access to the proposed EZ. Z1099 connects the National Highway (N1) in a stretch of 5 km.

64 Draft Report- Initial site assessment for five economic zone sites ______3.2. Rail Connectivity Bangladesh Railway (BR) is the nodal agency responsible for rail transportation in the country. It is a completely Government owned and Government managed organization. It covers a length of 2,884.67 route kilometers.16

The Rail network of Bangladesh is shown in the figure 3-3: Figure 3-3: Rail network of Bangladesh

Source: Bangladesh Railways, < www.railway.gov.bd/>

Geographically, Bangladesh is surrounded almost entirely by India except a small portion on the South- Eastern part where Myanmar is the next door neighbour. The Southern corridor of the Trans- Asian Railway (TAR) from the East passes through Myanmar, India, Bangladesh and again India and then Pakistan, Iran and Turkey before it joins the European Railway.

16 Bangladesh Railway, http://railway.portal.gov.bd/site/page/ce7dd6af-c7c8-4811-86b3-ba871e2e406e/BR-in- Short

65 Draft Report- Initial site assessment for five economic zone sites ______

Bangladesh Railway is bifurcated into two zones, East & West, under the administrative control of two general managers, who are accountable to the Director General of Bangladesh Railway. The total route length under East Zone is 1390.78 km. Out of total East Zone network, only 119.45 km railway line of Dhaka-Chittagong route is double track, 124.80 km is being doubled, and BR has recently extended Dual Gauge system from Joydevpur to Dhaka. It is to be observed that the East Zone is more dominated by Meter Gauge line.17

The details of railway route networks of Bangladesh Railway are shown in Tables 3-3 and 3-4. Table 3-3: Bangladesh Railway Routes Network in kilometer

Item Meter Gauge Broad Gauge Dual Gauge Total Route under 1784.68 507.10 364.15 2,655.93 operation Closure of 53.65 175.09 0 228.74 route Total route 1,838.33 682.19 364.15 2,884.67 Source: BR Working Time Table No. 39, GIS Database, TSMR, TSC Wing, Planning Commission Table 3-4: Bangladesh Railways- Number of trains

Train Level East Zone West Zone Total Intercity 42 44 86 Express mail 32 20 52 Demu / commuter 42 22 64 Shuttle / Local 85 50 135 Inter-country train 2 Total 201 136 337 Source: BR, http://railway.portal.gov.bd/site/page/e35cebe7-3b39-46be-ae6b-f267d4d1375f/Passenger-Train Railway developments in Bangladesh:

The expansion of BR has been blocked since 1947. Only 80km rail line has been constructed over last 50 years. Whereas more than 1,200km rail lines are under the risk of operation that has resulted due to negligence, privation of maintenances and insufficient fund allocation. One of the major problems is shortage of locomotive routes; the trains need to suffer an excess of traffic caused by the lack of routes.18 This results in major delays frequent cancelations and most direly innumerous accidents at the rail crossing point in the busy street areas. The major projects under implementation include 50 short, medium and long term projects worth 18,310 crore BDT. For implementing these projects quickly, government has prepared a draft working plan.19

The five proposed EZs under discussion are located in five different parts of Bangladesh. In table 3-5, the nearest railway station to each of the proposed EZs is listed. For details on the same, please refer to the respective sections of the EZs.

Table 3-5: Details of Rail connectivity of Proposed EZs

Name of the proposed EZ Details of Rail connectivity Narayanganj Narayanganj and Chashara are the two major railway stations in the

17Ministry of Railways, Bangladesh, 18 Md. Rakibul Hasan. (2009, August 10). “Problems and Prospects of a railway: A case study in Bangladesh Railway”. Journal of Service Marketing. Volume-4, pp. 124-136 19 [Online] Available: http://www.albd.org/index.php/en/resources/special-reports/939-five-yearworking-plan-of- al-government-for-developing-the-railway-sector

66 Draft Report- Initial site assessment for five economic zone sites ______

proximity. The Narayanganj railway station is located about 7 km from proposed EZ. Panchagarh Domar, the nearest railway station (in Nilphamari district) is located about 9 km from proposed EZ. Anowara-2 The Chittagong railway station is located about 17 km from proposed EZ. Dhaka Dhaka, the nearest railway station is located about 20km from proposed EZ. Sabrang The proposed EZ doesn’t possess any railway connectivity; nearest existing railway station is Chittagong railway, located at a distance of 210 km (approx.) away. A new railway station has been approved from the Railway Ministry at Gundun, which is 50 km from the site. 3.3. Airport Connectivity

During the liberation war in 1971, the entire aviation infrastructure of the country was severely damaged. The Department of Civil Aviation (DCA) and the Airports Development Agency (ADA) together reconstructed and repaired the airports at Tejgaon (Dhaka), Chittagong, Sylhet, Jessore, Ishurdi, and Cox’s Bazar within amazingly short period of time that facilitated post liberation relief operations.20

There are three International Airports in the country. All three international airports have direct connections to a number of destinations in the Middle East while Dhaka International Airport has services to the wider Asian region and Europe. The major international airports in the country are: 1. Hazrat Shahjalal International Airport, Dhaka

This is the largest and the principal international airport of the country. It is situated at the capital city Dhaka. Almost all international passengers embark at and disembark from HSIA. More than 90% of aeronautical functions of Civil Aviation Authority, Bangladesh (CAAB) are carried out from it. 2. Shah Amanat International Airport, Chittagong

This airport is situated in the port city of Chittagong. It is the second largest airport and the alternate airport to HSIA. 3. Osmani International Airport, Sylhet

It is situated at the city of Sylhet, a district at the North-East corner of the country. It has been upgraded to an international one in order to facilitate the people of the district which is famous for a large number of residents of United Kingdom. There are five operational Domestic Airports in the country 1. Cox's Bazar Airport 2. Shah Makhdum Airport, Rajshahi, 3. Jessore Airport 4. Saidpur Airport 5. Barisal Airport Figure 3-4 shows the location of the 3 International and 5 Operational Domestic airports of Bangladesh.

20 Civil Aviation Authority, Bangladesh (CAAB); < http://www.caab.gov.bd/adinfo/airports.html>

67 Draft Report- Initial site assessment for five economic zone sites ______

Figure 3-4: Airport connectivity of Bangladesh

Source: CAAB Website and PwC analysis

The five proposed EZs under discussion are located in five different parts of Bangladesh. In the table 3-6, the airport connectivity to each of the proposed EZs is listed. For details on the same, please refer to the respective sections of the EZs.

68 Draft Report- Initial site assessment for five economic zone sites ______

Table 3-6: Airport connectivity of the proposed EZs

Name of the proposed EZ Details of Airport connectivity Narayanganj Narayanganj EZ is located about 48 km from Dhaka International Airport at Dhaka. The travelling time by road is 2-2.5 hours (approx.). Panchagarh Panchagargh EZ is located about 45 km south west Saidpur Airport. Anowara-2 Proposed EZ is located about 30 km away from one of the largest airports in the country namely Chittagong International Airport. The travelling time to Chittagong airport by road is 60 Minutes (approx.). Dhaka The proposed EZ is located about 30 km North East of Dhaka International Airport. Sabrang Cox’s Bazaar domestic airport is at a distance of 96 km (approx.) from the proposed EZ. The connectivity from airport to the proposed EZ takes around 2-2.5 hours of travel time via road.

3.4. Ports and harbours Connectivity

3.4.1. Sea Ports Chittagong port Chittagong port is the World's only natural sea port and is strategically located acting as the centre of importance for global businesses. Chittagong port has been able to show a marked improvement in handling containers and optimising the utilisation of berths and yards making it easier for the country to become an economic gateway to South Asia, thanks to its computerised management system.21 The facilities available in Chittagong port is illustrated figure 3-5. Figure 3-5: Chittagong Port facilities

General Cargo Berths •10 nos.

Container Berths •6 nos.

•Dolphin Oil Jetty (For POL) - 1 no. •Grain Silo Jetty - 1 no. •Cement Clinker Jetty - 1 no. Specialised Berths for Bulk •TSP Jetty - 1 no. handling •CUFL Jetty - 1 no. •KAFCO Urea Jetty - 1 no. •Ammonia Jetty - 1 no.

Repair Berths •Dry Dock Jetty - 2 nos.

Mooring Berths •River Mooring - 9 nos.

Source: Chittagong Port Authority, < http://cpa.gov.bd/ > Cargo storage spaces available in Chittagong Port are detailed in tables 3-7 to 3-10.

(i) For general break bulk cargoes

21 Chittagong Port Authority, < http://cpa.gov.bd/ >

69 Draft Report- Initial site assessment for five economic zone sites ______

Table 3-7: Open space available for general bulk cargoes

Open space for storage R.C.C pavement 173,763 sq. m

Brick pavement 5,639 sq. m

Total 179,402 sq. m Source: Chittagong Port Authority, < http://cpa.gov.bd/ > Table 3-8: Storage space available outside protected area for general bulk cargoes

Outside protected area Ware houses (16nos) 35,839 sq. m Open dump 200,000 sq. m Source: Chittagong Port Authority, < http://cpa.gov.bd/ > (ii) For containers

Table 3-9: Storage space available for Containers at general cargo berth area

At general cargo berth area Holding-capacity 4885 TEUs* Open yard 110,443 sq. m

C.F.S. (Transit shed 6 nos. & ware house 70,234 sq. m & nos.) Railway container terminal 123 meter. Reefer points 90 (440 volts) 18 (220 volts)

*TEUs: Twenty-foot equivalent unit Source: Chittagong Port Authority, < http://cpa.gov.bd/ >

Table 3-10: Storage space available for Containers at container terminal

At container terminal (MPB) Container storage yard 150,000 sq. m C.F.S 12,732 sq. m Railway container siding 550 meter Reefer plugs 210 (415volts) Container holding capacity 4,062 TEUs Stand by Generator 2 nos Water reservoir 140,000 gallons Fire brigade 1 unit Source: Chittagong Port Authority, < http://cpa.gov.bd/ >

70 Draft Report- Initial site assessment for five economic zone sites ______

Mongla Port

Mongla Port is the second sea port of Bangladesh and is reportedly the most eco-friendly port of the country. It is situated in the Bagerhat District of the south-western part of the country at the confluence of Pussur River and Mongla Nulla. Keeping pace with the rapid economic growth of the country the port is drawing attraction of the government, businessman and all other stake holders of the country. Furthermore, the construction of Padma Bridge by 2018 is likely to multiply the importance and activities of the port to a large extent. In such circumstances, the port is going to carry out a major role in the trade and commerce activities of the country, particularly in the south and south west part of the country.22

The facilities available in Mongla port is presented in the figure 3-6:

Figure 3-6: Mongla Port facilities

•Being operational in the Jetty area, all departments One Stop Service who are directly involved in the Operation are being located in one room.

•3 Container yards, 4 Transit sheds, 2 Warehouses, Storage and Yard facilities 2000 car capacity of car parking yards and open dumps each •Mobile Crane of 10-100 ton capacity •Dock side crane •Heavy duty Fork Lift Trucks of 16-35 ton capacity Handling Equipments •Fork lift trucks of 2-5 ton capacity •Straddle carrier of 35-40 ton capacity •Terminal tractor of 40/50 ton capacity

•Operated by numbers of Production Tubewells situated at Failerhat (22 Km from Mongla) under Sweet water supply RampalUpazilla, Bagerhat. •Current production tube wells is about 4,75,000.00 gallon/day

Source: Mongla Port Authority, http://www.mpa.gov.bd/index.php

Apart from Chittagong and Mongla sea ports, a sea port has been proposed at Sonadia dip, Maheskhali offshore of the Cox’s Bazaar coast. The area has been identified and is under study. It is seen as a potential deep water port lying on the Bay of Bengal that could serve the landlocked parts of India, Myanmar and China.

Figure 3-7 shows the location of seaports in Bangladesh.

22 http://www.mpa.gov.bd/index.php

71 Draft Report- Initial site assessment for five economic zone sites ______

Figure 3-7: Bangladesh Sea Ports

Source: PwC analysis

3.4.2. River Ports Bangladesh is crisscrossed by rivers, river ports and river ways have been playing a significant role to the transportation of goods here and there. Almost all big cities and commercial centers of Bangladesh have been established by the river-ports.

Two organizations viz. Bangladesh Inland Water Transportation Authority (BIWTA) and Bangladesh Inland Water Transportation Corporation (BIWTC) control the marine vessels ply in the inland river- ways and the river ports of Bangladesh. According to the statistics of BIWTA, there are twenty two complete river-ports are in Bangladesh. These are: Dhaka, Narayanganj, Barisal, Chandpur, Khulna, Baghabari, Patuakhali, Narsingdi, Aricha, Nagarbari, Daulotdia, Tongi, Maoa, Char-Jannat, Ashugonj-

72 Draft Report- Initial site assessment for five economic zone sites ______

Bhairab Bazar, Bhola, Barguna, Noapara, Munshigonj, Chatak, Meghnaghat and Cox's Bazaar. These river-ports have necessary arrangements to load and unload passengers and goods and to land motorized marine vessels. Apart from these, with the initiative of BIWTA, another 448 small-medium ports have so far been improved or set up, which are called 'Secondary Riverine Port'. According to BIWTA, there are 374 places have so far been identified where BIWTA does not have any establishments. Those ports are used to load and upload the goods and passengers. In addition, there are eight ferry jetties which are used for the transportation of motor vehicles carrying goods and passengers.

The BIWTC has set up pilot stations in 24 river ports all over the country. These are: Chittagong, Ramgoti, Barisal, Narayanganj, Chandpur, Natuapara, Madaripur, Kawkhali, Mongla, Angtihara, Maoa, Aricha, Kaulia, Sirajgonj, Kazipur, Bahadurabad, Chilmari, Doi-Khaoa, Patuakhali, Bhairab Bazaar, Lipsa, Paturia and Boidder Bazaar.23 3.4.3. Inland Waterways The primary transportation system of Bangladesh is its extensive inland waterways. Bangladesh Inland Water Transport Authority (BIWTA) and Bangladesh Inland Water Transportation Corporation (BIWTC) are responsible for development, maintenance and control of inland water transport and of certain inland navigable waterways. Figure 3-8 shows the Bangladesh Inland water transport network.

Figure 3-8: Bangladesh Inland water transport network

Source: BIWTC, http://www.biwtc.gov.bd/img/site/BangladeshMap.jpg

23 http://en.banglapedia.org/index.php?title=River_Port

73 Draft Report- Initial site assessment for five economic zone sites ______

3.4.4. Land Ports According to Bangladesh Land Port Authority, initially 12 land custom stations were declared as land ports in 2002. Since 2009 more eight new land ports have been declared. Presently the number of land ports is 20 of which 5 ports are in operation under BOT excepting Birol. On the other hand, Benapole, Burimari, Akhaura and Bhomra land ports are being operated under Bangladesh land port Authority directly. Considering 2007-2008 as base year, import-export through land routes has been increased by 55% & 67% respectively in 2012-13.24 3.5. Infrastructure Linkages- Intermodal Cargo Transfer Intermodal cargo transfer involves transportation of cargo in an intermodal container using multiple modes of transportation (such as rail, road, port and airport etc.) with efficient transfer of cargo from one mode of transportation to another. This method reduces cargo handling, improves security, reduces damage or loss and allows faster transportation of cargo. This is the most efficient way of connecting to markets through multiple modes of transportation. Broadly two major aspects are to be considered in order to facilitate effective intermodal cargo transfer:

 Possibility of integration of multiple modes of transportation  Last mile connectivity to the proposed EZ In the report, for each of the multiproduct economic zones, connectivity aspects pertaining to road, rail, port and airport etc. are considered separately and major challenges are accordingly highlighted. A two pronged approach has been undertaken where Bangladesh country scenario is taken into consideration and then the respective EZ specific analysis has been carried out. Both the existing and future potential of the same has been considered to assess connectivity potential of each of the proposed EZ.

3.6. Utility connection- Gas

Gas connection is the prerequisite to any manufacturing based industry. In 2014, Bangladesh produced 4,800 Barrels per day of petroleum and other liquids. The production figure is very less as compared to India (978,000 Barrels per day) and also with respect to USA (13,973,000 Barrels per day). 25 Petrobangla is the nodal company for energy in Bangladesh. Its subsidiary company Bangladesh Petroleum Exploration Company (BAPEX) is responsible for gas exploration activities. There are some gas distributions companies in Bangladesh such as Titas Gas Transmission and Distribution Company Ltd., Karnaphuli Gas Distribution Company limited (KGDCL) etc. which are responsible for gas distribution catering to the industrial and domestic demand depending on the location of the unit inside the country. TITAS GAS is the premier gas distribution company of Bangladesh. It is responsible for transmission and distribution of natural gas from the gas fields to different areas. Titas Gas is the franchisee holder for transmission and distribution of gas to areas such as Greater Dhaka & Mymenshingh districts and Brahmanbaria district. It caters to the requirement of several industries such as power, fertilizer, industrial, captive power, commercial etc. Titas gas transmits and distributes around 74% of country’s total consumption. Presently, it procures gas from Titas, Habiganj, Narsingdi & Bakhrabad Gas Fields under Bangladesh Gas Fields Co. Ltd. and from Rashidpur, Kailashtila, Beanibazar Gas Fields under Sylhet Gas Fields Co. Ltd. and Jalalabad Gas Field of Oxydental/Unicol. Figure 3-9 shows the franchisee area of Titas Gas.

24 http://www.bsbk.gov.bd/index.php?option=com_content&task=view&id=242&Itemid=1 25 http://www.eia.gov/beta/international/rankings/#?prodact=53-1&cy=2014

74 Draft Report- Initial site assessment for five economic zone sites ______

Figure 3-9: Titas Gas franchise area

Source: Annual Report of Titas Gas (2013-14) Karnaphuli Gas Distribution Company Ltd. (KGDCL) is the nodal agency for gas transmission in Chittagong and Chittagong Hill tract area. It was registered in Feb’2010 and as on FY 2013-14, total volume of gas consumed in KGDCL franchisee area was 2331.18 mmcm. KGDCL has provided more than 4.7 lakh gas connection to industrial, commercial and residential projects in the Chittagong area. 26 Table 3-11 captures a snapshot of gas supply by KGDCL to various sectors (for FY 13-14 and 12-13).

26 KGDCL Annual Report 2013-14

75 Draft Report- Initial site assessment for five economic zone sites ______

Table 3-11: KGDCL gas supply for 2012-13 and 2013-14 (million cubic meters)

600

509.01 500 451.63 431.16 433.21

400 381.76 381.51 431.95 370.97 300 2013-14 2012-13 200

100

0 Electricity Fertilizer CaptivePower Industries

Source: Annual Report of KGDCL (2013-14) With respect to the five proposed EZs under discussion, Titas Gas is the distribution agency for (1) Narayanganj, (2) Dhaka and (3) Panchagarh. For Anowara-2 and Cox’s Bazar, KGDCL is the nodal agency for gas distribution. For further information on the gas connectivity in the proposed EZs, please refer to the respective sections. 3.7. Utility connection- Power Bangladesh has small reserves of oil and coal, but potentially very large natural gas resources. Commercial energy consumption is around 75% natural gas, with the remainder almost entirely oil (plus limited amounts of hydropower and coal). Presently about 60% of the total population has access to electricity including renewable energy. Power Grid Company of Bangladesh Ltd. (PGCB) is responsible for operation, maintenance and development of transmission system all over the country. Presently power generated in various power plants in Bangladesh is transmitted to the national grid through 230 kV and 132 kV transmission lines. Electricity distribution system in Bangladesh is controlled by national grid. Total electric power, generated from the power plants is first supplied to the national grid then to the whole country through national grid. The Padma-Jamuna-Meghna River divides power distribution system into two zones, East and West. The East contains nearly all of the country’s electric generating capacity, while the West, with almost no natural resources, must import power from the East Bangladesh's installed electric generation capacity was 10289 MW in January, 2014 only 62% of the population has access to electricity with a per capita availability of 321 kWh per annum. Problems in the Bangladesh's electric power sector include corruption in administration, high system losses and delay in completion of new plants, low plant efficiencies, erratic power supply, electricity theft, blackouts, and shortages of funds for power plant maintenance. Major power plants in Bangladesh are presented in figure 3-10.

76 Draft Report- Initial site assessment for five economic zone sites ______

Figure 3-10: Major power plants in Bangladesh

Major power plants in Bangladesh 1 1 1 2

3

5

22

6

Natural Gas Fuel Oil Diesel Oil Oil Heavy Fuel Oil Hydro Coal Biomass

Source: PwC Analysis

List of companies involved in power production in Bangladesh is shown in figure 3-11. Figure 3-11: Companies involved in power production in Bangladesh

Bangladesh Bangladesh Power Pendekar Energy Pendekar Energy Chemical Dev Board Holdings Industries

Rural Power Co Covanta Holding Shahjibazar Power Westmont Power Ltd Corp Co Ltd Bangladesh

Khulna Power Co Barakathullah Summit Power Co United Group Ltd Electro Dynamics Ltd

Doreen Power Others House & Tech Ltd

Source: PwC analysis

77 Draft Report- Initial site assessment for five economic zone sites ______

The power grid network of Bangladesh is represented in figure 3-12. Figure 3-12: Power grid network of Bangladesh

Source: PGCB Website

3.8. Utility connection- IT/ Telecom Bangladesh's landline telecommunications system is owned by the state. The Bangladesh Telecommunications Company Limited (BTCL) is the organization that controls telecommunications in the country. Besides BTCL, which operates in all urban areas, there are two private operators. Bangladesh Rural Telecom Authority and Sheba Telecommunications provide telephone services to rural areas. Digital telephone systems are being introduced into Bangladesh. BTCL is spread across 11 telecom regions in Bangladesh viz. Dhaka (North/South/East/West/Central), Sylhet, Chittagong, Barisal, Khulna, Rajshahi and Rangpur. As on May’2015, the optical fiber network is spread over 7,800 km in Bangladesh and it covers 64 districts, 126 upzillas and 108 union parishads.27

27 http://www.btcl.gov.bd/statistics/statistics.htm

78 Draft Report- Initial site assessment for five economic zone sites ______

VSAT technology is used to connect to the Internet in Bangladesh. Around 54 Internet Service Providers operate in the country. Satellite Internet in Bangladesh enables individuals to access the internet in remote areas through terrestrial means. In 2014, Bangladesh Submarine Cable Company Limited (BSCCL) had 200Gbps (88MIU-km) bandwidth available and Bangladesh was using only 32Gbps or 16% of it.28 Thus, Bangladesh Govt. had approved a proposal for exporting around half of the country’s internet bandwidth to the North Eastern states of India as Bangladesh was utilizing only 16% of its total bandwidth. Bangladesh has a total of 82 MIU-km of unused bandwidth and Govt. has given approval to BSCCL for renting or leasing of internet bandwidth. Hence, it can be concluded that the supply of internet bandwidth is far larger than the demand for this. Figure 3-13 shows the optical fiber network (June’ 2014) of BTCL. Figure 3-13: Optical Fiber Network (June’ 2014) of BTCL

Source: BTCL Website

28 Dhaka Tribune Article (http://www.dhakatribune.com/sci-amp-tech/2014/feb/15/govt-approves-export-half- internet-bandwidth)

79 Draft Report- Initial site assessment for five economic zone sites ______

Multi-Product Economic Zones

80 Draft Report- Initial site assessment for five economic zone sites ______4. Multi-Product Economic Zone

4.1 About Multi-Product Economic Zone

4.1.1. Concept Economic Zone (EZ) is a demarcated industrial complex where business and trade laws are different than that of the rest of the country. EZ concept itself basically intends to attract private sector investment with preferential treatment and attractive fiscal/ non-fiscal incentives. The major objectives to develop EZs are to increase the export, generate employment, promote FDI inflow in the country and upgrade managerial and technical skills. Achievement of the above objectives through EZs is typically facilitated through the following -  Income tax Holidays  Hassle Free Environment  Exemption from Indirect duties and taxes  No currency restrictions  Relaxed foreign investment norms  Excellent infrastructure facilities EZs can be of two types, viz. sector specific and multi-product EZ. In a multi-product economic zone, industrial units may be set up for manufacturing/rendering of two or more goods/services in a sector or goods/services falling in two or more sectors. 4.1.2. Major Infrastructure facilities required to develop a Multi-Product EZ Physical and Social Infrastructure facilities are essential to develop a multi-product Economic Zone:

Connectivity Location Physical Infrastructure Aspects

Utility Accessability Connection

Availability Access to of skilled Social Infrastructure Quality Social and Infrastructure unskilled Aspects Manpower

81 Draft Report- Initial site assessment for five economic zone sites ______

4.1.2.1. Connectivity and transportation linkages

External connectivity for EZs is extremely critical to the success of the EZ. Governments should evolve a development plan and create adequate external infrastructure for the EZs on a time bound basis. To develop smooth logistics network and to sustain the supply chain, access to efficient transportation network is vital for any EZ. This may be undertaken via road, rail, water and air mode of transportation. Ideally, any economic zone should not only have better transportation linkages, but also, if these linkages are via different modes of transport it helps in optimizing the logistics cost. As an illustration, rail and water modes are preferred for longer distance movement of bulk commodities at lower transportation cost. On the other hand, road is preferred means of transport for relatively shorter distances (less than 500 km). When the goods to be transported are perishable in nature &/or timeliness of delivery is the most important aspect over the point-to-point delivery, air cargo mode of transportation is used. Air transportation is also the most expensive option. In a multi-product economic zone, there shall be various end products and for that different modes of transportation to be utilized. Accordingly, any industrial or economic zone with access to as many modes of transport improves the viability of the project. 4.1.2.2. Strategic Location-Proximity to the major city

Key aspects to be kept in mind with respect to strategic location of the EZ include:  Close proximity to major city  Close proximity to highway, expressway, sea port, airport and railway  Easy access to strategic markets  Easy access to cargo and logistics warehousing facilities 4.1.2.3. Accessibility

In addition to transportation linkages, the location’s accessibility (internal as well as external) is of paramount interest. This include last mile connectivity from the trunk route (rail as well as road network), access to port / jetty/wharf, smooth connection with airport etc. In addition to the external connectivity, frequency of public transport facilities (bus, train and ferry service) should be adequate to cater to the requirements of the workforce employed in the EZ. Further, the site should not be affected by flood and should have adequate embankments for protection. 4.1.2.4. Utility Connection

The following utility connections are essential to develop a multi-product economic zone:  Availability of uninterrupted 24×7 power supply  Constant availability of potable and good quality water  Adequacy to set-up water and waste water treatment facilities  Availability of gas at adequate pressure essential to set up relevant industries  Internet/ Telecom connectivity For manufacturing based industries, utility connection is the most important parameter. 4.1.2.5. Quality Social Infrastructure

Access to quality social infrastructure is equally important for the success of any EZ. The following aspects are to be considered while considering a location proposed for economic zone.  Access to quality healthcare facilities near to the proposed EZ  Access to quality education facilities in the vicinity of the proposed EZ  Good quality residential facilities in the vicinity of the EZ

82 Draft Report- Initial site assessment for five economic zone sites ______

 Source of entertainment and quality lifestyle in the nearby locality In acquiring the land for the proposed economic zone and in constructing the approach road to the proposed EZ, the impact due to resettlement should be minimal so that the project inception activities are smooth. Also the master plan shall be prepared such that there is very less impact on the existing habitation and livelihood and natural resources in and around the proposed EZ of any EZ. 4.1.2.6. Availability of Quality Manpower

Availability of Quality manpower is a key impediment for any EZ. The developer may be responsible for setting up technical education facilities on need basis in the non-processing area which could include Polytechnics, courses for higher education as well as facilities for evening classes for the nearby areas of each Zone to provide qualified manpower in the units coming up in the Zone.

Annexure B illustrates success story of Adani Ports and Special Economic Zones located in India.

Next sections endeavours to assess the attractiveness of each of the sites on these critical parameters

83 Draft Report- Initial site assessment for five economic zone sites ______

Narayanganj EZ

84 Draft Report- Initial site assessment for five economic zone sites ______5. Narayanganj Economic Zone

5.1. Location Details and Salient Features

5.1.1. General Profile of the District Geographic Profile Narayanganj is a district in the Dhaka division located in central Bangladesh and near to (approximately 32 km away) the capital city Dhaka. There are total of 17 districts under Dhaka division. Narayanganj is surrounded by:

 North- Narsingdi and Gazipur district;  East- river Meghna, Brahmanbaria and Comilla district;  South- river Dhaleshwari, Munshiganj district;  West- Dhaka district. It lies between 23º33' and 23º57' North latitudes and between 90º26' and 90º45' East longitudes. The district spreads over an area of about 684.37 sq. km. of land area.29 Narayanganj has 5 upzillas.  Araihazar,  Bandar,  Narayanganj Sadar,  Rupganj,  Sonargaon. The proposed EZ is located in Narayanganj Sadar upzilla. Bandar and Sonargaon upzilla are in close proximity to the proposed EZ. Source: Districts Website- Narayanganj Demographics The district has overall population of 29,48,217 as per Population and Housing census 2011. The sex ration in 2011 was 938 (no. of female per 1000 males). Total numbers of households were 675652 and the literacy rate was 57.1%.30 Upzila wise population details as per census are presented in the Table 5-1.

Table 5-1: Upzila wise population details of Narayanganj District

Name Status Population census

29 Narayan District website, 30 Districts statistics, BBS 2011

85 Draft Report- Initial site assessment for five economic zone sites ______

2001 2011 Growth Narayanganj District (Zila) 21,73,948 29,48,217 35.6% Araihazar 3,31,566 3,76,550 13.6% Bandar 2,50,220 3,12,841 25% Narayanganj Sadar Upzila (Upazila) 8,82,971 13,23,600 49.9% Rupganj 4,03,629 5,34,868 32.5% Sonargaon 3,05,562 4,00,358 31% Source: Districts statistics, BBS 2011 Climate Condition The annual average temperature of the Narayanganj district varies from maximum 36°C to minimum 12.7°C and the average annual rain fall is 2376 mm. 31

Agriculture Total agiculture land in Narayanganj district is 467.74 sq. km., which amounts to 67% (approx.) of the total area of the district.32

Major agriculture crops cultivated in the district are paddy, wheat, jute, cotton, tobacco, sugarcane, pulses, oil seeds, potato, vegetables and other seasonal crops.

Major horticulture crops in this district are Mango, jackfruit, coconut, guava, lemon, and other fruits.

Irrigation The Narayanganj district is covered under irrigation scheme for growing crops. Irrigated area classifications fall into two categories:

 Surface water irrigation with main water sources being rivers, canals, ponds, and other water bodies;  Underground water irrigation with water lifted by shallow tube-wells, deep tube wells, and country traditional devices.

Currently, 81.04% of total area is under irrigation in this district. The percentage of total area under irrigation in Bandar and Sonargaon upzilas are 86.19% and 85.09% respectively. Upzila wise the method of irrigation during the year 2010-11 is presented in the Figure 5-1.

31 Districts statistics, BBS 2011 32 Narayan District website,

86 Draft Report- Initial site assessment for five economic zone sites ______

Figure 5-1: Irrigation Status (2010-11)

Irrigation status as on 2010-2011

20000 s e

r 15000 c A

n 10000 i

a

e 5000 r A 0 Araihazar Bandar Narayanganj Rupganj Sonargaon sadar

Power pump Tube well Doon Swingbasket Canal Others

Source: District Statistics 2011, published by Bangladesh Bureau of Statistics (BBS) Industrial Landscape Narayanganj is the pioneer in merchandising and manufacturing of knitwear, jute, yarn, and dying items. Cottage industry like weaving abounds in this district. International trading, import and export business, garments industries, knitwear garments, cold storage, shipbuilding, brickfield, cement etc. generate great employment opportunities to the people facilitating additional income to the household population. ‘Abasihata tanabajara tulabhittika’, the biggest cotton market is located on the bank of the Shitalakshya River in Narayanganj town. It is also a centre for business and industry, especially the jute trade, processing plants and the textile sector of the country. It is nicknamed the Dundee of Bangladesh due to the presence of its several jute mills. Industry Snapshot of Narayanganj district is captured in the Table 5-2. Table 5-2: Distribution of Industries of Narayanganj district

Company type Number Garments 360 Textiles 175 Jute Mills 16 Salt mills 70 Knitting Factory 1895 Paper and Packaging 40 Iron and iron products 48 Chemicals 17 Dying 188 Cement Factory 8 Melamine Factory 3 Lime factory 35 Re-rolling Mills 75 Cable Factory 2 Hosiery 2075 Jamdani rural (Rupganj) 1 Soap Factory 5 Fan Factory 3 Light Factory 1 Miscellaneous 8.7 lakhs Source: Narayanganj district website

87 Draft Report- Initial site assessment for five economic zone sites ______

5.1.2. Reconfirmation of the proposed EZ 5.1.2.1. Location of the proposed EZ

The proposed Economic Zone site falls in both Bandar and Sonargaon upzila. It is located on the bank of Shitalkhya River and near to the confluence of three rivers (Meghna, Dhaleswari and Shitalakhya). The site is surrounded by several cement plants such as Shah Cement, Bashundhara Cement etc. Mouza map of proposed site as provided by Upazila Nirbahi Officer (UNO) is presented in the Figure 5-2. Mouza map superimposed on google map is presented in the Figure 5-3. Reconfirmation of site details is presented in Table 5-3. Table 5-3: Reconfirmation of site details

Parameters Details Site co-ordinates 23° 34' 26.41"N to 23° 35' 35..06"N latitude, 90° 30' 48.88"E to 90° 33'25.28"E longitude Site boundaries on East Meghna bridge Site boundaries on West Shitalkhya Bridge and Highway, Mukthapar-Dhaka Road Site boundaries on North River & Residential houses Site boundaries on South Shitalkhya River Total area of the site 885.84 acres Area in Mohonpur mouza Mohonpur - 68.93 acres Area in Nishong mouza Nishong - 26.18 acres Area in Shovokrdi mouza Shovokrdi - 83.00 acres Area in Gharmora mouza Gharmora - 51.47 acres Area in Modongonj mouza Modongonj - 159.40 acres Area in Modogong 'M' Khanda ( NCC ) in Modogong 'M' Khanda (NCC mouza - 409.85 acres Area in Shombupura mouza Shombupura - 49.53 acres Area in Noyachar mouza Noyachar - 37.47 acres Land tenure details Government owned & private land Government Khas land 276.15 Acres Private land 330.32 Acres Others 279.37 Acres Expansion Potential of Proposed EZ area Basis initial site assessment, Proposed EZ area is surrounded by:  Dhaleshwari River- South to North-West  confluence of three rivers (Dhaleshwari, Shitalakhya and Meghna)- North East to South  Industrial and residential facilities- North-West to North-East Hence, it is difficult to expand the land parcel. However, this is subjected to land survey and feasibility analysis. Existing land use Agriculture Land cost (per acre) BDT 200 lakhs Source: PwC Initial Site Assessment (Data collected from UNO office)

88 Draft Report- Initial site assessment for five economic zone sites ______

Figure 5-2: Mouza Map of proposed Narayanganj EZ

Source: UNO office

89 Draft Report- Initial site assessment for five economic zone sites ______

Figure 5-3: Mouza map superimposed on google map (Bandar-Narayanganj)

Source: Mouza Map collected from UNO Office and Google Earth

90 Draft Report- Initial site assessment for five economic zone sites ______

Figure 5-4 shows the location of the proposed proposed EZ and and its vicinity.

Figure 5-4: Location of the proposed proposed EZ

Chasara Railway Narayanganj Station Bandar Township

BSCIC Industrial Narayanganj Railway Station Complex

Bashundhara Cement Plant Confluence of three rivers

Shitalakhya River Proposed EZ

Shah Cement Plant

Source: Google Map and PwC Analysis

5.1.2.2. Land use / land cover

The land use pattern of the proposed EZ area falls under agriculture zone of Narayanganj district. It was observed during our site visit that single crop is being cultivated at the land parcel throughout the year. Existing land use pattern for 10 km radius is shown in figure 5-5.

5.1.2.3. Topography

Basis initial assessment, it was observed that the proposed EZ has a level difference of 5 to 6 m (approx.) with a gentle slope towards North East to South west direction. According to the contour variation, the depth of landfilling across the project area shall vary. The natural slope of ground is advantageous for gravity network of water supply, sewer and storm water drains.

Contour maps of the proposed EZ for 5 km and 10 km radius are presented respectively in Figure 5-6 and 5-7.

91 Draft Report- Initial site assessment for five economic zone sites ______

Figure 5-5: Existing land use pattern for 10 km radius (Bandar-Narayanganj)

Source: MACE Analysis

92 Draft Report- Initial site assessment for five economic zone sites ______

Figure 5-6: Contour map of the proposed EZ for 5 km radius (Bandar-Narayanganj)

Source: MACE Analysis

93 Draft Report- Initial site assessment for five economic zone sites ______

Figure 5-7: Contour map of the proposed EZ for 10 km radius (Bandar-Narayanganj)

Source: MACE Analysis

94 Draft Report- Initial site assessment for five economic zone sites ______

5.1.2.4. Physiography

The physiography of the region surrounding the proposed EZ falls in Old Brahmaputra floodplain which exhibits a gentle morphology composed of broad ridges and depressions. This floodplain is usually flooded to a depth of more than one metre, whereas the ridges are subject to shallow flooding only in the monsoon season. The Bangladesh physiography map is presented in Annexure C. According to the history of physiography of this region, the area around the proposed EZ is prone to high flood (depth of waterlogging is generally more than one metre) during the monsoon season.

5.1.2.5. Soil

Basis site visit, the top soil layer was found to be black cotton soil which needs to be replaced for road construction. This soil is not suitable for laying foundation for any structure. The dominant soil texture is sandy loam. The soil layer is acidic in character and the pH ranges from 5.5 to 6.8. The soil layer is naturally fertile and is recharged every year by fresh deposition by the floodwater.

5.1.2.6. Geology

Proposed EZ is located in the Brahmaputra Flood Plain. The geological map of Bangladesh is shown in Annexure D. The type of soil strata in this type of geological area is Brahmaputra Alluvium and the soil strata is not suitable for laying the foundation for structures. Detailed soil investigation needs to be carried out during the structural design stage.

5.1.2.7. Earthquake data

Dhaka area falls in the Seismic Zone 2 and the earthquake coefficient is 0.15 for this zone. The area under the proposed EZ falls under the medium seismic range zone; this factor needs to be taken into account while designing the structure of the proposed EZ. Seismic zoning map of Bangladesh is presented in Annexure E.

5.1.2.8. Wind speed

During winter, the northern and central areas in Bangladesh witness gentle winds blowing at relatively low speeds of 1-3 Km/hr. from the north & northwest. The detailed wind speeds need to be obtained for designing the high rise structures in the proposed EZ. The wind speed map for Bangladesh is presented in Annexure F.

5.1.2.9. Cyclones and storms

Narayanganj has not witnessed any significant cyclone or storms as a result of which no river erosion has been observed in this region. Basis interaction with the local inhabitants, during monsoon the proposed EZ witnesses flooding of depth of 4-5 feet.The tracks of few major cyclones that hit Bangladesh are presented in figure 5-8.

95 Draft Report- Initial site assessment for five economic zone sites ______

Figure 5-8: Major cyclones that had hit Bangladesh

Source: Bangladesh Meterological Department Refer Annexure G and H for respectively the cyclone affected areas in Bangladesh and Disaster prone areas in Bangladesh.

5.2. Environment section

5.2.1. Air quality Ambient air quality measurements are essential:

 to provide a description of the existing conditions,  to provide a baseline against which changes can be measured and  to assist in the determination of potential impacts of the proposed EZ construction on air quality conditions

During the field visit, it was observed that the ambient air quality in regard to the Suspended Particulate Matters (SPM) of the area is very dusty. This may be due to the fact that several cement plants and other industrial units are located in close proximity to the area around the proposed EZ.

5.2.2. Floods and Water Logging Basis the interaction with the UNO Officials and local inhabitants, it was communicated to us that the flood level during monsoon season varies from 4 feet to 5 feet within the area of the proposed EZ.

5.2.3. Noise During the field visit, no apparent problem of noise was observed except in the area adjacent to the Shitalakhya River as many cement factories are located in close proximity.

5.2.4. Land filling Basis the interaction with the UNO officials and local inhabitants, flood level during monsoon season varies from 4 feet to 5 feet depth inside the proposed EZ area.

To avoid inundation during monsoon season, minimum land filling of 0.6 m above the flood level is considered.

96 Draft Report- Initial site assessment for five economic zone sites ______

Based on the assumption, an average depth of 6 feet to 8 feet of land filling has been envisaged for the proposed EZ area. This figure is indicative and detailed topography survey needs to be carried out to calculate the exact quantity of land filling at the project area. 5.3. Infrastructure Linkages to the Proposed Site

5.3.1. Physical Infrastructure- Availability of Utility Connection 5.3.1.1. Power Availability for the proposed EZ

There are several power plants located in Narayanganj district. Some of the prominent power plants include:

 Shiddhirgonj power plant  Horipur Gas turbine power plant  Meghna power plant  Summit power plant Figure 5-9 depicts the above power plants located in close proximity to the proposed EZ. Figure 5-9: Location of power plants in the vicinity of proposed EZ

Summit Power Plant

Meghna Power Plant

Proposed EZ

Source: Google Map and PwC analysis Bandar grid substation is located at 2 km (approx.) from the proposed EZ. Basis interaction with the UNO officials, this substation has a total capacity of 2 x 50 MW and around excess capacity of 65 MW is available. A 33/11 KV substation is also located near the Summit power plant adjacent to the project

97 Draft Report- Initial site assessment for five economic zone sites ______boundary. The 33/11 KV substation has a total capacity of 20 MW and around excess capacity of 5 MVA is available. Preliminary assessment suggests that a new 132/33 kV substation could be established or the existing substation could be upgraded for meeting the requirement of power at the proposed EZ.

5.3.1.2. Water Availability for the proposed EZ

There is no existing water supply system at the proposed site. The local inhabitants are dependent on tube wells for the purpose of drinking water. The sources of drinking water in Bandar and Sonargaon upzila are captured in Figure 5-10. Figure 5-10: Sources of drinking water in Bandar and Sonargaon upzila

Source of drinking water Source of drinking water in in Bandar upzila Sonargaon upzilla 0.60% 0.97% 0.45% 1.63% 0.54% 4.00% 9.78% Tubewell 2% Tubewell

Tap Tap

Deep Deep Tubewell Tubewell Pond 92.82% Pond 87% Others Others

Source: District Statistics, BBS 2011

Basis the interaction with the local inhabitants, the ground water is available at a depth of 60 feet from natural ground level. The proposed EZ is located adjacent to the confluence of three rivers viz. Meghna, Dhaleswari and Shitalakhya. Preliminary assessment suggests that the water requirement could be met with the intake from either extracting water from the Dhaleswari River or Sitalakhya River or from deep tubewell which could be developed within the project area. Further, our preliminary assessment also suggest that extracting water from the river located on the western boundary of the proposed EZ may be considered by providing suitable intake system and water treatment plant.

5.3.1.3. Gas supply to the proposed site

An 8” diameter gas distribution line is located near basundara cement factory in close proximity from the proposed EZ (2 km. approximate). Preliminary assessment suggests that gas could be tapped from the existing line to the proposed EZ by obtaining necessary clearances from Titas Gas.

5.3.1.4. Telecom/ Internet connectivity to the proposed EZ

The capacity of Narayanganj Telephone Exchange has been extended with the installation of 16000 new digital telephone lines. Several Sub Exchange Offices have been setup at different locations resulting in

98 Draft Report- Initial site assessment for five economic zone sites ______improved service by Telephone Company Limited (erstwhile BTTB). At present, the internet and telecom services are provided by mobile companies such as Grameen Phone, Bharti Airtel, Banglalink, Teletalk in this region. Service by private operators has significantly improved the telecom connectivity in the district. At present there is no area around Narayanganj which is not covered by cellular phone network by private operators. Utility map for the proposed EZ is illustrated in Figure 5-11 below. Figure 5-11: Utility Map for proposed Narayanganj EZ

Source: PwC analysis and Google Earth 5.3.2. Social Infrastructure 5.3.2.1. Institutional

Bandar upazilla has 2 colleges, 20 secondary schools, 75 primary schools, 18 madrasa. Sonargoan upzilla has 4 colleges, 28 secondary schools, 113 primary schools, 32 madrasa. However, there are no world class schools/ educational institutions present in the vicinity. Complete absence of medical teaching facility deprives the local students to get medical education at the door step. Available Technical and Vocational education facilities are meager and do not commensurate with the need of the thriving garment sector. Narayanganj area lacks in standard academic institutions. As per the Detailed Area Plan for Dhaka Metropolitan Development Planning (DMDP) Area Group – B, the following institutions have been proposed to meet the demand for higher education.

99 Draft Report- Initial site assessment for five economic zone sites ______

 Medical College in the Narayanganj Old DC Office Complex  Public University

Availability of manpower

Bangladesh Institute of Marine Technology (BIMT) is a Technical Training Centre under Bureau of Manpower Employment and Training (BMET) is located in Bandar, Narayanganj. Since Narayanganj is located near to Dhaka city, hence the unskilled/ semi-skilled and skilled/executive level manpower can easily be sourced from technical training centres in Dhaka district. Some of the major technical training centres in Dhaka are:  Bangladesh-Korea Technical Training Centre, Mirpur (approximately 30 km from Narayanganj, travel time of around 1.5 hours)  Bangladesh-German Technical Training Centre, Mirpur (approximately 30 km from Narayanganj, travel time of around 1.5 hours)  SFM Mohila Technical Training Centre, Mirpur (approximately 30 km from Narayanganj, travel time of around 1.5 hours)

There are a total of 300 vocational education institutions (48 public and 252 private) in Bangladesh having a total intake capacity of 58,562.33

Narayanganj is an industrial hub and several small, medium and big industries from various industrial segments are operating in this region. Hence, the availability of manpower for the proposed EZ could be sourced from the existing industrial ecosystem in this area. 5.3.2.2. Healthcare Facilities

There are 31 bedded government hospitals each in Bandar and Sonargaon upzilas. In Bandar upzila, 3 Clinics and 3 diagnostic centres are rendering services for patients in addition to the government hospital. But there is no international standard hospital is present in the vicinity. The locality is well-connected to Dhaka city by road and rail and for serious medical problems, the local inhabitants travel to Dhaka. Available healthcare facilities in Bandar and Sonargaon upzilas are captured in the Table 5-4.

Table 5-4: Healthcare Facilities

Details Bandar Sonargaon Upzilla Health Complex 01 01 Community Health Centre 05 11 Hospital (non govt.) Private Clinic 03 12 Diabetics Centre 03 01 Veterinary Hospital Source:Data collected from UNO Office

33 http://siteresources.worldbank.org/BANGLADESHEXTN/Resources/publications/384630- 1209074736457/Bangladesh_Nov2006.pdf

100 Draft Report- Initial site assessment for five economic zone sites ______

5.3.3. Connectivity Roadways are the major convenient means of accessing the EZ. The distance between Bandar town and the proposed EZ is 5 km. (approx.). Narayanganj is well-connected to Dhaka city and other major cities of Bangladesh by all modes of transportation. 5.3.3.1. Road

Narayanganj is 32 km (approx.) away from the Dhaka city and by road it takes around 2 hours to reach the capital city from the district. There are three major roads which connect Narayanganj to the rest of the country. These roads are: (1) Narayanganj-Munsiganj Highway (R812); (2) Bondor-Modonpur Highway (R113); and (3) Dhaka-Narayanganj Link Road (R111). Naryanganj is easily accessible from Dhaka city by bus service (frequent bus service available by Ashian, Bandhan, Utsav, Ananda, Setu and BRTC etc.). Preliminary assessment suggests that some stretches of access road could be renovated for smooth passage of heavy vehicles along: (i) Madanpur-Madanganj-Syedpur road, originating from Dhaka Chittagong highway and (ii) Bridge across the Sitalakhya River. At present, these stretches witness heavy traffic congestion and road condition is poor. Approach Road Sitalakhya Bridge is proposed across the Sitalakhya River, which will link the capital with Sylhet and Chittagong highway through Demra and Narayanganj. Once functional, it shall connect Madanpur- Madanganj-Sayedpur Road (R113) and Fatullah (Panchaboti)-Munshiganj (Muktarpur) Lohajang-Mawa Road (R812). This bridge would provide direct access to the Northwest parcel of the proposed EZ. Access to the other land parcel (of the proposed EZ) located on the south east side of the Bashundhara cement plant is restricted owing to the presence of berth facility of Bashundhara cement plant on the river. A high level initial assessment suggests providing new access road along the river bund from Dhaka- Chittagong highway (N1) for a length of 10 km (approx.) to the proposed EZ. This new access road shall have minimum resettlement requirement when compared to the widening of present access road via Bashundhara cement plant and summit power plant. Road network for 10 km radius is shown in figure 5-12.

5.3.3.2. Rail

There are two major railway stations in the Narayanganj district viz. Narayanganj and Chashara. The Narayanganj railway station is located about 7 km from proposed EZ. Bangabandhu Sarak connects the proposed EZ to the railway station and the traffic congestion is minimal throughout the stretch. Travel time of passenger trains from Narayanganj to Dhaka is around 40-45 minutes. Apart from Dhaka, Narayanganj is connected to Bahadurabad Ghat via Narayanganj–Bahadurabad Ghat line. There are branch lines to Jagannathganj Ghat and Netrakona-Mohanganj. This MG rail track opened up the connectivity prospect of places such as Gouripur, Kishoreganj, Bhairab Bazar and Mohanganj through branch lines. Table 5-5 depicts the frequency of the passenger train service from Narayanganj to Dhaka. Table 5-5: Passenger train service from Narayanganj to Dhaka

Details of Train Service Frequency (number of trains per day)

Dhaka to Narayanganj (Saturday to Thursday) 13 Dhaka to Narayanganj (Friday and Govt. 5 Holidays) Narayanganj to Dhaka (Saturday to Thursday) 13

Narayanganj to Dhaka (Friday and Govt. 5 Holidays) Source: Bangladsh Railways

101 Draft Report- Initial site assessment for five economic zone sites ______

Figure 5-12: Road Network for 10 km radius (Bandar-Narayanganj)

Source: MACE Analysis

102 Draft Report- Initial site assessment for five economic zone sites ______

5.3.3.3. Airport

Narayanganj EZ is located about 48 km from Hazrat Shah Jalal International Airport at Dhaka. The travel time by road to Dhaka International Airport is 2.5-3 hours (approx.). Govt. of Bangladesh intends to construct a new international airport (Bangabandhu Sheikh Mujib International Airport) with a view to create a hub airport in close proximity to Dhaka and to meet the demand of future growth in aviation sector. The Civil Aviation and Tourism Ministry is in the process to finalise the location of the proposed international airport. Some of the locations which are being considered as prospective locations for the development of new airport are: (1) Char Janajat under Shibchar Upazila in Madaripur district, (2) Keyain and Latobdi under Shirajdikhan Upazila in Munshiganj district and (3) Char Bilashpur under Dohar Upazila of Dhaka district. All these locations are located within 50 km radius of the proposed EZ.34 Figure 5-13 illustrates the connectivity of the proposed Economic Zones via Road, Rail and Airport mode of transportation. Figure 5-13: Connectivity of the proposed Economic Zones via Road, Rail and Airport

Source: Google Earth and PwC Analysis

34 http://www.dhakatribune.com/business/2015/jun/19/construction-bangabandhu-airport-again- cards#sthash.6QEaRDCi.dpuf

103 Draft Report- Initial site assessment for five economic zone sites ______

5.3.3.4. Port

Chittagong port Proposed EZ is located at a distance of 254 km from Chittagong port. The facilities available in Chittagong port are illustrated in section-3.4.1. Mongla port Proposed EZ is located about 304 km Mongla Port. The facilities available in Mongla port are illustrated in section-3.4.1. Narayanganj river port The proposed EZ lies on the bank of inland water way connecting from Chittagong port to Mongla port. Narayangunj river port, one of the oldest in Bangladesh is located within 3.5 km (Water way) / 28 Km (Road way) from the proposed EZ. Narayanganj river port is situated on the banks of the Shitalakhya River and has four warehouses of 700 square metres each in addition to open storage area. Presently the river port consists of 5 berths and 8 anchorages. Most of the bulk cargos handled in this port consist of sand, stone, cement clinker and fly ash whereas food grains are handled in bagged form. In addition an inland container terminal is being planned at this location. Various types of cargos are transported through Narayanganj Port. But there is no regular cargocservice for carrying commodities. Commodities are generally carried by private arrangements and berthing facilities provided by the BIWTA are used for loading and unloading purposes. Many business houses or industries use private berthing facilities. Regular cargo service is operated between Kolkata and Narayanganj under Protocol arrangement. Vessels traveling to Chattack from Kolkata also call at Narayanganj. A substantial amount of cargos are transported through Engine Boats popularly known as Trawller or Cargo or Bulkhead. A huge number of such boats ply in the Sitalakhya River and carries construction materials, mostly, fill materials. There is no account of the number of such boats as there is no rule for registration of engine boats with less than 16 horse power engine. Country boats with sail, at present, are rarely found. 5.3.3.5. Water ways

Much of the importance of Narayanganj is owing to its excellent performance as river port. In the past, owing to its efficiency and amount of export cargo, Narayanganj was declared a port under Sea Customs Act. At present, Narayanganj port has lost its position as prime river port of the country mostly due to decline of jute sector. The facilities installed in the port are presently underutilized. Proposed EZ site is well connected with the major ports of Bangladesh by inland water ways. All the passenger services are operated by private operator. Launch Service from Narayanganj-  Narayanganj-Chandpur  Narayanganj-Matlab  Narayanganj-Ramchandrapur  Narayanganj-Taltala  Narayanganj-Serajdighi khan  Narayanganj-Sureshwar  Narayanganj-Munshiganj

104 Draft Report- Initial site assessment for five economic zone sites ______

5.3.3.6. Assessment of Intermodal Cargo Transport

Access to major modes of transportation from the proposed EZ is outlined in the following:  Narayanganj rail station is located at a distance of 7 km (approx) from the proposed EZ. Bangabandhu Sarak connects the proposed EZ to the railway station and the traffic congestion is minimal throughout the stretch. Narayanganj EZ is located about 48 km from Hazrat Shah Jalal International Airport at Dhaka. Travel time by road to Dhaka International Airport is 2.5-3 hours (approx.).  Proposed Narayanganj EZ is located 48 km (approx) from Hazrat Shah Jalal International Airport at Dhaka. Travel time by road to this airport is 2.5-3 hours (approx).  Proposed EZ is located at a distance of 254 km (approx) from Chittagong port and 304 km (approx) Mongla Port. Proposed EZ lies on the bank of inland water way connecting from Chittagong port to Mongla port. Narayangunj river port is located within 3.5 km (Water way) / 28 Km (Road way) from the proposed EZ.

Proposed EZ has access to all modes of transportation; however Dhaka International airport is relatively far (48 km approx) as compared to other modes of transportation. Integration for intermodal cargo transfer between Narayanganj river port and Narayanganj rail station would be possible as both the facilities are located in close proximity (approx 1-1.5 km). The Narayanganj river port and rail station is linked by Nawab Sirajudullah Road, Sahid Suhrwadi Sarak and Port Road. These stretches experience moderate traffic congestion. However, the possibility of intermodal cargo transfer between river port and rail station needs to be undertaken during pre-feasibility stage. Preliminary site assessment suggests that two accesses are possible. 1. Proposed Sitalakhya Bridge across Sitalakhya River could provide direct access to the Northwest parcel of the proposed EZ. 2. Access to the south east parcel (of the proposed EZ) is restricted owing to the presence of berth facility of Bashundhara cement plant on the river. Basundhara cement plant is located adjacent to the proposed EZ..

5.4. Resettlement issues

5.4.1. Social impacts The impacts have been assessed on the following parameters: (i) Loss of land (for existing land owners), (ii) Loss of homes/structures, (iii) Loss of Trees (iv) Loss of livelihood systems/ income opportunity (v) Loss of water bodies. (vi) Resettlement issue pertaining to approach road The expected types of losses are described in the following sub-sections. 5.4.1.1. Loss of land

To establish the Narayanganj EZ project, a total of 885.84 acres of land has been demarcated by the authority. As per FMB superimposed on google map the total area works out to approximately 646.46 acres. The land usage pattern for this area is as under:  Residential land- 103.70 acre (approx.)  Aquaculture- 16.69 acre (approx.)

105 Draft Report- Initial site assessment for five economic zone sites ______

 Agricultural land- 526.09 acres (approx.)

Ownership pattern of the land is as follows:  Government- 276.15 acres of land under vested property  Alluvial land- 279.37 acres  Private land - 330.30 acres

Figure 5-14: Land Ownership and Usage pattern

Land Ownership Pattern Land Usage Pattern

37%

31% 36% Govt. Residential Alluvial Aquaculture Private Agricultural

32% 3% 81%

Source: Data collected from UNO Office As a result of the development of the project, residential land owners, long term lease holders (agricultural land leased out by government to the farmers for 99 years), and agricultural land owners will lose entire land holding.

5.4.1.2. Loss of homes/structures

Due to the development of this project, 200 household structures35 (approx.) will be directly affected. This includes dwellings and associated infrastructures are to be re-located. All affected structures are ‘kutcha’ structures and the average size of the structures is 400 sq. ft. with a minimum size of 140 sq. ft. and a maximum of 1000 sq. ft. However, Upzilla Nirbahi Officer (UNO) confirmed that these areas could be excluded from the project area (if desired by the Authority). If excluded from the proposed EZ, no loss of structures could be envisaged. 5.4.1.3. Loss of trees

There are plenty of trees present in the project area. The master plan (during the feasibility stage) can be prepared in a way that maximum number trees could be retained and earmarked as green area.

5.4.1.4. Loss of income/livelihood

As a result of loss of agricultural land, the following would be directly affected:  Local farmers,

35 Data obtained from Bangladesh Economic Zones Authority

106 Draft Report- Initial site assessment for five economic zone sites ______

 Sharecroppers,  Yearly lease holders (agricultural land)  Owners of agricultural assets (deep tube-wells and shallow tube-wells etc.) Indirectly, seasonal agriculture labours and crop traders will be affected. Basis preliminary assessment and details shared by UNO office, Resettlement Action Plan (RAP) would need to be formulated for 400 numbers of households (approx.)36. These households could stand to lose their income/livelihood as a result of the development of the project.

5.4.1.5. Loss of water bodies

There are two major fishponds located within the proposed EZ. The surroundings of the EZ have been observed as a rich fishing ground. Project interventions i.e. land filling of the existing water bodies and discharge of waste water along the river might affect the fish spawning & nursing ground and subsequently income source from cage culture & pen culture (katha fishing). Therefore, significant environmental and social impacts are anticipated.

5.4.1.6. Resettlement Issue due to the construction of approach road

As discussed in Section-5.3.3.1, the option of approach road connecting the proposed EZ located on the south east side of the Bashundhara cement plant is restricted owing to the presence of berth facility of Bashundhara cement plant on the river. Preliminary assessment suggests that a new access road along the river bund from Dhaka-Chittagong highway (N1) for a length of 10 km (approx.) to the proposed EZ could be constructed. This new approach road shall have minimum resettlement with respect to the former option.

5.4.2. Constraints and its mitigation The major constraints and its mitigation are presented in Table 5-6. Table 5-6: Major Constraints and Mitigation measures

Sl. Constraints Mitigation measures No. 1 Low lying land Basis preliminary assessment, landfilling of depth 6-8 feet needs to be undertaken. 2 Residential units 200 such units (approx.) need to be rehabilitated to the adjacent area if that area is included within the project area.37 3 Loss of trees Trees existing in the site can be retained and earmarked as green area during the preparation of master plan. 4 Loss of water bodies Land filling need to be undertaken for two fish ponds located within the proposed EZ. 5 Loss of income/livelihood Basis preliminary assessment and details shared by UNO office, Resettlement Action Plan (RAP) would need to be formulated for approximate 400 numbers of households (maximum). These households could stand to lose their income/livelihood as a result of the development of the project.

36Data obtained from Bangladesh Economic Zones Authority 37 Data obtained from Bangladesh Economic Zones Authority

107 Draft Report- Initial site assessment for five economic zone sites ______

6 Resettlement Issues due to construction The option of approach road connecting the of approach road proposed EZ located on the south east side of the Bashundhara cement plant is restricted owing to the presence of berth facility of Bashundhara cement plant on the river. Preliminary assessment suggests that a new access road along the river bund from Dhaka-Chittagong highway (N1) for a length of 10 km (approx.) to the proposed EZ could be constructed. This new approach road shall have minimum resettlement with respect to the former option.

5.4.3. Block Cost Estimation for development of Offsite Infrastructure Based on preliminary assessment and available information (the schedule of rates published by the competent public authorities, prevailing market prices, in-house data bank and experience gained over similar / comparable development), the Block Cost estimate for the proposed offsite infrastructure components required for developing EZ has been calculated. Wherever applicable, we have considered all the possible options to arrive at the cost of development and the option of maximum development cost is considered to arrive at the total cost of the proposed offsite infrastructure development. This exercise has been carried out to indicate the approximate cost to be incurred for the development of EZ and it may vary to any extent during implementation stage depending upon the detailed technical information and new developments which may affect / contribute to this EZ. The techno-commercial viability of these options needs to be explored during feasibility stage. Table 5-7 depicts the broad level Block Cost estimates for development of Offsite infrastructure for Narayanganj EZ. The figures provided are indicative and may vary depending on the master planning, feasibility analysis and the timeline of development activities. The broad Block Cost estimate for off-site infrastructure development for proposed Narayanganj EZ is calculated as BDT 24,327 Lakh (approx.)

108 Draft Report- Initial site assessment for five economic zone sites ______

Table 5-7: Block Cost estimate for proposed Narayanganj EZ

Narayanganj - EZ Option -1 Option -2 Considered cost option (Maximum of the two options has been considered) S.No Description Qty Unit Amount Qty Unit Amount in Lakh Qty Unit Amount in Lakh BDT in Lakh BDT BDT 1 Site filling LS 6057 LS 6057 LS 6057 2 Compound wall 13332 Mtr 1267 13332 Mtr 1267 13332 Mtr 1267 3 Diaphragm wall 9800 Mtr 3920 9800 Mtr 3920 9800 Mtr 3920 4 Approach Road ( 10 Km 7210 10 Km 7210 10 Km 7210 10.50 mtr Carriage way ) 5 RCC Bridge 180 Mtr 2241 180 Mtr 2241 180 Mtr 2241 6 Electrical ( 44.83 MVA 1752 44.83 MVA 1752 44.83 MVA 1752 External connectivity- 2Km with MRSS) 7 Water supply ( 5.16 MLD 1880 5.16 MLD 1880 Water Intake from River - 4 Km ) 8 Water supply ( 5.16 MLD 530 Water from Bore well Pipe line length 5Km & Bore well 3 Nos ) Total 24327 22976 24327

109 Draft Report- Initial site assessment for five economic zone sites ______5.5. Voice on the Ground

5.5.1. Stakeholder consultation Table 5-8 lists the details of stakeholders consulted at UNO office to obtain first-hand information from about the proposed EZ. Table 5-8: Stakeholders consulted

Name Description Phone number Mr. Shalal Engineer +8801711221852 Mr. Arifur Rahman Thasildar +8801711666711 Mr. Sidikoor Razmoon ADC, Revenue Mr. Amisar Rahaman DC +8801713081353 Mr. Nosumiza Farmer +8801833873572 Mr. Thavalti Farmer +8801826425515 Mr. Rubel Pattwari Rural Engineer +8801781761902

5.5.2. Consultation with Private Sector Further to the site visit for the initial assessment, private sector consultation was also carried out to understand the preliminary level demand assessment of the proposed EZ to gauge the interest of unit investors from various sectors. Some of the major aspects which were discussed with the private investors to understand their interest are as below:  Location attractiveness  Availability of physical infrastructure  Availability of social infrastructure  Ease of availability of quality manpower  Marketability of the site  Support required from the Government

We discussed the salient features of the proposed EZ of the proposed EZ with various investors in Bangladesh to understand how attractive this project is for them. Also, we tried to understand the macro level infrastructure requirements that any investor looks upon before making an investment decision. The results of the Private Sector consultation is summarised in the Table 5-9.

Table 5-9: Summary of the results of the Private Sector consultation

Sl. Parameters Discussions Excerpts from the No. interaction (if any) Infrastructure aspects that investors take into consideration while making investment decisions: 1 Connectivity of the site According to the investors, the EZ site should “In my opinion, connectivity is be located in the proximity of any industrial the prerequisite in the centre &/or city. The connectivity by road investment decisions for any and rail should be excellent and also the economic zone site.” access to port is important as this will ease -BD Executive, Abdul Monem Limited, the conveyance of the finished goods to Bangladesh customers.

110 Draft Report- Initial site assessment for five economic zone sites ______

The proposed site in Narayanganj is located within the industrial belt; there are several power plants, cement companies and other industries present in the vicinity. This shall help the EZ to develop by dint of a mutually beneficial industrial ecosystem. 2 Proximity to Port Access to port is very important for “The proximity to river port is development of multi-product EZs as it will very important for any textile facilitate easy transportation of raw materials industry to develop.” and finished goods. -General Manager, NASSA Group, Bangladesh The proposed site in Narayanganj has access to River port. 3 Proper access road For a multi-product EZ, a proper access road “Access road is also important is very important as heavy load carrying as there will be significant vehicles shall commute to/ from the EZ. inflow and outflow of load carrying vehicles in the EZ.” -BD Executive, Abdul Monem Limited, Bangladesh 4 Utility Connection- For a multi-product EZ to function and for “Availability of Gas, Power availability of power manufacturing units to effectively continue and Water is the prerequisite production, uninterrupted power supply is to set up any manufacturing very important. based industry.” 5 Utility Connection- Gas at adequate pressure should be available -Vice President, Orion Group, Bangladesh availability of gas at the EZ site to ensure the continuous operation of the manufacturing units. 6 Utility Connection- Water (for both manufacturing and drinking availability of water purpose) should be available in the vicinity of the site. Marketability of proposed Narayanganj EZ: 7 Location of the site The proposed EZ is located amidst the “Narayanganj is the industrial centre. There are several power industrial belt in Bangladesh plants, cement plants, textile units and other and in the vicinity of the industrial units located around the proposed economic zone site, there are EZ. Narayanganj is known for the industrial several industries located. I proliferation in Bangladesh. Also, proximity believe that this shall facilitate to river port is an added advantage for the the development of the site which shall facilitate easy transfer of raw economic zone.” materials and finished goods. -BD Executive, Abdul Monem Limited, Bangladesh Any EZ developed in this area shall promote “Narayanganj EZ site is a the mutually beneficial and cohesive very attractive locationfor industrial ecosystem which shall facilitate the any industry to develop.” development. Thus, the location is very -General Manager, NASSA Group, attractive. Bangladesh 8 Demand among local Considering the location and other facilities “Demand among local unit investors available, the demand for development of investor should be quite high.” -Vice President, Orion Group,

111 Draft Report- Initial site assessment for five economic zone sites ______

units in the proposed EZ in Narayanganj Bangladesh should be quite high. “The location is very attractive and investors from textile industry shall be quite interested.” -General Manager, NASSA Group, Bangladesh Support required from Government: 9 Assistance in obtaining According to investors, obtaining clearances “Current forms for clearances from govt. from the govt. agencies in Bangladesh is a environmental clearance are organizations difficult task and hence BEZA must not customized for economic implement the one-stop-service in order to zone developers. Also, facilitate the investors. obtaining environmental clearance is a difficult task. Also, the process and forms for BEZA should actively pursue environmental clearance is not customized one-stop-service at the for economic zone; hence BEZA should earliest.” intervene in the same. -BD Executive, Abdul Monem Limited, Bangladesh 10 Support in investment According to the investors, BEZA should be “BEZA is proactive for promotion (domestic) proactive in investment promotion activities investment promotion for domestic investors. activities for foreign investors. We want them to also focus on the investment promotion activities for domestic investors as well.” -BD Executive, Abdul Monem Limited, Bangladesh

112 Draft Report- Initial site assessment for five economic zone sites ______5.6. Overall Adequacy of the EZ Site in Narayanganj

Evaluation of the proposed EZs with respect to key parameters required to establish multi product economic zones are presented in Table 5-10. Table 5-10: Overall Adequacy of the Narayanganj EZ Site

Sl. Parameters Illustration of the facilities present at the site Remarks/ Analysis No. 1(A) Connectivity The proposed EZ is well connected by road to the For any Multiproduct EZ to develop the capital city and other major cities of Bangladesh. It is site must be near to the main city and By Road to Bandar town, around 32 km away from Dhaka City. the connectivity via road should be Dhaka city and other major excellent. cities of Bangladesh The road distance between the centre of the town Bandar and proposed EZ is about 5 km. The proposed EZ in Narayanganj has good road network to Dhaka and other There are three major roads which connect major cities of Bangladesh. Narayanganj to the rest of the country. These roads are: (1) Narayanganj-Munsiganj Highway (R812); (2) Bondor-Modonpur Highway (R113); and (3) Dhaka- Narayanganj Link Road (R111). Naryanganj is easily accessible from Dhaka city by bus service (frequent bus service available by Ashian, Bandhan, Utsav, Ananda, Setu and BRTC etc.). The road condition is also favourable for passage of goods carrying trucks and vehicular movement is smooth. 1(B) Connectivity There are two major railway stations in the Proposed EZ is only 7 km from the Narayanganj district viz. Narayanganj and Chashara. Narayanganj railway station thereby By Rail to Dhaka city and making it easily accessible to other parts other major cities of Narayanganj railway station is located about 7 km of Bangladesh. Bangladesh from proposed EZ. Bangabandhu Sarak connects the proposed EZ to the railway station and traffic congestion is minimal throughout in the stretch. 1(C) Connectivity Proposed EZ is located at a distance of about 254 km For multiproduct EZ, the raw material from Chittagong port & 304 km Mongla Port. and finished goods need to be Close proximity to Port The EZ lies on the bank of inland water way transported to/ from local markets as connecting from Chittagong port to Mongla port. well as outside the country. Narayangunj river port, one of the oldest in Waterway is the cheapest mode of Bangladesh is located within 3.5 km (Water way) / 28 transportation for movement of goods 113 Draft Report- Initial site assessment for five economic zone sites ______

Km (Road way) from the proposed EZ. as compared to other modes (road, rail, air). Hence, proximity to port is Various types of cargos are transported through essential. Narayanganj Port. But there is no regular cargo service for carrying commodities. Commodities are Narayanganj river port is well generally carried by private arrangements and connected with other major ports of the berthing facilities provided by the BIWTA are used country. for loading and unloading purposes. Many local business houses or industries use private berthing facilities. 1(D) Connectivity Narayanganj EZ is located about 48 km from Hazrat For movement of goods by air cargo, Shah Jalal International Airport at Dhaka. The travel proximity to airport is essential. International Airport in time by road to Dhaka International Airport is 2.5-3 the proximity Dhaka airport is accessible from the hours (approx.). proposed EZ. Govt. of Bangladesh intends to construct a new international airport (Bangabandhu Sheikh Mujib International Airport) with a view to create a hub airport in close proximity to Dhaka and to meet the demand of future growth in aviation sector. The Civil Aviation and Tourism Ministry is in the process to finalise the location of the proposed international airport. Some of the locations which are being considered as prospective locations for the development of new airport are: (1) Char Janajat under Shibchar Upazila in Madaripur district, (2) Keyain and Latobdi under Shirajdikhan Upazila in Munshiganj district and (3) Char Bilashpur under Dohar Upazila of Dhaka district. All these locations are located within 50 km radius of the proposed EZ. 2 Approach Road Sitalakhya Bridge is proposed across the Sitalakhya The alignment for an approach road is River, which will link the capital with Sylhet and essential for developing a multiproduct Chittagong highway through Demra and EZ as it shall enable the access for the Narayanganj. Once functional, it shall connect manpower and heavy commercial Madanpur-Madanganj-Sayedpur Road (R113) and vehicles to national highways and Fatullah (Panchaboti)-Munshiganj (Muktarpur) expressways. Lohajang-Mawa Road (R812). This bridge would provide direct access to the Northwest parcel of the proposed EZ. Access to the other land parcel (of the proposed EZ) located on the

114 Draft Report- Initial site assessment for five economic zone sites ______

south east side of the Bashundhara cement plant is restricted owing to the presence of berth facility of Bashundhara cement plant on the river. A high level initial assessment suggests providing new access road along the river bund from Dhaka- Chittagong highway (N1) for a length of 10 km (approx.) to the proposed EZ. This new access road shall have minimum resettlement requirement when compared to the widening of present access road via Bashundhara cement plant and summit power plant. 3 Resettlement Issues38  Due to the development of this project, 200 The proposed EZ has resettlement (aaprox) household structures could be directly issues and necessary measures are to be affected. All affected structures are ‘kutcha’ taken into consideration. structures and the average size of the structures Private land constitutes to around is 400 sq. ft. with a minimum size of 140 sq. ft. 330.30 acre of land area in the and a maximum of 1000 sq. ft. However, these proposed EZ. Acquiring land from households can be excluded during the master private land owners could be a plan stage. challenge.  There are plenty of trees in the project area. The master plan (during the feasibility stage) can be prepared in a way that maximum number trees could be retained and earmarked as green area.  Landfilling of two major fish ponds is to be undertaken while developing the proposed project.  Basis preliminary assessment and details shared by UNO office, Resettlement Action Plan (RAP) would need to be formulated for 400 numbers of households (approx.). These households could stand to lose their income/livelihood as a result of the development of the project. 4 Availability of good Basis the interaction with the local inhabitants, the It is very important to have adequate quality potable water ground water is available at a depth of 60 feet from and sustainable source of potable water natural ground level. The proposed EZ is located for the development of multiproduct EZ adjacent to the confluence of three rivers viz. so that the labours don’t face any Meghna, Dhaleswari and Shitalakhya. Preliminary scarcity of drinking water. assessment suggests that the water requirement

38 Data for number of household structures to be relocated and number of households dependent on agricultural activities has been obtained from Bangladesh Economic Zones Authority (BEZA) 115 Draft Report- Initial site assessment for five economic zone sites ______

could be met with the intake from either extracting The industrial units need uninterrupted water from the Dhaleswari River or Sitalakhya River supply of good quality water for or from deep tubewell which could be developed industrial consumption. within the project area. Further, our preliminary assessment also suggest that extracting water from the river located on the western boundary of the proposed EZ may be considered by providing suitable intake system and water treatment plant. 5 Availability of Bandar substation is located at 2 km (approx.) from 24×7 uninterrupted electricity supply is uninterrupted power the proposed EZ. Basis interaction with the UNO a prerequisite for development of any supply officials, this substation has excess capacity of 5 MW. manufacturing facility. Preliminary assessment suggests that a new 132/33 24×7 uninterrupted electricity supply kV substation could be established or the existing could be a possibility when either the substation could be upgraded for meeting the existing substation is upgraded to a requirement of power at the proposed EZ. larger capacity or a new substation is established at the proposed EZ. 6 Availability of Gas supply A gas pipeline is located in close proximity from the Gas supply is a prerequisite for proposed EZ (2 km. approximate). Preliminary development of any manufacturing assessment suggests that gas could be tapped from facility. the existing line to the proposed EZ by obtaining Though gas is available in the vicinity, necessary clearances from Titas Gas. the issue of extending the supply to the proposed EZ needs to be further discussed with the concerned gas distribution agency (Titas Gas). 7 Availability of good The proposed EZ located near Narayanganj town, has The labours working in the proposed EZ residential facility in the no international standard residential facility in the shall have access to the dwelling units nearby areas nearby areas. However such facilities are available and residential areas within 5-10 km near to Dhaka city (within 20 km radius of proposed radius of the proposed EZ. EZ). Since this region is an industrial centre, there are several dwelling units and residential facility available for labours in the area. 8 Medical facilities Narayanganj upzilla has 2 govt. hospital, 4 upzilla There are several medical facilities available in the nearby health complex, 12 union health centre, 101 available within 10 km radius of the areas community clinics and 60 private clinics. proposed EZ to cater to the healthcare requirements of the workforce.

116 Draft Report- Initial site assessment for five economic zone sites ______

9 Air and water pollution at There are several cement plants in the vicinity of the High level of pollution is not conducive the site (prevailing proposed EZ. The emission levels from these plants for the development of agro and food condition) are extremely high. processing industries. These industries could have been prospective industries in the proposed EZ. Basis preliminary assessment, this site deems to be suitable for industries which are not affected by pollution (such as textile, heavy machineries, jute etc.) 10 Landfilling requirement The site is located on the bank of Dhaleswari and Prelimniary assessment suggests that at the site sitalakhya River and the depth of waterlogging in the Landfilling needs to be undertaken for proposed EZ is around 4-5 ft during monsoon the proposed EZ, which means some season. initial cost has to be borne before the commencement of the development Landfilling of depth 6-8 feet need to be undertaken. works.

Legend:

No Moon

Least Adequate Most Adequate

117 Draft Report- Initial site assessment for five economic zone sites ______

Panchagarh EZ

118 Draft Report- Initial site assessment for five economic zone sites ______6. Panchagarh Economic Zone

6.1. Location Details and Salient Features

6.1.1. General Profile of the District Geographic Profile Panchagarh is a district in the Rangpur division of Bangladesh. It is located at the extreme northern part of the country on the India- Bangladesh border. Panchagarh is surrounded by:

 North- Darjeeling district (India);  East- Nilphamari district (Bangladesh);  South- Thakurgaon district (Bangladesh);  West- West Dinajpur and Purnea district (India). It lies between 26º00' and 26º38' North latitudes and between 88º19' and 88º49' East longitudes. The district is spread over an area of 1,404.63 sq. km. Panchagarh has 5 Upazilas:

 Atwari,  Boda, Source: Districts Website- Panchagarh  Debiganj,  Panchagarh Sadar and  Tentulia. The proposed EZ is located in Debiganj upzilla. Demographics The district has overall population of 9,87,644 as per Population and Housing census 2011, Panchagarh district. The sex ratio in 2011 was 988 (females per 1000 males). Total numbers of households were 2, 28,581 and the literacy rate was 51.8%.39 Upzila wise population details as per census are presented in table 6-1. Table 6-1: Upzila wise population details of Panchagarh district

Population census Name Status 1991 2001 2011 Panchagarh District 712024 836196 987644 Atwari 103906 114938 133650 Boda 168258 200693 232124 Debiganj Upzila (Upazila) 159902 185960 224709 Panchagarh Sadar 193198 229237 271707 Tentulia 86760 105368 125454 Source: District Statistics 2011, published by Bangladesh Bureau of Statistics (BBS)

39 http://www.bbs.gov.bd/webtestapplication/userfiles/image/PopCen2011/COMMUNITY_Panchagarh.pdf

119 Draft Report- Initial site assessment for five economic zone sites ______

Climate Conditions The annual average temperature of Pancngarh district varies from maximum 30.2°C to minimum 10.1°C and the average annual rain fall is 1955 mm. 40

Agriculture Total agriculture land in Panchagarh district is 1082 sq. km. which amounts to 77% (approx.) of the total area of the district.41

 Main crops cultivated in the district are paddy, jute, wheat, potato and sugarcane.  Extinct and nearly extinct crops are barley, aus paddy and kaun.  Major horticulture crops in the district are mango, wood apple, jackfruit, black berry, Guava, banana, tamarind, etc.  There are several tea gardens in the district and 3 tea processing plants.

Irrigation Panchagarh district is covered under irrigation scheme for growing crops. Irrigated area classifications fall into two categories:

 Surface water irrigation with main water sources being rivers, canals, ponds, and other water bodies;  Underground water irrigation with water lifted by shallow tube-wells, deep tube wells, and country traditional devices. Upzila wise method of irrigation during the year 2010-11 is shown in figure 6-1. Figure 6-1: Irrigation Status (2010-11), Panchagarh District

Irrigation status as on 2010-11

600 e

r 500 c Total A 400 0 Others 0 '

300

n Canal i 200 a

e Swing basket r 100 A Doon 0 Tube well Power pump

Source: District Statistics 2011, published by Bangladesh Bureau of Statistics (BBS)

40 http://www.bbs.gov.bd/webtestapplication/userfiles/image/PopCen2011/COMMUNITY_Panchagarh.pdf 41 http://www.panchagarh.gov.bd/node/42930-%E0%A6%8F%E0%A6%95- %E0%A6%A8%E0%A6%9C%E0%A6%B0%E0%A7%87- %E0%A6%AA%E0%A6%9E%E0%A7%8D%E0%A6%9A%E0%A6%97%E0%A7%9C

120 Draft Report- Initial site assessment for five economic zone sites ______

Industrial Landscape Panchagarh is known for the tea industry. Total land under tea cultivation is 2255.54 acre. There are a total of 246 tea gardens, including 18 big estates, 13 medium-size and 215 small-scale gardens spread over 1,815 acres (7.35 sq. km) of land in Tetulia upzilla and its surrounding areas. Out of 18 big tea estates, three estates are located within 15 km radius from the proposed EZ. The tea cultivation provides employment to approximately 3,000 to 4,000 local people.42 Some of the major tea gardens in this area are:

 Aga Tea Estate,  Kartoa Tea Garden,  Kazi & Kazi Tea Garden,  Dahuk Tea Garden,  Mainaguri Tea Garden There are a total of three tea processing units in Panchagrh district:

 Organic factory of Kazi & Kazi Tea Estate, Tetulia  Tetulia Tea Company Limited  Factory of Kartoa Tea Garden Kazi & Kazi Tea Estate (KKTE) at Tetulia produces, processes and marketis tea in national and international markets. The first industry established in the district was Panchagarh Sugar Mill (established in the year 1969). It is a government owned unit and spread over an area of 198.46 acre of land. The capacity of the sugar mill is 10,160 MT and provides employement to 810 workers within the unit. In addition to the Panchagarh Sugar Mills Ltd, Bombay chips factory is located in the vicinity of the proposed EZ. Gem Jute Limited (high-quality, organic, biodegradable Jute products), Gemcon Ltd (SPC electric poles) and Marshall Distillery (Production of rectified spirit and dine chard spirit) are the manufacturing units in the District. The district has 248 rice mills out of which 84 rice mills are located in Debiganj. Apart from rice mills, sugar mills and Tea Estates, the district has Jute mills as well.

Potential to facilitate cross-border trade

Land Custom Station (LCS) is located in Banglabandha which is at a distance of 63 km (approx.) from the Panchagarh district headquarters. The LCS is at a distance of 7km from New Jalpaiguri and Shillguri (India), both being major cities in the northern part of West Bengal state. These cities are crucial junctions for connectivity to north eastern part of India and neighbouring countries (Bhutan and Nepal). The Banglabandh road (Bangladesh) leading to the LCS provides an important trade link with Bhutan, Nepal and India. 6.1.2. Reconfirmation of the proposed EZ 6.1.2.1. Location of the proposed EZ

The proposed Economic Zone falls in the Debiganj upzila. Mouza map of proposed EZ as provided by Upazila Nirbahi Office (UNO) is presented in figure 6-2. Mouza map superimposed on google map is presented in figure 6-4. Reconfirmation of site details is presented in table 6-2.

42 Panchagarh district website

121 Draft Report- Initial site assessment for five economic zone sites ______

Figure 6-2: Mouza Map of the proposed Panchagarh EZ site

Source: UNO office

Table 6-2: Reconfirmation of site details

Parameters Details Site co-ordinates 26° 04'23.29"N to 26° 05'42.66"N latitude, 88° 44'08.12"E to 88°45' 23.69"E longitude Site boundaries on East Private Land Site boundaries on West Kartoya River Site boundaries on North Private Land Site boundaries on South Private Land Total area of the site 595.01 acres Area in Debidoba mouza Debidoba - 215.48 acres Area in Dararhat mouza Dararhat - 287.48 acres Area in Pordanpur mouza Pordanpur- -107.26 acres Land tenure details Government owned & private land Government Khas land 295.67 acres

122 Draft Report- Initial site assessment for five economic zone sites ______

Private land 299.34 acres Expansion Potential of Proposed EZ area Basis initial site assessment, Proposed EZ area is surrounded by:  Kartoya River- North and West  Highway roads- East Private agricultural land is located on the South and South-East side; hence there might be a possibility of expansion. However, this is subjected to land survey and feasibility analysis. Existing land use Agriculture Land cost (per acre) BDT 12 lakhs

Source: PwC Initial Site Assessment (Data collected from UNO office) Figure 6-3 depicts the location of the proposed EZ and its vicinity. Figure 6-3: Location of the proposed Panchagarh EZ proposed EZ

Teesta River

Karatoya River

Proposed Proposed EZ

Source: Google map and PwC analysis 6.1.2.2. Land use / land cover

The land use pattern of the proposed EZ area falls under agriculture zone. It was observed during our site visit that 2 crops are being cultivated at some portions of the land parcel throughout the year. Existing land use pattern for 10 km radius is shown in figure 6-5. 6.1.2.3. Topography

Basis initial assessment, it was observed that the proposed EZ has a level difference of 8 to 9 m (approx.) with a gentle slope towards Kartoya River. According to the contour variation, the depth of landfilling across the project area shall vary. The natural slope of ground is advantageous for gravity network of water supply, sewer and storm water drains.

Contour maps of the proposed EZ for 5km and 10 km radius are presented respectively in Figure 6-6 and 6-7.

123 Draft Report- Initial site assessment for five economic zone sites ______

Figure 6-4: Mouza map superimposed on google map (Panchagarh)

Source: Mouza Map collected from UNO Office and Google Earth

124 Draft Report- Initial site assessment for five economic zone sites ______

Figure 6-5: Existing land use pattern for 10 km radius (Panchagarh)

Source: MACE Analysis

125 Draft Report- Initial site assessment for five economic zone sites ______

Figure 6-6: Contour map of the proposed EZ for 5 km radius (Panchagarh)

Source: MACE Analysis

126 Draft Report- Initial site assessment for five economic zone sites ______

Figure 6-7: Contour map of the proposed EZ for 10 km radius (Panchagarh)

Source: MACE Analysis

127 Draft Report- Initial site assessment for five economic zone sites ______

6.1.2.4. Physiography

The physiography of the region surrounding the proposed EZ falls in Tista floodplain. Most of the land falling in this floodplain undergoes low flood during monsoon season. The Bangladesh physiography map is presented in Annexure C. According to the history of physiography of this region, the area around the proposed EZ is prone to low flood during the monsoon season.

6.1.2.5. Soil

Basis site visit, the top soil layer was found to be black cotton soil which needs to be replaced for road construction. This soil is not suitable for laying foundation for any structure. The dominant soil texture is sandy loam. The soil layer is acidic in character and the pH ranges from 5.5 to 6.5. The soil layer is naturally fertile and rich in potassium and phosphorus.

6.1.2.6. Geology

Proposed EZ is located in the Tista Plain (located in former districts of Rangpur, Dinajpur, Bogra and Pabna). Tista Plain covers an area of 16,000 sq. km. (approx.). The geological map of Bangladesh is shown in Annexure D. The type of soil strata in this type of geological area is Tista silt and the soil strata is not suitable for laying the foundation for structures. Detailed soil investigation needs to be carried out during the structural design stage.

6.1.2.7. Earthquake data

Debiganj area falls in the Seismic Zone 2 and the earthquake coefficient is 0.15 for this zone. The area under the proposed EZ falls under the medium seismic range zone; this factor needs to be taken into account while designing the structure of the proposed EZ. Seismic zoning map of Bangladesh is presented in Annexure E.

6.1.2.8. Wind speed

During winter, the northern and central areas in Bangladesh witness gentle winds blowing at relatively low speeds of 1-3 Km/hr. from the north & northwest. The detailed wind speeds need to be obtained for designing the high rise structures in the proposed EZ. The wind speed map for Bangladesh is presented in Annexure F.

6.1.2.9. Cyclones and storms

Panchagarh has not witnessed any significant cyclone or storms as a result of which no river erosion has been observed in this region.

128 Draft Report- Initial site assessment for five economic zone sites ______6.2. Environment

6.2.1. Air quality Ambient air quality measurements are essential:

 to provide a description of the existing conditions,  to provide a baseline against which changes can be measured and  to assist in the determination of potential impacts of the proposed EZ construction on air quality conditions

During the field visit, no apparent problem with the ambient air quality was observed. This may be due to the fact that the area around the proposed EZ is located in a rural area with very few industries in close proximity to the proposed EZ and relatively less traffic concentration.

6.2.2. Floods and Water Logging Basis the interaction with the UNO Officials and local inhabitants, it was communicated to us that the flood level during monsoon season varies from 5 feet to 6 feet within the area of the proposed EZ.

6.2.3. Noise During the field visit, no apparent problem of noise was observed. This may be due to the fact that the area around the proposed EZ is located in a rural area with very few industries in close proximity to the proposed EZ.

6.2.4. Land filling Basis the interaction with the UNO officials and local inhabitants, flood level during monsoon season varies from 5 feet to 6 feet depth inside the proposed EZ area.

To avoid inundation during monsoon season, minimum land filling of 0.6 m above the flood level is considered.

Based on the assumption, an average depth of 8 feet to 10 feet of land filling has been envisaged for the proposed EZ area. This figure is indicative and detailed topography survey needs to be carried out to calculate the exact quantity of land filling at the project area.

129 Draft Report- Initial site assessment for five economic zone sites ______6.3. Infrastructure Linkages of the Proposed Site

6.3.1. Physical Infrastructure- Availability of Utility Connections 6.3.1.1. Power Availability for the proposed EZ

Khotamara, Debiganj 132/33 kV substation is located at distance of 5 km (approx.) from the proposed EZ. Basis discussion with UNO officials, this substation has an excess capacity of 5 MW after catering to the demands of local population and industry. Preliminary assessment suggests that the possibility of setting up a new 132/33 kV substation at Khotamara, Debiganj could be explored for meeting the requirement of power at the proposed EZ. 6.3.1.2. Water Availability for the proposed EZ

There is no water supply system at the proposed EZ. The people are dependent on tube well water for drinking purpose. Karatoya River passes adjacent to the proposed EZ. Basis the interaction with the local inhabitants, ground water is available at a depth of 75 to 100 feet from natural ground level. Preliminary assessment suggests that the water requirement could be met with the intake from either extracting water from the Karatoya River or from deep tube wells which could be developed within the project area. Further, our preliminary assessment also suggests that extracting water from the Karatoya River located on the western boundary of the proposed EZ may be explored by providing suitable intake system and water treatment plant. Proposed EZ is located on the bank of karatoya river and hence the intake well could be positioned anywhere in the river adjacent to the project boundary. However the location would need to be finalized during master planning stage. The approximate location as suggested above has been earmarked in the utility map shown in Figure 6-8.

6.3.1.3. Gas supply to the proposed EZ

No gas station is available within 100Kms radius of the proposed site and nearest gas station Bogra is located 250Km from the proposed EZ.

6.3.1.4. Telecom/ Internet connectivity to the proposed EZ

Private telecom service providers provide extensive service in this region. Internet and telecom services are provided by mobile companies such as Grameen Phone, Bharti Airtel, Banglalink, and Teletalk in this region. Most of the area around Panchagarh is covered by unineruppted network connectivity by private operators.

Utility map for the proposed EZ is illustrated in Figure 6-8 below.

130 Draft Report- Initial site assessment for five economic zone sites ______

Figure 6-8: Utility Map for proposed Panchagarh EZ

Source: PwC analysis and Google Earth

131 Draft Report- Initial site assessment for five economic zone sites ______

6.3.2. Social Infrastructure 6.3.2.1. Institutional

Debiganj upazilla has 7 colleges, 56 secondary schools, 133 primary schools, 29 madrasa, 18 KG schools, 18 NGO schools and 3 Technical institutes. Some of the major colleges in this area are enlisted below:  Jagdal University  Dhardhara University  Balarampur Model University

Some of the major technical oriented institutions in this area are as listed below:  Panchagarh Technical and Business Management College  Panchagarh Technical School & College

Availability of manpower Apart from the colleges mentioned above, some of the technical training centres under Bureau of Manpower Employment and Training (BMET) which are located within 100 km radius of the proposed EZ43; hence the unskilled/ semi-skilled and skilled/executive level manpower can easily be sourced from those technical training centres:

 Dinajpur Technical Training Centre (approximately 80 km from Panchgarh, travel time of around 2 hours)  Rangpur Technical Training Centre, Dharmadesh, Rangpur (approximately 98 km from Panchgarh, travel time of around 2.5 hours)

There are a total of 300 vocational education institutions (48 public and 252 private) in Bangladesh having a total intake capacity of 58,562.44 Saidpur and Nilphamari are located at a distance of approximately 75 km from the proposed EZ in Panchgarh. Bangladesh’s biggest railway workshop is located in Saidpur and as a result of this, skilled and semi-skilled labours could be available in this region. Once the proposed EZ is developed, migration of skilled labours could take place of Saidpur. Hence, the availability of manpower for the proposed EZ could be sourced from the existing industrial ecosystem in this area. 6.3.2.2. Healthcare Facilities

There are two government hospitals in Debiganj upzilla. There is a 31 bedded government hospital and a private hospital in the Pourashava. Available healthcare facilities in Debiganj are captured in table 6-3. Table 6-3: healthcare facilities in Debiganj Upzila

Details Number Upzilla Health Complex 01 Community Health Centre 09 Hospital (non govt.) 01 Private Clinic 01 Family Planning Centre 01

43 http://www.ovijogbmet.org/english/TTC.php 44 http://siteresources.worldbank.org/BANGLADESHEXTN/Resources/publications/384630- 1209074736457/Bangladesh_Nov2006.pdf

132 Draft Report- Initial site assessment for five economic zone sites ______

Diagnostic Centre 02 Source: Data collected from UNO Office 6.3.3. Connectivity 6.3.3.1. Road

The distance between the Debiganj town and the proposed EZ is 5 km (approx.). The site is abutting the Asian highway (AH2, which connects Dhaka to Banglabandha in a stretch of 512 km). Boda – Domar via Debiganj Upazilla Road (Z5003) connects the site with Asian highway (AH2).

Approach Road Boda – Domar via Debiganj Upazilla Road (Z5003) is the main access road to the proposed EZ and connecting AH2. Preliminary assessment suggests that the existing approach road from Z5003 (for a length of 2 Km) could be widened to the proposed EZ to provide better access.

Source: Roads and Highways Department, Bangladesh

Figure 6-9 shows the road network for 10 km radius of the proposed EZ.

133 Draft Report- Initial site assessment for five economic zone sites ______

Figure 6-9: Road Network for 10 km radius (Panchagarh)

Source: MACE Analysis

134 Draft Report- Initial site assessment for five economic zone sites ______

Land Custom Stations (LCS), BBIN and MVA- The catalysts for cross border trade The Banglabandh road (Bangladesh) leading to the LCS provides an important trade link with Bhutan, Nepal and India.

Different goods such as fertilizer, jute ,medical equipment, plastic material, readymade garments, electrical goods, textile, computer and parts, machinery, chemicals, tea, pulses, rice, onion, apple, marble, slab, live animals and miscellaneous are imported and exported through this LCS.

Trade through the LCS has increased from 112,081 metric tons in 2010 -11, to 530,213 metric tons in 2013 – 14. 45 Figure 6-10 elaborates that the foreign trade has grown manifold within these four countries.

Figure 6-10: Trade through Banglabandha LCS (metric tons)

600,000 600000 530213

500,000 500000

400,000 400000

Export 300,000 300000 255058 Import Total 200,000 173281 200000 112081 100,000 100000

0 0 2010-11 2011-12 2012-13 2013-14

Source: Bangladesh Land Port Authority

On 15th June 2015, the BBIN group of countries (Bangladesh, Bhutan, India and Nepal), signed a sub-regional Motor Vehicles Agreement (MVA) with the objective of enabling a seamless movement of cargo across their borders.

The MVA is expected to significantly reduce the trade transaction costs and thereby help in exploiting the available trade potential. This could generate economic opportunities, particularly in the border areas of these countries which in turn could generate employment.

The MVA would provide access for local products to neighbouring markets (India, Bhutan and Nepal). The presence of well-functioning LCS could further facilitate the trade amongst these countries.

The Asian highway 2 runs through Panchagarh connecting Dhaka to Banglabandha at India border via Panchangarh. The stretch through Panchagarh is yet to be developed. Once developed, it will improve the connectivity of Panchagarh with neighbouring countries and enable seamless movement of goods from Panchagarh to major local markets and markets in neighbouring countries (India, Bhutan and Nepal). Figure 6-11 shows Banglabandha LCS and Asian Highway 2 on map.

45 Bangladesh land Port Authority

135 Draft Report- Initial site assessment for five economic zone sites ______

Figure 6-11: Banglabandha LCS and Asian Highway 2

Source: Roads Division, Ministry of Communication

Owing to the recent MVA amongst BBIN countries, the upcoming Asian highway 2 and presence of Banglabandha LCS located at a distance of 7 km (approx.) from major Indian towns, an economic zone at the border district of Panchagarh could gain significantly. 6.3.3.2. Rail

The Domar railway station (in Nilphamari district) is located 9 km (approx.) from proposed EZ. The railway station is connected to the proposed EZ by Debiganj road. In the vicinity of the rail station, some traffic congestion is observed during normal time. The frequency of passenger trains from this area to Dhaka is not good (approx 2-4 daily trains). The total length of railway lines existing in Panchagargh district and Nilphamari district is presented in table 6-4. Table 6-4: Railway lines in Panchagargh and Nilphamari district

Upzilla Length of Railway Line in km Panchagarh District Atwari 7 Boda 8.5 Debiganj 0 Panchagarh Sadar 8 Tentulia 0 Total 23.5 Nilphamari District Dimla 0

136 Draft Report- Initial site assessment for five economic zone sites ______

Domar 31 Jaldhaka 0 Kishorganj 0 Nilphamari Sadar 25.06 Saidpur 7.26 Total 63.32 Source: Data obtained from Bangladesh Railways website 6.3.3.3. Airport

Proposed Panchagargh EZ is located 45 km (approx.) south west of Saidpur Airport. It is a domestic airport and Saidpur Airport is well connected with Dhaka, Capital city of Bangladesh for passengers. No major international airport exists in vicinity to the proposed EZ.

6.3.3.4. Land Port

Banglabandha land port The Banglabandha land port is located at the tip of north-western Bangladesh at latitude of 26°37′46″N and longitude of 88°24′45″E. It is 57 km north of the Panchagarh town and 7 km from Siliguri and Jalpaiguri, in the Indian state of West Bengal. The Banglabandha port was inaugurated in May 2004 but has not been fully operational owing to the absence of a transit agreement for the use of Indian Territory as a transport route for Bangladeshi, Nepalese and Bhutanese trade cargos. In 2010, it was decided vide a joint communique issued by India and Bangladesh that both the countries would cooperate to provide Nepalese and Bhutanese cargo access to the Bangladeshi ports. The commerce secretaries of Nepal and Bangladesh also held high-level talks to form an agreement to resolve the transit issues between the two countries. Proposed Panchagarh EZ is located at a distance of 98 km (approx.) from Banglabandha land port. The layout of Banglabandha land port is presented in the Figure 6-12.

Figure 6-12: Layout of Banglabandha Port

Source: Banglabandha Port-Website

137 Draft Report- Initial site assessment for five economic zone sites ______

In figure 6-13, the location of Banglabandha Land port and Debiganj Upzilla is indicated. It takes around 2 hours to reach Banglabandha land port from the proposed EZ.

Figure 6-13: Layout of Banglabandha Port

Source: Google map and PwC analysis

Burimari land port Burimari Land Port is located near Chengrabanda Border in India. Nearby Saidpur Town, Siliguri and Joypurhat Dist Town Latitude and Longitude of this port are 26°24'30"N and 88°55'21"E respectively. Panchagarh EZ is located about 95 km from this landport. Some of the salient features of Burimara land port are outlined below:  Warehouse-2 nos,  Open stack yard-2nos,  Transshipment yard-1no, storage capacity 2000MT,  Weigh bridge scale-1no  Administrative building,  Labour shed,  Standby power generator and  Observation towers facilities

138 Draft Report- Initial site assessment for five economic zone sites ______

Figure 6-14 shows the google image of Burimari land port. Figure 6-14: Burimari Land port google image

Source: Google map and PwC analysis Figure 6-15 illustrates the connectivity of the proposed Economic Zones via Road, Rail and Airport mode of transportation. Figure 6-15: Road, Rail and Airport connectivity of proposed EZ

Source: Google Map and PwC analysis

139 Draft Report- Initial site assessment for five economic zone sites ______

6.3.3.5. Assessment of Intermodal Cargo Transport

Access to various modes of transportation from the proposed EZ is outlined below:  Domar railway station (in Nilphamari district) is located 9 km (approx) from the proposed EZ. Debiganj road connects the proposed EZ to the railway station and the traffic congestion is moderate throughout the stretch.  Proposed Panchagargh EZ is located at a distance of 45 km (approx) from Saidpur Airport. Saidpur airport is a domestic airport. No major international airport exists in vicinity to the proposed EZ.

 No river/ sea port is located in vicinity to the proposed EZ. Proposed Panchagarh EZ is located at a distance of 98 km (approx) from Banglabandha land port. Travel timeby road is 2.5-3 hours (approx).

No river/ sea port is located in vicinity to the proposed EZ. Saidpur airport is located at a distance of 47 km (approx) from Domar rail station. Travel time is 1.5 hours (approx) through Saidpur-Nilphamari road. Priliminary assessment suggests that integration between rail and airport could be a possibility. Domar rail station is connected to Banglabandha land port by N-5 national highway. Distance between Banglabandha land port and Domar rail station is 100 km (approx) and travel time is 2.5 hours (approx) Access between Saidpur airport and Banglabandha land port takes place by N-5. Distance between Saidpur airport and Banglabandha land port is 100 km (approx) and travel time is 4 hours (approx) Integration of different modes of transportation seems possible, but the unit cost associated towards cargo transfer could be relatively higher as compared to proposed Narayanganj EZ. The site is connected to the Boda – Domar via Debiganj Upazilla Road (Z5003) by a Kutcha Road of stretch ~ 300 m. z5003 further connects the site to AH2. Basis preliminary site assessment, widening could be possible for this kutcha road. However, the decision of widening needs to be undertaken during pre-feasibility stage. However, this assessment is indicative in nature and any decision on the same should be taken upon completion of detailed feasibility report. 6.4. Resettlement issues

6.4.1. Social impacts The project impact has been considered based on the following parameters: (i) Loss of land (for existing land owners), (ii) Loss of homes/structures, (iii) Loss of Trees (iv) Loss of livelihood systems/ income opportunity (v) Loss of water bodies. The expected types of losses are described in the following sub-sections.

6.4.1.1. Loss of land

To establish the Panchagarh EZ project, a total of 595.01 sq. km. of land has been demarcated by the authority. The land usage pattern and the land ownership pattern for this area are shown in figure 6-16.

140 Draft Report- Initial site assessment for five economic zone sites ______

Figure 6-16: Land Usage and Land Ownership Pattern

Land Usage Pattern Land Ownership Pattern

2% 2% Residential 50% Government land 50% Land Canal Private land

96%

Source: Data collected from UNO Office As a result of the development of the project, residential land owners, long term lease holders (agricultural land leased out by government to the farmers for 99 years), and agricultural land owners could stand a chance to lose their ownership of the land. 6.4.1.2. Loss of structures

Due to the development of this project, 50 household structures46 will be directly affected. This includes dwellings and associated infrastructures are to be re-located. All affected structures are ‘kutcha’ structures and the average size of the structures is 400 sq. ft. (37.16 sq. m) with a minimum size of 140 (13 sq. m) sq. ft. and a maximum of 1000 sq. ft. (93 sq. m). 6.4.1.3. Loss of trees

Trees exist adjacent to a pathway within the proposed EZ which could be retained during preparation of master plan. 6.4.1.4. Loss of income/livelihood

As a result of loss of agricultural land, the following would be directly affected:  Surrounding villagers/ Local farmers,  Sharecroppers,  Yearly lease holders (agricultural land)  Owners of agricultural assets (deep tube-wells and shallow tube-wells etc.) Indirectly, seasonal agriculture labours and crop traders will be affected. Basis preliminary assessment and details shared by UNO office, Resettlement Action Plan (RAP) would need to be formulated for 150 numbers of households (approx.)47. These households could stand to lose their income/livelihood as a result of the development of the project. 6.4.1.5. Loss of water bodies

Approximately 10 acres of area of the site is covered by canals, fishing ponds and associated water bodies. Landfilling needs to be undertaken for the same.

46 Data obtained from Bangladesh Economic Zones Authority (BEZA) 47 Data obtained from Bangladesh Economic Zones Authority (BEZA)

141 Draft Report- Initial site assessment for five economic zone sites ______

6.4.2. Constraints and its mitigation The major constraints and its mitigation is presented in table 6-5.0 Table 6-5: constraints and its mitigation measures

Sl. Constraints Mitigation measures No. 1 Low lying land Based on preliminary assessment, landfilling of 8- 10 feet needs to be undertaken. 2 River protection and existing canal Bund could be constructed to avoid the water inflow from river. The existing canal could be rerouted along the boundary of the proposed EZ to maximise the available land area. 3 Loss of trees Trees exist adjacent to a pathway within the proposed EZ which could be retained during preparation of master plan. 4 Loss of income/livelihood Basis preliminary assessment and details shared by UNO office, Resettlement Action Plan (RAP) would need to be formulated for 150 numbers of households (approx.) 48 . These households could stand to lose their income/livelihood as a result of the development of the project.

6.4.3. Block Cost Estimation for development of Offsite Infrastructure Based on preliminary assessment and available information (the schedule of rates published by the competent public authorities, prevailing market prices, in-house data bank and experience gained over similar / comparable development), the Block Cost estimate for the proposed offsite infrastructure components required for developing EZ has been calculated. Wherever applicable, we have considered all the possible options to arrive at the cost of development and the option of maximum development cost is considered to arrive at the total cost of the proposed offsite infrastructure development. This exercise has been carried out to indicate the approximate cost to be incurred for the development of EZ and it may vary to any extent during implementation stage depending upon the detailed technical information and new developments which may affect / contribute to this EZ. The techno-commercial viability of these options needs to be explored during feasibility stage. Table 6-6 depicts the broad level Block Cost estimates for development of the proposed Offsite infrastructure for Panchagarh EZ. The figures provided are indicative and may vary depending on the master planning, feasibility analysis and the timeline of development activities. The Broad Block Cost for the proposed off-site infrastructure development for proposed Panchagarh EZ is calculated as BDT 27,747 Lakh (approx.).

48 Data obtained from Bangladesh Economic Zones Authority (BEZA)

142 Draft Report- Initial site assessment for five economic zone sites ______

Table 6-6: Block Cost estimate for proposed Panchagarh EZ

Panchagarh - EZ Option -1 Option -2 Considered cost option (Maximum of the two options has been considered) S.No Description Qty Unit Amount Qty Unit Amount Qty Unit Amount in Lakh BDT in Lakh in Lakh BDT BDT 1 Site filling LS 18804 LS 18804 LS 18804 2 Compound wall 7405 Mtr 703 7405 Mtr 703 7405 Mtr 703 3 Diaphragm wall 3500 Mtr 1400 3500 Mtr 1400 3500 Mtr 1400 4 Approach Road ( 1.281 Km 924 1.281 Km 924 1.281 Km 924 10.50 mtr Carriage way ) 5 Electrical ( 108.4 MVA 4246 108.4 MVA 4246 108.4 MVA 4246 External connectivity- 5Km with MRSS) 6 Water supply ( 12.50 MLD 1670 12.50 MLD 1670 Water Intake from River Pipe line length - 1KM) 7 Water supply ( 12.50 MLD 636 Water from Bore well Pipe line length 5Km & Bore well 7 Nos ) Total 27747 26713 27747

143 Draft Report- Initial site assessment for five economic zone sites ______6.5. Voice on the Ground

6.5.1. Stakeholder consultation Table 6-7 lists the stakeholders consulted at the UNO office of Panchagarh to obtain the first-hand information about the proposed EZ. Table 6-7: Stakeholders consulted

Name Description Phone number Md. Hasnaraman +8801712688002 Chowdhury Md. Asfauddulla Asst. Engineer, BWDB +8801719249774 Parimal Dey +8801712831124 Md. Abdur Razzak Chairman- Debidoba Mouza +8801761714022 Md. Rahimul Islam +8801726707160 Md. Ashaduzzaman AGM (MS), Thakurgaon PBS +8801769400813 Md. Mahabub Alam Retainer Engineer, +8801713211604 Thakurgaon PBS Swadesh Ch. Roy Upzilla Muktigadha +8801732260704 Commissioner, Debiganj Md. Abul Hossain Upzilla Secondary Education +8801712577649 Officer Md. Alamgir Hossain Assistant Settlement Officer +8801741347369 Md. Mozibur Rahman Sr. PS, Debiganj +8801711458052 Md. Mominul Alam SAE, DPHE, Debiganj +8801721010894 Md. Nura Alam Siddique SAE, RHD, Panchagarh +8801721412759 Md. Mostafizur Rahman LT-TPBS +8801769401937 Md. Saiful Islam Upzilla Engineer- Debiganj +8801710867630

6.5.2. Consultation with Private Sector Further to the site visit for the initial assessment, private sector consultation was also carried out to understand the preliminary level demand assessment for the EZ under discussion to gauge the interest of unit investors from various sectors. Some of the major aspects which were discussed with the private investors to understand their interest include:

 Location attractiveness  Availability of physical infrastructure  Availability of social infrastructure  Ease of availability of quality manpower

144 Draft Report- Initial site assessment for five economic zone sites ______

 Marketability of the site  Support required from the Government

We discussed the salient features of the proposed Panchagarh EZ with various investors in Bangladesh to understand how attractive this project is for them. Also, we tried to understand the macro level infrastructure requirements that any investor looks upon before making an investment decision. The results of the Private Sector consultation is summarised in the Table 6-8: Table 6-8: Summary of the results of the Private Sector consultation

Sl. Parameters Discussions Excerpts from the No. interaction (if any)

Infrastructure aspects that investors take into consideration while making investment decisions:

1 Connectivity of the site According to the investors, the EZ site should “The site location is in extreme be located near to the industrial hub. The northern part of the country connectivity by road and rail should be and it may take up to 2 days excellent and also the access to port and to transfer goods from this airport is quite important as this shall location to southern part of facilitate the transportation of the finished the country” goods to customers. -Senior Deputy Manager, The proposed site in Panchagarh is located in Energypac, Bangladesh extreme Northern part of Bangladesh. The proposed site has access to Asian Highway-II and railway station is located nearby. The land ports are respectively 57 and 97 km away from the site. But, the connectivity via airport is really poor; also, there is no connectivity of the proposed site via inland water ways.

2 Proximity to Port Access to port is very important for “The industrial units should development of multi-product EZs as it will have access to ports as the facilitate easy transportation of raw materials water is the cheapest mode of and finished goods. transportation.”

The proposed site in Panchagarh has access -Director, Doreen Power, to two land ports viz. Banglabandha Land Bangladesh Port and Burimara Land Port.

3 Utility Connection- For a multi-product EZ to function and for “Utility connections such as availability of power manufacturing units to effectively continue electricity, gas and water are production, uninterrupted power supply is the most important very important. parameters that an investor shall consider before For meeting the ultimate requirement of EZ evaluating any economic zone a new 132/33 kV substation is proposed to be site.” established at Khotamara, Debiganj as the existing substation has an excess capacity of -BD Executive, Abdul Monem

145 Draft Report- Initial site assessment for five economic zone sites ______

5 MW only. Limited, Bangladesh

4 Utility Connection- Gas at adequate pressure should be available availability of gas at the EZ site to ensure the continuous operation of the manufacturing units.

No gas station is available within 100Kms radius of the proposed site and nearest gas station – Bogra is 250Kms from the proposed site.

5 Utility Connection- Water (for both manufacturing and drinking availability of water purpose) should be available in the vicinity of the site.

Preliminary assessment suggests that extracting water from the Karatoya River located on the western boundary of the proposed EZ may be considered by providing suitable intake system and water treatment plant.

Proposed EZ is located on the bank of karatoya river and hence the intake well could be positioned anywhere in the river adjacent to the project boundary. However the location would need to be finalized during master planning stage. The approximate location as suggested above has been earmarked in the utility map shown in Figure 6-8.

6 Foreign trade The access to import and export is very “Panchagarh site has access to important for any industrial unit. cross-border trade to India, Nepal etc. It is really a The proposed EZ at Panchagarh is located in lucrative location for foreign close proximity to India-Bangladesh border. trade promotion.” The Land Custom Station (LCS) could act as a nodal point for transferring of goods to the -Director (Development), neighbouring countries (India, Nepal and Doreen Power, Bangladesh Bhutan). This would enhance foreign trade facilitation between the four countries, thereby resulting in attractiveness of the proposed EZ.

7 Access to quality The location of the site should be such so that “Constant supply of skilled manpower skilled manpower can easily be accessible. manpower is the prerequisite to set up any manufacturing The proposed site has access to quality and based economic zone.” skilled manpower from the vicinity. The site is well accessible from nearby villages and -Senior Executive, Khandakar

146 Draft Report- Initial site assessment for five economic zone sites ______

localities by both rail and road mode of Energy Resources, Bangladesh transportation.

Marketability of proposed Panchagarh EZ:

8 Location of the site The proposed EZ is located in the northern “Panchagarh is known for the part of the country. Though it has access to tea gardens and agricultural road, rail and land ports but significant time activities. Subsequent shall be required for transferring goods and industries can easily be raw materials via road mode of developed in this area. transportation to Dhaka and Chittagong. -Senior Deputy Manager, However, the site is in close proximity to tea Energypac, Bangladesh gardens and the region is rich in agriculture and natural resources. Keeping this in mind, it can be stated that the site has high “As the travel time to Dhaka potential for agro and food processing and Chittagong shall be quite industries and to meet the demand of high, I don’t think Textile machineries and equipment for the same, Industries will be interested in light engineering industries also stand a good this location.” chance. -Director, Summit Further, proposed EZ has access to cross Communications, Bangladesh border trade with India, Nepal and Bhutan through the LCS.

6.6. Overall Adequacy of the EZ Site in Panchagarh

In Table 6-9, the proposed Panchagarh EZ has been evaluated with respect to the key infrastructure parameters which are required to develop a multi-product EZ.

147 Draft Report- Initial site assessment for five economic zone sites ______

Table 6-9: Overall Adequacy of the EZ Site in Panchagarh

Sl. Parameters Illustration of the facilities present at the site Remarks/ Analysis No. 1(A) Connectivity The distance between the Debiganj town and the For any Multiproduct EZ to develop the proposed EZ is 5 km (approx.). site must be near to the main city and By Road to Debiganj town the connectivity via road should be and other major cities of The site is abutting the Asian highway (AH2, which excellent. Bangladesh connects Dhaka to Banglabandha in a stretch of 512 km). The proposed EZ in Panchagarh has good road network to Dhaka and other Boda – Domar via Debiganj Upazilla Road (Z5003) major cities of Bangladesh. connects the site with Asian highway (AH2). 1(B) Connectivity The Domar railway station (in Nilphamari district) is Although the proposed EZ is only 9 km located about 9 km from proposed EZ. from the Domar railway station, the By Rail to Dhaka city and frequency of passenger trains is not too other major cities of The railway station is connected to the proposed EZ high. Bangladesh by Debiganj road. In the vicinity of the rail station, some traffic congestion is observed during normal time. The frequency of passenger trains from this area to Dhaka is not good (approx 2-4 daily trains). 1(C) Connectivity Banglabandha Land Port is located at the tip of For multiproduct EZ, the raw material north-western Bangladesh and neighbouring and finished goods need to be Close proximity to Land countries (such as India, Nepal and Bhutan) are transported to/ from local markets as Port accessible by the land port. Proposed Panchagarh EZ well as outside the country. is located at a distance of 98 km (approx.) from As the two land ports (Banglabandha Banglabandha land port. and Burimara) are well connected to India and Nepal, this proposed EZ can Burimari Land Port is located near Chengrabanda easily facilitate cross-border trade Border in India. Panchagarh EZ is located about 95 within the two countries. But, the km from this landport. distance of approx 100 km could be challenging considering the lead time for transporting goods from the proposed EZ to the ports. 1(D) Connectivity Proposed Panchagargh EZ is located 45 km (approx.) For movement of goods by air cargo, south west of Saidpur Airport. It is a domestic airport proximity to airport is essential. International Airport in and Saidpur Airport is well connected with Dhaka, the proximity The Saidpur Airport is a regional airport Capital city of Bangladesh for passengers. with limited connectivity to other parts

148 Draft Report- Initial site assessment for five economic zone sites ______

No major international airport exists in vicinity to the of Bangladesh. proposed EZ. 2 Approach Road Boda – Domar via Debiganj Upazilla Road (Z5003) is The alignment for an approach road is the main access road to the proposed EZ and essential for developing a multiproduct connecting AH2. EZ as it shall enable the access for the manpower and heavy commercial Preliminary assessment suggests that the existing vehicles to national highways and approach road from Z5003 (for a length of 2 Km) expressways. could be widened to the proposed EZ to provide better access. From preliminary assessment, resettlement issue is insignificant for the approach road construction. 3 Cross-border trade The Banglabandh road (Bangladesh) leading to the Cross border trade is an important facilitation LCS provides an important trade link with Bhutan, aspect related to development of Nepal and India. economic zone. On 15th June 2015, the BBIN group of countries As a result of the proximity of LCS, (Bangladesh, Bhutan, India and Nepal), signed a sub- Asian Highway-2 and the MVA between regional Motor Vehicles Agreement (MVA) with the BBIN shall provide access to objective of enabling a seamless movement of cargo neighbouring countries such as India, across their borders. The MVA would provide access Bhutan and Nepal. for local products to neighbouring markets (India, Bhutan and Nepal). The presence of well-functioning This indicates that the goods produced LCS could further facilitate the trade amongst these from the proposed EZ can easily be countries. transported for domestic consumption The Asian highway 2 runs through Panchagarh and also to neighbouring countries such connecting Dhaka to Banglabandha at India border as India, Nepal and Bhutan. via Panchangarh. The stretch through Panchagarh is yet to be developed. Once developed, it will improve the connectivity of Panchagarh with neighbouring countries and enable seamless movement of goods from Panchagarh to major local markets and markets in neighbouring countries (India, Bhutan and Nepal). 4 Availability of good Basis the interaction with the local inhabitants, It is very important to have adequate quality potable water ground water is available at a depth of 75 to 100 feet and sustainable source of potable water from natural ground level. Preliminary assessment for the development of multiproduct EZ suggests that the water requirement could be met so that the labours don’t face any with the intake from either extracting water from the scarcity of drinking water. Karatoya River or from deep tube wells which could

149 Draft Report- Initial site assessment for five economic zone sites ______

be developed within the project area. Further, our The industrial units need uninterrupted preliminary assessment also suggests that extracting supply of good quality water for water from the Karatoya River located on the western industrial consumption. boundary of the proposed EZ may be explored by providing suitable intake system and water treatment plant. 5 Availability of Khotamara, Debiganj 132/33 kV substation is located 24×7 uninterrupted electricity supply is uninterrupted power at distance of 5 km (approx.) from the proposed EZ. a prerequisite for development of any supply Basis discussion with UNO officials, this substation manufacturing facility. has an excess capacity of 5 MW after catering to the 24×7 uninterrupted electricity supply demands of local population and industry. could be a possibility when a new Preliminary assessment suggests that the possibility 132/33 kV substation is established at of setting up a new 132/33 kV substation at Khotamara. Khotamara, Debiganj could be explored for meeting the requirement of power at the proposed EZ. 6 Availability of Gas supply No gas station is available within 100Kms radius of Gas supply is a prerequisite for the proposed site and nearest gas station Bogra is development of any manufacturing located 250Km from the proposed EZ. facility. Non-availability of gas would discourage various industries (textile, cement, heavy engineering, electronics, leather etc.) from establishing their units in the proposed EZ. 7 Availability of good The proposed EZ is located 5 km away from Debiganj The labours working in the proposed EZ residential facility in the town, and hence international standard residential shall have access to the dwelling units nearby areas facility and quality lifestyle is not available in the and residential areas within 5-10 km close proximity to the proposed EZ. radius of the proposed EZ. Since this region has numerous tea estates, a sugar mill and food processing units, dwelling units and residential facilities are available for labours in Debiganj town. 8 Medical facilities Two government hospitals are available in Debiganj There are few medical facilities available in the nearby upzilla there is a 31 beds government hospital and a available within 10 km radius of the areas private hospital in the Pourashava. proposed EZ to cater to the healthcare requirements of the workforce. Other medical facilities existing in this area are: 1

150 Draft Report- Initial site assessment for five economic zone sites ______

upzilla health complex, 9 community health centres, 1 private clinic and 2 diagnostic centres.

9 Air and water pollution at The site is free from air and water pollution. No The location of any multi product EZ the site (prevailing significant noise was observed during the initial site should ideally be free from air and condition) visit. water pollution. Pollution would lead to health hazards and non-conducive The incidence of water and air pollution in the site is working environment for the workforce. insignificant. Also, the incidence of water borne From the initial site assessment, it diseases wasn’t recorded in the locality. appears that the site is free from all such pollution problems. 10 Landfilling requirement Since the site is located on the bank of Koratya River, Preliminary assessment suggests that at the site the depth of waterlogging in the site is around 5-6 ft. Landfilling needs to be undertaken for during monsoon season. the proposed EZ, which means some initial cost has to be borne before the Landfilling of depth 8-10 feet needs to be commencement of the development undertaken. works.

151 Draft Report- Initial site assessment for five economic zone sites ______

Anowara-2 EZ

152 Draft Report- Initial site assessment for five economic zone sites ______7. Anowara-2 Multi-Product Economic Zone

7.1. Location Details and Salient Features 7.1.1. General Profile of the District Geographic Profile Anowara is an upzila in Chittagong district which is located in Chittagong division (south-eastern Bangladesh). There are a total of 11 districts under Chittagong division. The district has Port city of Chittagong, the second largest city of Bangladesh. Chittagong district is surrounded by:

 North- Tripura (India);  East- Khagrachhari, Rangamati and Bandarban Districts;  South- Cox’s Bazar District;  West- Bay of Bengal, Feni and Noakhali Districts. It lies between 21º54' and 22º59' North latitudes and between 91º17' and 92º13' East longitudes. The district spreads over an area of about 5282.92 sq. km. of land of which 1700 sq. km. including coastal area is under forest.49

Source: Districts Website- Chittagong Chittagong district has 14 upazilas. The upazilas are Anowara, Banshkhali, Boalkhali, Chandanaish, Fatikchhari, Hathazari, Lohagara, Mirsharai, Patiya, Rangunia, Raozan, Sandwip, Satkania and Sitakunda. Proposed Anowara-2 EZ is located in Anowara upzilla.

Demographics The district has overall population of 76,16,352 as per Housing and Population census 2011. The sex ration in 2011 was 984 (no. of female per 1000 males). Total numbers of households were 15,32,014 and the literacy rate was 58.9%.50 Table 7-1 depicts the upzila wise population details as per census 2011.

49 Chittagong District website, 50 Districts statistics, BBS 2011

153 Draft Report- Initial site assessment for five economic zone sites ______

Table 7-1: Upzila wise population details of Chittagong District

Population census Name Status 1981 1991 2001 2011 Chittagong District 3178000 5055000 6612000 7616000 Anowara Upzila (Upazila) 176000 219000 228000 259000 Banshkhali 265000 323000 391000 431000 Boalkhali 155000 166000 202000 223000 Chandanaish 130000 166000 193000 233000 Chittagong City Corp 1366000 2202000 2591000 Fatikchhari 114000 388000 442000 526000 Hathazari 262000 321000 404000 432000 Lohagara 165000 206000 267000 280000 Mirsharai 307000 333000 369000 399000 Patiya 157000 167000 324000 528000 Rangunia 243000 267000 298000 339000 Raozan 268000 274000 325000 323000 Sandwip 252000 272000 293000 279000 Satkania 247000 300000 339000 385000 Sitakunda 237000 287000 335000 388000 Source: District Statistics 2011, published by Bangladesh Bureau of Statistics (BBS) Climate Condition The annual average temperature of the Chittagong district varies from maximum 33.8°C to minimum 14.5°C and the average annual rain fall is 3194 mm. 51 Agriculture Total agriculture land in Chittagong district is 2379.87 sq. km., which amounts to 45% (approx.) of the total area of the district.52 Major agriculture crops cultivated in the district are paddy, betel leaf, potato, corn, turmeric, tea, peanut, mustard, patol (heap), brinjal, ginger, cucumber, vegetables and other seasonal crops. Major horticulture crops in this district are mango, jackfruit, guava, coconut, betel nut, palm, litchi, banana, papaya, watermelon, lemon, and other fruits. Irrigation The Chittagong district is covered under irrigation scheme for growing crops. Irrigated area classifications fall into two categories:  Surface water irrigation with main water sources being rivers, canals, ponds, and other water bodies;

 Underground water irrigation with water lifted by shallow tube-wells, deep tube wells, and country traditional devices. Figure 7-1 presents the upzila wise method of irrigation during the year 2010-11.

51 Districts statistics, BBS 2011 52 Chittagong District website,

154 Draft Report- Initial site assessment for five economic zone sites ______

Figure 7-1: Irrigation Status (2010-11)

Irrigation status as on 2010-11

70000

60000 e r

c 50000 A Total

0 40000 0 '

Others n

i 30000 Canal a e r 20000 Swing basket A 10000 Doon 0 Tube well Power pump

Source: District Statistics 2011, published by Bangladesh Bureau of Statistics (BBS)

Industries The industries in this region have flourished owing to the development of Chittagong Port. Approximately 90% of international trade in Bangladesh is facilitated through Chittagong sea-port, thereby making this district industrial hub of Bangladesh. Major Manufacturing Industries include Eastern Refinery, Pahartali Railway Workshops, Fouzi Flour mill, Jamuna Oil Company, Glaxo Welcome, Lever Brothers, KDS Garments etc. Fuel deposit of Padma Oil Company Ltd., Jamuna Oil Company Ltd., Meghna Oil Company Ltd., International Oil Tankers Ltd., Food Silo, Heidelberg cement Bangladesh Ltd., TSP Fertilizer Factory, LP Gas Ltd, Petro Bangla Chittagong Refinery, NGS Cement Ltd., Eastern Refinery Ltd. (ERL), CEPZ Area are located in Patenga Heavy Industrial Zone. On the other side of river, Karnaphuli Fertilizer Company Limited (KAFCO), Anwara 1300 MW Power plant, Shikalbaha Power Station, National cement Factory Ltd., Super Petro Chemicals, Star Cement, and Chittagong Urea Fertilizer Factory (CUFL) are situated at Anowara. Table 7-2 captures a brief snapshot of the industrial landscape of entire Chittagong district.

155 Draft Report- Initial site assessment for five economic zone sites ______

Table 7-2: Industrial landscape of Chittagong district

Type Number Heavy Industries 328 Small Industries 4323 Major Industrial Units Shipping industry in Shitakunda, Eastern Refinery, KAFCO, CUFL, THP Complex, Pahartali Railway Workshop, Yamuna Oil, PHP Float Glass, Unilever, Glaxo etc. Jute Mill 24 Government Textile mill 5 Cement Factory 10 Garments and Textile Factory 647 EPZ 3 (Govt.-1; Private-2) Oil Refinery 1 Rubber Garden 8 Fertilizer Industries 3 Tea Gardens 23 Leather Industries 19 Shipping related industries 110 Multinational Companies 12 International Companies (Office in Chittagong) 628 Source: Chittagong District website,

7.2. Chittagong, the “Commercial Capital” of Bangladesh

Chittagong, the second largest city of Bangladesh is also the “Commercial Capital” of Bangladesh. It has earned a significant status of the second important City in the country owing to the location of Chittagong Port, diversified economic and industrial activities and strategic geographical location.53 Chittagong is the major contributor to the country’s export and import trade. Table 7-3 captures the economic importance of the Chittagong district. Table 7-3: Economic importance of Chittagong at a glance

Economic importance of Chittagong at a glance Export through Chittagong 75 % of the country's total export trade Import through Chittagong 80 % of the country's total import trade Revenue growth More than 60 % of total revenue GDP contribution 12% ($25.5 billion) Sea port 1 Nos. International Airport 1 Nos. EPZ 3 Nos. Source: Chittagong District website,

53 Hashemi, Kazi Mobassher Ahmed. "City report of Chittagong." Asian Urban Information centre of Kobe (AUICK) First workshop, japan. 2006.

156 Draft Report- Initial site assessment for five economic zone sites ______

7.2.1. Bangladesh Vision 2021- Role of Chittagong To achieve its goal of becoming a poverty-free middle-income country and a globally integrated regional economic and commercial hub, the Bangladesh Vision 202154 proposes the following milestones with respect to Chittagong.

Development of competitive investment climate

To facilitate investment and movement of goods, the options of constructing a second Dhaka-Chittagong Highway and/or establishment of a modernised rail link between the two cities is proposed. In all these areas new and modernising investments is proposed to be backed up by a transformation in the quality of governance to ensure a globally competitive standard of services. Development of a mega port along Chittagong coastline To establish Bangladesh as a regional trade hub, a mega port along the Chittagong coastline serving countries such as Bangladesh, Nepal, Bhutan, Eastern India, Myanmar, and South-Western China assessed to be operational by 2021 with an internationally competitive vessel turnaround time (e.g. the one-day standard of more efficient ports), lower handling charges than those in the region (such as Bangkok and Sri Lanka) and fast customs clearance (within 3 days or less, instead of the current 11.7 days). Development of a super highway connecting the mega port with neighbouring countries

It is proposed to develop a highway network to connect the SAARC countries, and to offer to construct highways connecting Nepal, Bhutan, Eastern India with Bangladesh and onwards to Myanmar, South Western China and Thailand, through the Asian Highway and Railway networks. Such highway and railway networks could serve the purpose by making the use of the mega port even more attractive. Further, it also proposes to extend the highway network southwards to Cox’s Bazaar, so that it could be further connected with Myanmar, Thailand, and China through a southern route. Promote the deepening and broadening of capital markets

To develop into a regional trading hub, the Vision 2021 aspires the government to provide support to the trading companies with a wide range of financial and capital market instruments. Smaller trading companies commonly experience difficulties in securing traditional bank financing due to their weak business asset structure. Easy access to sources of capital (e.g. debt and equity capital) to help them develop their companies and anchor them in Bangladesh sould also be provided. A deepened and broadened capital market (the Dhaka and Chittagong Stock Exchanges) and a relatively larger size of capital (i.e. if Bangladesh becomes a middle-income country) would help make Bangladesh the preferred location to raise funds by these trading companies for business development. Chittagong is poised to become the Industrial Powerhouse of Bangladesh

54 Bangladesh Vision 2021, Centre for Policy Dialogue, http://cpd.org.bd/index.php/bangladesh-vision-2021/

157 Draft Report- Initial site assessment for five economic zone sites ______

7.2.2. Major projects undertaken by Government of Bangladesh

Keeping in view the Vision 2021, some of the projects undertaken by Government of Bangladesh55 include:

1) World Trade Centre (WTC), Chittagong Recognizing the growing importance and burgeoning prospects and potentials of Chittagong as to become a transnational trade and investment hub as well as to cater to the increasing needs of the entrepreneurs and investors of home and abroad in the context of current globalized trade regime, Chittagong Chamber of Commerce & Industry has undertaken an ambitious project of constructing a most modern world Trade Centre in Chittagong, first of its kind in Bangladesh. The WTC is expected to accommodate all the modern and sophisticated trade and investment fostering facilities. It is also expected that with the implementation of this WTC project, Chittagong could evolve as a rendezvous for the global entrepreneurs and investors.

2) Construction of Tourism Complex in Foy's Lake Foy's Lake is located in the heart of the city. It’s featured with tranquil blue water, steep hill, green landscape, deep forest and wild animal. Recognizing the potential for becoming a beautiful tourist spot for the nature loving people, the Government has undertaken a plan of building a comprehensive international tourist complex here in Foy's Lake. Keeping in view the scenic beauty of the area, it is expected that if the construction of comprehensive tourist complex is completed, the project could attract huge number of foreign tourist in Chittagong every year.

3) Marine Drive Road along with the coastal area from Feni to Chittagong Port A four lane road along with the coastal area from Feni (100 km. from Chittagong city) to the Chittagong port is undertaken to be constructed by the government. Completion of this marine drive could help attract more foreign tourists in the country and particularly in Chittagong.

4) Upgrading Dhaka-Chittagong highway to four lanes & doubling of railway lines Dhaka-Chittagong Highway is being upgraded to 4 lanes to ensure fast and smooth conveyance of goods and passengers between Dhaka and Chittagong. It is also planned to make the railway line double tracked between Dhaka and Chittagong.

5) 3rd Karnaphuli Bridge Government is also actively contemplating the construction of a 3rd Karnaphuli Bridge over the river Karnaphuli to promote investment on the other side of the river.

6) Karnaphuli Tunnel project Most of country’s export and import activities are being carried out through Chittagong Port situated in the mouth of the Karnaphuli River. The proposed Tunnel will connect the Chittagong Port City directly with other side of the Karnaphuli River & indirectly with other parts of the country through Dhaka-Chittagong-Cox’s Bazar Highway.The width of the river at the site of the proposed Tunnel is 700 meters and the water depth is 9-11 meters. The indicative length of the proposed Tunnel is 2000 meters.56 The proposed project is in feasibility stage and is expected to complete by 2017 as per its feasibility study report.57

55 Source: Chittagong Chamber of Commerce & Industry, http://www.chittagongchamber.com/elc.php 56 http://www.bba.gov.bd/construction-of-multi-lane-tunnel-under-the-river-karnaphuli-at-chittagong-city/ 57 http://bba-beta.dayspringltd.com/wp-content/uploads/2015/01/Karnaphuli_tunnel_Feasibility-study-report.pdf

158 Draft Report- Initial site assessment for five economic zone sites ______

7.2.3. Export Processing Zones in Chittagong Chittagong Export Processing Zone and Karnaphuli Export processing Zone (KEPZ) were established in the year 1983 and 2006 respectively. Further, the approved Rangunia EPZ (private EPZ) would be the third EPZ in this region. Brief details of the two operational EPZs are presented in table 7-4. Table 7-4: Export Processing Zones of Chittagong

Source: Chittagong District website, 7.2.4. Economic Importance of Chittagong Port Chittagong port is the World's only natural sea port. Its strategic location makes it a hub for global business houses. Chittagong port has been able to show a marked improvement in handling of containers and optimising the utilisation of berths and yards by making it easier for the country to become an economic gateway to South Asia. Chittagong Port is the major seaport of Bangladesh. The GDP growth of Bangladesh economy is around 6-7% while the container traffic growth of Chittagong Port is about double of GDP rate at 14%. It provides a major gateway for the country’s trade with the outside world. During the year 2012-2013, Chittagong Port handled over 43.37 million metric tons of cargo including 1.47 million twenty foot equivalent units (TEUs) containerised cargo, which is around 92% of total maritime trade of Bangladesh.58 Section 3.4.1 illustrates the facilities available in Chittagong Port. To meet the challenges of globalization and liberalization of world trade and economy, Chittagong Port has undertaken several projects to enhance its capacity, improve efficiency and quality of services and also to develop adequate facilities to turn itself into a world class regional port. Figure 7-2 shows the Revenue, Income & Expenditure of Chittagong Port (in Million USD) for the financial year 2011-12 and 2012-13 (provisional).

58 Chittagong Port Authority, < http://cpa.gov.bd/ >

159 Draft Report- Initial site assessment for five economic zone sites ______

Figure 7-2: Revenue Income & Expenditure of Chittagong Port (in Million USD)

250

203.97 198.27 200

150 Income 113.7 Expenditure 103.99 99.98 100 84.57 Surpllus

50

0 2011-12 2012-13 (provisional)

Source: Chittagong Port Authority, < http://cpa.gov.bd/ >, Data converted from BDT to USD using 1 USD = 77.20 BDT exchange rate Chittagong Port is the gateway for foreign trade in Bangladesh. The growth saga of the EPZs coupled with the proliferation of industrial development have positioned Chittagong as an attractive investment destination

75% of Country’s export

80% of Country’s import

>60% of Country’s total revenue earning

Gross Output (2014) is US$ 174.06 billion in PPP- 4 times of Nepal and equal to Myanmar

160 Draft Report- Initial site assessment for five economic zone sites ______7.3. Reconfirmation of the proposed EZ

7.3.1.1. Location of the proposed EZ

The proposed Economic Zone falls in the Anowara upzila. Mouza map of proposed site as provided by the Upazila Nirbahi Officer (UNO) is presented in the figure 7-3. Mouza map superimposed on google map is presented in the figure 7-4. Reconfirmation of site details is presented in table 7-5.

Table 7-5: Reconfirmation of site details of Anowara-2 EZ

Parameters Details

Site co-ordinates 22° 12'04.44"N to 22° 13'18.02"N latitude, 91° 51'28.25"E to 91° 52'41.82E longitude

Site boundaries on East Banchura village & Agriculture land

Site boundaries on West Boina Village, Agri land, Radar station & college

Site boundaries on North Baichuna road & Agriculture land

Site boundaries on South Barthuli village, Aaigav, Adarshayran & Agriculture land

Total area of the site 774.425 acres

Area in Botali mouza 337.315 acres

Area in Hajigowa mouza 179.04 acres

Area in Balcho mouza 79.04 acres

Area in Boiraz 179.03 Acres

Land tenure details Government owned & private land

Government Khas land 270.875 Acres

Private land 160.01 Acres

Others 323.540 Acres

Expansion Potential of Proposed EZ area Basis initial site assessment, proposed EZ area is surrounded by villages (Banchura, Boina etc.) and agriculture land. Hence, there lies scope of expansion subject to acquisition of agricultural and village land area. However, this is subjected to land survey and feasibility analysis.

Existing land use Agriculture & Hilly terrain

Land cost (per acre) BDT 200 lakhs

Source: PwC Initial Site Assessment (Data collected from UNO office)

161 Draft Report- Initial site assessment for five economic zone sites ______

Figure 7-3: Mouza Map of Anowara-2 EZ

Source: UNO office

162 Draft Report- Initial site assessment for five economic zone sites ______

Figure 7-4: Mouza map superimposed on google map (Anowara-2)

Source: MACE Analysi 163 Draft Report- Initial site assessment for five economic zone sites ______

Figure 7-5 shows the location of the proposed proposed EZ and its vicinity.

Figure 7-5: Location of the proposed Anowara-2 EZ site

International Airport

Proposed Proposed EZ Chittagong - Anowara- Banshkhali Highway

Source: Google Map and PwC Analysis

7.3.1.2. Land use / land cover

The land use pattern of the proposed EZ area falls under agriculture and horticulture zone. It was observed during our site visit that 2 crops are being cultivated at some portions of the land parcel throughout the year. Existing land use pattern for 10 km radius is shown in figure 7-6. 7.3.1.3. Topography

Basis initial assessment, it was observed that the proposed EZ has a level difference of 25 to 27 m (approx.) with a gentle slope towards North-East to South-West direction. Preliminary assessment indicates that the possibility of necessary platforms/ benching construction during the land development stage could be explored. The proposed EZ area has a unduly topography and the utilities planning needs to be carried out considering this aspect.

Contour maps of the proposed EZ for 5km and 10 km radius are presented respectively in Figure 7-7 and 7-8.

164 Draft Report- Initial site assessment for five economic zone sites ______

Figure 7-6: Existing land use pattern for 10 km radius (Anowara-2)

Source: Mace Analysis

165 Draft Report- Initial site assessment for five economic zone sites ______

Figure 7-7: Contour map of the proposed EZ for 5 km radius (Anowara-2)

Source: Mace Analysis

166 Draft Report- Initial site assessment for five economic zone sites ______

Figure 7-8: Contour map of the proposed EZ for 10 km radius (Anowara-2)

Source: Mace Analysis

167 Draft Report- Initial site assessment for five economic zone sites ______

7.3.1.4. Physiography

The physiography of the region surrounding the proposed EZ falls in Chittagong coastal plain. Sediments near the hills are mainly silty, locally sandy, with clays more extensive in the coastal plain basin. The whole of the mainland area is subjected to flash floods. The Bangladesh physiography map is presented in Annexure C. According to the history of physiography of this region, the area around the proposed EZ falls in the ridges and it is free from flooding.

7.3.1.5. Soil

Basis site visit, the top soil layer was found to be mostly Red Soil and partly clayey soil which need to be replaced for road construction. This soil is not suitable for laying foundation for any structure. The soil layer is acidic in character and the pH ranges from 5.5 to 6.8. The soil layer is naturally fertile and is recharged every year by fresh deposition by the floodwater.

7.3.1.6. Geology

Proposed EZ is located in the Chittagong Coastal Plain. Chittagong city has a unique topography and it is well known for the panoramic view of its hilly landscape. It is the only mega city of Bangladesh having wide variety of morphological features, spectacular undulating hill topography on one side and the low lying coastal mud flats on the other side. Chittagong’s morphology has transformed into its present shape by natural process. The geological map of Bangladesh is shown in Annexure D. The type of soil strata in this type of geological area is red and clayey in nature and the soil strata is not suitable for laying the foundation for structures. Detailed soil investigation needs to be carried out during the structural design stage.

7.3.1.7. Earthquake data

Anowara area falls in the Seismic Zone 2 and the earthquake coefficient is 0.15 for this zone. The area under the proposed EZ falls under the medium seismic range zone; this factor needs to be taken into account while designing the structure of the proposed EZ. Seismic zoning map of Bangladesh is presented in Annexure E.

7.3.1.8. Wind speed

The coastal areas in Bangladesh witness gentle winds blowing at relatively low speeds of 3-6 Km/hr. From March to May, violent thunderstorms, called northwesters, are observed. The detailed wind speeds need to be obtained for designing the high rise structures in the proposed EZ. The wind speed map for Bangladesh is presented in Annexure F.

7.3.1.9. Cyclones and storms

Preliminary assessments suggest that during the pre-monsoon period, squally winds of up to 130 km/h or occasionally more, often accompanied by thunderstorms may damage assets and crops. Cyclonic storms occurring in the Bay of Bengal in April-May and October-November rarely penetrate as far as Comilla, but may cause serious damage to crops, livestock, assets, and people if so happens. Monsoon rains are generally not stormy, but downpours of 50-75 mm per day are not uncommon and rainfall with

168 Draft Report- Initial site assessment for five economic zone sites ______more than 250mm per day is occasionally experienced. No significant cyclone and storms have occurred in this area as well there is no river erosion in this region.

The coastal region of Bangladesh is prone to multi hazard threats such as cyclones, storm surges and floods, as well as earthquakes and above all, climate change. It is frequently visited by the cyclone- induced storm surge. Annexure H shows the coastal region of Bangladesh as well as the disaster prone areas in Bangladesh.

Bangladesh very often becomes the landing ground of cyclones formed in the Bay of Bengal. This is because of the funnel shaped coast of the Bay of Bengal, Most of the damage occurs in the coastal regions of Khulna, Patuakhali, Barisal, Noakhali and Chittagong and the offshore islands of Bhola, Hatiya, Sandwip, Manpura, Kutubdia Maheshkhali, Nijhum Dwip, Urir Char and other newly formed islands. The coastal zone of Bangladesh is disaster prone. Areas affected by cyclones in Bangladesh are presented in Annexure G. Table 7-6 presents the major cyclones occurrences in the recent past in Bangladesh. Table 7-6: Major cyclones occurrences in Bangladesh

Maximum wind speed Storm Surge height Date Death Toll (km/hr) (meters) 11 May 1965 161 3.7 – 7.6 19,279 15 December 1965 217 2.4-3.6 873 01 October 1966 139 6.0-6.7 850 12 November 1970 224 6.0-10.0 300,000 25 May 1985 154 3.0-4.6 11,069 29 April 1991 225 6.0-7.6 138,882 19 May 1997 232 3.1-4.6 155 15 November 223 3363 (SIDR) 2007 25 May (AILA) 2009 92 190 Source: Bangladesh Meterological Department

Figure 7-9 shows the tracks of few major cyclones that hit Bangladesh during the period 1960 – 2007.

Figure 7-9: Tracks of major cyclones crossed Bangladeshi coast during the period 1960 – 2007 with information on landfall date and maximum wind speed

Source: BMD, Bangladesh

169 Draft Report- Initial site assessment for five economic zone sites ______7.4. Environment section 7.4.1. Air quality Ambient air quality measurements are essential:

 to provide a description of the existing conditions,  to provide a baseline against which changes can be measured and  to assist in the determination of potential impacts of the proposed EZ construction on air quality conditions

During the field visit, no apparent problem with the ambient air quality was observed. This may be due to the fact that the area around the proposed EZ is located in a rural area with very few industries in close proximity to the proposed EZ and relatively less traffic concentration.

7.4.2. Floods and Water Logging Basis the interaction with the UNO Officials and local inhabitants, it was communicated to us that the area around the proposed EZ is free from flooding.

7.4.3. Noise During the field visit, no apparent problem of noise was observed. This may be due to the fact that the area around the proposed EZ is located in a rural area with very few industries in close proximity to the proposed EZ.

7.4.4. Land filling Basis the interaction with the UNO officials and local inhabitants, the proposed EZ area is free from flooding. In such case, landfilling may not be required. Preliminary assessment indicates that the possibility of necessary platforms/ benching construction during the land development stage could be explored. The proposed EZ area has an unduly topography and the utilities planning needs to be carried out considering this aspect.

7.5. Infrastructure Linkages for the Proposed Site 7.5.1. Physical Infrastructure- Availability of Utility Connections 7.5.1.1. Power Availability for the proposed EZ

Julda power plant of 100MW capacity is located 4 Km (approx.) away from the proposed EZ. Basis preliminary assessment, there is a possibility that the power requirement of the proposed EZ could be sourced from this existing 132/33KV grid substation located at Julda.

7.5.1.2. Water

There is no existing water supply system at the proposed site. The local inhabitants are dependent on tube wells for the purpose of drinking water. The sources of drinking water in Anowara upzila is captured in figure 7-10:

170 Draft Report- Initial site assessment for five economic zone sites ______

Figure 7-10: sources of drinking water in Anowara upzila

Source of drinking water in Anowara upzila

4.32% 5.63%

3.08% 6.30% Tubewell Tap Deep Tubewell Pond Others

81%

Source: District Statistics, BBS 2011

Water Availability for the proposed EZ Basis the interaction with local people, ground water is available at a depth of 100 - 200 feet from natural ground level. Basis preliminary assessment, the water requirement for the proposed EZ could be met with the intake from either extracting water from the Karnaphuli River located at a distance of 15-20 km (approx.) from site or from deep tubewell which could be developed within the project area. However detailed feasibility study need to be carried out for pinpointing the exact location. Utility map for the proposed EZ shown in Figure 7-11 illustrates the approximate location of the water source.

7.5.1.3. Gas

Karnaphuli Gas Distribution Company Ltd. (KGDCL) transmits natural gas from the gas fields to different areas of Chittagong division. KGDCL distributes gas to the consumers in power, fertilizer, industrial, captive power, commercial, seasonal and domestic categories of its franchise areas of greater Chittagong. Gas pipeline is available near Korean EPZ (KEPZ) which is located at a distance of 2Km (approx.) from the proposed EZ. Basis interaction with General Manager-KGDCL, the demand of the proposed EZ would not be met from KGDCL; thus some alternate arrangement for the gas connection needs to be taken. Further interactions could be undertaken by the authority with KGDCL to explore supply of gas in the proposed EZ.

7.5.1.4. Telecom/ Internet connectivity to the proposed EZ

Private telecom service providers provide extensive service in this region. Internet and telecom services are provided by mobile companies such as Grameen Phone, Bharti Airtel, Banglalink, and Teletalk in this region.

171 Draft Report- Initial site assessment for five economic zone sites ______

Most of the area around Anowara is covered by unineruppted network connectivity by private operators. Utility map for the proposed EZ is illustrated in Figure 7-11 below. Figure 7-11: Utility Map of proposed Anowara-2 EZ

Source: PwC analysis and Google Earth 7.5.2. Social Infrastructure 7.5.2.1. Institutions

Chittagong and its districts are known as excellent centres for learning and knowledge. Table 7-7 outlines the numbers of different types of educational institutions present in Chittagong district. Table 7-7: Educational Institutions in Chaittagong district

Type of Institutions No. of Institutions Universities 3 Medical colleges 2 Bangladesh institute of technology 1 Govt. colleges 14 Non-govt. colleges 121 College of physical education 1 Teachers training college 1 Regional public administration institute 1

172 Draft Report- Initial site assessment for five economic zone sites ______

Polytechnic institute 1 Homeopathy colleges 2 Nursing institute 1 Forest research institute 1 Veterinary college 1 Home economics college 1 Bangladesh military academy 1 Vocational institute 1 Law colleges 2 Art college 1 Marine academy 1 Marine fisheries academy 1 Cadet college 1 Madrasa 395 Govt. secondary schools 12 Non-govt. secondary schools 698 Govt. primary schools 1665 Registered primary schools 512 Private (non-registered) primary schools 208 Kindergarten schools 1011

Source: Chittagong District, www.chittagong.gov.bd

Anowara upazilla has 2 private colleges, 23 private secondary schools, 118 primary schools, 14 madrasa, 7 kinder garden and 4 technical institutes. Availability of manpower In Anowara upzilla, several educational institutions are located which would cater to the requirements of semi-skilled labour and administrative personnel of the proposed Anowara-2 EZ. Apart from the colleges mentioned above, one technical training centre under Bureau of Manpower Employment and Training (BMET) is located in Chittagong (within 20 km radius of the proposed EZ)59; hence the unskilled/ semi- skilled and skilled/executive level manpower could also be sourced from the same:

 Chittagong Technical Training Centre, Nasirabad, Chittagong (approximately 20 km from Anowara, travel time of around 1 hours)

There are a total of 300 vocational education institutions (48 public and 252 private) in Bangladesh having a total intake capacity of 58,562.60 Chittagong is the industrial powerhouse of Bangladesh and proliferation of industrial development in this area could enable adequate supply of skilled manpower for the proposed EZ. Hence, the availability of manpower for the proposed EZ could be sourced from the existing industrial ecosystem in this area.

59 http://www.ovijogbmet.org/english/TTC.php 60 http://siteresources.worldbank.org/BANGLADESHEXTN/Resources/publications/384630- 1209074736457/Bangladesh_Nov2006.pdf

173 Draft Report- Initial site assessment for five economic zone sites ______

7.5.2.2. Healthcare Facilities

There is a 50 bedded government hospital and a private hospital in Anowara upzila. Available healthcare facilities in Anowara upzila are captured in the table 7-8. Table 7-8: Healthcare facilities In Anowara

Details Number Upzilla Health Complex 01 Community Health Centre 09 Hospital (non govt.) 01 Private Clinic 01 Union health centre & family 09 planning centre Diagnostic Centre 01 Source: Data collected from UNO Office 7.5.3. Connectivity The proposed EZ is well-connected by road, rail and airport with the capital city of Bangladesh, Chittagong (second largest city), Cox’s Bazaar (the tourism destination) and other major cities of Bangladesh. The proposed EZ has access to Chittagong Port, which is the largest sea-port in Bangladesh. Roadways and railways are the two most convenient means of accessing the proposed EZ. 7.5.3.1. Road

The proposed EZ is located at a distanc of 15 km (approx.) from the Chittagong town. Proposed EZ is abutting the Chittagong - Anowara- Banshkhali highway (R170) which is the main access road to the proposed EZ. Bangladeshi national highway (N1) connects the country capital Dhaka and Chittagong. N1 is located at a distance of 10 km (approx.) from the proposed EZ. Proposed EZ is connected to N1 through Chittagong - Anowara- Banshkhali highway (R170). Figure 7-12 illustrates the Road network for 10 km radius. Mutilane Road tunnel is proposed under the River Karnaphuli. The proposed Tunnel will connect the Chittagong Port City directly with the other side of the Karnaphuli River & indirectly with other parts of the country through Dhaka-Chittagong-Cox’s Bazar Highway. The feasibility study for the same is in progress. Once functional, the multilane road tunnel shall reduce the travel time and distance from Chittagong to the proposed EZ.61

61 http://www.bba.gov.bd/construction-of-multi-lane-tunnel-under-the-river-karnaphuli-at-chittagong-city/

174 Draft Report- Initial site assessment for five economic zone sites ______

Figure 7-12: Road Network for 10 km radius (Anowara-2)

Source: Mace Analysis

175 Draft Report- Initial site assessment for five economic zone sites ______

Approach Road Basis preliminary assessment, the widening of the existing access road from the highway R170 for a length of 500 m could be explored to provide better access to the proposed EZ. Basis discussions with Local Government Engineering Department (LGED) and Roads and Highways Department (RHD) during intial site assessment, the road passing by Chittagong Urea Fertilizer Factory (CUFL) may act as a secondary approach road. Utility map as shown in Figure 7-11 illustrates the same. 7.5.3.2. Rail

The Chittagong railway station is located at a distance of 17 km (approx.) from the proposed EZ. Tables 7-9 and 7-10 depict the total railway lines existing in Chittagong district and the capacity and train details of the Dhaka Chittagong line.

Table 7-9: Railway lines of Chittagong District

Trains Sections

i - -

b i k r a g g a g a n - g j - n r i j n n z n a i n a a n a a h n a a r o a t m r r o a a h h C s n u a T a B h g u g - c c - g a s z a A a b a B u t a a a i u t a k - h a m s h t i h k h h k a h r i k B a s k g i A a g g s n L s h A i a n a A a A h A k C h h o P P a D C T B L

Intercity 38 16 16 16 16 14 14 14 Mail/Express 28 12 14 14 14 10 10 10 Local 2 0 2 2 2 4 4 4 Freight 18 14 12 12 12 16 16 16 Total 86 42 44 44 44 44 44 44 Source: Bangladesh Working Timetable (2005 and 2006)

Table 7-10: Dhaka Chittagong line capacity and train details

Upzilla Length of Railway Line in Km Anowara 0 Banshkhali 0 Boalkhali 5 Chandanaish 20 Chittagong City Corp 44.9 Fatikchhari 0 Hathazari 19 Lohagara 0 Mirsharai 12 Patiya 16 Rangunia 0 Raozan 0 Sandwip 0 Satkania 0 Sitakunda 45 Total 161.9 Source: Bangladesh Railways Apart from connectivity to Dhaka, regular trains are available from Chittagong to various other places in Bangladesh. A snapshot of the same is presented in Table 7-11:

176 Draft Report- Initial site assessment for five economic zone sites ______

Table 7-11: Connectivity from Chittagong to other parts of Bangladesh (apart from Dhaka)

Location Details of trains Frequency Travel time

Paharika Intercity Everyday apart 9 hours from Saturday

Udayn Intercity Everyday apart 9 hours Sylhet Express from Friday

Jalalabad Express Everyday 14 hours (mail train)

Meghna Intercity Everyday 4 hours 15 Express minutes Chandpur Sagorika Express Everyday 5 hours 30 minutes

Jagannathganj Rajshahi Express Everyday 16 hours Ghat (mail train)

7.5.3.3. Airport

Proposed EZ is located at a distance of 30 km (approx.) from Shah Amanat International Airport, Chittagong. It takes about an hour to reach the airport from the proposed EZ. Figure 7-13illustrates the connectivity of the proposed Economic Zones via Road, Rail and Airport modes of transportation. Karnaphuli Tunnel Project, as mentioned in section 7.2.2 is in feasibility stage. Once implemented, it is expected to reduce the travel time and distance from Shah Amanat International Airport to the proposed EZ.

Figure 7-13: connectivity of the proposed EZ via Road, Rail and Airport

Source: Google Map and PwC analysis

177 Draft Report- Initial site assessment for five economic zone sites ______

7.5.3.4. Port

Chittagong Port The Port of Chittagong is the principal Port of Bangladesh. Proposed Anowara-2, EZ is located at a distance of 18 km (approx.) from Chittagong Port. The facilities available in Chittagong port are mentioned under section 3.4.1. Karnaphuli Tunnel Project, as mentioned in section 7.2.2 is in feasibility stage. Once implemented, it would also reduce the travel time and distance from Chittagong port to the proposed EZ apart from reducing the distance from Chittagong Airport as mentioned in the previous section. 7.5.3.5. Assessment of Intermodal Cargo Transport

Access to various modes of transportation from the proposed EZ is outlined below:  Chittagong railway station is located at a distance of 17 km (approx) from the proposed EZ. Station Road connects the proposed EZ to the railway station and the traffic congestion is heavy throughout the stretch.  Proposed Anowara-2 EZ is located at a distance of 30 km (approx) from Shah Amanat International Airport, Chittagong. Travel time from the proposed EZ to this airport is 2.5-3 hours (approx).  Chittagong port is the principal Port of Bangladesh. Proposed Anowara 2 EZ is located at a distance of 18 km (approx) from Chittagong Port. Proposed EZ has access to all modes of transportation.

 Chittagong Port is located at a distance of 6 km (approx.) from Chittagong railway station. Travel time is 15 -30 minutes (approx.) through Mooring Road and Strand Road and traffic congestion is minimal throughout the stretch.  Chittagong port is located at a distance of 10 km (approx.) from Chittagong airport. Travel time is 30 minutes (approx.) through M A Aziz road and traffic congestion is moderate throughout the stretch.  Chittagong rail station is located at a distance of 15 km (approx.) from Chittagong airport via M A Halisahar road. Traffic congestion is heavy throughout stretch. Basis preliminary assessment, the location of the proposed EZ could be strategic for intermodal cargo transport. Bangladeshi national highway (N1) connects the country capital Dhaka and Chittagong. N1 is located at a distance of 10 km (approx) from the proposed EZ. Proposed EZ is abutting the Chittagong - Anowara- Banshkhali highway (R170) which connects the proposed EZ to N1. However, this assessment is indicative in nature and any decision on the same should be taken upon completion of detailed feasibility report.

178 Draft Report- Initial site assessment for five economic zone sites ______7.6. Resettlement issues 7.6.1. Social impacts The project impacts were assessed on the following parameters: (i) Loss of land (for existing land owners), (ii) Loss of homes/structures, (iii) Loss of Trees (iv) Loss of livelihood systems/ income opportunity (v) Loss of water bodies. The expected types of losses are described in the following sub-sections. 7.6.1.1. Loss of land

To establish the Anowara EZ project, a total of 774.525 acres of land has been demarcated by the authority. The land usage pattern for this area is shown in Figure 7-14.  Water bodies- 7.83 acres  Settlement land- 323.54 acres  Khas land- 270.88 acres  Private property- 160.01 acres Figure 7-14: Land Usage pattern (Anowara-2)

Land Usage Pattern for Anowara-2

1%

21% water bodies 42% Settlement land Khas Land Private Property 36%

Source: Data collected from UNO Office Residential land owners, long term lease holders (agricultural land leased out by government to the farmers for 99 years), and agricultural land owners will lose entire land holding.

7.6.1.2. Loss of structures

There are 50 household structures62 (approx.) existing within the identified site boundary. However more verification needs to be done after fixing the boundaries at the site prior to feasibility study. 7.6.1.3. Loss of trees

The site has abundance of trees and some of the trees need to be cut for the development of the proposed EZ.

62 Data obtained from Bangladesh Economic Zones Authority (BEZA)

179 Draft Report- Initial site assessment for five economic zone sites ______

7.6.1.4. Loss of income/livelihood

As a result of loss of agricultural land, the following would be directly affected:  Surrounding villagers/ Local farmers,  Sharecroppers,  Yearly lease holders (agricultural land)  Owners of agricultural assets (deep tube-wells and shallow tube-wells etc.) Indirectly, seasonal agriculture labours and crop traders will be affected. Basis preliminary assessment and details shared by UNO office, Resettlement Action Plan (RAP) would need to be formulated for 100- 115 numbers of households (approx.)63. These households could stand to lose their income/livelihood as a result of the development of the project.

7.6.1.5. Loss of water bodies

There is no water body located within the project area.

7.6.2. Constraints and its mitigation The major constraints and its mitigation is presented in table 7-12. Table 7-12: Constraints and Mitigation (Anowara-2)

Sl. Constraints Mitigation measures No. 1 Unduly land Basis preliminary assessment, necessary platforms could be created for accessing the site by cutting and filling for about 2 m to 3 m. 2 Loss of income/livelihood Basis preliminary assessment and details shared by UNO office, Resettlement Action Plan (RAP) would need to be formulated for 100-115 numbers of households (approx.) 64 . These households could stand to lose their income/livelihood as a result of the development of the project.

63 Data obtained from Bangladesh Economic Zones Authority (BEZA) 64 Data obtained from Bangladesh Economic Zones Authority (BEZA)

180 Draft Report- Initial site assessment for five economic zone sites ______

7.6.3. Block Cost Estimation for development of Offsite Infrastructure Based on preliminary assessment and available information (the schedule of rates published by the competent public authorities, prevailing market prices, in-house data bank and experience gained over similar / comparable development), the Block Cost estimate for the proposed offsite infrastructure components required for developing EZ has been calculated. Wherever applicable, we have considered all the possible options to arrive at the cost of development and the option of maximum development cost is considered to arrive at the total cost of the proposed offsite infrastructure development. This exercise has been carried out to indicate the approximate cost to be incurred for the development of EZ and it may vary to any extent during implementation stage depending upon the detailed technical information and new developments which may affect / contribute to this EZ. The techno-commercial viability of these options needs to be explored during feasibility stage. Table 7-13 depicts the broad level Block Cost estimates for development of the proposed Offsite infrastructure for Anowara-2 EZ. The figures provided are indicative and may vary depending on the master planning, feasibility analysis and the timeline of development activities. The Broad Block Cost for off-site infrastructure development for proposed Anowara-2 EZ is calculated as BDT 20,475 Lakh (approx.).

181 Draft Report- Initial site assessment for five economic zone sites ______

Table 7-13: Block Cost estimate for proposed Anowara-2 EZ

Anowara-2 EZ Option -1 Option -2 Considered cost option (Maximum of the two options has been considered) S.No Description Qty Unit Amount Qty Unit Amount Qty Unit Amount in Lakh BDT in Lakh in Lakh BDT BDT 1 Site filling LS 8933 LS 8933 LS 8933 2 Site area cutting LS 1724 LS 1724 LS 1724 3 Compound wall 8890 Mtr 845 8890 Mtr 845 8890 Mtr 845 4 Approach Road ( 0.5 Km 361 0.5 Km 361 0.5 Km 361 10.50 mtr Carriage way ) 5 Electrical ( 141.01 MVA 5613 141.01 MVA 5613 44.83 MVA 5613 External connectivity- 8Km with MRSS) 6 Water supply ( 16.25 MLD 3000 16.25 MLD 3000 Water Intake from River ) 7 Water supply ( 16.25 MLD 689 Water from Bore well Pipe line length 5Km & Bore well 9 Nos ) Total 20475 18164 20475

182 Draft Report- Initial site assessment for five economic zone sites ______7.7. Voice on the Ground

7.7.1. Stakeholder consultation Table 7-14 depicts the list of stakeholders consulted at the UNO office to obtain first-hand information about the proposed EZ. Table 7-14: Stakeholders Consulted

Name Designation Phone number Mr. Shalal Engineer, Public Health Department Mob:+8801711221852

Mr. Arifur Rahman Thasildar Mob:+8801711666711

Mr. Sidikoor Razmoon ADC Revenue, Public Administration Mr. Amisar Rahaman DC, Public Administration Mob:+8801713081353

Mr. Nosumiza Farmer Mob:+8801833873572

Mr. Thavalti Farmer, Mob:+8801826425515

Mr. Rubel Pattwari, Rural Engineer Mob:+88017817619020

7.7.2. Consultation with Private Sector Further to the site visit for the initial assessment, private sector consultation was carried out to understand the preliminary level demand assessment for the EZ under discussion to gauge the interest of unit investors from various sectors. Some of the major aspects which were discussed with the private investors to understand their interest are as below:  Location attractiveness  Availability of physical infrastructure  Availability of social infrastructure  Ease of availability of quality manpower  Marketability of the site  Support required from the Government

We discussed the salient features of the proposed EZ of the proposed Anowara-2 EZ with various investors in Bangladesh to understand how attractive this project is for them. We tried to understand the macro level infrastructure requirements that any investor looks upon before making an investment decision. The results of the Private Sector consultation is summarised in the table 7-15.

Table 7-15: summary of the results of the Private Sector consultation

Sl. Parameters Discussions Excerpts from the No. interaction (if any) Infrastructure aspects that investors take into consideration while making investment decisions: 1 Connectivity of the site According to the investors, the EZ site should “We would be really interested be located in the proximity of any industrial in this location. The site seems hub and major cities. The connectivity by to have good connectivity and road and rail should be excellent and also the it also has access to access to port and cargo facility is important Chittagong Port.”

183 Draft Report- Initial site assessment for five economic zone sites ______

as this will ease the conveyance of the -Director, AK Khan & Company finished goods to customers. Limited, Bangladesh

“In my opinion, connectivity is The proposed site of Anowara-2 is located the prerequisite in the near to Chittagong, which is the industrial investment decisions for any hub of Bangladesh and it has access to economic zone site.” Chittagong Port, which is the largest sea-port -BD Executive, Abdul Monem Limited, in Bangladesh. Several industrial units and Bangladesh EPZs are located nearby to the proposed site. 2 Proximity to Port Access to port is very important for “The access to port shall development of multi-product EZs as it will enable us to export RMG facilitate easy transportation of raw materials products to USA as our major and finished goods. customers are located there.” -General Manager, NASSA The proposed site in Anowara-2 has access to Group, Bangladesh Chittagong Port, which is the largest port in the country. 3 Proper access road For a multi-product EZ, a proper access road “Access road is also important is very important as heavy load carrying as there will be significant vehicles shall commute to/ from the EZ. inflow and outflow of load carrying vehicles in the EZ.” Existing access road from the highway R170 -BD Executive, Abdul Monem Limited, for a length of 500 m need to be widened for Bangladesh providing better access for the proposed EZ. 4 Utility Connection- For a multi-product EZ to function and for “Utility connections such as availability of power manufacturing units to effectively continue electricity, gas and water are production, uninterrupted power supply is the most important very important. parameters that an investor shall consider before Julda power plant of 100MW capacity is evaluating any economic zone located 4 Km away from the proposed EZ. site.” An existing 132/33KV grid substation is -Assistant General Manager, located at Julda and the ultimate Novus Pharmaceuticals requirement of EZ can be met from this Limited, Bangladesh substation. 5 Utility Connection- Gas at adequate pressure should be available availability of gas at the EZ site to ensure the continuous operation of the manufacturing units.

It is understood that Karunaphuli gas Distribution Company limited will not be in a position to meet the demands of the proposed EZ. Hence, some alternate arrangement has to be made for the gas connection to the proposed proposed EZ. 6 Utility Connection- Water (for both manufacturing and drinking availability of water purpose) should be available in the vicinity of the site.

Marketability of proposed Anowara-2 EZ: 7 Location of the site The proposed EZ is located amidst the “Chittagong is the industrial industrial centre. Chittagong is the industrial hub in Bangladesh and it will

184 Draft Report- Initial site assessment for five economic zone sites ______

city of Bangladesh and there are several EPZs be easy to set up industrial and other industrial units in this region. units in this region.” Also, access to Airport and Chittagong Port -General Manager, United makes this location attractive. Enterprises & Company Limited Any EZ developed in this area shall promote the mutually beneficial and cohesive “The location is very industrial ecosystem which shall facilitate the attractive for us.” development. -General Manager, NASSA Group, Bangladesh 8 Demand among local Considering the location and other facilities “The demand for this site shall unit investors available, the demand for development of be quite high among local units in the proposed EZ in Anowara-2 investors.” should be quite high. -Vice President, Orion Group, Bangladesh

“The location is very attractive and investors from textile industry shall be quite interested.” -Group Director, Sikder Group, Bangladesh

7.8. Overall Adequacy of the EZ Site in Anowara-2

In Table 7-16, the proposed EZ has been evaluated with respect to the key infrastructure parameters which are required to develop a multi-product EZ.

185 Draft Report- Initial site assessment for five economic zone sites ______

Table 7-16: Overall Adequacy of the Anowara-2 EZ Site

Sl. Parameters Illustration of the facilities present at the site Remarks/ Analysis No.

1(A) Connectivity The proposed EZ is located at a distance of 15 km For any Multiproduct EZ to develop the (approx.) from the Chittagong town. Proposed EZ is site must be near to the main city and By Road to Chittagong and abutting the Chittagong - Anowara- Banshkhali the connectivity via road should be other major cities of highway (R170) which is the main access road to the excellent. Bangladesh proposed EZ. Bangladeshi national highway (N1) The proposed EZ in Anowara-2 has connects the country capital Dhaka and Chittagong. good road network to Chittagong and N1 is located at a distance of 10 km (approx.) from other major cities of Bangladesh. the proposed EZ. Proposed EZ is connected to N1 through Chittagong - Anowara- Banshkhali highway (R170).

Mutilane Road tunnel is proposed under the River Karnaphuli. The proposed Tunnel will connect the Chittagong Port City directly with the other side of the Karnaphuli River & indirectly with other parts of the country through Dhaka-Chittagong-Cox’s Bazar Highway. The feasibility study for the same is in progress. Once functional, the multilane road tunnel shall reduce the travel time and distance from Chittagong to the proposed EZ.

1(B) Connectivity Chittagong railway station is located at a distance of The proposed EZ is 17 km from the 17 km (approx.) from the proposed EZ. Chittagong railway station. Chittagong By Rail to other major cities is well connected to Dhaka and other of Bangladesh

186 Draft Report- Initial site assessment for five economic zone sites ______

Chittagong railway station has regular trains running major cities of Bangladesh via rail. to Dhaka and other major cities of Bangladesh.

1(C) Connectivity The Port of Chittagong is the principal Port of For multiproduct EZ, the raw material Bangladesh. Proposed Anowara-2, EZ is located at a and finished goods need to be Close proximity to Port distance of 18 km (approx.) from Chittagong Port. transported to/ from local markets as Chittagong Port is a deep water sea port dominated well as outside the country. by trade in containerized manufactured products Waterway is the cheapest mode of (especially garments, jutes, fertilizers and sea food), transportation for movement of goods raw materials and to a lesser extent passengers. Most as compared to other modes (road, rail, of the export and import of the country are handled air). Hence, proximity to port is by this port. The port handles 1.5 million TEUs essential. (twenty equivalent units) containers.

For cargo handling/ transportation of goods via Chittagong port is a very big advantage for the proposed EZ.

1(D) Connectivity Proposed EZ is located at a distance of 30 km For movement of goods by air cargo, (approx.) from Shah Amanat International Airport, proximity to airport is essential. International Airport in Chittagong. It takes about an hour to reach the the proximity Chittagong Airport is only 30 km from airport from the proposed EZ. the proposed EZ. In normal time it takes one hour to reach the airport from the proposed EZ.

2 Approach Road Basis preliminary assessment, the widening of the The alignment for an approach road is existing access road from the highway R170 for a essential for developing a multiproduct length of 500 m could be explored to provide better EZ as it shall enable the access for the access to the proposed EZ. manpower and heavy commercial

187 Draft Report- Initial site assessment for five economic zone sites ______

vehicles to national highways and expressways.

3 Availability of good Basis preliminary assessment, the water requirement It is very important to have adequate quality potable water for the proposed EZ could be met with the intake and sustainable source of potable water from either extracting water from the Karnaphuli for the development of multiproduct EZ River located at a distance of 15-20 km (approx.) so that the labours don’t face any from site or from deep tubewell which could be scarcity of drinking water. developed within the project area. The industrial units need uninterrupted supply of good quality water for industrial consumption.

4 Availability of Julda power plant of 100MW capacity is located 4 24×7 uninterrupted electricity supply is uninterrupted power Km (approx.) away from the proposed EZ. Basis a prerequisite for development of any supply preliminary assessment, there is a possibility that the manufacturing facility. power requirement of the proposed EZ could be Possibility of 24×7 uninterrupted sourced from this existing 132/33KV grid substation electricity supply could be sourced from located at Julda. the Julda power plant (4 km from the site).

5 Availability of Gas supply Gas pipeline is available near Korean EPZ (KEPZ) Gas supply is a prerequisite for which is located at a distance of 2Km (approx.) from development of any manufacturing the proposed EZ. facility.

Basis interaction with General Manager-KGDCL, the Non-availability of gas would demand of the proposed EZ would not be met from discourage various industries (textile, KGDCL; thus some alternate arrangement for the gas cement, heavy engineering, electronics, connection needs to be taken. Further interactions leather etc.) from establishing their

188 Draft Report- Initial site assessment for five economic zone sites ______

could be undertaken by the authority with KGDCL to units in the proposed EZ. explore supply of gas in the proposed EZ.

6 Availability of good The proposed EZ is located 20 km away (two hours’ The labours working in the proposed EZ residential facility in the drive) from Chittagong metropolitan area. shall have access to the dwelling units nearby areas and residential areas within 5-10 km Although international standard residential facility radius of the proposed EZ. and quality lifestyle is not available in the nearby areas of the proposed EZ, but such facilities are available in Chittagong metropolitan area (within 20 km radius of the proposed EZ).

Dwelling units and residential facilities are available for labours in Anowara.

7 Medical facilities One government hospital (Upzilla Health Complex) There are few medical facilities available in the nearby is available in Anowara with 50 beds and a private available within 10 km radius of the areas hospital in the Pourashava. proposed EZ to cater to the healthcare requirements of the workforce. There are 1 Upzilla health complex, 9 community health centres, 1 private clinic and 1 diagnostic centre Major healthcare facilities are available located in this area. in Chittagong city (20 km away from proposed EZ).

8 Air and water pollution at The site is free from air and water pollution. No The location of any multi product EZ the site (prevailing significant noise was observed during the initial site should ideally be free from air and condition) visit. water pollution. Pollution would lead to health hazards and non-conducive The incidence of water and air pollution in the site is working environment for the workforce. insignificant. Also, the incidence of water borne diseases wasn’t recorded in the locality. From the initial site assessment, it

189 Draft Report- Initial site assessment for five economic zone sites ______

appears that the site is free from all such pollution problems.

9 Land-Development The site topography varies up to 27 m which Preliminary assessment suggests that requirements at the site necessitates suitable platforms to be created by Cutting and Filling has to be done for carrying out cutting and filling. the proposed EZ. Also, the road network needs to be planned accordingly. The road network needs to be planned along the contour lines in order to ensure smooth This indicates that some initial cost has manoeuvring. to be borne before the commencement of the development works.

190 Draft Report- Initial site assessment for five economic zone sites ______

Market Assessment of Multi- Product Economic Zones

191 Draft Report- Initial site assessment for five economic zone sites ______8. Market Assessment of Multi- Product Economic Zones

To analyze the industrial segments which may be considered fit to develop in the proposed multi-product economic zones under discussion; a high level market assessment study is carried out. This study doesn’t take into consideration the viability aspect of the industrial segments and the economic zones from technical, social, environmental and resettlement parameters. Also, this analysis is carried out at a very macro level to understand the propensity and feasibility of industrial segments which could be suited for the respective regions. The list appended in the sections below is not conclusive and is subject to detailed feasibility analysis for each of the proposed proposed EZs. Preliminary market assessment has been carried out to understand the major industrial segments that may be shortlisted for the three proposed multi-product economic zones. The identification of industrial segments for exploration at the proposed multi-product Economic Zones requires a multipronged top to bottom approach that relies on three aspects. An assessment based on global economic review has been developed to understand the global trend of industrial development. It covers aspects such as FDI, export and M&A scenario across the industrial segments. After this the macro-economic parameters are evaluated to assess the potential of industrial development at the country level. This encompasses the economic growth of Bangladesh and the change in the industrial landscape of the country. This section presents an analysis of industries globally to identify those expected to experience strong future performance and then uses it along with the understanding of the economic landscape and major industrial sectors of Bangladesh. In the second part, a supply side analysis has been developed where the potential of Bangladesh has been evaluated on the basis of natural resources, agricultural resources, strength in logistics and labor pool. This analysis has been carried out to understand the set of industries which can be developed in the country based on the availability of raw materials, agricultural and mineral resources. At the final stage, the industrial scenario in the vicinity of the project area has been boradly analyzed based on the availability of natural resources, industrial development and connectivity aspects etc. Now, based on the global scenario, country specific and region specific analyses, a broad set of industries have been shortlisted which deem to be fit for setting up in the proposed economic zones. However, this set of industries is not the final and it is subjected to the detailed feasibility analysis.

8.1. Global economic review The industrial strategy for the proposed multi-product economic zones would need to focus on leveraging the region’s existing strengths and should be aligned to global and country level trends in industrial development, thereby serving to boost the contribution of the economic zone to country’s economic growth. Three key parameters – trade scenario, FDI trends and M&A trends have been evaluated to develop perspectives around which industries are proressing globally and which industries Bangladesh as an emerging economy would benefit from. 8.1.1. Trade scenario In terms of sector wise share of trade within merchandise, Fuels & mining products, Machinery and Auto & Auto equipment formed 50% of total exports in 2013 globally. In addition, other predominant sectors based on their export share in 2013 were Textiles, Food Processing, Pharma, Agricultural products and Chemicals. Basis the performance in industrial trade, the best performing industrial segments has been segregated as shown in the figures 8-1 and 8-2.

192 Draft Report- Initial site assessment for five economic zone sites ______

Figure 8-1: Sector-wise export trend 2013, USD Bn

5

5 2 2 , 3 7 9 , 5

8

3 0

9 , 2 1 3

2 4 3 0

5 8 ,

0 7 0 3 4 2 8

, 3 , 5 7 7 1 4 2 2 6 , , 4

3 3 1 1

, 2 , 3 ,

1 0

6 4 0 1 , 1

3 2 2 7 0

4 6 6 1 3 8 9 5 9 5 4 2 3 8 2 5 7 7 0 6 6 7 5 5 0 5 5 4 8 4 3 2 2 1

2003 2013

Source: WTO- International Trade Statistics 2012

Figure 8-2: CAGR (2003 - 2013) and 2013 Global export share

Electronic data processing and office… -1% 3.9% Textiles & Clothing -2% 7.0% Integrated circuits and electronic components -1% 6.8% Auto & Auto products -3% 6.3% Iron and steel -1% 9.5% Office and telecom equipment -6% 7.0% Pharmaceuticals -1% 9.8% Transport equipment -5% 7.0% Food -4% 10.2% Agricultural products -4% 9.8% Chemicals -5% 9.6% Machinery and transport equipment -15% 7.3% Fuels and mining products -19% 15.2%

% of global Exports share (2013) CAGR 2003-13

Source: WTO- International Trade Statistics 2012

8.1.2. FDI Trends FDI trends help gauge the perspective of global investors on a particular industry and its attractiveness. Manufacturing sector attracted 43% of total FDI almost equal to service sector share at 52%. However manufacturing was the sector with the largest decrease in FDI project value in absolute terms, originating mainly from a decline in the value of Greenfield projects across all three groups of economies – developed, developing and transition economies. In fact, Greenfield FDI flows to developing Asia decreased by 7% to $407 billion in 2012. This decline was reflected across all sub-regions but was most severe in South Asia, where FDI inflows fell by 24%. Globally, value of FDI in Greenfield manufacturing projects fell from US$ 453 billion in 2011 to US$ 264 billion in 2012. The three industries in which FDI declined most in 2012

193 Draft Report- Initial site assessment for five economic zone sites ______were metals and metal products, coke & petroleum products and Chemical and Pharma sectors. Figure 8-3 illustrates the shares of Greenfield FDI project across the globe.

Figure 8-3: Sectorial shares in Greenfield FDI projects globally

100% 80% 60% 40% 20% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Textiles, clothing and leather Motor vehicles and other transport equipment Chemicals and chemical products Other manufacturing Electrical and electronic equipment Food, beverages and tobacco Rubber and plastic products Non-metallic mineral products Machinery and equipment Precision instruments Metals and metal products Coke, petroleum products and nuclear fuel Wood and wood products

Source: Survey of Manufacturing Industries- SMI 2012

In comparison to other ASEAN members, Bangladesh is lagging in terms of FDI inflow which stood at US$ 1.59 Billion (2013). Textiles and Pharmaceuticals are the top sectors attracting FDI in Bangladesh. However, based on data from IMF Balance of Payments database65 Bangladesh was among the top 20 economies (ranked 7) with highest inward FDI rates of return in 2011 at 22%. Figure 8-4 illustrates the FDI inflow in Bangladesh in comparison to other nations.

Figure 8-4: Top 10 economies with highest FDI rate of returns (%) 2011

World 7.20% Paraguay 17% Solomon Islands 18% Myanmar 19% Bangladesh 22% Kazakhstan 26% Peru 27% Nigeria 36% Kyrgyzstan 41% Behrain 50% Angola 87% Source: International Monitory Fund (IMF) Balance of Payments database 8.1.3. Mergers and Acquisitions (M&A) Value of cross-border mergers & acquisitions globally stood at US$ 348.75 Trillion in 2013. Services sector has been a key area of M&A activity, with close to 49% of the deals happening in this sector (US$ 98.38 Trillion in 2013). Manufacturing sector constituted 44% share at US$ 45.31 Trillion in 2013. In terms of sectoral composition of M&A activity food processing, beverages & tobacco, chemical &

65 Source: UNCTAD

194 Draft Report- Initial site assessment for five economic zone sites ______petrochemicals, Textiles, clothing and leather, Electrical machinery & electronics, Non-metallic mineral products and Pharmaceuticals industry dominated globally in 2013.

8.2. Parametric analysis of Bangladesh’s key industrial sectors The above section presented a macroeconomic perspective to evaluate industrial trends worldwide and outlines a perspective of the sectors that gain importance not only in the global/Asia-Pacific trade but also be important to Bangladesh. This section undertakes this analysis further and reviews Bangladesh’s industrial sectors for their performance in terms of a few key parameters like macroeconomic indicators, output, employment and labor pool. The objective here is to understand which sectors are currently performing better in the country and whether these sectors may need to be included for exploratory analysis being undertaken for the proposed multi-product economic zones. 8.2.1. Change in Industrial Landscape of Bangladesh Service sector in Bangladesh has the maximum contribution to the GDP over the years. Figure 8-5 shows the contribution of the service, industry and agriculture sectors to GDP. Among the manufacturing industry, the textile industry signifies the highest rate of shipment value (approx 39%), followed by food industry (approx 25%) and the chemical products industry (approx 13%).66

Figure 8-5: Sectoral contribution to GDP in Bangladesh (in percentage)

54.8 54.6 54.5 54.2 54.1 Service Industry Agriculture 26.8 27.4 28.1 29.0 29.6

18.4 18.0 17.4 16.8 16.3

FY10 FY11 FY12 FY13 FY14

Source: Bangladesh Economic Census, 2013

Figure 8-6 illustrates that there has been a significant change in the composition of secondary sector in Bangladesh over the years. The share of manufacturing in GDP has increased from about 10 % in 1988-89 to nearly 18% in 2008-09 as illustrated in figure 4-4667.

66 Data Collection Survey on EZs in Bangladesh 2013- Report by JICA 67 Bangladesh Economic Census 2013

195 Draft Report- Initial site assessment for five economic zone sites ______

Figure 8-6: Changing Composition of the Industrial Sector in terms of GDP Share

17.78% 15.60% 12.25% 9.89% 9.13% 7.67% 6.18% 5.69% 1.57% 1.42% 1.03% 1.25% 0.28% 1% 0.01% 0%

Manufacturing Construction Utility Mining

1978-79 1988-89 1998-99 2008-09

Source: Bangladesh Economic Census 2013

The Perspective Plan of Bangladesh 2010-2021 has set an overarching goal of increasing the contribution of industries to GDP to 40% over the next decade, with a share of 30% for the manufacturing sector. Manufacturing sector in Bangladesh is dominated by Micro, Small and Medium scale Enterprises (MSME) units. Out of total 42,792 industrial units in the country, 92% belongs to MSME category68. It may however be noted that according to BBS Economic Census 2001/2003 combined share of MSME in terms of total establishments and employment stood at 99.84% and 82% respectively69. This indicates an increasing trend of large scale industries in Bangladesh over the last decade. Further, in terms of gross output70, large industries have a dominant share of gross output at 47% followed by medium scale units constituting 26% share while Small and micro industries form 27% of total output in 2012 as illustrated in figure 8-7.

Figure 8-7: GVA & Output (in million Tk.) and Employment by industry type in 2012

6% Employment 5% 24% 8% 15% 47% 5% 14% Output 41% GVA 22% Units 47% 59% 21% 26% 37%

23%

Micro Small Medium Large Micro Small Medium Large Source: Survey of Manufacturing Industries- SMI 2012

68 As per BBS industry classification 2005 Large establishment have Total persons engaged (TPE) > 250, Medium 100<= TPE >250, Small 25<=TPE >=99, and Micro 10<= TPE>=24 69 As per BBS Economic Census 2001/2003 Large establishment have Total persons engaged (TPE) > 100, Medium 99<= TPE >50, Small 10<=TPE >=49, and Micro 1<= TPE>=3 70 Gross output comprises total ex-factory value of products and by-products manufactured by the industries

196 Draft Report- Initial site assessment for five economic zone sites ______8.2.2. Employment and Productivity aspect in Industrial Sectors of Bangladesh A review of employment figures 8-8 and 8-9 highlights the dominance of large industrial units. In terms of the specific sectors, it needs to be noted that Textiles and Wearing apparrals, Food processing, Tobacco products, Basic metals, and non-metallic mineral products are dominant in country. Together these five sectors constitute ~75% of share in terms of establishments, Output, GVA, employment and Investment.

A closer look at the historic trend indicates that these dominant sectors are low on production indices compared to other sectors’ performance. Tobacco manufacturing, glass and glass products and Cement manufacturing are positioned better relative to above mentioned sectors. Drugs and Pharmaceuticals and manufacturing of Foot wears are among the sector with highest production indices in Bangladesh. Clearly greater thrust is required to match the production of these dominant sectors with Factors of Production (FoP) in the Bangladesh economy. In terms of employment indices and productivity, the same trend continues where sectors of Paint and Varnishes and Petroleum products (Chemicals and Petrochemicals) rank higher. Cement is the only sector that has also shown strong position in terms of employment indices and productivity. Jute and cotton are among the least productive sectors for industrial labor deployment. Figure 8-8: Employment Indices of Industrial Workers in Select Industries in Bangladesh

250 y r t s u d n I

200 y b

)

t 0 n 0 e 1 = m 150 y 9 o l 8 - p 8 m 8 E 9

1

l 100 :

a i e r s t a s B u ( d n

I 50

f o

x e d n

I 0 2004-2005 2005-2006 2006-2007 2007-2008 2008-09 2009-10 2010-11 Jute Cotton Paper Cement Fertilizer Petroleum Paints and products varnish

Source: Survey of Manufacturing Industries- SMI 2012 Figure 8-9: Productivity Indices of Industrial Labor in Select Industries in Bangladesh

800

y r t s 700 u d n I

)

y 600 0 b

0

1 r = u 500 o 9 b 8 a - L 8

400 8 l a 9 i 1

r : t

s

e 300 u s a d n B I (

f 200 o

x e

d 100 n I 0 2004-2005 2005-2006 2006-2007 2007-2008 2008-09 2009-10 2010-11 Jute Cotton Paper Cement Fertilizer Petroleum… Paints and…

Source: Survey of Manufacturing Industries- SMI 2012

197 Draft Report- Initial site assessment for five economic zone sites ______

8.3. Supply side analysis of the Industrial sectors in Bangladesh 8.3.1. Agriculture Resources Bangladesh is rich in agricultural resources; broadly there are three major crops produced in the country viz. (1) Rice (Aman, Aus and Boro); (2) Tea and (3) Jute. Agriculture (including fisheries) contributes around 16.33% to the GDP of the country. In addition to the major crops as outlined above, the country also produces other agricultural resources such as mustard, soybean, sunflower, ginger, turmeric, cotton etc. In 2015, the production of rice, paddy and maze was respectively 33833603 Metric Tonne, 1254778 Metric Tonne and 1547719 Metric Tonne. Figure 8-10 illustrates the cultivation of major crops in the country. Jute and rice are produced in abundance around Bangladesh. Tea and rice are produced in abundance in Chittagong division and Rangpur division. Jute is produced in good quantity in Dhaka division. Figure 8-10: Agricultural landscape of Bangladesh

Source: Ministry of Agriculture, Bangladesh-Website 8.3.2. Mineral Resources Some of the major minerals produced in the country are: coal, peat, white clay, silica sand, mineral sand, hard rock, lime stone and ordinary stone. The following figure maps the various mineral production belts of Bangladesh. It can be derived from figure 8-11 that Peat is available in Dhaka division; ordinary stone, silica sand, white clay and limes stone are available in Rangpur division; ordinary stone and mineral sand are available in Chittagong division.

198 Draft Report- Initial site assessment for five economic zone sites ______

Figure 8-11: Mineral landscape of Bangladesh

Source: Ministry of Minerals, Bangladesh-Website 8.3.3. Summary of sectors exhibiting growth potential in Bangladesh After the analysis of the growth potential of the industrial segments according to the global economic review, Table 8-1 screens out the maximum potential industries. Table 8-1: Top sectors based on global industrial analysis

Sectors by Export Sectors by FDI Sectors by M&A

Fuels Textiles, clothing, leather, Food Processing Readymade garments (RMG)

Machinery Motor vehicles and other Chemicals and chemical transport equipment products

Chemicals Chemicals and chemical Electrical and electronics product equipment

Food Processing Electrical and electronics Non-metallic mineral equipment products

Transport equipment Food Processing Textile, clothing and leather

Telecommunications Rubber and plastic products Metals and metal products

199 Draft Report- Initial site assessment for five economic zone sites ______

equipment

Pharmaceuticals Non-metallic mineral Pharmaceuticals products

Manufacturers Machinery Machinery

Source: Global Economic Review Further, Bangladesh country assessment based on key parameters and its vision plan is summarized in Table 8- 2. Table 8-2: Top sectors based on Bangladesh industrial analysis

Output Employment Investment

Textiles, Clothing Coke & refined petroleum Textiles products

Food Processing Motor vehicles and other RMG transport equipment

Non-metallic mineral Machinery Leather & related products products

Electrical and electronics Electrical and electronic Light Engineering equipment equipment

Chemicals and chemical Food Processing Auto parts products

Pharmaceuticals Rubber and plastic products Electronics

Leather & related products Non-metallic mineral Agro-Processing products

Metals & metal products Toys

Source: Global Economic Review

From the analysis on the supply side i.e. the availability of raw materials (agricultural and mineral) and natural resources all over Bangladesh, the following list has been prepared which captures the potential industries that can be set up in Bangladesh.  Food Processing  Agro Processing  Construction materials (such as cement, brick kiln etc.)  Coke products  Textile  Jute products  Readymade garments  Machinery  Light Engineering  Ship-building The objective of this analysis was to get a bucket list of sectors showing prominence at global, Asia Pacific and Bangladesh level. The next section delves into the regional /site assessment to understand which sectors may

200 Draft Report- Initial site assessment for five economic zone sites ______get aligned to the proposed EZ at Narayanganj, Anowara-2 and Panchagarh based on regional characteristics, economic assessment, infrastructure availability and site constraints. 8.4. Description of regional economic and industrial landscape for the three proposed proposed EZs

8.4.1. Narayanganj Proposed EZ at Narayanganj falls in Dhaka division. This area is well connected to Dhaka and other major cities of Bangladesh by road and rail mode of transportation. It also has access to the airport facility in Dhaka. Narayanganj Bandar is one of the oldest and the most important river port in the country. The major requirement to set up manufacturing industry is availability of utilities (such as power and gas). Bangladesh Power development Board (BPDB) is the nodal agency responsible for power production in this region and the proposed EZ has access to power supply. Narayanganj has access to gas supply. Bangladesh’s 26th gas field was discovered in Roopganj (27 km away from Narayanganj). In the Purbachal area (44 km away from Narayanganj), a gas field of capacity 50 billion cubic feet (bcf) was discovered by Bangladesh Petroleum Exploration and Production Company Limited (BAPEX). But, the distribution is yet to commence from this gas field. According to BAPEX, 40 bcf gas can be explored from this field. This indicates that the infrastructure linkages (utility connections) are positive and also conducive for future development. Narayanganj district has large amount of jute being produced in the region. In the region spreading over 11 districts such as Narayangaj, Narsingdi, Faridpur, Gopalganj, Gazipur, Manikganj, Jamalpur etc. total jute production was 32% (approx.) of the total jute production of Bangladesh (2013-14 figures). Some of the major and renowned jute mills in this area are: Adamjee Jute Mill, New Dhaka Jute Industries Limited, Uttara Jute and Fiber Mills Limited, Sarwar Jute Mills Limited etc. Also, in the Madaripur locality (in Dhaka division) coal is produced. Madaripur is 53 km (approx.) away from Narayanganj. Knitwear firms in Bangladesh are mainly located in Narayanganj district. Bangladesh now holds second position in the world in terms of knitwear export and is bandied about as the next possible champion in exporting knitwear products as China is gradually backing out of apparel business. Knitwear sector’s contribution in Bangladesh GDP was about 6.92% in FY 2013-14.71 Table 8-3 illustrates the knitwear export growth of Bangladesh. Table 8-3: Knitwear export growth of Bangladesh

Fiscal Year Value (in Million Growth Rate (in %) USD) 2003-04 2148.02 29.88 2004-05 2819.47 31.26 2005-06 3816.98 35.38 2006-07 4553.60 19.30 2007-08 5532.52 21.50 2008-09 6429.00 16.20 2009-10 6483.29 0.84 2010-11 9482.06 46.25 2011-12 9486.39 0.05 2012-13 10475.87 10.43 2013-14 12049.81 15.02 Source: BKMEA, http://www.bkmea.com/bangladesh_knitwear.html

There are several industries existing in this region. Sonargaon is renowned for the Moslin (a very thin fabric) saree production. Narayanganj is the hub for hosiery production in Bangladesh. Since the early decades of last century, several cotton mills, units of readymade garments, jute mills etc. were developed in Narayanganj.

71 Bangladesh Knitwear Manufacturers & Exporters Association, http://www.bkmea.com/bangladesh_knitwear.html

201 Draft Report- Initial site assessment for five economic zone sites ______

Narayanganj district has plenty of Small and Medium Scale industries like Textile mills, sugar mill, packaged drinking water, garment factories, Rice mills, Steel& Engineering, shipbuilding, cold storage, Aluminum industries besides having plenty of jute and sugar mills. Bashundhara cement factory, Ultra tech, Eastern cements are located in close proximity to the proposed EZ; several power plants are established in the district such as Meghna power plant (1000MW capacity), Summit group Power Plants (102 MW & a proposed plant of 55 MW capacity). This power plant (102 MW) is located adjacent to the Bashundhara cement factory. The proposed EZ could attract Small and Medium scale manufacturing industries subject to improvement in the existing physical and social infrastructure around the region. The proximity to river port shall enable the industrial units to easily transport goods to other parts of Bangladesh. This region has several industrial units from textile, jute, shipbuilding/ shipbreaking, cement and chemicals industry segments. Pertinent downstream and upstream industries (such as steel, RMG, jute etc.) may also be proposed for the Narayanganj EZ.

8.4.2. Panchagarh Initial site assessment has revealed that at present agro-based industry is the major industry in the district. Tea cultivation is predominant in this part of the country. Currently total land under tea cultivation in Panchagarh is 2255.54 acre. There are a total of 246 tea gardens, including 18 big estates, 13 medium-size and 215 small-scale gardens set up on over 1,815 acres (7.35 sq. km) of land in Tetulia and its surrounding areas. The tea cultivation provides employment to 3,000 to 4,000 local people (approx.). Some of the major tea gardens in this area are: Aga Tea Estate, Kartoa Tea Garden, Kazi & Kazi Tea Garden, Dahuk Tea Garden, Mainaguri Tea Garden etc. Currently there are a total of three tea processing units in this district viz. (1) Organic factory of Kazi & Kazi Tea Estate, Tetulia; (2) Tetulia Tea Company Limited and (3) Factory of Kartoa Tea Garden. Kazi & Kazi Tea Estate (KKTE) at Tetulia has earned reputation in both national and international markets by producing, processing and marketing the famous and most popular Kazi & Kazi Organic Tea. Also, Panchagarh has one potato based food processing company Bombay Sweets Company Ltd. (BSCL). The first industry that was established in this district was Panchagarh Sugar Mill (established in the year 1969). It is a complete government owned unit and spread over an area of 198.46 acre of land. The capacity of the sugar mill is 10,160 MT and a total of 810 workers are employed in the unit. In addition to the Panchagarh Sugar Mills Ltd, Bombay chips factory is located in the vicinity of the proposed EZ. Gem Jute Limited (high-quality, organic, biodegradable Jute products), Gemcon Ltd (SPC electric poles) and Marshall Distillery (Production of rectified spirit and dine chard spirit) are the manufacturing units that exist in this District. The district has 248 rice mills in which 84 rice mills are located in Debiganj. Apart from rice mills, sugar mills and Tea Estates, the district has Jute mills as well. Some of the key crops produced in the region are listed in the Table 8-4. It can be observed that Potato and Sugarcane are produce in the district with high productivity in terms of land utilization. Table 8-4: Key crops produced in Panchagarh

Crops Production (Metric ton) Production Area (Acres) Rice 393,505 234,541 Potato 95,593 19,674 Sugarcane 77,120 11,779 Wheat 45,696 42,642 Jute 29,715 22,265 Maize 13,578 5,976 Tea 1421 3,500 Source: District Website, Panchagarh

202 Draft Report- Initial site assessment for five economic zone sites ______

The major objective of economic zone development is to increase the trade and to facilitate cross-border interaction. The location of the proposed EZ in Panchagarh is attractive as it is in the proximity to India, Nepal and Bhutan. There is a Land Custom Station – Banglabandha located at 63 kms from the Panchagarh district headquarters. The LCS is situated at only 7km from New Jalpaiguri and Shillguri on the Indian site, which are the major towns in the northern part of the state of West Bengal and which are crucial junctions for connectivity to India’s north east and beyond to Bhutan and Nepal. The Banglabandh road leading to the LCS provides an important trade link with Bhutan, Nepal and India. Phulbari is the corresponding LCS on the Indian side. At present different goods such as fertilizer, jute ,medical equipment, plastic material, readymade garments, electrical goods, textile, computer and parts, machinery, chemicals, tea, pulses, rice, onion, apple, marble, slab, live animals and miscellaneous are exported and imported through this LCS Trade through the LCS has increased from 112,081 metric tons in 2010-11, to 530,213 metric tons in 2013-14. Moreover, on 15th June, 2015, the BBIN (Bangladesh, Bhutan, India and Nepal) group of countries signed a sub-regional Motor Vehicles Agreement (MVA) with the objective of enabling a seamless and easy movement of cargo across their borders. The MVA will enable Bangladeshi products to access not only the Indian markets but also markets in Bhutan and Nepal. The presence of well-functioning LCS will further facilitate the trade among the countries. Also the Asian highway 2 runs through Panchagarh connecting Dhaka to Banglabandha at India border via Panchangarh. The stretch through Panchagarh is yet to be developed. Once developed it will greatly improve the connectivity of Panchagarh and will enable seamless movement of goods from Panchagarh to major markets in Bangladesh such as Dhaka and also to markets to India and beyond to Bhutan and Nepal Owing to the recent MVA among BBIN countries, upcoming Asian highway 2 and the presence of Banglabandha LCS which is 7 kms away from major Indian towns, an economic zone at the border district of Panchagarh stands to gain significantly. 8.4.3. Anowara-2 Anowara falls in the Chittagong division. The prominent industrial sectors in Chittagong are ready- made garments, textile related industries, Leather and Footwear, Pharmaceuticals, Ship building, Plastics and Ship Building. Around 23% of total manufacturing units of Bangladesh are located in Chittagong. Around two-thirds of the 3000 plastic units are in Chittagong/Dhaka region. All the industries in this region have been developed because of the Chittagong Port, which is the largest port in Bangladesh. Approximately 90% of international trade in Bangladesh is facilitated because of Chittagong sea-port and hence this district is the industrial hub of Bangladesh. Apart from the sea-port, Chittagong district has one international airport as well. Approximately 75% of the export of Bangladesh happens through Chittagong and approximately 80% of the import of Bangladesh happens through Chittagong. Major Manufacturing Industries include Eastern Refinery, Pahartali Railway Workshops, Fouzi Flour mill, Jamuna Oil Company, Glaxo Welcome, Lever Brothers, KDS Garments etc. According to Census of Non-farm Economic Activities 2001-2003, approximately 194,000 establishments in the district are engaged in different types of non-farm activities. Fuel deposit of Padma Oil Company Ltd., Jamuna Oil Company Ltd., Meghna Oil Company Ltd., International Oil Tankers Ltd., Food Silo, Heidelberg cement Bangladesh Ltd., TSP Fertilizer Factory, LP Gas Ltd, Petro Bangla Chittagong Refinery, NGS Cement Ltd., Eastern Refinery Ltd. (ERL), CEPZ Area are located in Patenga Heavy Industrial Zone. On the other side of river Karnaphuli Fertilizer Company Limited (KAFCO), Anwara 1300 MW Power plant, Shikalbaha Power Station, National cement Factory Ltd., Super Petro Chemicals, Star Cement, and Chittagong Urea Fertilizer Factory (CUFL) are situated at Anowara.

203 Draft Report- Initial site assessment for five economic zone sites ______

Owing to its geographic location the proposed site at Anowara have certain inherent advantages as illustrated in Figure 8-12. Anowara is located at 12 km from the city of Chittagong – which is the 2nd largest manufacturing hub in Bangladesh after Dhaka. The city houses 28% of manufacturing enterprises and 30% of the employment in Bangladesh. Chittagong has remained the location of choice for heavy industries such as steel, cement, ship building, chemical production and oil. Figure 8-12: Economic advantage of proposed Anowara-2 EZ

Source: Google Maps, PwC Analysis

Presence of 2 Export Processing Zones (Chittagong and Karanphuli EPZs) with a cumulative investment of 430 million USD (as of 2011-12) in the vicinity is likely to have certain advantages for the proposed EZ in Anowara. The region in and around the site is already in the map of reputed investors, and the presence of such reputed investors in the region enhances the credibility of the investment climate in the region, and this will likely to help in attracting investors to the proposed site

These two EPZs in the district employed around 200,000 people as of 2011 -12. Given the precedence of local people already working in the EPZs, and the presence of technical institutes such as Bangladesh Institute of Technology, one Polytechnic Institute, and one Vocational Institute, it is likely that it will be easier to find human capital with desired levels of skills.

Moreover the presence of 2 EPZs in the vicinity provides an opportunity for the proposed EZ to develop upstream or downstream industries to the industries already present in the area.

The Chittagong EPZ among others house industries which produces mobile parts. So an upstream industry producing mobile handsets can be located in the proposed EZ at Anowara. The mobile handset market in Bangladesh is growing at a rate of 16% YoY72. Mobile handset shipment in Bangladesh touched 7.9 million units in the 3rd Quarter of 2014. This will only grow as there is ample opportunity as mobile penetration in the country is a low 38% as of 201073.

From a market point of view upstream industries which can use the steel scraps produced from the existing ship-breaking industries in Chittagong also has a scope.

From a raw material availability point of view, there is a scope for rubber based industry. Chittagong has ~ 7000 Acres of rubber plantations with a total latex yield of 3500 tons annually74. At present much of this are exported to foreign countries, where the latex is used to produce tires and

72 Cyber Media Research – CMR’s Bangladesh Quarterly Mobile Handsets Market Review 73 Asian Tiger Capital Partners – The Bangladesh Telecoms Sector: Challenges and Opportunities 74 JDI Consulting

204 Draft Report- Initial site assessment for five economic zone sites ______footwear/footwear parts. Given this circumstances, rubber based industry such as tyre industry can be promoted in the region itself and their final products can then be exported or sell in the local markets across the country. The Bangladesh tyre market is expected at a CAGR of 20% until 202075. It has been observed that Bangladesh lacks manufacturing setups for producing tires and the country generally imports from other countries such as China, India, Indonesia, Thailand and Japan. The expected growth in tire demand in the country and the absence of domestic manufacturer presents an opportunity for spawning new local players and also for foreign companies to set up localized manufacturing base in the country Chittagong houses the only large scale port in Bangladesh which handles over 80% of the country’s total trade. The port handled a cargo of ~ 43 million tons in 2012-13, out of which 5 million tons were export cargo76. The Port is located at ~ 17 km from Anowara. Availability of the sea port will facilitate export oriented industries. Figure 8-13 illustrates the strategic location of the proposed EZ at Anowara. Figure 8-13: Proximity of Anowara to Chittagong port

Source: Google Maps

Figure 8-14 presents the map of industrial landscape of Bangladesh showing the existing induatrial segments. The divisions where the three proposed EZs are located are also highlighted in the figure. Figure 8-14: Industrial landscape of Bangladesh

Panchagarh

Narayanganj Anowara-2

Source: PwC Analysis

75 TechSci Research – Bangladesh Tyre Market Forecast and Opportunities, 2020 76 Chittagong Port Authority

205 Draft Report- Initial site assessment for five economic zone sites ______8.5. Conclusion

Basis our preliminary analyses carried out in the former sections, a set of industrial segments have been shortlisted based on the analyses derived from global economic review, industrial landscape in Bangladesh and region specific economic and industrial assessment. This bucket list of industries is being selected based on the prominence of the industries as obtained in the three-tier analysis.

8.5.1. Narayanganj Since this region is the hub of jute, cotton and textile industrial segments in Bangladesh, hence development of industries based on jute, cotton and textile is an obvious conclusion. The region is one of the largest producers of jute and there are several small and medium units in this region which produce jute based products, hosiery items, Moslin sarees and readymade garments. Knitwear firms in Bangladesh are mainly located in Narayanganj district. Knitwear sector’s contribution in GDP was about 6.92% in FY 2013-14. Needless to say, Bangladesh is world leader in the production and export of textile and RMG. Narayanganj region is strategically located in the central part of Bangladesh and it has the proximity of a river port. Also, this region is in the vicinity of Dhaka. Through the river port and the road connectivity, all major cities of Bangladesh are easily accessible from this region. Thus, there is an untapped potential for development of warehousing facilities in this location.

In addition to the above, development of shipbuilding industries is also prospective in this location due to the proximity of river port. The proliferation of shipbuilding activities around the site of the proposed economic zone indicates that the economic environment and physical infrastructure is suitable for the same.

Several cement plants are located in the vicinity of the proposed proposed EZ. Limestone is the most important raw material for cement production and by means of the river port facility; limestone can be transported to the site from the northern part of Bangladesh (Sylhet division). Similarly other raw materials essential for development of industries producing construction materials can also be developed in this area. Hence, industries based on construction materials and cement is also possible in the location.

The rural economy of Narayanganj is dependent on agriculture. Out of the total 532,415 holdings of the district 22.44 % holdings are farms that produce HYV paddy, vegetables, spices, cash crops, pulses and others. Various fruits like banana, guava are grown and fish of different varieties abound in this district. Varieties of fishes are caught from rivers, channels, creeks and from paddy fields during rainy season. Hence, industries based on agro-processing, fish products and food processing is also possible in the location. Further, to cater to the requirements of machineries and equipment for the operation and process of agro and food processing, shipbuilding, construction materials etc. light engineering industry can also be conceived. The access to transportation network shall also cater to the logistics’ requirements for the functioning of the industries. 8.5.2. Panchagarh From the above discussion,n Food processing industry has emerged as one of the key industries to be focused on, based on parameters such as – Global trade trends, Global FDI trends, Global M&A trends, Productivity indices, and Employment indices. Given the fact, that there is already a precedence of successful agro-based industry in the district, food processing industry around crops such as potato, tea and sugarcane, among other industries can be consider, as necessary skills required and raw materials are available locally

Domestic tea consumption in Bangladesh has been increasing at an annual rate of 13 %77 signaling a strong domestic market for tea. As for sugar, the domestic annual sugar consumption as of

77 Food Processing Industries in Bangladesh, GAIN Report

206 Draft Report- Initial site assessment for five economic zone sites ______

2010 – 11 was 1.3 million metric tons, whereas the production was only 227,000 metric tons. This demand supply gap in the domestic market can be tap by development of a sugar processing industry. Moreover the Bangladesh Ministry of Commerce has granted permission to export more than 200,000 metric tons of sugar to countries in Europe, Africa as well as India. Given the close proximity of Panchagarh to India, a sugar processing industry with a focus on the export market of India can be located in Panchagarh.

Apart from agro-based industries the district has small scale and cottage industry. There are 860 small scale and cottage industry units in the district. There are 6 garment factories in the district employing 425 people.

Also, it is possible to develop light engineering industries in the vicinity to cater to the requirements of machineries and equipment for the agro and food processing, textile and RMG industries.

Textile is the top priority industry as per the Perspective Plan 2021, output indices and FDI trends. Given the availability of local skills for the industry, which can be deduce from the fact that there are 1041 tailor shops in the district employing 3269 people, 6 garment factories employing 425 people and weaving units employing around 1297 people78, textile is another industry which can be consider. 8.5.3. Anowara-2 Based on the parameters such as – global trade trends, global FDI trends, global M&A trends, domestic output index, domestic employment index, and domestic investment index; and as per the perspective plan 2021, sectors such as ready-made garments, textile and related industries, leather and footwear, pharmaceuticals, ship building; and plastic & chemicals can be consider for the proposed Anowara-2 EZ At present Bangladesh is the second largest exporter of garments in the world after China with a market share of 4.8%. China which is the market leader is facing rapidly increasing labor cost and investors are looking for new locations outside China. Textiles and related industries are 3rd in Bangladesh in terms of FDI investment. 8.5.4. Summary At a macro level, a market assessment has been carried out for the proposed three sites to understand the existing industries operating in close vicinity to the proposed sites and potential industries to develop in these sites. The list presented below is just indicative in nature and based on high level analysis carried out for the purpose of this report. The detailed feasibility of each of the industries for the proposed sites would be assessed during the Feasibility stage. Table 8-5 presents a snapshot of all the feasible industries which could be set up in the respective EZs. This is only indicative and the final conclusion shall depend on the feasibility analysis of aspects such as infrastructure, social, environmental etc. Table 8-5: Feasible Industries in the three sites

Narayanganj Panchagarh Anowara-2 Jute and Cotton mills Food processing Textile and related industries Textile and Readymade Agro processing RMG Garments (RMG) Warehousing Sugar processing Leather and footwear Shipbuilding Tea Pharmaceuticals Construction materials Textile and RMG Plastic & chemicals Agro, Food and Fish Light Engineering Ship building processing Light engineering Light Engineering

78 Bangladesh Bureau of Statistics

207 Draft Report- Initial site assessment for five economic zone sites ______

Sabrang EZ

208 Draft Report- Initial site assessment for five economic zone sites ______9. Sabrang Economic Zone

9.1. About Tourism Economic Zone

9.1.1. Concept The primary objective of Tourism Economic Zones is to take advantage of the natural tourism potential of a selected region by providing facilities and convenience to explore the same and thereby enhance tourism in the area and hence develop the tourism industry of the nation as an engine of socio-economic growth. From the examples available, Tourism Economic Zones can be generally described as an area with adequate facilities and infrastructure, located within convenient distances from and connected by adequate public transport to the tourist attractions of a region, offering alternate avenues of amusement and entertainment apart from the attractions the region offers; which provides all the means and facilitates tourists to explore the region and make the most of their stay. Formation of such tourism enclaves enables Government to form special regulations exclusively for the zone which are more tourism friendly thereby negating the effects of any domestic regulations which might have negative implications on the tourism of the region. Moreover such zones boost the tourism sector by facilitating in springing up of various tourisms related enterprises with the help of private sector investments and generate employment. 9.1.2. Components Tourism economic zones generally consist of all the facilities a tourist requires and alternate avenues of amusement and entertainments. Some of the facilities which a typical Tourism Economic Zone has are as follows . Integrated resort complex for accommodation . Sports and recreation centres . Convention and cultural facilities . Theme parks . Other special interest with foreign tourists as primary targets . Travel and Tour Services . Restaurants . Specialty shops . Theatres and other amusement centres Apart from the facilities and services it has to offer, the Tourism Economic Zones generally also consists of necessary infrastructures to support the delivery of desired services to the tourists. Some of the necessary infrastructures are . Internal and external connectivity . Utilities such as – power supply, water supply, sewerage and sanitation, solid waste management . Social infrastructure such as hospitals, police stations, etc. . Adequate security 9.1.3. Benefits of Tourism Economic Zone Tourism economic zones help in growing and sustaining the tourism industry of the region where they are located. It improves the attractiveness of the location by offering high standard facilities which in turn enables the tourists to enjoy the natural attractions the region has to offer, provide for alternate avenues for amusement

209 Draft Report- Initial site assessment for five economic zone sites ______and entertainment. The tourism economic zones provides tourist friendly regulations thereby improving the overall experience of the tourists. Development of a tourism economic zone has many advantages for the local communities including: . Improvement in the local infrastructure . Increased investments in the region . Increasing avenues for employment . Overall improvement in socio-economic condition of the region There have been global precedents of the advantage the tourism economic zones have to offer to the region as well as economy, as highlighted in the following case-study: 9.1.4. Case – Tourism Economic Zones in Philippines Tourism is a key element of the Philippine’s economy. Tourism contributes ~ 4.2% directly to the country’s GDP and contributes directly and indirectly together ~ 8.5% to the country’s GDP79 . Although the country was blessed with abundant natural resources, one of factors identified as a deterrent to the growth in tourism was “Lack of secondary attractions around primary destinations”.

Around 2005, major destinations such as Boracay, Palawan and Camiguin did not had much to offer other than the natural beauties, and were lacking in facilities such as accommodation, transports, restaurants, multi- payment avenues, etc. Moreover rapid and unorganized development of hotels were spoiling the natural beauty and polluting the environment. The Department of Tourism, Government of Philippines after recognizing the competitive disadvantage of its major tourist destinations, devised a strategy which included identification of priority destinations and developing the same through establishment of Tourism Economic Zones. Within those Tourism Zones – hotels, restaurants, resorts, other tourism related products and alternate avenues of amusement were been developed and requisite supporting infrastructure was put in place to run the Tourism Economic Zones. As of May 31, 2015 – Philippines has now has 19 Tourism Economic Zones, 20 development clusters covering 78 Tourism Development Areas. With such collective efforts, the tourism has been forecasted to increase by 5.6% CAGR in the next 10 years (as compared to historical ~4% CAGR)80. 9.1.5. Case – Tourism Economic Zones in Thailand Tourism is a major economic factor in Thailand kingdom, featuring Buddhist temples, exotic wildlife, and spectacular islands. The direct contribution of Travel & Tourism to GDP was 9.0% of total GDP and the total contribution of Travel & Tourism to GDP was 20.2% of GDP in 2013. In 2013, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 15.4% of total employment. 81

Thailand Government in 2014 launched a pilot project to set up six special economic zones in five provinces, namely Tak, Mukdahan, Sa Kaeo, Songkhla, and Trat. In the second phase, which is expected to begin in 2016, seven special economic zones would be established in another five provinces – Chiang Rai, Kanchanaburi, Nong Khai, Nakhon Phanom, and Narathiwat. Apart from serving as centers for agricultural production, these zones could be further developed into investment, business, and tourism centers, as well. With infrastructure linking all regions of the country, the special economic zones are expected to serve as a mechanism to distribute wealth and add value to Thai products. 82

All these proposed special economic zones have high potential in tourism sector. As per the Office of the National Economic and Social Development Board (NESDB), Government of Thailand is targeting Tourism

79 World Travel and Tourism Council. 80 Source: ADB and UNWTO.ORG (http://asiapacific.unwto.org/sites/all/files/pdf/philippines_5.pdf) 81 http://www.wttc.org/-/media/files/reports/economic%20impact%20research/country%20reports/thailand2014.pdf 82 http://www.thaigov.go.th/index.php?option=com_k2&view=item&id=92580:92580&Itemid=417&lang=en

210 Draft Report- Initial site assessment for five economic zone sites ______promotion service and activities to support tourism in these five provinces, namely Tak, Mukdahan, Sa Kaeo, Songkhla, and Trat.83

Figure 9-1: Special Economic Zones in Thailand

Source: Royal Thai Government, http://www.thaigov.go.th/index.php?option=com_k2&view=item&id=92580:92580&Itemid=417&lang=en 9.2. Market Assessment

9.2.1. Tourism industry in Bangladesh The country of Bangladesh is rich in natural sceneries of extensive beauty being blessed with serpentine rivers, lakes surrounded by green hills, Sundarbans – the world largest mangrove forest and its Royal Bengal Tiger, and the world’s longest natural sea beach. However with the all the potentials to flourish as an attractive tourist destinations, tourism haven’t took off in Bangladesh. In 2010, 3 lakhs foreign tourists visited out of the country, of which a significant 70% came for business and official purposes. This low growth of the sector and underutilization of the potential may be attributed to certain issues which have been identified by various local and international experts: . Lack of budgetary allocations for the development of the sector. In 2013 although Bangladesh ranked 12th and 15th in the world in terms of tourism sector’s direct contribution and total contribution (including induced and indirect contribution) to employment respectively, it ranked 83rd in terms of capital investment in the sector with only 0.5 billion USD84 of investment. . Scarcity of trained professionals to work in the sector . Lack of marketing efforts

83 http://www.nesdb.go.th/esdps/BROCHURE%20(ENG%2019-3- 58%20%E0%B9%80%E0%B8%A7%E0%B8%A5%E0%B8%B2%2023.45)%20%E0%B8%A1%E0%B8%B5%E0%B8%99%E0%B8%B2%E0 %B8%84%E0%B8%A1%202558.pdf 84 World Travel and Tourism Council

211 Draft Report- Initial site assessment for five economic zone sites ______

. Lack of infrastructure . Absence of alternate avenues of amusement and entertainment, night life, etc. Going forward, the Government of Bangladesh has cognizance of the above issues and is in the process of addressing them. It has set ambitious targets for the growth of tourism industry. Figure 9-2 illustrates that according to the World Travel and Tourism Council (WTTC) forecast, tourism industry will grow by 3.7% worldwide in 2015, and South Asia will see the highest travel and tourism growth at 6.9% year on year in 2015. Bangladesh appears to gain from this trend and it is expected that the sector’s direct contribution to the GDP will grow 6.1% CAGR till 2024 and will be 2.2% of the total GDP of the country. Figure 9-2: Direct contribution of travel and tourism to GDP (Constant 2013 Bangladeshi Taka)

500 435 400

300 240 210 220 175 185 190 180 185 195 200 140 160 100

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2024

Source: World Travel and Tourism Council

Further, the number of tourists are expected to increase from 0.4 million to 0.6 million by 2024, thereby expected to generate income of 15.5 billion BDT as shown in Figure 9-3.85

Figure 9-3: International Tourist traffic (thousands)

700 611 600 500 467 435 380 390 400 310 271 289 303 300 245 267 207 207 208 200 200 100 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2024

Source: World Travel and Tourism Council

Figure 9-4 shows that growth in the tourism sector will have larger implications on the country’s economy, with the multiplier impact of the sector expected to contribute more than 900 billion BDT to the country’s GDP by 2024 (i.e. 4.5 % of the total GDP, by direct, indirect and induced contribution)

85 World Travel and Tourism Council

212 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-4: Total contribution of travel and tourism to GDP (billion BDT)

1000 900 800 700 600 Induced 500 Indirect 400 Direct 300 200 100 0 2013 2014 2024

Source: World Travel and Tourism Council 9.3. Location Details and Salient Features

9.3.1. General Profile of the District Cox’s Bazaar Cox’s Bazar is a coastal district. Earlier this was a sub-division of Chittagong district and was upgraded to full district in 1984. Cox Bazaar is located at the fringe of the Bay of Bengal and boast of world’s longest unbroken sea-beach. It is surrounded on the north by Chittagong district, on the east by Bandarban district and Myanmar, on the south by the Bay of Bengal and on the west by the Bay of Bengal. It lies between 20º43' and 21º56' north latitudes and between 91º50' and 92º23' east longitudes.

Figure 9-5: Cox's Bazaar district

Source: Cox’s Bazaar District Website

The total area of the district is 2,491.85 sq. km out of which 940.58 sq. km is under forest land area.

213 Draft Report- Initial site assessment for five economic zone sites ______

The district consists of 8 upazilas, 71 unions, 177 mauzas, 989 villages, 39 wards (PSA), and 164 mahallas and 4 Municipalities. The upazilas of Cox Bazaar are Chakaria, Cox's Bazar Sadar, Kutubdia, Moheshkhali, Pekua, Ramu, Teknaf and Ukhia.

Demographics

According to the 2011 census, Cox’s Bazaar has a total population of 2,289,990 with a sex ratio of 104 males to one female. There are 415,954 households with an average household size of 5.5. The density of population stands at 919 per sq. km. Upzila wise population details as per District population and housing census 2011 is presented in the Table 9-1: Table 9-1: Upzila wise population details

Population census Name Status 1981 1991 2001 2011

Cox's Bazar District 1061000 1420000 1774000 2289000

Chakaria 317000 4009000 503000 474000

Cox's Bazar Sadar 186000 254000 348000 459000

Kutubdia 76000 95000 107000 125000 Upzila (Upazila) Moheshkhali 157000 220000 257000 321000

Pekua 0 0 0 172000

Ramu 127000 167000 203000 267000

Teknaf 106000 153000 201000 264000

Ukhia 92000 122000 155000 207000 Source: District census, BBS, 2011

The overall literacy rate for the district of Cox’s Bazaar as per the 2011 census stood at 39.3 %.

Agriculture

The economy of Cox’s Bazar is predominantly agricultural. Out of total 335,825 holdings of the district, 44.15% holdings are farms that produce varieties of crops, namely, local and HYV rice, wheat, vegetables, spices, cash crops, pulses, betel leaves and others. Main crops cultivated in this district are Paddy, potato, pulse, onion, garlic, ginger, betel leaf, betel nut, wheat, sugarcane, ground nut, tobacco, rubber and vegetables etc., Major portion of the agriculture land is utilized as temporary cropped area in this district. The land use pattern of the agriculture land for the year 2008 is presented in the figure 9-6”.

214 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-6: Land use pattern (2008)

6.06% Permanent cropped area 27.83% Temporary cropped area

0.69% Permanent fallow 65.43% area Others

Source: District Statistics 2011, Cox’s Bazaar, published by Bangladesh Bureau of Statistics (BBS)

Irrigation

Irrigated area classifications fall into two categories:

 Surface water: irrigation with main water sources being rivers, canals, beels, ponds, and other water bodies;  Underground water: irrigation with water lifted by shallow tube-wells, deep tubewell, and country traditional devices. Upzila wise the method of irrigation during the year 2010-11 is presented in the figure 9-7. Figure 9-7: Irrigation status as on 2010-11

40000

35000

e 30000 r c A

25000 Others 0 0 '

20000 Canal n i Swing basket

a 15000 e

r Doon

A 10000 Tube well 5000 Power pump

0

Source: District Statistics 2011, Cox’s Bazaar, published by Bangladesh Bureau of Statistics (BBS)

Industries

215 Draft Report- Initial site assessment for five economic zone sites ______

The region has presence of manufacturing sector (at SME level). There are around 473 rice mills, 38 salt mill, 64 ice factories, 145 flour mills, 31 fish processing industries, 74 saw mills and 18 printing presses. In addition, there are about 27 large scale industries in Cox Bazaar Region. The distribution of other industries across upazilas is shown in the Table 9-2.

Table 9-2: Distribution of other industries across upazilas

e

m r r r

n m r a y u l o r h e a i z t e e t r t f l c a r r a k a e i f

t t u

w y r s b v

Upazila k c y n n r r / o o r i

c t r e e r t c t u i e l i c c r r e s a G u a N o B o D H D H P

Chakaria 40 34 102 90 20 0 37 51

Cox's Bazar Sadar 8 29 180 60 19 1 10 41

Kutubdia 1 2 5 0 6 0 4 15

Moheshkhali 7 32 50 3 15 2 2 20

Pekua 4 9 0 2 0 0 3 32

Ramu 7 15 158 23 3 0 26 23

Teknaf 2 17 40 44 7 0 6 21

Ukhia 5 9 48 8 15 50 3 33

Total 74 147 583 230 85 53 91 236 Source: District Statistics 2011, Cox’s Bazaar, published by Bangladesh Bureau of Statistics (BBS)

Tourism in Cox’s Bazaar

Cox’s Bazaar is one the most popular tourist centres in the country. Located at the head of the world’s longest sea beach, the area is blessed with many tourist attractions. These includes – Aggmeda Khyang – a Buddhist monastery, Himchari picnic spot, Innani beach, Sonadia Island, Saint Martin Island a beautiful coral island 13kms from the headquarters and the Teknaf peninsula 80 km from the headquarters. Although there is no official record of Cox’s Bazaar contribution to the tourism traffic, it has been estimated from interactions with local officials that nearly 2 million86 people visit Cox’s Bazar in peak season from November to March, with Labonee beach being the mostly visited attracting 30,000 tourists daily. Most of the visitors are Bangladeshi nationals. The place already has many hotels and restaurants including high ends run by both private and Government.

Considering the macro economic conditions, government’s initiatives to promote tourism sector in the country and Cox’s Bazaar’s position as a leading tourist destination; three scenarios for possible tourist growth have been assumed for Cox Bazaar as illustrated in Figure 9-8.

86 Department of General and Continuing Education, North South University, Bangladesh and http://archive.thedailystar.net/beta2/news/the-great-potential-of-tourism/

216 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-8 – Cox Bazaar’s tourist projections (Domestic +Foreign)

4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 - 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Scenario 1 (avg CAGR of 4%) Scenario 1 (avg CAGR of 6%) Scenario 1 (avg CAGR of 7%)

Source: Primary interactions and PwC Analysis

To facilitate the above growth in tourism, it is imperative to have coordinated efforts in development of the relevant support infrastructure. Keeping this objective in mind, the proposed site at Sabraang has been assessed. 9.3.2. Reconfirmation of the proposed EZ 9.3.2.1. About the site location

The site is located in Teknaf Upzilla of Cox Bazaar district, at 86 km (approx.) from Cox’s Bazar district headquarters. The site is located just beside the Teknaf beach which is a part of the famous world’s longest beach of length 120 km, which runs from Cox’s Bazar to Teknaf. Teknaf is the south eastern most Upazila of Bangladesh. The total area of the Upazilla is 388.66 square kilometers, of which land area is about 227.6 sq. km, reserve forest area of about 159.80 sq. km, and riverine area of 1.36 sq. km. Accordingly to 2011 census, the total population in the Upazila is about 2,64,389 with ~ 46,328 households and a population density of 680 per sq. km. The Upazila has a poor literacy rate of only 26.7% according to 2011 census. Education rate, however, is gradually increasing in Teknaf area. According to the Upazila education office, about 50% enrollments are in Teknaf Upazila. According to BBS 2001 census in Teknaf Upazila literacy rate for both sexes is 26.7%, for male is 29.7% and for female is 23.6%. With increasing literacy rates, lower dependency of local population on agriculture and proximity of the location to various tourist destinations of Cox Bazaar, it is pertinent to be evaluated for establishment of a formal base to promote tourism in the region. Mouza map of proposed site as provided by the Upazila Nirbahi Officer (UNO) is presented in the figure 9-9. Mouza map superimposed on google map is presented in the figure 9-10. Reconfirmation of site details is presented in table 9-3.

217 Draft Report- Initial site assessment for five economic zone sites ______

Table 9-3: Reconfirmation of site details of Sabrang EZ

Parameters Details

Site co-ordinates 20° 46'22.50"N to 20° 48'43.81"N latitude, 92°

17'28.81"E to 92° 18'44.42E longitude

Site boundaries on East Earthen bound and Private land

Site boundaries on West Bay of Bengal

Site boundaries on North Private land

Site boundaries on South Private land

Total area of the site 1027 acres

Area in Sabrang mouza 1027 acres

Area in Hajigowa mouza 179.04 acres

Land tenure details Government owned & private land

Government Khas land 935 acres

Private land 92 acres

Expansion Potential of Proposed EZ area Basis initial site assessment, Proposed EZ area is surrounded by:  Bay of Bengal- West and South  Highway roads - South and East Private land is located on the North boundary, suggesting there might be a possibility of expansion. However, this is subjected to land survey and feasibility analysis. Existing land use Agriculture & Aquaculture

Land cost (per acre) BDT 18.50 lakhs

218 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-9: Mouza map (Sabrang EZ)

Source: UNO office

219 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-10: Mouza map superimposed on google map (Sabrang EZ)

Source: Mace Analysis

220 Draft Report- Initial site assessment for five economic zone sites ______9.3.2.2. Potential of the proposed site (from a tourism perspective)

The overall region is blessed with scenic beauty and has various tourist attractions and most of these are within close distance of the proposed site. The site is located beside a picturesque beach which is a part of the world’s longest beach with a length of 120 Kms running from Cox’s Bazaar to Sabraang. Owing to the upcoming Marine Drive, accessing the site will be convenient from the Cox’s bazar Airport (which is under consideration for an upgrade). Table 9-4 represents proximity of the site to various nearby tourist destinations: Table 9-4: Proximity of the site to various nearby tourist destinations

Distance from the proposed Places of Tourist Attraction site (km) Naf River 5 Saint Martin ~ 30 -40 Seabeach Adjacenttothesite Netong Hill 10 Jalia Deep 10 Mathinktop Nature Park Tourist Attraction 13 Source: Primary interactions and PwC Analysis

Saint Martin: An attractive tourism location Saint Martin Island (a coral island located at a distance of 30-40 km (approx.) away from the proposed EZ) is a tourist attraction. The island is accessed by ships/boats sailing from the Saint Martin Port. Saint Martin port was developed by United Group Ports in Public Private Partnership (PPP) mode. During peak seasons 7 ships run up and down between the island and the mainland carrying about 350 – 800 people (approx.) per day. Figure 9-11 and 9-12 illustrates the location of proposed Sabrang EZ and Saint Martin Island and areas in its vicinity on map. Basis interaction with local inhabitants, the tourist inflow to Saint Martin Island is significant throughout the year but has issues in connectivity. Due to connectivity issues, tourists prefer staying in Cox’s Bazar owing to the absence of good accommodation facility available near Saint Martin. Sabrang EZ, once developed can act as catalyst to facilitate tourists to easily travel to Saint Martin Island by catering to their short term accommodation requirements. Preliminary assessment suggests that River Cruise (and similar recreational facilities) could be proposed between Sabrang EZ and Saint Martin Island which in turm could facilitate seamless movement of tourists.

221 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-11: Location of proposed Sabrang EZ, Cox’s bazar and Saint Martin Island

Source: Google Map and PwC Analysis

222 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-12: Location of proposed Sabrang EZ, Saint Martin Island and its vicinity

Source: Google Map and PwC Analysis

The next section analyses the technical aspects of the site/location to further assess the suitability for establishing the zone. 9.3.2.3. Features

. Size of the proposed site – 1027 Acres . There are no households inside the site . There is a lake inside the site . The site is mostly flat . The site is 2 m from the mean sea level

223 Draft Report- Initial site assessment for five economic zone sites ______9.3.2.4. Land Acquisition

Figure 9-13 illustrates that 91% of the land in the proposed site is Government land and the same has already been handed over to BEZA. The remaining is private land and the land acquisition process is underway. Figure 9-13: Land ownership

Private Land 9%

Government land 91%

Source: Data obtained from UNO Office

9.3.2.5. Land use/Land cover

The land use pattern of the proposed EZ area falls under agriculture and aquaculture zone. It was observed during our site visit that 2 crops are being cultivated at the land parcel throughout the year. Existing land use pattern for 10 km radius is shown in Figure 9-14

9.3.2.6. Topography

Basis initial assessment, it was observed that the proposed EZ has a level difference of 0 to 6 m (approx.) with a gentle slope towards sea (East to West direction). According to the contour variation, the depth of landfilling across the project area shall vary. The natural slope of ground is advantageous for gravity network of water supply, sewer and storm water drains. Contour maps of the proposed EZ for 5km and 10 km radius are presented respectively in Figure 9-15 and9-16.

224 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-14: Existing land use pattern for 10 km radius (Sabrang EZ)

Source: Mace Analysis

225 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-15: Contour map of the proposed EZ for 5 km radius (Sabrang EZ)

Source: Mace Analysis

226 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-16: Contour map of the proposed EZ for 10 km radius (Sabrang EZ)

Source: Mace Analysis

227 Draft Report- Initial site assessment for five economic zone sites ______9.3.2.7. Physiography

The physiography of the region surrounding the proposed EZ falls in Chittagong coastal plain. Sediments near the hills are mainly silty, locally sandy, with clays more extensive in the coastal plain basin. The whole of the mainland area is subjected to flash floods. The Bangladesh physiography map is presented in Annexure C. According to the history of physiography of this region, the area around the proposed EZ falls in the low hill range and in the river valley. The area around proposed EZ is prone to high flood during the monsoon season and tidal influence affects the area around the proposed EZ.

9.3.2.8. Soil

Basis site visit, the top soil layer was found to be black cotton soil which needs to be replaced for road construction. This soil is not suitable for laying foundation for any structure. The dominant soil texture is sandy loam. The soil layer is moderate to strong acidic in character. The soil layer is highly leached and has a low natural fertility. Hills are under natural and plantation forests.

9.3.2.9. Geology

Proposed Sabraang EZ is situated in the hill tracts. Hill Tracts comprises Chittagong Hill Tracts and the Garo Hills of the former greater Mymensingh district which cover an area of around 15,000 sq km. The soil consists of hard red clay with a mixture of fine sand of the same color and nodules containing a large percentage of sesquioxides. The geological map of Bangladesh is shown in Annexure D.

9.3.2.10. Earthquake data

Sabrang area falls in the Seismic Zone 2 and the earthquake coefficient is 0.15 for this zone. The area under the proposed EZ falls under the medium seismic range zone; this factor needs to be taken into account while designing the structure of the proposed EZ.

Seismic zoning map of Bangladesh is presented in Annexure E.

9.3.2.11. Wind speed

The coastal areas in Bangladesh witness gentle winds blowing at relatively low speeds of 3-6 Km/hr. From March to May, violent thunderstorms, called northwesters, are observed. The detailed wind speeds need to be obtained for designing the high rise structures in the proposed EZ. The wind speed map for Bangladesh is presented in Annexure F.

9.3.2.12. Cyclones and storms

During the pre-monsoon period, squally winds of up to 130 km/h or occasionally more, often accompanied by thunderstorms may damage assets and crops. Cyclonic storms occurring in the Bay of Bengal in April-May and October-November rarely penetrate as far as Comilla, but may cause serious damage to crops, livestock, assets, and people when they do so. Monsoon rains are generally not stormy, but downpours of 50-75 mm per day are

228 Draft Report- Initial site assessment for five economic zone sites ______not uncommon and rainfall with more than 250mm per day is occasionally experienced. The coastal region of Bangladesh is prone to multi hazard threats such as cyclones, storm surges and floods, as well as earthquakes and above all, climate change. It is frequently visited by the cyclone-induced storm surge. Figure 9-17 show the coastal region of Bangladesh as well as the disaster prone areas in Bangladesh. Bangladesh very often becomes the landing ground of cyclones formed in the Bay of Bengal. This is because of the funnel shaped coast of the Bay of Bengal, Most of the damage occurs in the coastal regions of Khulna, Patuakhali, Barisal, Noakhali and Chittagong and the offshore islands of Bhola, Hatiya, Sandwip, Manpura, Kutubdia Maheshkhali, Nijhum Dwip, Urir Char and other newly formed islands. The coastal zone of Bangladesh is disaster prone. Areas affected by cyclones in Bangladesh are presented in the Appendix for Sabraang EZ. Major cyclones occurrence in Bangladesh is presented in the Table 9-5. Table 9-5: Major Cyclone occurrence in Bangladesh

Maximum wind speed Storm Surge height Date Death Toll (km/hr) (meters)

11 May 1965 161 3.7 – 7.6 19,279

15 December 1965 217 2.4-3.6 873

01 October 1966 139 6.0-6.7 850

12 November 1970 224 6.0-10.0 300,000

25 May 1985 154 3.0-4.6 11,069

29 April 1991 225 6.0-7.6 138,882

19 May 1997 232 3.1-4.6 155

15 November 223 3363 (SIDR) 2007

25 May (AILA) 2009 92 190 Source: BMD

The tracks of few major cyclones that hit Bangladesh are presented in the figure 9-17. Figure 9-17: Tracks of major cyclones crossed Bangladeshi coast during the period 1960 – 2007 with information on landfall date and maximum wind speed

Source: BMD

229 Draft Report- Initial site assessment for five economic zone sites ______9.4. Climate and Environmental Data Bangladesh enjoys generally a sub-tropical monsoon climate while there are six seasons in a year, three namely winter, summer, and monsoon are prominent. Winter which is quite pleasant begins in November and ends in February. In winter, there is not much fluctuation in temperature which ranges from minimum of 7°-13°C to maximum 24°C-31°C. The maximum temperature recorded in summer months is 37°C although in some places this occasionally rises up to 41°C or more. Monsoon starts in July and stays up to October. This period accounts for 80% of the total rainfall. Annual average temperature and rainfall varies from maximum 34.8°C to minimum 16.1°C. The annual average rainfall is 4285 mm. The district having been a coastal region often fall victim to sea storm, tidal bore, hurricane and cyclone. Sub-tropical climate (namely spring, monsoon, winter) prevails in Sabrang. Spring season is generally characterized by dry and hot weather with very minimal rainfall which covers March to April. Monsoon season is characterized by monsoon winds which bring moisture laden law temperature centers which covers May to October. Most of the rains fall with thunderstorms during this period. And winter is marked by cooler weather with the least amount of precipitation which covers November to February. Table 9-6: Temperature, Rainfall and Humidity during the year 2008-2011

Years Temperature (centigrade) Rainfall Humidity (%) (millimeter) Maximum Minimum

2008 41.1 14.6 3543 76

2009 33.9 15.6 3299 77

2010 33.9 15.3 2813 61.1

2011 27.0 14.9 4411 75.5 Source: BMD 9.4.1. Air Quality Ambient air quality measurements are essential:

 to provide a description of the existing conditions,  to provide a baseline against which changes can be measured and  to assist in the determination of potential impacts of the proposed EZ construction on air quality conditions During the field visit, no apparent problem with the ambient air quality was observed.

9.4.2. Floods and water logging Basis the interaction with the UNO Officials and local inhabitants, it was communicated to us that the flood level during monsoon season varies from 4 feet to 5 feet within the area of the proposed EZ.

9.4.3. Noise During the field visit, no apparent problem of noise was observed. This may be due to the fact that the area around the proposed EZ is located near to the sea beach and no industries are in close proximity to the proposed EZ.

230 Draft Report- Initial site assessment for five economic zone sites ______9.4.4. Land filling Basis the interaction with the UNO officials and local inhabitants, flood level during monsoon season varies from 4 feet to 5 feet depth inside the proposed EZ area.

To avoid inundation during monsoon season, minimum land filling of 0.6 m above the flood level is considered.

Based on the assumption, an average depth of 6 feet to 8 feet of land filling has been envisaged for the proposed EZ area. This figure is indicative and detailed topography survey needs to be carried out to calculate the exact quantity of land filling at the project area.

9.5. Infrastructure Linkages of the Proposed Site

9.5.1. Physical Infrastructure- Availability of Utility Connections 9.5.1.1. Power Availability for the proposed EZ

Teknaf substation (10 MW capacity) is located at a distance of 7 km (approx.) from the proposed EZ. Basis interaction with UNO officials, there is no electricity supply within 2 km of the proposed site. Basis interaction with the local inhabitants and the UNO officials, the demand of electricity in the region is 6.4 MW. Based on preliminary assessment, the supply of electricity is more than the demand and this excess electricity could be used for the project development activities of the proposed EZ. A new solar based power plant of capacity 20 MW has been proposed at Huyakong (located at a distance of 20km from the proposed EZ). Basis interaction with local inhabitants, the proposed solar power plant is expected to be built over an area of 700 Acres. At the moment the project is at site assessment stage. 9.5.1.2. Water Source

Groundwater is the major source of drinking water in the region. It is also an important source of irrigation water for the area. The project area has good groundwater potential, as groundwater recharge is not a problem. Basis interaction with the local inhabitants, there is no water supply system in the proposed EZ. The local inhabitants are dependent on tube well water for drinking purpose. Basis interaction with UNO officials, the water source is located in Huyakong union- I and water is being fed through gravity from this union up to Sabraang for a distance of 35 Km. Based on the interactions with local inhabitants, the ground water (Potable) is available at a depth of 120-150 feet from natural ground level. The water requirement for the proposed EZ can be met with the deep tube wells to be developed at suitable location. 9.5.1.3. Telecom

There are telecommunications lines present adjacent to the site area. At present, the internet services are provided by mobile companies such as Grameen, Banglalink and Robi in this region. Teknaf BTCL provides telecom and internet services in this region at Teknaf, which is at a distance of 7km from the proposed EZ. 9.5.1.4. Gas

At present there is no gas transmission / distribution network is available in this region. Utility map for the proposed EZ is illustrated in Figure 9-18 below.

231 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-18: Utility Map for proposed Sabrang EZ

Source: PwC Analysis and Google Eart

232 Draft Report- Initial site assessment for five economic zone sites ______9.5.2. Social Infrastructure 9.5.2.1. Institutions

Teknaf upzila has 4 government colleges, 17 non-government colleges, 6 government high schools, 107 non- government high schools, 8 junior high schools, 150 madrasas, 376 government primary schools, 235 non- government primary school, 22 NGO operated primary schools, 1 primary teacher's training institute. 9.5.2.2. Healthcare Facilities

Teknaf Upazila has one municipal hospital with 50 beds and serving a total number of 7270 indoor patients and 71,823 outdoor patients. Figure 9-19 illustrates the healthcare facilities available in Teknaf Upzila. Figure 9-19: Healthcare facilities In Teknaf Upazilla

Upazila Health Complex 01

Community Health Centre 01

Hospital (Non-govt.) / Clinic 6

Diagonsitic centre 07

Health centre - Family planning centre 3

Source: Data collected from UNO Office

9.5.2.3. Security

Adequate security structure is important to develop tourism in a particular place. The existing security facilities around the proposed EZ are described below:

. There are ~ 60 police personnel, 4 police outpost and 1 police station in the Teknaf Upazila . 850 personnel of Bangladesh Border Guard are stationed in the Teknaf Upazila . New Outpost of Bangladesh Border Guard is coming up within 1 km from the proposed site . There are other 8 state security agencies active in the area . Law and order situation is good according to official sources . There are Police station and Fire Station within 6 – 7 km of the site.

9.5.3. Connectivity Roadway is the most convenient means of accessing the EZ. The road distance between the center of the Teknaf town and the site is about 5 kms. The site is connected with Teknaf-Shahparirdwip Road (Z1099) which is the main access road to the proposed EZ. This zilla road is connected with Dhaka Chittagong high way (N1) near Teknaf. In order to provide better excess to the proposed EZ, the existing access road from Z1099 needs to be widened for a distance of 2.5 to 3.0 km.

233 Draft Report- Initial site assessment for five economic zone sites ______9.5.3.1. Road

. A highway (Teknaf – Shahparirdwip road (Z1009)) runs parallel and adjacent to the site; there are 4 approach roads from the existing highway to the site. The roads are mostly village roads. . A highway called the Marine Drive running parallel to the world’s longest beach from Cox’s Bazar to Bangladesh’s south eastern most tips are under construction. The highway runs adjacent and parallel to the site Table 9-7: Road Connectivity details

Width Scope of Approach Roads Length Expansion Noapara Kayabona Primary 1.45 Km 2 – 3 m Yes School Sabraang UP office to 1.4 km 2 – 3 m Yes Ashrayan Road Sabraang Sikdar Para Road 1.5 km 2 – 3 m Yes Sabraang Bazar – Sagar 2.10 km 2 – 3 m Yes Para Road Source: Primary Interaction with UNO Officials Overall road infrastructure in the Upazila: . Teknaf Upazila has ~ 513.14 kms of road of which a significant 358.26 roads are unmetaled road (Katcha Road), 80.49 kms metaled road and 74.39 semi-metaled road Figure 9-20 illustrates the Road Network for 10 km radius of proposed Sabrang EZ. 9.5.3.2. Railway

. The whole district of Cox’s Bazzar doesn’t possess any railway connectivity . Nearest existing railway station is Chittagong railway, which is 210 km (approx.). Rail connectivity from Chittagong to Dhaka and other parts of Bangladesh is discussed in Section 7.5.3.2. . A new railway station has been proposed at Gundun, which is 50 km (approx.) from the site. The proposal has already received approval from the Railway Ministry 9.5.3.3. Air

. Cox’s Bazaar domestic airport is at a distance of 96 km (approx.) from the proposed EZ. National Highway (N1) connects the proposed EZ to Teknaf and Teknaf-Shahparirdwip Road (Z1099) is the main access road to the proposed EZ. The connectivity from airport to the proposed EZ takes around 2- 2.5 hours (approx.) of travel time via road. . The Airport is being considered for an upgrade by the Civil Aviation and Tourism Ministry. . The objective is to develop the airport into an international airport by upgrading its runaway to enable large aircrafts coming from Europe, America and East Asia to land directly in Cox’s Bazaar. This is part of the larger agenda to attract foreign tourist to the area. Prime Minister of Bangladesh has inaugurated (Jul’ 2015) the commencement of construction works for International Airport in Cox’s Bazar. 9.5.3.4. Sea

The Port of Chittagong is the principal Port of Bangladesh. Proposed EZ is located at a about distance of 160 km from this port. A Sea port has been proposed at Cox’s Bazaar. The area for the proposed sea-port has been identified in Sonadia dip, Maheskhali and the proosed project is under study. 9.5.3.5. Inland Waterways

The primary transportation system of Bangladesh is its extensive inland waterways. Bangladesh Inland Water Transport Authority (BIWTA) is responsible for development, maintenance and control of inland water transport and of certain inland navigable waterways. Proposed EZ is well connected with the major ports of Bangladesh by water ways.

234 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-20: Road Network for 10 km radius (Sabrang EZ)

Source: MACE analys

235 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-21: Proposed Sabrang EZ and its vicinity

Source: Site lay-out plan collected from UNO Office and PwC Analysis

236 Draft Report- Initial site assessment for five economic zone sites ______

Figure 9-22 illustrates the connectivity of the proposed Economic Zones via Road, Rail and Airport mode of transportation. Figure 9-22: Connectivity of proposed Sabrang EZ

Source: Google Earth and PwC analysis 9.6. Resettlement issues 9.6.1. Social Impacts The project is expected to cause impacts arising from: (i) Loss of land (for existing land owners), (ii) Loss of homes/structures, (iii) Loss of Trees (iv) Loss of livelihood systems/ income opportunity (v) Loss of water bodies. The expected types of losses are described in the following sub-sections. 9.6.1.1. Loss of land

To establish the Sabrang EZ project, a total of 1027 acres of land has been demarcated by the authority. The land usage pattern for this area is as under:

237 Draft Report- Initial site assessment for five economic zone sites ______

 Agricultural land- 2.88acre (approx.)  Water logged area- Remaining land

Ownership pattern of the land is as follows:  Government- 935 acres  Private land – Rest

Figure 9-23: Land usage and ownership pattern

Land Usage pattern Land Ownership Pattern

0.28% 8.96%

agriculture Government land land waterlooged Private land 99.72% land 91.04%

As a result of the development of the project, long term lease holders (agricultural land leased out by government to the farmers for 99 years), and agricultural land owners will lose entire land holding. 9.6.1.2. Loss of structure

There won’t be any loss of structure in the proposed EZ. 9.6.1.3. Loss of trees

There are no major trees present in this project area. 9.6.1.4. Loss of income/livelihood

As a result of loss of agricultural land, the following would be directly affected:  Surrounding villagers  Sharecroppers,  Yearly lease holders (agricultural land)  Owners of agricultural assets (deep tube-wells and shallow tube-wells etc.)

Indirectly, seasonal agriculture labours and crop traders will be affected. Basis preliminary assessment and details shared by UNO office, Resettlement Action Plan (RAP) would need to be formulated for 50 numbers of households (approx.). These households could stand to lose their income/livelihood as a result of the development of the project. 9.6.1.5. Loss of waterbodies

The site is surrounded by backwater channels. There are no water bodies available within the proposed site. It was told that the surrounding water bodies will flood the site during monsoon.

238 Draft Report- Initial site assessment for five economic zone sites ______

9.6.2. Constraints and Mitigations The major constraints and mitigations are presented in the table 9-8. Table 9-8: constraints and mitigations (proposed Sabrang EZ)

Sl. Constraints Mitigations No. 1 Low lying land Land Filling needs to be undertaken for a depth of 8 to 10 feet. 2 Protection from sea and backwater From preliminary assessment, necessary protection to avoid the erosion by sea front may be undertaken. 3 Existing backwater canal From preliminary assessment, Necessary strengthening and bund protection may be carried out for avoiding flooding. 4 Loss of income/livelihood Basis preliminary assessment and details shared by UNO office, Resettlement Action Plan (RAP) would need to be formulated for 50 numbers of households (approx.). These households could stand to lose their income/livelihood as a result of the development of the project.

9.6.3. Block Cost Estimation for development of Offsite Infrastructure Based on preliminary assessment and available information (the schedule of rates published by the competent public authorities, prevailing market prices, in-house data bank and experience gained over similar / comparable development), the Block Cost estimate for the proposed offsite infrastructure components required for developing EZ has been calculated. Wherever applicable, we have considered all the possible options to arrive at the cost of development and the option of maximum development cost is considered to arrive at the total cost of the proposed offsite infrastructure development. This exercise has been carried out to indicate the approximate cost to be incurred for the development of EZ and it may vary to any extent during implementation stage depending upon the detailed technical information and new developments which may affect / contribute to this EZ. The techno-commercial viability of these options needs to be explored during feasibility stage. Table 9-9 depicts the broad level Block Cost estimates for development of the proposed Offsite infrastructure for Sabrang Tourism EZ. The figures provided are indicative and may vary depending on the master planning, feasibility analysis and the timeline of development activities. The Broad Block Cost for off-site infrastructure development for proposed Sabrang Tourism EZ is calculated as BDT 40,619 Lakh (approx.).

239 Draft Report- Initial site assessment for five economic zone sites ______

Table 9-9: Block Cost estimate for proposed Sabrang EZ

Sabrang - EZ Option -1 Option -2 Considered cost option (Maximum of the two options has been considered) S.No Description Qty Unit Amount Qty Unit Amount Qty Unit Amount in Lakh BDT in Lakh in Lakh BDT BDT 1 Site filling LS 25278 LS 25278 LS 25278 2 Compound wall 10810 Mtr 1027 10810 Mtr 1027 10810 Mtr 1027 3 Diaphragm wall 6800 Mtr 2720 6800 Mtr 2720 6800 Mtr 2720 4 Approach Road ( 3.45 Km 2487 3.45 Km 2487 3.45 Km 2487 10.50 mtr Carriage way ) 5 RCC Bridge 150 Mtr 1868 150 Mtr 1868 150 Mtr 1868 6 Electrical ( 103.95 MVA 4344 103.95 MVA 4344 103.95 MVA 4344 External connectivity- 7Km with MRSS) 7 Water supply ( 21.56 MLD 2895 21.56 MLD 2895 21.56 MLD 2895 Water from Bore well ) Total 40619 40619 40619

240 Draft Report- Initial site assessment for five economic zone sites ______9.7. Voice on the ground Further to the site visit for the initial assessment, private sector consultation was also carried out to understand the preliminary level demand assessment for the EZ under discussion to gauge the interest of unit investors from various sectors. Some of the major aspects which were discussed with the private investors to understand their interest are as mentioned below:  Location attractiveness  Availability of physical infrastructure  Availability of social infrastructure  Ease of availability of quality manpower  Marketability of the site  Support required from the Government

We discussed the salient features of the proposed EZ of the proposed Sabrang EZ in Cox’s Bazar with various investors in Bangladesh to understand how attractive this project is for them. Also, we tried to understand the macro level infrastructure requirements that any investor looks upon before making an investment decision in a tourism/ hospitality EZ. The results of the Private Sector consultation is summarised in the Table 9-10. Table 9-10: Summary of the results of Private Sector consultations

Sl. Parameters Discussions Excerpts from the No. interaction (if any) Infrastructure aspects that investors take into consideration while making investment decisions: 1 Connectivity of the site In hospitality and tourism industry, the “We should focus on by road, rail and airport location of the facility (viz. hotel/ resort/ developing the connectivity of entertainment facility) should be easily Bangladesh so that we can accessible by all modes of transportation so reach out to foreign tourists.” that both the domestic and foreign tourists -Director-Sales & Marketing, can easily reach the location. Westin, Dhaka

The proposed proposed EZ is well connected “Our major source of revenue to Dhaka and Chittagong (which are the is from the foreign travellers.” international gateways of Bangladesh) by all -Manager-Sales & Marketing, modes of transportation. Grand Oriental Hospitality Limited, Bangladesh However, the airport in Cox’s Bazar is a domestic airport and the proposed site is 5 “Undoubtedly Cox’s Bazar is a km away from the highway. great tourist spot.” -Executive-Sales & Marketing, Galesia Hotels & Resort Limited, Bangladesh 2 Similar units are The location of similar facilities in the nearby “We would prefer if already existing in the vicinity areas is an added advantage for the investors some similar facilities are of the proposed EZ as the marketing activities become easier. located in the facility as we Also, it is easy for the investors to learn from can learn from the challenges the problem areas and challenges faced by they are facing.” the first movers. -Executive-Sales & Marketing, There are several hotels located in Cox’s Galesia Hotels & Resort Bazar as it is a popular tourist spot. Limited, Bangladesh 3 Proximity to market Hospitality industry needs access to market “Access to market place is places nearby place, where from they can procure very important for us as we vegetables, meat, fish etc. food items on a need to procure raw food

241 Draft Report- Initial site assessment for five economic zone sites ______

daily basis. The quality of the raw food items items on a daily basis.” is very important as the hotel/ resort has to -Manager-Sales & Marketing, abide by the quality standards. Grand Oriental Hospitality The proposed Sabrang EZ has good access to Limited, Bangladesh nearby market places. Marketability of proposed Sabrang EZ: 4 Demand Assessment Hospitality and tourism industry mostly “The prospect of setting up caters to two broad types of consumer recreational facilities and segment viz. (1) Business Travellers and (2) other entertainment Leisure Travellers. The revenue source from arrangements apart from the latter is fluctuating in nature and is hotels/ resorts should be seasonal. thought of in this location ” According to investors, the existing hotels -Director-Sales & Marketing, and resorts in Cox’s Bazar do business for Westin, Dhaka approximately four months in a year and in the remaining period, the tourist inflow is “The business period in Cox’s minimal. Hence, the demand assessment Bazar is only 4 months in a before commencing operation is very year.” important to gauge profitability. -Manager-Sales & Marketing, Some of the investors also communicated Grand Oriental Hospitality that they won’t be interested in setting up Limited, Bangladesh units in the location as several hotels already exist in this location and the demand is also “Only during festive seasons known by the market players and the chance and during holidays, tourist for a sudden surge in the same is not inflow is attractive; it is expected. Hence, these investors felt that the difficult to break even during profitability is an issue in regard to the same. the lean period.” -Executive-Sales & Marketing, Galesia Hotels & Resort Limited, Bangladesh 5 Development of Most of the market leaders in the hospitality “The prospect of setting up tourism cluster industry of Bangladesh have properties in recreational facilities and Cox’s Bazar. However, they seem to be not other entertainment interested in setting up hotels/ resorts as arrangements apart from already the supply is more than the demand. hotels/ resorts should be thought of in this location.” They expressed opinion that Sabrang EZ -Director-Sales & Marketing, should be developed as a tourism cluster Westin, Dhaka instead of focussing on setting up hotels and resorts, development of entertainment and “The supply is more than the recreational facilities (such as water sports, demand for hotels/ resorts in convention centre, facilities for beach party Cox’s Bazar.” etc.) and other places of attraction in the -Manager-Sales & Marketing, surrounding (like Saint Martin island) Grand Oriental Hospitality should be conceived. Limited, Bangladesh 7 Political situation in The existing political situation in Bangladesh “The political situation should Bangladesh is not good and as a result of the same, the be stabilized in the country; trade, business and tourism have suffered a else tourism industry shall lot. suffer a lot.” During political turmoil, the inflow of -Director-Sales & Marketing, tourists decreases to a considerable extent Westin, Dhaka and hence the business suffers.

242 Draft Report- Initial site assessment for five economic zone sites ______

Support required from Government: 8 Obtaining license for According to the investors, it seems to be “The process of obtaining the commencement of very difficult and time consuming process to license for hotels is a hotel business obtain licenses for the commencement of problematic process and it hotel/ resort business in Bangladesh. takes long time.” -Manager-Sales & Marketing, According to the investors, Government Grand Oriental Hospitality should extend support so that the license can Limited, Bangladesh be obtained easily. 9 Obtaining liquor According to the investors, obtaining liquor “The process of obtaining license license is a lengthy process and the cost of liquor license is a lengthy and the same is very high. cost intensive process.” -Manager-Sales & Marketing, Government intervention is solicited on the Grand Oriental Hospitality same. Limited, Bangladesh 10 Ease in obtaining bank Since development of hotels/ resorts is a “Government should consider loan capital intensive process and hence bank arrangement of quick loans loans are required. for private investors in According to the investors, the government hospitality sector.” should facilitate the same in the tourism -Executive-Sales & Marketing, economic zones so that the private investors Galesia Hotels & Resort can arrange quick loan to commence the Limited, Bangladesh construction activities. 11 Proactive promotional Cox’s Bazar has very good tourism potential. “Incredible India Campaign activities However, According to the investors, no was excellent marketing promotional activities have been carried out initiative. We should think from the tourism department to market something on similar lines.” Cox’s Bazar to the global arena. -Manager-Sales & Marketing, Worth mentioning is the Incredible India Grand Oriental Hospitality campaign by Ministry of Tourism, India and Limited, Bangladesh the recent marketing campaign launched by the respective state governments in India. “The Government has to take According to the investors, similar initiatives up aggressive marketing should be taken up for Cox’s Bazar as well. activities to promote Cox’s Bazar to the global arena.” -Director-Sales & Marketing, Westin, Dhaka

9.8. Overall adequacy of the site to be developed as a Tourism EZ

In Table 9-11, the proposed EZ has been evaluated with respect to the key parameters which are required to establish Tourism industry.

243 Draft Report- Initial site assessment for five economic zone sites ______

Table 9-11: Overall Adequacy of the site

Sl. Parameters Illustration of the facilities present at the site Remarks/ Analysis No. 1(A) Connectivity . A highway (Teknaf – Shahparirdwip road (Z1009)) runs For any tourism industry to parallel and adjacent to the site; there are 4 approach develop the site must be near By Road to Teknaf roads from the existing highway to the site. The roads to the main city and the town and Cox’s Bazar are mostly village roads. connectivity via road should be excellent. . Z1009 connects Tenkaf to major cities of Bangladesh. The proposed EZ in Sabrang . A highway called the Marine Drive running parallel to has good road network to the world’s longest beach from Cox’s Bazar to Teknaf town and Cox’s Bazar. Bangladesh’s south eastern most tip is under construction. The highway runs adjacent and parallel to the site 1(B) Connectivity . The whole district of Cox’s Bazzar doesn’t possess any To cater to the domestic railway connectivity tourists, connectivity via rail is By Rail to major important. cities of Bangladesh . Nearest existing railway station is Chittagong railway, which is at a distance of 210 km (approx.) . A new railway station has been proposed at Gundun, which is 50 km (approx.) from the site. The proposal has already received approval from the Railway Ministry 1(C) Connectivity . Cox’s Bazaar domestic airport is at a distance of 96 km Airport with international (approx.) from the proposed EZ. National Highway (N1) connectivity is important to International connects the proposed EZ to Teknaf and Teknaf- cater to the foreign tourists. Airport in the Shahparirdwip Road (Z1099) is the main access road to proximity Once the international airport the proposed EZ. The connectivity from airport to the in Cox’s Bazar is functional, it proposed EZ takes around 2-2.5 hours of travel time via shall reduce the travel time for road. foreign tourists thereby

244 Draft Report- Initial site assessment for five economic zone sites ______

. The Airport is being considered for an upgrade by the making Cox’s Bazar and other Civil Aviation and Tourism Ministry. tourism destinations around the region easily accessible by . The objective is to develop the airport into an air. international airport by upgrading its runaway to enable large aircrafts coming from Europe, America and East Asia to land directly in Cox’s Bazaar. This is part of the larger agenda to attract foreign tourist to the area. Prime Minister of Bangladesh has inaugurated (Jul’ 2015) the commencement of construction works for International Airport in Cox’s Bazar. 2 Approach Road Basis initial site visit, there are four approach roads possible to The alignment for an approach connect the proposed EZ to z1009. road is essential for developing tourism EZ as it shall enable Basis preliminary assessment and interaction with UNO the access for the tourists to officials, all the four approach roads are village roads and national highways and expanding/ widening is not a problem. expressways which in turn would smoothen the vehicular movement. 3 Climate Cox’s Bazar is the longest sandy beach surrounded with scenic Proposed EZ is located in the beauty. coastal region with minimal rainfall and favourable Climate in Sabrang is sub-tropical in nature and minimal temperature throughout the rainfall is observed throughout the year. Temperature ranges year. between 34.8 degree centigrade and 16.1 degree centigrade throughout the year. As the district is a coastal region, it often falls victim to sea storm, tidal bore, hurricane and cyclone. 4 Availability of good Basis interaction with the local inhabitants, there is no water It is very important to have quality potable supply system in the proposed EZ. The local inhabitants are adequate and sustainable water dependent on tube well water for drinking purpose. Basis source of potable water for the interaction with UNO officials, the water source is located in development of tourism

245 Draft Report- Initial site assessment for five economic zone sites ______

Huyakong union- I and water is being fed through gravity from industry so that the tourists this union up to Sabraang for a distance of 35 Km. don’t face any scarcity of drinking water. Based on the interactions with local inhabitants, the ground water (Potable) is available at a depth of 120-150 feet from natural ground level. The water requirement for the proposed EZ can be met with the deep tube wells to be developed at suitable location. 5 Availability of Teknaf substation (10 MW capacity) is located at a distance of 7 24×7 uninterrupted electricity uninterrupted km (approx.) from the proposed EZ. Basis interaction with supply is a prerequisite for power supply UNO officials, there is no electricity supply within 2 km of the development of tourism proposed site. Basis interaction with the local inhabitants and industry. the UNO officials, the demand of electricity in the region is 6.4 For the initial phase of MW. Based on preliminary assessment, the supply of electricity development, power can be is more than the demand and this excess electricity could be sourced from the Teknaf used for the project development activities of the proposed EZ. substation (located at 7 km A new solar based power plant of capacity 20 MW has been from the proposed EZ). In the proposed at Huyakong (located at a distance of 20km from the future, the options of proposed EZ). Basis interaction with local inhabitants, the expanding the existing proposed solar power plant is expected to be built over an area capacity of the Teknaf of 700 Acres. At the moment the project is at site assessment substation could be explored stage. or a new substation could be established within the proposed EZ. 6 Availability of There is no accommodation facility available in the vicinity of Access to quality hotels and accommodation proposed EZ. resorts is necessary for facilities for tourism EZ. Hotels in Cox’s However there are good resorts, star hotels, and budget hotels tourists nearby Bazar are located at 45 km available in Cox’s bazaar and St martin island which are located areas away from the proposed EZ. at around 45 km and 20 km respectively from this site. Currently there is a dearth of accommodation for domestic

246 Draft Report- Initial site assessment for five economic zone sites ______

and foreign tourists near to the proposed EZ. Once the proposed EZ is developed, there shall be several hotels/ resorts functional within the EZ which would cater to the requirements of the tourists. 8 Medical facilities Teknaf Upazila has one municipal hospital with 50 beds serving Access to quality healthcare available in the a total number of 7270 indoor patients and 71,823 outdoor facilities is an integral part to nearby areas patients. tourism EZ. Other medical facilities available in this area are: 1 upzilla No international standard health complex, 1 community health centre, 6 non-govt. clinics, healthcare facility is available and 7 diagnostic centres. in the Teknaf district. The potential for medical tourism No international standard healthcare facility is available in the can be explored in the master entire Teknaf district. planning stage. 9 Air and water The site is free from air and water pollution and during site visit The location of any Tourism pollution at the no significant noise was observed. EZ should be free from air and site (prevailing water pollution. Pollution shall Basis interaction with local inhabitants, the incidence of water condition) lead to health hazards and and air pollution and water borne diseases is insignificant in non- conducive environment this region. for the tourists. From the initial site assessment, it appears that the site is free from all such pollution problems. 10 Landfilling The site is surrounded by seafront and backwater; the depth of Preliminary assessment requirement at the waterlogging is around 4-5 ft. during high tide period and syggests that Landfilling and

247 Draft Report- Initial site assessment for five economic zone sites ______

site monsoon season. strengthening of backwater bund and sea protection are to Landfilling of depth 8-10 feet needs to be undertaken. be undertaken for the As the area is prone to natural calamities, necessary proposed EZ, which means strengthening of backwater bund and sea protection measures some initial cost has to be need to be undertaken. borne before the commencement of the development works.

248 Draft Report- Initial site assessment for five economic zone sites ______

Dhaka IT EZ

249 Draft Report- Initial site assessment for five economic zone sites ______10. Dhaka IT Economic Zone

10.1. About IT Economic Zone

10.1.1. Concept Economic Zone (EZ) is a demarcated industrial complex where business and trade laws are different than that of the rest of the country. EZs can be of two types, viz. single sector/segment and multi- sector/segments. IT economic zones are typically single sector EZs where only IT/ ITES related industries operate. 10.1.2. Major Infrastructure Components in IT EZ Typically in an IT EZ, the following infrastructure requirements exist: Connectivity Requirements  Excellent connectivity (By road, rail and air- for both domestic and international)  Proximity to the major city  Proximity to all major modes of transportation for employees to commute  Well connected to airport Physical Infrastructure Requirements  Availability of uninterrupted 24×7 power supply  Excellent telecom connection  High speed internet access  Constant availability of potable and good quality drinking water  The affect(s) of earthquake and natural calamities should be bare minimum Social Infrastructure Requirements  Access to quality healthcare facilities  Access to international standard education facilities  Good quality residential facilities in the vicinity of the IT EZ  Source of entertainment and quality lifestyle in the nearby locality

10.1.3. IT/ ITES Industry in Bangladesh Bangladesh is shaping up as an attractive destination for IT/ ITES or ICT industry. Information Technology has been identified as a thrust sector for the economy of Bangladesh.

Technological Development and Trendy Youth…  Substantial growth in the usage of mobile phones  Youth Population- proactive in adopting new technologies  Agglomeration of tech savvy urban youth

Employment in IT/ ITES sector in Bangladesh  10,000+ IT professionals from Bangladesh are currently employed in large IT/ ITES companies like Microsoft, IBM, Intel, Cisco etc.  25,000+ IT engineers are working in different software and IT service companies  Every year over 78,000 technical and engineering students graduate from different universities and colleges in the country

250 Draft Report- Initial site assessment for five economic zone sites ______

According to the industry outlook provided by BASIS, the total estimated IT Industry Size in Bangladesh including export is over US$ 800 Million. Regarding the IT workforce in Bangladesh it says that the number of IT professionals working within the IT Industry is over 70,000 and outside the IT Industry (including business enterprises, govt. telecom, NGOs etc.) is over 35,000. There are in total more than 10,000 IT graduates passing every year. Table 10-1: Bangladesh IT Industry at a Glance

No. of Registered Software & ITES 1000+ Companies No. of BASIS Member Companies 705 (as of February 2014) Approx Revenue of Local Industry (incl. Export) (Does not include sales amount US $ 400 million of imported software) Approx Revenue from Software Tk. 790 crore Approx Revenue from ITES Tk. 1050 crore Export (2012 - 2013) US $ 101.63 Million No. of Exporting Companies* (Only registered companies. Does not include 160+ no. of freelancers) No. of Export Destination Countries 60+ Approx No. of Human Resource 70,000 + Employed in the Industry

Source: Industry Statistics, BASIS (Bangladesh Association of Software and Information Services)

Though the current size of Bangladesh IT Industry and software/ITES industry in particular is still lot smaller compared to the overall economy and the number of population (over 150 million), over the last few years the industry has grown considerably and is expected to grow at that rate for some time. It is estimated that during the last five years the average yearly growth rate of software & ITES industry has been over 40%. The growth has been driven by both good export trends in recent years as well as the growing IT automation demand in domestic market (local demand has been led by large automation projects by telecom, banking sector and export oriented garments/textile industry)87. Table 10-2: Export Trends in IT industry

Fiscal year Value of export Growth

2006-07 26.08 -3.44%

2007-08 24.09 -4.83%

2008-09 32.91 32.59%

2009-10 35.36 7.44%

2010-11 45.31 27.25%

2011-12 70.81 56.28%

2012-13 101.63 43.53%

Source: Industry Statistics, BASIS (Bangladesh Association of Software and Information Services)

87 Industry Statistics, BASIS (Bangladesh Association of Software and Information Services)

251 Draft Report- Initial site assessment for five economic zone sites ______

The government has taken several initiatives to fast track the growth; some of these are as outlined below:  Establishment of IT Village/ Software Technology Park in divisional level is top priority  Hi-Tech parks are being developed in different areas with a purpose to provide adequate infrastructure support services  Considering the hi-tech parks as SEZs to attract foreign and local investors  Bangladesh Association of Software and Information Services (BASIS) manage the ICT Incubator on behalf of Bangladesh Computer Council (BCC). The project offers office space for IT & ITES companies at low cost rent, uninterrupted power supply and high speed internet bandwidth  Attractive incentive schemes for setting up IT/ ITES industry in the country  Proliferation of EZs throughout the country where IT/ ITES units can obtain competitive tax incentives and other fiscal/ non-fiscal benefits

10.1.3.1. Digital Bangladesh Initiative

In such a scenario, where growth in IT industry is proliferated all across Bangladesh, Bangladesh Government has launched Digital Bangladesh initiative (Access to Information Programme being implemented by the Prime Minister’s Office and Making public services cheaper and responsive to the needs of the citizens). Some of the successful e-services programmes which are under the ambit of Digital Bangladesh initiative are:  National e-Service System  Union Digital Centre  District e-Service Centre  Multimedia Classroom  e-Health  Electronic Money Transfer System  Online registration of Joint Stock Companies

Lately, opportunities in the field of freelancing and outsourcing are in Bangladesh is rapidly growing, Bangladesh is rising as an attractive destination for outsourcing and e-services freelancing. The trend of ICT entrepreneurship has just started in the country and with time it is expected to magnify. Currently, 800 IT & non-voice ITES companies are now working and 200 are now working on a global basis for out sourcing. Overall, Bangladesh has 275,000 freelancers with an additional 30,000 new entrepreneurs joining every month. In ‘The 2014 A.T. Kearney Global Services Location Index’ Bangladesh joined the index for the first time ranked 26. Here in Bangladesh, most companies are homegrown and have developed export clients—for example, Bangladeshi company GraphicPeople provides graphic design services for companies across the world—but in the IT space there are notable examples of foreign captive centers such as that of Norwegian software company Vizrt. While traditional outsourcing remains relatively small, the country has become a huge hub for freelance work via online marketplaces such as oDesk. In fact, Bangladesh has become the number three country for contractors on oDesk in just three years, behind only the Philippines and India. It has quickly moved to the forefront of entrepreneurial activity thanks to its young, educated, and rapidly growing workforce eager for opportunity88. 10.1.3.2. Some major IT/ ITES companies operating in Bangladesh

In the following table 10-3, a glimpse of major IT/ ITES players have been captured which are currently operational in Bangladesh. The country accommodates both the IT and BPO service based industries; majority of the companies are homegrown and have developed export clients.

88 The 2014 A.T. Kearney Global Services Location Index, < http://www.basis.org.bd/resource/A%20Wealth%20of%20Choices.pdf>

252 Draft Report- Initial site assessment for five economic zone sites ______

Table 10-3: Major IT/ ITES players currently operational in Bangladesh

Local Companies International Companies  Grameen group,  Samsung  Globe Janakantha Shilpa Paribar,  Tech Mahindra  MGH Group,  Accenture  Data Soft Systems,  Ericsson  Habib Intelligent Software Limited,  PwC  Millennium Information Solution  KPMG Limited.,  Ernst & Young  Unicorn Software and Solutions,  Beyond Technologies etc. Source: Primary Interaction and PwC analysis 10.1.3.3. Bangladesh as a popular outsourcing destination

Since 2010, Gartner, a global technology research and advisory company, has placed Bangladesh on its list of ‘top 30 countries for offshore services’89. This indicates that the country is emerging as a hub for IT outsourcing activities. In the last few years, there has been a sudden increment in the number of call centers in the country. Figure 10-1 (Source: BTRC 2010) illustrates the same. Figure 10-1: Growth of Call Centers

Growth of Call Centers

60 40 40 19 20 7 0 2008 2009 2010

Source: BTRC 2010 10.1.3.4. Labour and Infrastructure cost advantage

The ability to operate at low cost is one of the prime value propositions for outsourcing, a major advantage possessed by Bangladesh. The country scores high in both labour and infrastructure costs, edging out comfortably over other Asian countries. The significant pool of young and entrepreneurial work force is available at a much lower wage other major outsourcing countries. Entry level wages in Bangladesh’s IT industry, are over 50% cheaper than other countries in Asia-Pacific like India, Philippines, Malaysia, Sri Lanka, Thailand and Vietnam. When compared to Eastern European countries like Poland, Hungary, Russia, Ukraine, Czech, Romania and Latin American countries like Brazil, Chile, Mexico, it is significantly cheaper by over 75-80%90. Figure 10-2 and 10-3 illustrates the labour and Infrastructure advantages of Bangladesh.

89 Gartner (September 2012), Gartner Says Alternative Offshore Locations for IT Services Are Emerging as Global Delivery Models Evolve, 90 The Daily Sun, (February 2, 2011), Bangladesh holds huge potential in IT sector http://www.dailysun.com/?view=details&type=daily_sun_news&pub_no=119&cat_id=1&menu_id=3&news_type _id=1&index=7&archiev=yes&arch_date=05-02-2011

253 Draft Report- Initial site assessment for five economic zone sites ______

Figure 10-2: Average salary cost of IT resources at entry level and 5 year experience, All values in ‘000 USD

Source: Payscale database, Sourcing Line, KPMG Analysis

In addition to the low wages, costs in Bangladesh are fairly low compared to destinations in Asia, particularly in terms of office spaces. The Rental for office space in Central Business Districts (CBD) of Dhaka –Gulshan and Motijheel is less than 20% of that in Delhi CBD and 40% of Manila CBD. In addition, there are plans develop dedicated technology parks, where the total cost of business would reduce further, as most IT infrastructure would be readily available91. Figure 10-3: Average office rental cost in CBD; all values in USD/sq. ft. per annum

Source: Payscale database, Sourcing Line, KPMG Analysis

91 Gartner Inc. (December 20, 2010), Top 30 Countries for Offshore Services in 2010-2011,

254 Draft Report- Initial site assessment for five economic zone sites ______

10.1.3.5. Availability of manpower

Over 1.3 million students enrol every year in the 80 private and public universities in Bangladesh. Annually there are almost 15,000 graduates in IT-related areas. 92Education Policy 2010 has provision for introducing ICT studies in primary and secondary levels and setting up of technical education institutions. The government proposes to enhance the use of IT enabled pedagogy in school education, and has already trained over 40,000 teachers as a part of this initiative. Presence of technology education institutes such as those run by BASIS and NIIT provide training in IT and IT related skills necessary for the industry. In the Global Competitiveness Report 2013-14 published by World Economic forum, Bangladesh ranks 98, 105 and 112 respectively for Quality of the higher education system, Quality of Management Education and Quality of Science & Math Education, higher than most of the other competing offshoring locations93. Bangladesh has a vibrant pool of young talented resources who are best-fit for employment in IT/ ITES industry. The country has adequate qualified English speaking resources to cater to the demand of the IT/ ITES industry. Some of the prominent educational institutions of the country which offer IT relted courses are:  Bangladesh University of Engineering and Technology (BUET)- 8 km away from Keraniganj, Dhaka  Dhaka University of Engineering and Technology (DUET)- 46 km away from Keraniganj, Dhaka  Jahangirnagar University- 32 km away from Keraniganj, Dhaka  Rajshahi University of Engineering and Technology (RUET),- 255 km away from Keraniganj, Dhaka  Shahjalal University of Science & Technology- 248 km away from Keraniganj, Dhaka

10.1.3.6. Key Performance Indicators to develop IT/ ITES Industry and the performance of the country

Some of the Key Performance Indictors (KPIs) related to development of IT/ ITES industry is listed in the following table and the performance of Bangladesh is recorded. This shows that how the country is performing as per the parameters. Table 10-4: Key Performance Indicators for Dhaka IT SEZ

Parameters Position of Bangladesh Low cost of doing business The cost of doing business in Bangladesh is very less. As per the 20th comparative survey of investment related costs in 29 major cities and regions in Asia by JETRO (2010), the cost of doing business in Dhaka (Bangladesh) is the lowest among 28 other major cities of Asia.

Adequate supply of quality The Population demography of Bangladesh is very attractive for manpower any industry. It has a relatively high young population base as over 34% of the population belongs to the age group of 15-34. As per the UN population database, Bangladesh has a young working population of more than 50 million people. IT/ ITES industry requires young manpower, Bangladesh is fit for that.

This vast talent pool in Bangladesh generates from more than 80 universities which produce more than 1.8 lakh graduates every year, out of which over 14,000 graduates and post graduates in IT related areas and over 5,000 specializes in software engineering.

92 Bangladesh Ministry of Finance (June 2013), Towards a Digital Bangladesh – update 2013 (http://mof.gov.bd/en/budget/ebook/digital_journey.pdf%3E) , 93 Ministry of Science and Technology, Government of the People’s Republic of Bangladesh, http://www.mosict.gov.bd/

255 Draft Report- Initial site assessment for five economic zone sites ______

Majority of this qualified manpower is English speaking.

Physical Connectivity Bangladesh is well connected to almost all major cities of the world by its international airports. From the Dhaka international airports, regular flights are available for major cities in India, Singapore, Thailand, Malaysia, Dubai etc. Also, the airport is Sylhet has daily flight to London.

The internal connectivity within Bangladesh via road, rail and air is also excellent.

IT/ Telecom Connectivity The country has excellent IT infrastructure. It has reliable Telecom facility with multiple levels of redundancy. It has very good cross border connectivity with India, Nepal and Bhutan through Regional Network. Bangladesh has established connectivity with India through International Terrestrial Cable (ITC) points. It is also connected with the global telecommunication carrier through SEA-ME-WE-4.

Overall, the IT connectivity in the country is quite good and fit for setting up IT/ ITES industry.

10.2. Location Details and Salient Features of the Proposed Site

10.2.1. General Profile of Dhaka District Geographical Location Dhaka district is located at the median of the country. Dhaka, the capital city stands on the bank of the river Buriganga. Dhaka district is surrounded by:

 North- Gazipur and Tangail districts,  East- Narayanganj district,  South- Munshinganj and Faridpur districts  West- Manikganj district Dhaka district lies between 23º53' and 24º06' North latitudes and between 90º01' and 90º37' East longitudes. The district spreads over an area of about 1463.60 sq. km of land area. The district consists of 6 upazilas. The upazilas are Dhaka metropolitan Dhamrai, Dohar, Keraniganj, Nawabganj and Savar. Proposed EZ is located in Keraniganj upzilla. Demographics Dhaka district has overall population of 1,20,43,977 as per Housing and Population census 2011. Upzilla wise population details as per census are presented in Table 10- 5.

Source: Dhaka District Website

256 Draft Report- Initial site assessment for five economic zone sites ______

Table 10-5: Upzilla wise population details of Dhaka District

Population census Name Status 1981 1991 2001 2011 Dhaka District 4153000 5840000 8511000 12044000 Dhaka metropolitan 2835000 4174000 6483000 8906000 Dhamrai 275000 313000 350000 413000

DoharSub district 149000 176000 191000 226000 Keraniganj (Upazila) 374000 530000 603000 794000 Nawabganj 250000 269000 297000 319000 Savar 270000 378000 587000 1386000

Climate Condition Main rivers flowing through this district are Padma, Kaliganga, Dhaleshwari, Ichamati, Shitalakshya, Buriganga. Annual highest average temperature 23.4°C and lowest 12.2°C; Annual total rain fall is 1777 mm. Main rivers are Padma, Burigangha, Dhaleswari and Turag.

10.2.2. Details of Keraniganj Upzilla and Reconfirmation of the Location of EZ Site

10.2.2.1. Fact Files of Keraniganj Upzilla

Keraniganj upzilla is located in the Southwestern part of Dhaka city and on the banks of Buriganga and Dhaleswari Rivers. Keraniganj is connected to Dhaka city by two bridges viz. Buriganga Bridge-1 and 2. It is located adjacent to Dhaka-Mawa Highway and Dhaka-Dohar Highway Keraniganj upzilla is surrounded by the Narayanganj Sadar and part of Louhajang Upzilla on the east; Sirajdikhan Upzilla on the south; Nababganj and Sighair Upzilla on the west. The total size of this upzilla is 166.86 sq km and it has a population of around 7.95 lakh (according to the data collected from the UNO Office).

10.2.2.2. Industrial Landscape in Keraniganj Upzilla

Keraniganj upzilla is home to numerous manufacturing industries such as Ceramic industry, beverage industry, press and publication, garments industry, foot ware, jute mills, textile mills, printing and dying factory, transformer industry, automobile industry, biscuit and bread factory, pharmaceutical industry, cosmetic industry, soap factory, rice mill, flour mill, ice factory, ball pen industry, polythene industry, saw mill, brick field, cold storage, welding, plant nursery, etc. BSCIC (Bangladesh Small and Cottage Industries Corporation) industrial complex, keraniganj is located adjacent to the proposed EZ which was established in the year 2007. BSCIC Industrial Complex, has several SME units and is located at a distance of 18 km from Dhaka zero point, just adjacent to Dhaleswari River and situated on a 25 acre government khas land parcel. Total plots in the industrial complex are 133 and around 2,000 labours are employed in the same. Presently around 32 units are under operation stage and around 91 industries units are under construction stage. This industrial estate complex consists of various industries such as leather, garments, textile, plastic, and steel etc. based industries.

257 Draft Report- Initial site assessment for five economic zone sites ______

10.2.2.3. Education in Keraniganj Upzilla

Education rate is rapidly increasing in Keraniganj area. According to the Upazila education office, about 80% enrolments are in Keraniganj Upazila. According to BBS 2001 census in Keraniganj Upazila literacy rate for both sexes is 58.5%, for male is 60.8% and for female is 66.9%. There are a total of 120 Govt. primary schools, 18 private primary schools, 4 junior high schools, 6 co- education colleges, 2 girls’ colleges, and 30 high schools in Keraniganj upzilla. Over 1.3 million students enroll every year in the 80 private and public universities in Bangladesh. Annually there are almost 15,000 graduates in IT-related areas. Some of the major educational institutions which offer IT related courses in Bangladesh which are located within 50 km distance from Keraniganj are:  Bangladesh University of Engineering and Technology (BUET)  Dhaka University of Engineering and Technology (DUET)  Jahangirnagar University etc.

10.2.2.4. Location Details of the Proposed EZ

The proposed Economic Zone falls in the Keraniganj upzilla. The Bangladesh government has a plan to integrate Keraniganj Upazila into Dhaka municipality in the near future, to accommodate the expansion of the capital. The mouza map of proposed EZ provided by UNO is shown in the figure 10-4. Mouza map superimposed on google map is presented in figure 10-5. Reconfirmation of the site details are shown further in the Table 10-6. Table 10-6: Reconfirmation of the site details

Parameters Details Site Co-ordinates 23° 39' 47.11"N to 23° 39' 57.72"N latitude, 90° 18' 28.95"E to 90° 19' 7.74"E longitude Site Boundaries East Agricultural land West BSCIC industrial estate North Agri land & Residential area South Dhaleswari River Total area of the site 105 acres Mouza Details 105 acres of land parcel has been identified in Sonakanda Mouza Land tenure details Government owned & private land Government Khas land 40.31Acres Private land 64.69 Acres Expansion Potential of Proposed EZ area Basis initial site assessment, Proposed EZ area is surrounded by:  BSCIC industrial estate - West  Dhaleswari River - South  Agri land & Residential area: North Private agriculture land is located on the East boundary, suggesting there might be a possibility of expansion. However, this is subjected to land survey and feasibility analysis. Existing land use Agriculture Land cost (per acre) BDT 250 lakhs Source: UNO Office

258 Draft Report- Initial site assessment for five economic zone sites ______

Figure 10-4: Mouza Map

Source: UNO office

259 Draft Report- Initial site assessment for five economic zone sites ______

Figure 10-5: Mouza map superimposed on google map (Dhaka IT EZ)

Source: MACE analysis

260 Draft Report- Initial site assessment for five economic zone sites ______

10.2.2.5. Potential of the proposed EZ

The proposed EZ is located at a distance of 18 km (approx.) from the Capital city of Bangladesh, Dhaka. It is situated adjacent to the Mohammudpur locality of Dhaka.

Some of the salient features of the proposed IT SEZ site are enlisted in Table 10-7.

Table 10-7: Salient features of the proposed Dhaka IT SEZ

Details Remarks 18 km from the zero-point of Dhaka. Keraniganj is adjacent to Distance from Dhaka City Mohammudpur locality of Dhaka city Size of the land parcel 105 acre Well connected by road. Connectivity to Dhaka City Any major location in Dhaka city is only one hour drive from the proposed proposed EZ. Distance from Dhaka 30 km. (approx.) Dhaka International Airport is around 2 hours’ international airport drive from the proposed EZ. Availability of telecom and IT Telecom and IT connectivity is available till the UNO Office of infrastructure facility Keraniganj. Availabilityofelectricity Availableincloseproximitytothesite. The site is in close proximity to Dhaka city and is well-connected to the rest of the country by road, rail and air. Hence, it has access to Availability of talent pool the talent pool of the capital city and the other major cities of Bangladesh.

The location and the vicinity of the proposed EZ are illustrated below:

Location of proposed site

Dhaka-Mawa HIghway

Dhaleswari River

261 Draft Report- Initial site assessment for five economic zone sites ______

The region is well-connected with Dhaka City and the rest of the country by all modes of transportation. R820 (Zinzira-Keraniganj-Nawabganj-Dohar-Srinagar Road) and N8 (Dhaka Mawa highway) connect Keraniganj with Dhaka and other major cities of Bangladesh.

10.2.2.6. Land use / land cover

The land use pattern of the proposed EZ area is falls under agriculture zone and aquaculture zone. It was observed during our site visit that 2 crops are being cultivated at the land parcel throughout the year. Existing land use pattern for 10 km radius around the proposed EZ is presented in Figure 10-6

10.2.2.7. Topography

Basis initial assessment, it was observed that the proposed EZ has a level difference of 6 m (approx.) with a gentle slope towards Dhaleshwari River. According to the contour variation, the depth of landfilling across the project area shall vary. The natural slope of ground is advantageous for gravity network of water supply, sewer and storm water drains. Contour maps of the proposed EZ for 5km and 10 km radius are presented respectively in Figure 10-7 and 10-8.

10.2.2.8. Physiography

The physiography of the region surrounding the proposed EZ falls in Old Meghna Estuarine floodplain. The landscape in this region is quite different from the landscape on river and tidal floodplains of Bangladesh. The Bangladesh physiography map is presented in Annexure C. According to the history of physiography of this region, the area around the proposed EZ falls in low hill range and in river valley. The area around proposed EZ is prone to high flood during the monsoon season.

10.2.2.9. Soil

Basis site visit, the top soil layer was found to be black cotton soil which needs to be replaced for road construction. This soil is not suitable for laying foundation for any structure. The dominant soil texture is sandy loam. The soil layer is acidic in character and the pH ranges from 5.5 to 6.8. The soil layer is naturally fertile and is recharged every year by fresh deposition by the floodwater.

10.2.2.10. Geology

Proposed EZ is located in the Meghna Flood Plain. The geological map of Bangladesh is shown in Annexure D. The soil strata is not suitable for laying the foundation for structures. Detailed soil investigation needs to be carried out during the structural design stage.

262 Draft Report- Initial site assessment for five economic zone sites ______

Figure 10-6: Existing land use pattern for 10 km radius (Dhaka IT EZ)

Source: MACE analysis

263 Draft Report- Initial site assessment for five economic zone sites ______

Figure 10-7: Contour map of the proposed EZ for 5 km radius (Dhaka IT EZ)

Source: MACE analysis

264 Draft Report- Initial site assessment for five economic zone sites ______

Figure 10-8: Contour map of the proposed EZ for 10 km radius (Dhaka IT EZ)

Source: MACE analysis

265 Draft Report- Initial site assessment for five economic zone sites ______

10.2.2.11. Earthquake data

Dhaka area falls in the Seismic Zone 2 and the earthquake coefficient is 0.15 for this zone. The area under the proposed EZ falls under the medium seismic range zone; this factor needs to be taken into account while designing the structure of the proposed EZ. Seismic zoning map of Bangladesh is presented in Annexure E.

10.2.2.12. Wind speed

Exhibit 5. - During winter, the northern and central areas in Bangladesh witness gentle winds blowing at relatively low speeds of 1-3 Km/hr. from the north & northwest. The detailed wind speeds need to be obtained for designing the high rise structures in the proposed EZ. The wind speed map for Bangladesh is presented in Annexure F. 10.2.2.13. Cyclones and storms

There is no significant cyclone and storms occurred in this area as well there is no river erosion in this region. The Cyclones affected areas and disaster prone areas of Bangladesh are shown in Annexure G and H respectively. The tracks of few major cyclones that hit Bangladesh are presented below in Figure10-9

Figure 10-9: Tracks of major cyclones crossed Bangladeshi coast during the period 1960- 2007 with information on landfall date and maximum wind speed

Source: BMD, Bangladesh

266 Draft Report- Initial site assessment for five economic zone sites ______10.3. Environment Section

10.3.1. Air quality Ambient air quality measurements are essential:

 to provide a description of the existing conditions,  to provide a baseline against which changes can be measured and  to assist in the determination of potential impacts of the proposed EZ construction on air quality conditions

During the field visit, no apparent problem with air quality was observed. This may be due to the fact that the area around the proposed EZ is located in a rural area with very few industries in the vicinity. The traffic flow in proximity to the proposed EZ is relatively less.

10.3.2. Floods and Water Logging Basis the interaction with the UNO Officials and local inhabitants, it was communicated to us that the flood level during monsoon season varies from 5 feet to 6 feet within the area of the proposed EZ.

10.3.3. Noise During the field visit, no apparent problem of noise was observed except in the area adjacent to the rice mill and highway.

10.3.4. Land filling Basis the interaction with the UNO officials and local inhabitants, flood level during monsoon season varies from 5 feet to 6 feet depth inside the proposed EZ area.

To avoid inundation during monsoon season, minimum land filling of 0.6 m above the flood level is considered.

Based on the assumption, an average depth of 6 feet to 10 feet of land filling has been envisaged for the proposed EZ area. This figure is indicative and detailed topography survey needs to be carried out to calculate the exact quantity of land filling at the project area.

267 Draft Report- Initial site assessment for five economic zone sites ______10.4. Infrastructure Linkages of the Proposed Site

10.4.1. Physical Infrastructure- Availability of Utility Connections 10.4.1.1. Power Availability for the proposed EZ

33/11 kV Sonakanda substation (with 20 MVA capacities) is located 3 km (approx.) from the proposed EZ. This substation has excess capacity which could be utilized for the initial phase. 150 MW Hasnebod power station is located 30 km from proposed EZ. 100mw power plant operated by M/s. Power pac is located just 3.5 km on the east side near Dhaka Mawa road. New 33/11 kv substation is also proposed adjacent to the site. Preliminary assessment suggests that possibility of drawing power from Hasnebod power station or PowerPac power plant could be explored. 10.4.1.2. Water Availability

Basis interaction with local inhabitants  Water line is available upto BSCIC industrial complex.  Local inhabitants are dependent on tube well water for drinking purpose. There are a total of 5,574 tube wells in Keraniganj Upzilla. Dhaleshwari and Buriganga are the main rivers situated in this region.  Ground water (Arsenic Free and Potable) is available at a depth of 150-200 feet from natural ground level. Preliminary assessment suggests that possibility of creating intake well and pumping station in Dhaleswari River to extract the surface water of the river could e explored or deep tube wells could also be developed within the project area to meet the demand.

10.4.1.3. Telecom and Internet Connectivity

Bangladesh's landline telecommunications system is owned by the state. The Bangladesh Telephone and Telegraph Board (BTTB) is the organization that controls telecommunications in the country. Besides BTTB, which operates in all urban areas, there are two private operators. Bangladesh Rural Telecom Authority and Sheba Telecommunications provide telephone services to rural areas. Digital telephone systems are being introduced into Bangladesh. VSAT technology is used to connect to the Internet in Bangladesh. Around 54 Internet Service Providers operate in the country. Satellite Internet in Bangladesh enables individuals to access the internet in remote areas through terrestrial means. In 2014, Bangladesh Submarine Cable Company Limited (BSCCL) had 200Gbps (88MIU-km) bandwidth available and Bangladesh was using only 32Gbps or 16% of it.94 Thus, Bangladesh Govt. had approved a proposal for exporting around half of the country’s internet bandwidth to the North Eastern states of India as Bangladesh was utilizing only 16% of its total bandwidth. Bangladesh has a total of 82 MIU-km of unused bandwidth and Govt. has given approval to BSCCL for renting or leasing of internet bandwidth. Hence, it can be concluded that the supply of internet bandwidth is far larger than the demand throughout the region. Utility map for the proposed EZ is illustrated in Figure 10-10 below.

94 Dhaka Tribune Article (http://www.dhakatribune.com/sci-amp-tech/2014/feb/15/govt-approves-export-half- internet-bandwidth)

268 Draft Report- Initial site assessment for five economic zone sites ______

Figure 10-10: Utility Map for proposed Dhaka IT EZ

Source: PwC Analysis and Google Earth 10.4.2. Social Infrastructure 10.4.2.1. Healthcare Facilities

One government hospital (Upzilla Health Complex) is available in Keraniganj upzila with 31 beds and a private hospital in the Pourashava of the upzilla. Available healthcare facilities In Keraniganjis presented in Table 10-8. Table 10-8: Healthcare facilities in Keraniganj upzila

Details Numbers Upazila Health Complex 01 Community Health Centre 01 Hospital (Non-govt.) / Clinic 16 Diagnostic centre 06 Health centre - Family planning centre 13 Source: Data collected from UNO Office

269 Draft Report- Initial site assessment for five economic zone sites ______

10.4.3. Connectivity 10.4.3.1. Road

Keraniganj is located 18 km away from the zero-point of Dhaka city. The road distance between the centre of Keraniganj upzilla and the proposed EZ is about 2 kms. Proposed EZ is located in between Zinzira-Keraniganj-Nawabganj-Dohar-Srinagar Road (R820) and Dhaka Mawa highway (N8). Road network for 10 km radius is presented in figure 10-11.

10.4.3.2. Approach Road

Zinzira-Keraniganj-Nawabganj-Dohar-Srinagar Road (R820) passes adjacent to the proposed EZ. Connecting road for a length of 750 m from R820 need to be widened and strengthened. Dhaka Mawa highway (N8) is accessible from the proposed EZ via Dhamsur-sonakanda road at a length of 5 km. Widening of this road will attract more resettlement issues as there are several market place(s), educational institution(s), religious places and residential areas located on both the sides of the road.

10.4.3.3. Airport

The proposed Dhaka IT EZ is located about 30 km North East of Hazrat Shahjalal International Airport in Dhaka. Dhaka Airport is the largest airport in the country. The travelling time from the proposed site to Dhaka Airport is 2 to 2.5 hours (approx.). Govt. of Bangladesh intends to construct a new international airport (Bangabandhu Sheikh Mujib International Airport) with a view to create a hub airport in close proximity to Dhaka and to meet the demand of future growth in aviation sector. Not only the air traffic in Bangladesh has increased, but also the cargo traffic has escalated and none of the airports in the country are currently equipped to handle the massive flow of trade and passengers. The location of this proposed airport is not yet finalized; however the new proposed airport shall be located in Dhaka division (within 50-70 km radius of the proposed EZ).

10.4.3.4. Rail

Dhaka is connected with the rail network to other parts of the country. The Dhaka railway station is located at a distance of 20km (approx.) from proposed EZ. The total railway line exists in Dhaka district is presented in Table 10-9 Table 10-9: Length of existing railway line in Dhaka district

Upzilla Length of railway line in km Dhaka Metropolitan 356 Dhamrai 0 Dohar 0 Keraniganj 0 Nawabganj 0 Savar 0 Total 356 Source: Bangladesh Railways

270 Draft Report- Initial site assessment for five economic zone sites ______

At present around 329 trains per day stops at Dhaka railway station for transporting passengers to Chittagong and Kolkata. The details of train running from Dhaka are presented in Table 10-10.

Table 10-10: Details of Trains running from Dhaka district

Train Class Number of trains Intercity 82 Mail, Express & Commuter 78 DEMU Commuter 32 Shuttle / Local 137 Total 329 Source: Dhaka District website Travel time from Dhaka to major locations of Bangladesh is summarised in the Table 10-11. Table 10-11: Approximate travel time to major locations from Dhaka station

Location Approximate Travel Time

Chittagong 5-6 hours

Jagannathganj Ghat 5 hours 30 minutes

Dinajpur 14 hours

Sylhet 6 hours 30 minutes

Noakhali 6 hours

Mymensingh 6 hours

Brahmman Baria 3 hours

Mohanganj 10 hours

Jamalpur 4 hours

10.4.3.5. Port and harbour connectivity

Chittagong port The Port of Chittagong is the principal Port of Bangladesh. Proposed EZ is located at a about distance of 276 km from this EZ. However, for development of IT/ ITES industry, proximity to port is not a prerequisite. Refer section 3.4.1 for further details about Chittagong port.

10.4.3.6. Water ways

The primary transportation system of Bangladesh is its extensive inland waterways. Bangladesh Inland Water Transport Authority (BIWTA) is responsible for development, maintenance and control of inland water transport and of certain inland navigable waterways. Proposed EZ site is well connected with the major ports of Bangladesh by inland water ways. However, this may not be applicable for an IT specific economic zone, though the same becomes very critical for a manufacturing oriented economic zone. The following figure illustrates the connectivity of the proposed Dhaka Economic Zone via Road, Rail and Airport modes of transportation.

271 Draft Report- Initial site assessment for five economic zone sites ______

Figure 10-11: Connectivity of proposed Dhaka IT EZ via Road, Rail and Air

Source: Google earth and PwC analysis

10.5. Resettlement issues

10.5.1. Social impacts The project is expected to cause impacts arising from: (i) Loss of land (for existing land owners), (ii) Loss of homes/structures, (iii) Loss of Trees (iv) Loss of livelihood systems/ income opportunity (v) Loss of water bodies (vi) Resettlement issues pertaining to approach road construction The expected types of losses are described in the following sub-sections. 10.5.1.1. Loss of land

To establish the proposed EZ, a total of 105 acres of land has been demarcated by the authority. The land usage pattern of the 105 acres is as under:  Residential land- 1.05 acre (approx.)  Agricultural land- Rest Ownership pattern of the land is as follows:  Government Land- 40.31 acres  Private Land- 64.69 acres

272 Draft Report- Initial site assessment for five economic zone sites ______

Figure 10-12: Land usage and ownership pattern (proposed Dhaka EZ)

Land Usage Pattern Land Ownership Pattern

1.00%

Residential Government land 38.39% Land Agricultural 61.61% Private 99.00 land Land %

As a result of the development of the project, residential land owners, long term lease holders (agricultural land leased out by government to the farmers for 99 years), and agricultural land owners will lose entire land holding. 10.5.1.2. Loss of structures

Due to the development of this project, 3-5 household structures will be directly affected. This includes the dwellings and associated infrastructure, which are to be re-located. All affected structures are ‘kutcha’ structures and the average size of the structures is 300 sq. ft. with a minimum size of 140 sq. ft. and a maximum size of 400 sq. ft. Apart from the household structure, one factory premise of approximately 60,000 sq. ft. area is under construction. During delineation, this can be excluded from the proposed EZ area in order to avoid resettlement issue. 10.5.1.3. Loss of trees

Trees exist on both sides of a kutcha road within the proposed EZ which can be retained during the master plan stage. Apart from this, there are no trees present in this project area. 10.5.1.4. Loss of income/livelihood

As a result of loss of agricultural land, the following would be directly affected:  Local farmers,  Sharecroppers,  Yearly lease holders (agricultural land)  Owners of agricultural assets (deep tube-wells and shallow tube-wells etc.) Indirectly, seasonal agriculture labours and crop traders will be affected. As per preliminary assessment carried out, 100 numbers of households (approx.) shall lose the income/ livelihood as a result of the development of the project. 10.5.1.5. Loss of water bodies

There is a storm water drainage crossing the site at one location along the boundary. The same can be diverted (if required) during the master plan stage. There are no other major water bodies present in the proposed EZ except this drainage.

273 Draft Report- Initial site assessment for five economic zone sites ______

10.5.1.6. Resettlement Issues pertaining to approach road construction

Two options are available for approach road construction:  Dhaka Mawa highway (N8): It is accessible from the proposed EZ via Dhamsur-sonakanda road at a length of 5 km. Widening of this road will attract more resettlement issues as there are several market place(s), educational institution(s), religious places and residential areas located on both the sides of the road.  Zinzira-Keraniganj-Nawabganj-Dohar-Srinagar Road (R820): It passes adjacent to the proposed EZ. Connecting road for a length of 750 m from R820 may be widened and strengthened for the purpose of approach road development. From preliminary assessment, construction of approach road via Dhaka-Mawa Highway (N8) shall attract significant resettlement. The latter option of construction of approach road via Zinzira- Keraniganj-Nawabganj-Dohar-Srinagar Road (R820) may not have similar resettlement issues.

10.5.2. Constraints and its mitigation The constraints and its mitigations are presented in the following Table 10-12. Table 10-12: Constraints and mitigation

Sl. Constraints Mitigation measures No. 1 Low lying land From preliminary assessment, landfilling of depth 6-10 feet needs to be undertaken 2 Existing storm water drain To be diverted along the boundary 3 Residential units Basis preliminary assessment, 3-5 kutcha structures may be relocated 4 Factory building Basis preliminary assessment, the factory building may be excluded from the proposed EZ area during preparation of master plan 5 Loss of Trees Trees existing along the kutcha road in the site may be retained during the preparation of master plan 6 Loss of income/livelihood Basis preliminary assessment, Resettlement Action Plan (RAP) needs to be formulated as 100 numbers of households (approx.) shall lose the income/livelihood as a result of the development of the project. 7 Resttlement issues pertaining to From preliminary assessment, construction of approach road construction approach road via Dhaka-Mawa Highway (N8) shall attract significant resettlement. The other option of construction of approach road via Zinzira-Keraniganj-Nawabganj-Dohar-Srinagar Road (R820) may not have similar resettlement issues.

274 Draft Report- Initial site assessment for five economic zone sites ______

10.5.3. Block Cost Estimation for development of Offsite Infrastructure Based on preliminary assessment and available information (the schedule of rates published by the competent public authorities, prevailing market prices, in-house data bank and experience gained over similar / comparable development), the Block Cost estimate for the proposed offsite infrastructure components required for developing EZ has been calculated. Wherever applicable, we have considered all the possible options to arrive at the cost of development and the option of maximum development cost is considered to arrive at the total cost of the proposed offsite infrastructure development. This exercise has been carried out to indicate the approximate cost to be incurred for the development of EZ and it may vary to any extent during implementation stage depending upon the detailed technical information and new developments which may affect / contribute to this EZ. The techno-commercial viability of these options needs to be explored during feasibility stage. Table 10-13 depicts the broad level Block Cost estimates for development of the proposed Offsite infrastructure for Dhaka IT EZ. The figures provided are indicative and may vary depending on the master planning, feasibility analysis and the timeline of development activities. The Broad Block Cost for off-site infrastructure development for proposed Dhaka IT EZ is calculated as BDT 10,352 Lakh (approx.).

275 Draft Report- Initial site assessment for five economic zone sites ______

Table 10-13: Block Cost estimate for proposed Dhaka IT EZ

Dhaka IT - EZ

Option -1 Option -2 Considered cost option (Maximum of the two options has been considered)

S.No Description Qty Unit Amount in Qty Unit Amount in Qty Unit Amount in Lakh BDT Lakh BDT Lakh BDT

1 Site filling LS 2955 LS 2955 LS 2955

2 Compound wall 2880 Mtr 274 2880 Mtr 274 2880 Mtr 274

3 Diaphragm wall 800 Mtr 320 800 Mtr 320 800 Mtr 320

4 Approach Road ( 0.75 Km 541 10.50 mtr Carriage way )

5 Approach Road ( 5 Km 3605 5 Km 3605 10.50 mtr Carriage way ) From Dhaka Mawa Road

6 Electrical ( External 38.26 MVA 1528 38.26 MVA 1528 38.26 MVA 1528 connectivity- 3Km with MRSS)

7 Water supply ( 2.20 MLD 1670 2.20 MLD 1670 Water Intake from River )

8 Water supply ( 2.20 MLD 503 Water from Bore well Pipe line length 5Km & Bore well 2 Nos )

Total 7287 9185 10352

276 Draft Report- Initial site assessment for five economic zone sites ______10.6. Voice on the Ground

10.6.1. Stakeholder consultation The team met and consulted the following stakeholders listed in Table 10-14 to obtain the first hand information about the site Table 10-14: List of stakeholder details

Name Description Phone number Mr. Abul Bashar Md. UNO, Keranaiganj Upazilla Fakhruzzaman Mr. Saidir Rahman Bangladesh Telecommunication Mob:+8801550151306 limited Mr. Ali, Department of Public Health Mob:+8801716807030 Engineering Mr. Rashedul Islam AC, Land Mob:+880916583351 Mr. Tanvir Azin LAO, District Administration Mob:+8801713271768 Ms. Sharmisultana LAO, District Administration Mob:+8801733672267 Mr. Abdur Rahaman AGM, Rural Electricity Board Mob:+8801769400417 Mr. Satyajit Manager -TITAS Gas Mob:+8801939921164 Mr. Md.Tazul Islam BSCIC

All the discussions with the above mentioned Govt. officials and the local industries are captured in this report. 10.6.2. Consultation with Private Sector Further to the site visit for the initial assessment, private sector consultation was also carried out to understand preliminary level demand assessment for the IT SEZ under discussion to gauge the interest of unit investors related to IT/ ITES and ICT sector. Some of the major aspects which were discussed with the private investors to understand their interest are as mentioned below:

 Location attractiveness  Availability of physical infrastructure  Availability of social infrastructure  Ease of availability of quality manpower  Marketability of the site  Support required from the Government

We discussed the salient features of the proposed EZ of the proposed Dhaka IT EZ with various IT/ ITES/ ICT investors in Bangladesh and outside to understand how attractive this project is for them. Also, we tried to understand the macro level infrastructure requirements that one IT/ ITES investor looks upon before making an investment decision. The results of the Private Sector consultation is summarised in the table 10-15.

277 Draft Report- Initial site assessment for five economic zone sites ______

Table 10-15: Summary of results of Private Sector consultation

Sl. Parameters Discussions Excerpts from the No. interaction (if any) Infrastructure aspects that investors take into consideration while making investment decisions: 1 Connectivity of the According to the investors, the IT SEZ “We look for excellent site site should be located in the proximity of connectivity while deciding the city. The connectivity by road should if a location is fit or not for be excellent and also the access to development of IT/ ITES airport is important as their clients and industry” employees keep on travelling inside and -CMD, Flora Telecom, outside the country. Bangladesh 2 Proximity to the city The proposed EZ should be near to the “The proposed EZ should city so that the employees and clients be nearby to the city, can travel back after the work. because IT industry needs accessibility and better Also for foreign clients, access to connectivity” international standard facilities such as -Senior Sales Manager, stay, food, healthcare and entertainment Oracle India amenities are very important. 3 Pool of talented IT/ ITES industry runs on knowledge “IT industry runs on resources workers. Over and above infrastructure knowledge workers and requirements, the location of the we look for access to proposed EZ should be such so that quality manpower before quality human resources can be easily setting up units” accessible. -CMD, Flora Telecom, Bangladesh There should be reputed engineering and technology institutions in and around the location of the proposed EZ, which shall result in ease of supply of qualified manpower catering to the industry requirement. 4 Uninterrupted power The location should have 24×7 “24×7 power availability supply and telecom availability of power and there should be and excellent telecom/ connectivity facility of adequate power back-up. internet connectivity should be ensured before Telecom and internet connectivity are making any investment another major aspects that any location decision” poised to develop IT/ ITES industry -General Manager, IKF should possess. Technologies, India

Marketability of proposed Dhaka IT SEZ: 5 Location of the According to the investors, it seems that “I believe that Keraniganj proposed EZ the location of the proposed Keraniganj is an excellent location for IT SEZ project is attractive as it is very any IT unit to develop. It is near to the Dhaka city and hence all the near to Dhaka city and has infrastructure and amenities as access to all facilities. We

278 Draft Report- Initial site assessment for five economic zone sites ______

illustrated above are easily accessible. are really interested for this opportunity” -CMD, Flora Telecom, Bangladesh

6 Area of the proposed The area of the proposed EZ is 105 acre. “This project should be EZ The investors feel it is slightly on the rolled out in two phases to higher side for any IT SEZ project in ascertain quick possession Bangladesh and hence it should be by tenants ” segregated in two phases to facilitate -CMD, Flora Telecom, easy selling of office space to tenants. Bangladesh

Support required from Government: 7 SEZ status SEZ status granted for IT/ ICT “SEZ status is very industries is crucial as this shall allow important for any tenant the investors to be eligible for various operating in IT industry as benefits such as tax holiday, subsidy on it can save on taxes” investment etc. -Senior Sales Manager, Oracle India 8 Additional support According to the investors, the “The government should be required from local/ government should be proactive and proactive and should national government supportive when the development extend full cooperation to activities of the project commence. the investors.” -General Manager, IKF The investors should face less hassle and Technologies, India smooth transaction should be facilitated on behalf of the government so that the project takes off without any concern.

10.7. Overall Adequacy of the proposed EZ to Develop as IT Economic Zone

In the following table the site has been evaluated with respect to the key parameters which are required to establish IT industry.

279 Draft Report- Initial site assessment for five economic zone sites ______

Table 10-16: Overall adequacy of the proposed Dhaka IT EZ

Sl. Parameters Illustration of the facilities present at the site Remarks/ Analysis No. 1(A) Connectivity Keraniganj is located 18 km away from the zero-point of Dhaka For any IT/ ITES industry to develop, the site city. The road distance between the centre of Keraniganj upzilla must be near to the main city and the By Road to Dhaka city and and the proposed EZ is about 2 kms. Proposed EZ is located in connectivity via road should be excellent. other major cities of between Zinzira-Keraniganj-Nawabganj-Dohar-Srinagar Road Bangladesh The proposed proposed EZ in Keraniganj has (R820) and Dhaka Mawa highway (N8). good road network to Dhaka and other major At present around 329 trains per day stops at Dhaka railway cities of Bangladesh. station for transporting passengers to Chittagong and also to Kolkata (India). 1(B) Connectivity Dhaka is connected with the rail network to other parts of the Dhaka railway station is only 20 km from the country. proposed EZ thereby making the proposed EZ By Rail to Dhaka city and easily accessible to other parts of Bangladesh. other major cities of The Dhaka railway station is located at a distance of 20km Bangladesh (approx.) from proposed EZ. 1(C) Connectivity The proposed Dhaka IT EZ is located about 30 km North East of For IT/ ITES industry, the client and the Hazrat Shahjalal International Airport in Dhaka. Dhaka Airport is employees need to travel frequently; hence, the International Airport in the largest airport in the country. The travelling time from the proximity to international airport is very the proximity proposed site to Dhaka Airport is 2 to 2.5 hours (approx.). important. The proposed EZ is only 30 km from Dhaka international airport. Govt. of Bangladesh intends to construct a new international airport (Bangabandhu Sheikh Mujib International Airport) with a view to create a hub airport in close proximity to Dhaka and to meet the demand of future growth in aviation sector. Not only the air traffic in Bangladesh has increased, but also the cargo traffic has escalated and none of the airports in the country are currently equipped to handle the massive flow of trade and passengers. The location of this proposed airport is not yet finalized; however the new proposed airport shall be located in Dhaka division (within 50-70 km radius of the proposed EZ). 2 Approach Road Zinzira-Keraniganj-Nawabganj-Dohar-Srinagar Road (R820) The alignment for an approach road is essential passes adjacent to the proposed EZ. Connecting road for a length for developing an IT EZ as it shall enable the of 750 m from R820 need to be widened and strengthened. access for the employees to national highways and expressways which in turn would smoothen Dhaka Mawa highway (N8) is accessible from the proposed EZ via vehicular movement.

280 Draft Report- Initial site assessment for five economic zone sites ______

Dhamsur-sonakanda road at a length of 5 km. Widening of this Widening of approach road could attract road will attract more resettlement issues as there are several resettlement issues. market place(s), educational institution(s), religious places and residential areas located on both the sides of the road. 3 Climate Climate in Keraniganj is same as that of Dhaka city. During Favourable climate for foreign investors and summer it is hot and during monsoon, significant precipitation is clients to stay in this location. observed. Overall the climate in Dhaka is similar to the eastern part of India. 4 Availability of good Basis interaction with local inhabitants It is very important to have adequate and quality potable water sustainable source of potable water for the  Water line is available upto BSCIC industrial complex. development of IT/ ITES industry so that the  Local inhabitants are dependent on tube well water for employees don’t face any scarcity of drinking drinking purpose. There are a total of 5,574 tube wells in water. Keraniganj Upzilla. Dhaleshwari and Buriganga are the main rivers situated in this region. Potable water is available in close vicinity to the  Ground water (Arsenic Free and Potable) is available at a proposed EZ. depth of 150-200 feet from natural ground level. Preliminary assessment suggests that possibility of creating intake well and pumping station in Dhaleswari River to extract the surface water of the river could e explored or deep tube wells could also be developed within the project area to meet the demand. 5 Availability of 33/11 kV Sonakanda substation (with 20 MVA capacities) is 24×7 uninterrupted electricity supply is a uninterrupted power located 3 km (approx.) from the proposed EZ. This substation has prerequisite for development of any service supply excess capacity which could be utilized for the initial phase. 150 industry especially IT/ ITES. MW Hasnebod power station is located 30 km from proposed EZ. Since, there are multiple options to source the 100mw power plant operated by M/s. Power pac is located just 3.5 power supply to the proposed EZ, hence the km on the east side near Dhaka Mawa road. New 33/11 kv 24×7 uninterrupted electricity supply could be a substation is also proposed adjacent to the site. possibility. Preliminary assessment suggests that possibility of drawing power from Hasnebod power station or PowerPac power plant could be explored. 6 Telecom connectivity The high speed internet connectivity under the SASEC High speed and uninterrupted internet and and high speed internet Information highway project is available up to the UNO Office in telecom connectivity are the key factors for connectivity Keraniganj. Hence, arrangements (wire connection etc.) are to be establishing IT based industry. made to provide high speed uninterrupted internet connection to High-speed internet connectivity is available till the proposed EZ. the UNO Office of Keraniganj, which is only 2

281 Draft Report- Initial site assessment for five economic zone sites ______

km away from the proposed EZ; Hence, extending the line to the proposed EZ should Telecom facility is available in the BSCIC industrial complex not be a major challenge/constraint. which is adjacent to the proposed EZ. There are several private telecom service providers in the district. 7 Availability of good Keraniganj is an outskirt area of Dhaka Metropolitan, and hence Employees require access to good residential residential facility and international standard residential facility and quality lifestyle is facility in the vicinity of the IT EZ. At present quality lifestyle in the not available in the nearby areas of the proposed EZ. within 5 km radius of the proposed EZ, there nearby areas are no such amenities available. Planned Jhillmill township is planned in close proximity (approx 5 km) to the proposed EZ. Once operational, it is poised to provide Jhilmil Township is planned to cater to such good residential facility and quality lifestyle to the employees of requirements. the proposed EZ. Dhaka city is only 12 km (one hour drive from the project EZ) away from the proposed EZ and it has access to quality lifestyle and good residential facility. 8 Medical facilities One government hospital (Upzilla Health Complex) is available in For the client and the employees of the IT/ ITES available in the nearby Keraniganj upzila with 31 beds and a private hospital in the units, access to quality medical facilities is areas Pourashava (approx 6 km away from the proposed EZ). essential. Though there are some medical clinics in the area but, it doesn’t have any international The upzilla has 1 health complex, 1 community health centre, 16 standard hospital. non govt. medical clinics, 6 diagnostic centres and 13 family planning centres. Quality healthcare facility is available in Dhaka city which is near to the proposed EZ. Basis interaction with local inhabitants, no international standard hospital is proposed in the near future. 9 Air and water pollution The site is free from air and water pollution and no significant The location of any IT EZ should be free from at the site (prevailing noise was observed during the visit. air and water pollution. Pollution shall lead to condition) health hazards and non- conducive working The incidence of water and air pollution in the site is insignificant. environment for the employees. Also, the incidence of water borne diseases wasn’t recorded in the locality. From the initial site assessment, it appears that the site is free from all such pollution problems.

10 Landfilling requirement The site is located on the bank of Dhaleswari River and the depth Preliminary assessment suggests that at the site of waterlogging in the proposed EZ is around 5-6 ft during Landfilling may need to be undertaken for the

282 Draft Report- Initial site assessment for five economic zone sites ______

monsoon season. proposed EZ, which means some initial cost has to be borne before the commencement of the Landfilling of depth 6-10 feet needs to be undertaken. development works. 11 Availability of There are a total of 120 Govt. primary schools, 18 private primary IT/ ITES are knowledge industry and it requires educational institutions schools, 4 junior high schools, 6 co-education colleges, 2 girls’ adequate supply of quality manpower. in the nearby areas to colleges and 30 high schools in Keraniganj upzilla. Basis interaction with local inhabitants, no supply quality However, there are no international standard educational facilities international standard educational institutions manpower and technology institutions in this area. are proposed in this area. Dhaka is in close proximity to the proposed EZ. Quality manpower could be sourced from the educational institutions around Dhaka.

283 Draft Report- Initial site assessment for five economic zone sites ______

Ranking of the sites

284 Draft Report- Initial site assessment for five economic zone sites ______11.Ranking of the sites

Lastly, the report endeavours to relatively compare the sites on all the parameters discussed above. This endeavour, however, has been limited to three sites viz. Narayanganj, Panchagarh and Anowara as the remaining sites (viz. Dhaka IT EZ and Sabraang Tourism EZ) are not exactly comparable to the multiproduct zones across all the parameters95. 11.1. Relative scoring and their rationale These sites are ranked relatively to each other. This means, that if a site is better placed on a particular parameter vis-à-vis other sites, then highest marks (max marks assigned are 5) are allocated to it. The other sites are ranked relatively to this site. These ratings are qualitative as well as quantitative (where possible) in nature but as a principal, the assignments of ratings are based on a logical rationale. Table 11-1 summarizes the comparison of multi product EZs across different paramters:

Table 11-1: Summary of the comparisons of multi product EZs based on different parameters used for determining relative scoring

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters The proposed EZ is well Relative scoring for connected by road to the capital Narayanganj is 4 The proposed EZ is 5 km The proposed EZ is located city and other major cities of (approx.) away from the at a distance of 15 km Bangladesh. It is around 32 km Although the region is well Debiganj town. Asian Highway (approx.) from the away from Dhaka City. connected to commercial (AH2) is the major highway Chittagong town. Connectivity Preliminary assessment and urban hubs like Dhaka located in close proximity to the Proposed EZ is abutting (1) Connectivity Road to nearest suggests that some stretches of and Chittagong, the site itself propoed EZ. Boda – Domar via the Chittagong - Anowara- major city access road could be renovated has issues with the last mile Debiganj Upazilla Road (Z5003) Banshkhali highway for smooth passage of heavy connectivity. The existing connects the site with Asian (R170) which is the main vehicles along: (i) Madanpur- road faces constraints for highway (AH2). The length of access road to the Madanganj-Syedpur road, expansion. However, there is the Z5003 stretch is 2 km. proposed EZ. originating from Dhaka a possibility of alternative Chittagong highway and (ii) routes.

95 As an illustration, on connectivity parameter in case of Dhaka IT EZ, road and airport will have more weightage as compare to Inland waterways and railways. On the other hand, no preferencial weightage may be awarded to any mode of transportation in case of multi product EZs (Narayanganj, Panchagarh and Anowara). Similarly, Social infrastructure and availability of manpower would have significantly higher weightage for Dhaka IT EZ and Sabraang Tourism EZ vis-à-vis other multiproduct EZs.

285 Draft Report- Initial site assessment for five economic zone sites ______

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters Bridge across the Sitalakhya river. At present, these stretches Relative scoring for witness heavy traffic congestion Panchagarh is 4.5 and road condition is poor. The scenario of Panchagarh is relatively better than Narayanganj in terms of Proposed EZ has access to both trunk as well as last Chittagong, industrial hub miles connectivity. The last There are three major roads in Bangladesh. mile connectivity of 2 km has which connect Narayanganj to Bangladeshi national Proposed EZ is far way from to be developed the rest of the country. These highway (N1) connects the Dhaka city (approximately 450 roads are: country capital Dhaka and km)- AH2 connects Debiganj to Relative scoring for External (i) Narayanganj-Munsiganj Chittagong. N1 is located at Dhaka. The proposed EZ is Anowara - 5 Connectivity Highway (R812); a distance of 10 km located in close proximity to (ii) Bondor-Modonpur Highway (approx.) from the Indian border (Northern part of The connectivity scenario is (R113); and proposed EZ. Proposed EZ West-Bengal state). better for Anowara EZ when (iii) Dhaka-Narayanganj Link is connected to N1 through compared to other sites. The Road (R111). Chittagong - Anowara- last miles connectivity of Banshkhali highway only 500 m needs to be (R170). developed, with minimal The existing approach road is The site is connected to the Proposed EZ is connected resettlement issues adjacent to Bashundhara Boda – Domar via Debiganj to N1 through Chittagong - cement plant. It is a single-lane Upazilla Road (Z5003) by a Anowara- Banshkhali road and heavy commerical Katcha Road of stretch ~ 300 m, highway (R170). vehicles face difficulty to move and z5003 in turn further A 200 m Katcha Road through this road. Widening of connects the site to AH2. stretch connects the site to the approach road would result a blacktop single lane road. in significant resettlement z5003 is a single lane road. It The black top single lane Last Mile issues owing to Basundhara runs for ~ 2km from AH2 to the road in turn connects the Connectivity cement plant (located on one Katcha Road connecting the site Katcha Road to R170, side of the road) and residential to it.On either side of the road, through a stretch of ~ 500 units (located on the other side). there are private lands, however m. Both the Katcha Road as such no houses or any and the blacktop road are The Sitalakhya Bridge is permanent structures adjacent ~ 3 m. Preliminary proposed to be developed in to the road were observed and assessment suggests that close proximity to the site, once hence there is a scope of on either side of these functional shall provide access widening roads there are private

286 Draft Report- Initial site assessment for five economic zone sites ______

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters to the proposed EZ. Preliminary assessment lands, however there are suggests that on either side of no houses or any the stretch of the Katcha Road permanent strucutres and there are no permanent hence there is a scope for structures and there is a scope widening these roads for a for widening the stretch better approach

Mutilane Road tunnel is proposed under the River Asian highway 2 runs through Karnaphuli. The proposed Panchagarh connecting Dhaka Tunnel will connect the Sitalakhya Bridge is proposed to Banglabandha at India border Chittagong Port City across the Sitalakhya River, via Panchangarh. The stretch directly with the other side which would link Dhaka with through Panchagarh is yet to be of the Karnaphuli River & Sylhet and Chittagong highway developed. Once developed, it indirectly with other parts through Demra and will improve the connectivity of of the country through Future Plans Narayanganj. Once functional, it Panchagarh with neighbouring Dhaka-Chittagong-Cox’s shall connect (R113) and (R812). countries and enable seamless Bazar Highway. The This bridge once functional shall movement of goods from feasibility study for the provide access to the North- Panchagarh to major local same is in progress. Once west parcel of the proposed EZ. markets and markets in functional, the multilane neighbouring countries (India, road tunnel shall reduce Bhutan and Nepal). the travel time and distance from Chittagong to the proposed EZ.

287 Draft Report- Initial site assessment for five economic zone sites ______

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters Domar railway station (in Relative scorings: Narayanganj railway station is Nilphamari district) is located Naryanganj - 5 located about 7 km from about 9 km (approx.) from Panchagarh - 3 proposed EZ. Chittagong railway station Distance of proposed EZ. Anowara - 5 Bangabandhu Sarak connects is located at a distance of nearest rail The railway station is connected The train connectivity for the proposed EZ to the railway 17 km (approx.) from the station to the proposed EZ by Debiganj Narayanganj and Anowara is station. Traffic congestion is proposed EZ. road. In the vicinity of the rail comparable to each other minimal throughout this Train station, traffic congestion is and is better than stretch. observed during working hours. Panchagarh. This is also true Frequency of trains connecting in case of last mile Narayanganj to Dhaka and The frequency of passenger Chittagong railway station connectivity of the site to the Frequency of other major cities is good trains from this area to Dhaka is has regular trains running stations train (around 13 trains per day from not good (approx 2-4 daily to Dhaka and other major connectivity Narayanganj to Dhaka and trains). cities of Bangladesh. return) (1) The Port of Chittagong Relative scorings: is the principal Port of Naryanganj - 3 Bangladesh. Proposed EZ Panchagarh - 1 is located at a distance of Anowara - 5 Proposed EZ is located at a Sea/ 18 km (approx.) from Distance distance of about 254 km from River N/A Chittagong Port. Panchagarh has been ranked from port Chittagong port & 304 km Port (2) Chittagong Port is a lowest (relatively) as there is Mongla Port. deep water sea port and no IWT terminal or port. most of the export and import of the country are Narayanganj on the other handled by this port. hand has Inland water

288 Draft Report- Initial site assessment for five economic zone sites ______

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters connectivity, but the distance of Narayanganj to (1) The proposed EZ lies on the the sea ports of Chittagong bank of inland water way and Mongla is higher than connecting Chittagong port to Anorwara site. Further, with Mongla port. IWT terminal, there are Narayangunj river port, one of additional multimodal the oldest in Bangladesh is transhipment involved, located within 3.5 km (Water which in turn not only way) / 28 Km (Road way) from increases time but also the the proposed EZ. Inland water- total logistics cost for (2) Various types of cargos are N/A ways transporting the goods transported through (when compared to Narayanganj Port. But there is Anowara). no regular cargo service for On the other hand, Anowara carrying commodities. has been ranked best Commodities are generally (relatively to other sites) due carried by private arrangements to its proximity to sea port and BIWTA's berthing facilities and minimal multimodal are availed for loading and transhipment (which in turn unloading. reduces the total logistics cost) Proposed EZ is located at a Relative scorings: Narayanganj EZ is located at a distance of 30 km Naryanganj - 4 distance of about 48 km Proposed Panchagargh EZ is (approx.) from Shah Panchagarh - 3 (approx.) from Hazrat Shah located 45 km (approx.) south Distance Amanat International Anowara - 5 Jalal International Airport at west of Saidpur Airport. It takes from airport Airport, Chittagong. It Panchagarh has been ranked Dhaka. The travel time by road about 1.5-2 hours to reach the takes about an hour to the lowest (relatively) to to Dhaka International Airport airport from the proposed EZ. Airport reach the airport from the other sites, as there is is 2.5-3 hours (approx.). proposed EZ. domestic airport that is International located 45 km away from the Yes No Yes facility site. In addition, there is Cargo limited connectivity to handling Yes No Yes Dhaka and other parts of the facility country.

289 Draft Report- Initial site assessment for five economic zone sites ______

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters Narayanganj, on the other Govt. of Bangladesh intends to hand is better placed than construct a new international Panchagarh in terms of airport (Bangabandhu Sheikh airport connectivity (35 km Mujib International Airport) from site and presence of with a view to create a hub international airport) but the airport in close proximity to travel time to the airport is Future plans Dhaka and to meet the demand N/A N/A 2.5-3 hrs (which is relatively of future growth in aviation higher than in case of sector. The prospective Anowara) locations for the new Anowara has been rated best international airport are located on this parameter due to the within 50 km radius of the presence of international proposed EZ. airport and connectivity and least travel time (1 hr). Khotamara, Debiganj 132/33 kV Julda power plant of Relative scorings: Distance Bandar substation is located at 2 substation is located at distance 100MW capacity is located Naryanganj - 5 from sub- km (approx.) from the proposed of 5 km (approx.) from the 4 Km (approx.) away from Panchagarh - 5 station EZ. proposed EZ. the proposed EZ. Anowara - 4.5 Not known, but there is a There is excess capacity Power Excess possibility that the power reported in Narayanganj and This substation has an excess capacity Basis interaction with the UNO requirement of the Panchagarh, where the same capacity of 5 MW after catering available at officials, this substation has proposed EZ could be could not be confirmed in (2) Utility to the demands of local the sub- excess capacity of 5 MW. sourced from this existing case of Anowara Connection population and industry. station 132/33KV grid substation located at Julda. Basis the interaction with Relative scorings: Basis the interaction with the Basis the interaction with the Depth of the local inhabitants, Naryanganj - 5 local inhabitants, the ground local inhabitants, ground water water from ground water is available Panchagarh - 4 Water water is available at a depth of is available at a depth of 75 to natural at a depth of 100 to 200 Anowara - 3 60 feet from natural ground 100 feet from natural ground ground level feet from natural ground The water table at Anowara level. level. level. is 100-200 ft vis-à-vis 75-

290 Draft Report- Initial site assessment for five economic zone sites ______

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters 100 ft at Panchagarh and 60 ft at Narayanganj. Further, in case water extraction from The proposed EZ is located Karnaphuli River located tubewell is not found to be Proximity to adjacent to the confluence of Kartoya river is located in close at a distance of 15-20 km suitable at the DPR stage, river(s) three rivers viz. Meghna, proximity to the proposed EZ (approx.) from the there would be an additional Dhaleswari and Shitalakhya. proposed EZ capex for constructing water supply line of 15-20 km in case of Anowara Basis interaction with Relative scorings: General Manager-KGDCL, Naryanganj - 5 the demand of the Panchagarh - 1 No gas station is available proposed EZ would not be Anowara - 2 Availability of Yes within 100Kms radius of the met from KGDCL; thus In case of Narayanganj, there gas proposed EZ. some alternate is presence of infrastructure arrangement for the gas and possibility of gas supply. connection needs to be In case of Panchagarh, there taken is no infrastructure and Gas Gas pipeline is available supply of gas. In Anowara, near Korean EPZ (KEPZ) while the infrastructure is Nearest gas station Bogra is which is located at a present, the prospects of gas Distance A gas pipeline is located in close located 250Km from the distance of 2Km (approx.) supply appears to be bleak from nearest proximity from the proposed EZ proposed EZ. There is no from the proposed EZ. gas pipeline (2 km. approx) exisinting gas supplying Although the Gas infrastructure or any gas supply supplying infrastructure is present, however there is not enough gas to supply.

291 Draft Report- Initial site assessment for five economic zone sites ______

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters (i) The prominent Relative scorings: industrial sectors in Naryanganj - 4.5 (i) Narayanganj is the pioneer in Chittagong are textile Panchagarh - 3.5 merchandising and related industries, Leather Anowara - 5 manufacturing of Knitwear, (i) Agro-based industry is the and Footwear, There is a presence of jute, yarn, and dying items. major industry in the district. Pharmaceuticals, Ship industrial activities in (ii) International trading, Tea cultivation is predominant building, Plastics etc. Anowara and Narayanganj. import and export business, in this part of the country. (ii) Around 23% of total On the other hand, garments industries, knitwear (ii) Some other major industrial manufacturing units of Panchagarh is far from the Existing industrial garments, cold storage, establishments in this upzilla Bangladesh are located in main commercial and urban ecosystem and Possible shipbuilding, brickfield, cement are: rice mills, sugar mills and Chittagong. Around two- hubs of the country. In Backward linkages for etc. are some other major jute mills etc. thirds of the 3000 plastic future though, by virtue of its industries industries present in this region. (iii) These industries may act as units are in location, Panchagarh may (3) Suitability (iii) These factors may provide backward linkage for Chittagong/Dhaka region. have a potential to act as for Industrial backward linkages for establishment of food/ agro (iii) These industries may gateway for BBIN trade Development development of industries such processing industries, tea act as backward linkages network. as shipbuilding, textile, industry etc. for development of construction materials and light industries such as RMG, engineering etc. light engineering, leather/ footwear, bottling/ packaging etc. Proposed EZ is located at a distance of 254 km from LCS- only 100 km (approx.) Access to Chittagong port- Chittagong port. away from the proposed EZ; Gateway for foreign trade; Import/ Export Proposed EZ is located about Proposition of MVA-BBIN shall Chittagong international facilitation 304 km Mongla Port. facilitate cross-border trade to airport is around 30 km (1 Proposed EZ has access to neighbouring countries like hour journey) from the Dhaka international airport India, Nepal and Bhutan; proposed EZ. (approx 48 km away) Broad level block cost estimate Broad level block cost estimate Broad level block cost Relative scorings: is BDT 24327 lakh. Hence, block is BDT 27747 lakh. Hence, block estimate is BDT 20475 Naryanganj - 4.8 Block cost estimate is (4) Cost of off- cost per acre of land=27.5 lakh cost per acre of land=46.6 lakh lakh. Hence, block cost per Panchagarh - 2.8 referred and per acre site BDT. Since, this is the lowest BDT. Since, this is the lowest acre of land=26.4 lakh Anowara - 5 cost of off-site Infrastructure unit cost, a score of 5 is given to unit cost, a score of 5 is given to BDT. Since, this is the infrastructure is development Anowara- 2 and on a Anowara-2 and on a lowest unit cost, a score of considered proportionate basis, the scores proportionate basis, the scores 5 is given to Anowara-2 for the other two zones are for the other two zones are and on a proportionate

292 Draft Report- Initial site assessment for five economic zone sites ______

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters determined. determined. basis, the scores for the other two zones are determined.

Number of household Relative scorings: Around 200 household Around 50 household structures to be Around 50 household structures Naryanganj - 1 structures structures relocated Panchagarh - 3 Private land to be acquired Anowara - 5 Private land to be acquired Private land to be acquired Private land to be amounts to be approx 21% The number of affected amounts to approx 37% (330.30 amounts to approx 50% (299.34 acquired (160.01 acre) of total land households in case of acre) of total land area acre)of total land area (5) Social and area Narayanganj are the highest Resettlement Households dependent Approximate 400 numbers of 150 numbers of households 100-115 numbers of followed by Panchagarh and Aspects96 on agricultural activities households (maximum) (approx.) households (approx.) Anowara respectively in the site Several trees and approximate Several trees and two fishponds No water bodies present, Trees and water bodies 10 acre of area in the site are located inside the project but the site has abundance located inside the site covered by canals, fishing ponds area of trees and associated water bodies For economic zones to Proposed EZ is located in Relative scorings: have access to quality proximity to an already set Naryanganj - 5 manpower (skilled and Proposed EZ is located in up industrial area where Panchagarh - 3 unskilled), vicinity of proximity to an already two EPZs are functional. Anowara - 5 industries in the region established industrial area Panchagarh has realtively less Chittagong being the The avenues for better is important as already where several SME units are supply manpower (skilled and Industrial Hub of quality of education and (6) Access to established ecosystem of functional. The proposed EZ unskilled labour sources) as Bangladesh has adequate training institutes are more quality industries in the vicinity stands to get benefitted from the there is no such established supply of manpower. The in Dhaka and Chittagong manpower could provide access to same as the already established industrial cluster in the vicinity proposed EZ would have than Panchagarh. manpower in the ecosystem of industries shall to the proposed EZ. access to established proposed economic provide access to manpower ecosystem of industries zones. Further, (labour sources). which could provide access Bangladesh having a to manpower (labour demographic dividend sources).

96 Data for number of household structures to be relocated and number of households dependent on agricultural activities has been obtained from Bangladesh Economic Zones Authority (BEZA)

293 Draft Report- Initial site assessment for five economic zone sites ______

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters stands to gain from the adequate supply of young manpower vis a vis other Asian countries.

(i) The labours working in Relative scorings: (i) The labours working in the the proposed EZ shall have Naryanganj - 5 proposed EZ shall have access to access to the dwelling units Panchagarh - 3 the dwelling units and (i) The labours working in the and residential areas Anowara - 4 residential areas within 5-10 km proposed EZ shall have access to within 5-10 km radius of The avenues for better radius of the proposed EZ. the dwelling units and the proposed EZ; quality of social life more in (ii) There are several medical residential areas within 5-10 km (ii) There are few medical Dhaka followed by Presence of medical and facilities available within 10 km radius of the proposed EZ. facilities available within Chittagong and then (7) Social residential facilities radius of the proposed EZ to (ii) There are few medical 10 km radius of the Panchagarh. Infrastructure cater to the healthcare facilities available within 10 km proposed EZ to cater to the requirements of the workforce. radius of the proposed EZ to healthcare requirements of Major healthcare facilities are cater to the healthcare the workforce. Major available in Dhaka city and requirements of the workforce. healthcare facilities are some in Narayanganj/ Bandar available in Chittagong city town. (20 km away from proposed EZ). Proximity to major cities Near to Dhaka Near to Debiganj town Near to Chittagong Rate of land (Lakh BDT Relative scorings: (8) Cost of 200 12 200 per acre) Naryanganj - 0.3 (private) land Area of private land Panchagarh - 5 acquisition 330.3 299.34 160.01 (acre) Anowara - 0.6

294 Draft Report- Initial site assessment for five economic zone sites ______

Relative scorings and Sub-parameters Narayanganj EZ Panchagarh EZ Anowara-2 EZ their rationale Key Parameters Cost related to land Due to lowest cost of land 66060 3592.08 32002 acquisition (lakh BDT) acquisition for Panchagarh, it has been rated highest. The ratings for the other Note: Cost of land acquisition is lowest in Panchagarh. Hence, it is given a score of 5. The scores to other two sites have been sites are proportionately distributed proportionately. reduced

11.2. Summary of the relative rankings The above parameters are clubbed into broad groups of “nessesary parameters” and “good to have parameters”. While assigning the weightage to individual parameters it has been kept in mind to broady assign equal weightage to all parameters falling under similar broad groups. Likewise, any sub parameters (e.g. modes of transportation like roads, rails, ports, airports etc. under parameter Connectivity) are assigned equal weightages. Of course, at a broad level, the nessessary parameter group has a higher weightage then good to have parameters.

Table 11-2 summarizes the relative rankings and weighted scores of the three comparables sites.

295 Draft Report- Initial site assessment for five economic zone sites ______

Table 11-2: Summary of the relative rankings and weighted scores for the three proposed multi-product EZs

NarayanganjEZ PanchgarhEZ Anowara-2EZ Param eters Weightage Score Weightage×Score Score Weightage×Score Score Weightage×Score

Rank Rank-2 Rank-3 Rank-1 100% 3.88 3.58 4.38 (1) Connectivity 15.0% 0.60 0.43 0.75

,

s

s Road 3.8% 4 0.15 4.5 0.17 5 0.19 e s

g e Rail 3.8% 5 0.19 3 0.11 5 0.19 c a ) c k Sea/RiverPort 3.8% 3 0.11 1 0.04 5 0.19 % A n t i 5 e

d Airport 3.8% 4 0.15 3 0.11 5 0.19 7 L k ( n

e r

a (2) Utility Connection 15.0% 0.75 0.50 0.48 s r a r y u t e t M Powerconnection 5.0% 5 0.25 5 0.25 4.5 0.23 i t c v e o i u t Gasconnection 5.0% 5 0.25 1 0.05 2 0.10 t r m c t a e s Waterconnection 5.0% 5 0.25 4 0.20 3 0.15 r a n a r n f P

(3) Suitability for industrial o n y 15.0% 4.5 0.68 3.5 0.53 5 0.7 5 C I r development a s s s

e (4) Off-site Infrastructure e

c 15.0% 4.8 0.721090909 2.8 0.43 5.0 0.7 5 g e Development n N e l l

a (5) Social &Resettlement 15.0% 1 0.15 3 0.45 5 0.7 5 h Aspects C

s

(6)Access to quality manpower 8.3% 5 0.42 3 0.25 5 0.42 r o e ) t t e e v % d

a 5 (7) Social Infrastructure 8.3% 5 0.42 3 0.25 4 0.33 o m 2 o a H ( r G a (9) Cost ofland acquisition 8.3% 1.0 0.15 5.0 0.7 5 1.0 0.15 p

Basis the above comparison, at an overall level, site for Anowara EZ appears to be better placed than Narayanganj followed by Panchagarh.

296 Draft Report- Initial site assessment for five economic zone sites ______

Annexures

297 Annexure A. - Questionnaire

Name of the site: Date: Time:

Name of the Project: Initial site assessment of five EZ/EZs at Narayanganj, Panchagarh, Anowara - 2 (Chittagong), Dhaka IT and Sabrang Tourism (Cox's Bazar)

Name & contact details of official met :

A General 1.. Land availability - Is there enough land for demand? 2. Total area of site in Acres/square meters

3. Ownership - Does land need to be assembled? 4. Title - Is the land in public or private ownership? 5 Adjacencies - Is land contiguous with other industrial zones? 6 Is the identified land is fully acquired

7 Whether the boundary points are earmarked at site 8 Is the entire proposed land is in possession of owner

298 Name of the site: Date: Time:

9 Nature of land profile - Flat / Slopping / Hilly terrain/ undulating 10 Site layout with contours if available please collect. 11 Is it agriculture land – if so is it B.C soil

12 Ground water is available at a depth of

13 Is ground water potable

14 MSL / MFL

15 Seismic zone

16 Flood / cyclone history, if any

17 Rainfall (avg)

18 PCB guidelines

19 Development control Rules (Like DTCP)

20 FMB sketch of the land

299 Name of the site: Date: Time:

21 Land shape/configuration - square or rectangular preferred 22 Adjacent properties - on EAST

on WEST

on North

on South

23 Proximity - Is the site close to other industrial facilities? 24 In close proximity to existing residential communities? 25 In close proximity to proposed residential communities? 26 Buildings - Will buildings have to be removed from the site? 27 Roads - Are there existing roads on the site?

300 Name of the site: Date: Time:

28 Are there schools, community facilities, police stations in the region? 29 Labor -Is the site in close proximity to available labor? 30 Public Transportation - Is there public transportation to the site? 31. Local Development Plan issues

32. Name of Local Body, where site is located

33. Name of nearest town if located in a remote place 34. Name of Village, Tehsil and District, where site is located 35. Nearest Federal Highway and distance Federal Road/ State Road / Major district road /Village road – Details -7 from site

36. Nearest Airport name and distance from site 37. Nearest Railway station and distance from site 38 Co-ordinates of the site N, E 39 Delineation map of identified EZ

301 Name of the site: Date: Time:

40 Whether the site is already developed – Is it Green field B Road 41. Approach road name

42. Distance from approach road to site

43. Type of road

44. Number of lanes of Approach road

45. Does the road require strengthening - If Length - NO Width - yes length and width of the road 46. Does the approach road having street light C. Water Bodies 47. Name of nearest water body

48. Type of water body

49. Nature of water body (perennial or seasonal) 50. Information on water availability for

302 Name of the site: Date: Time:

consumption

D. Water Source 51 Existing water source if any and its capacity 52 Source of proposed water supply and distance 53 Are bore holes used in the vicinity? Ground water level and distance from site

54 Nearest external source of water – available quantity, intake point, etc. E Drain 55. Any existing storm drain found adjacent to site – if yes – distance? 56. In case of non-availability of drain network – is it necessary to provide drain network at the proposed site – if so where and how far will be the discharge point? F Sewer 57. Is there network available nearby site, if so at what distance? 58. Is there existing sewerage treatment

303 Name of the site: Date: Time:

Plant system nearby? If so efficiency of the same? Spare capacity available?

G Soil conditions 59. Has soil testing been done?

60. If yes, to provide the Test Report

61. Arrange to dig trial pit, if possible & note down the observations - or details on type of foundation carried out for nearby structures. – Footing/Pile/ Raft etc.

H Power 62 Nearest Substation – distance & total Capacity , available capacity

63 Supply voltage available at or near site

64 Power availability in hours per day

65 Telecommunications - Are land lines available in the vicinity? 66 Are there telecom issues in the region?

304 Name of the site: Date: Time:

I Constraints: 67. Is there any power line crossing the proposed site. What is the voltage of the electricity? High/Medium/Low? 68. Is there any drainage / nallah crossing the proposed site 69 Is the site thickly vegetated/bushes etc.

70 Is the site contains tree plantation – if so do we require to get permission from forest department? 71 Is the land flat?

72 Is the land solid or swampy? Are there pools of water on the property? 73 Will the land flood during monsoon season? 74 Is this an earthquake region?

75 Does the land need to be raised? By how much? 76 Any other constraints

305 Name of the site: Date: Time:

J Environment data - General 77 Climate - Is climate information for this location easy to obtain? 78 Annual rainfall data (for min 10 years)

79 Noise - Is there industrial noise in the region? Are statistics easy to obtain? 80 Ground water issues - Is there likely to be ground water issues in the region? 81 Contaminated Materials - Are there contaminated materials on site? 82 Do the contaminated materials need to be removed? 83 Soil issues - Is there likely to be contaminated soils on the property? 84 Is there any wind rose diagram available for this site 85 Are there potential leaching issues?

86 local knowledge indicators

306 Name of the site: Date: Time:

87 Archaeological significance, cemeteries or burial grounds K Biological Environment data 88 Are there streams, rivers, or lakes on the site? 89 Are there rare flowers or plants on the site? 90 Are there water fowl, fish or flowers on/near the site? 91 Are there any protected areas on/near the site? 92 Any forest or defense areas – details

93 Is there any animal wildlife that needs to be protected on the site? 94 Are these agricultural lands? 95 Whattypes of crops are grownonthe site? 96 How many crops are grown per year on the site? L Human Environment data

97 Are livelihoods being affected by this development?

307 Name of the site: Date: Time:

98 Whattypes of livelihoods are being affected? 99 Are people living on the site?

100 How many houses?

101 Type of house – Brick / concrete / steel 102 Is resettlement required? How many people affected? 103 How many women are being affected by this resettlement? 104 Are there any historical buildings or sites on this property? 105 Are there any cultural sites on this property? 106 Are there any religious facilities on this property? 107 Are there schools/universities on this property? 108 Are there community facilities on this property'? 109 Is there a hospital on this site?

308 Name of the site: Date: Time:

110 Are there government offices or facilities on this site? 111 Do any of the above facilities need to be protected? M Material availability (with rates possible)if 112. Schedule of rates for construction (As per Government) N Stakeholders - communication with interested parties 113 public bodies:

114 private:

115 pressure groups:

309 Site visit conducted by:

1.

2.

3.

310 Annexure B. – Success story of Adani Ports and Special Economic Zones

B.1. Location/ connectivity

Port

Pipeline Rail

Air Road

Mundra Port is also known as Adani Ports and Economic Zone Limited (APSEZ) is located in the Gulf of Kutch on the west coast of India, it is situated 60 km west of Gandhidham in Kutch district of Gujarat. Currently it spreads over an area of about 6,700 Ha which is planned to be expanded to 15,000 Ha in the near future. At the time of its inception, key site selection parameters included strategic location and connectivity, low cropping intensity, key stakeholder's requirements and avoiding ecologically sensitive areas. Its strategic location has multiple benefits. It is situated enroute to most international shipping destinations. The gulf acts as a natural shelter for the port, facilitating 24x7 safe berthing, unberthing and vessel operations. The port also provides a distance advantage to the northern and western hinterland of India vis-a-vis other ports. This makes it the natural gateway for the cargo hubs functioning in the northern and western states of India as well as the NCR. Port connectivity Mundra Port offers inland connectivity via rail track, road network and private airport located inside the SEZ. Some of the salient features of the Mundra port are:  State of the art fully mechanized fertilizer cargo complex consisting of 44 bagging machines capable of handling goods of quantity 28,000 tonnes per day.  27 closed godowns with total area of 223,520 sq. mt. for storage various cargoes viz. fertilizers, fertilizer raw materials (FRM), DOC, wheat, rice, sugar, etc.  Mundra also handles Capesize vessels-the biggest of the dry-bulk cargo carriers-of 18m draft, loaded oil supertankers requiring 21m draft, container vessels requiring 15.1m draft and roll on- roll off vessels of 230m length. Rail Connectivity Mundra Port Ltd. is connected with the Indian Railways network by a privately developed and maintained rail line. The doubling of the 64 km private rail line between Mundra & Adipur (near Gandhidham) is completed. The rail infrastructure is capable of handling 130 trains per day including double stack container trains and long-haul trains.

311 Road Connectivity Mundra Port is connected to the hinterland in Northern and Western parts of India through the National Highway 8A Extn. & State Highways 6 & 48. The port has constructed a four-lane Rail-over-Bridge (ROB) in the proximity of the port to ensure that two modes of transportation i.e. road & rail, do not impede each other’s movement. Air Connectivity Mundra Airport is a licensed airport in ‘Private Category’ with Air Traffic Control (ATC) which is operated by the Airport Authority of India (AAI). The nearest commercial airports are at Bhuj (~60 km) and Kandla (~50 km). The company plans to extend the current runway at Mundra from 200 meters to 4500 meters. It has also installed a Precision Approach Path Indicator (PAPI), and approach and runway lighting for safe night landings for aircraft. Mundra Port plans to upgrade an International Air Cargo Hub with night landing facility. Pipelines Mundra Port is connected to the northern hinterland with three cross-country pipelines. One feeds the Indian Oil Corporation Limited (IOCL) Panipet refinery, second crude oil pipeline feeds Bathinda refinery and third is a white oil line which feeds the national capital region (NCR). B.2. Utilities

Power

Business Water Support

Gas

Power Availability A Power Plant of generating capacity 4,620 MW is an integral part of Mundra SEZ. Some of the salient features of the power plant are as illustrated below:  APSEZ Utilities Pvt. Ltd. (MUPL) is the deemed distribution licensee for power distribution within the zone  Sub-stations developed at various strategic locations within Mundra SEZ  Power can be supplied at different voltages ranging from 220 Kv / 66 Kv / 33 Kv / 11 Kv to the units in the zone.  33 Kv / 11 Kv supply in the zone is through underground cable network Water Availability Mundra SEZ has a comprehensive water management system including water desalination plant, water distribution network, etc.

312  27 million liters/day desalination plants currently operational  40 km of water distribution network has been laid. Gas Availability  Gas pipeline connectivity up to Mundra proposed by GSPC  LNG Terminal planned at Mundra Port Business Support infrastructure and facilities  Central Business District (CBD) for offices and other commercial activities ranging from International trading, insurance, logistic services, etc. was planned and developed in phases.  Nationalized and Private Sector Banks operating inside the SEZ  Post Office & Telephone Exchange available inside the SEZ  Office of Development Commissioner and Customs’ functional in the zone

B.3. Social Infrastructure

Housing

Recreational Education Facilities

Healthcare

Housing Well planned development of the Township includes Residential Units, Service Apartments, Commercial Structures, Social Amenities and Infrastructural amenities (Roads, Drainage, Water Distribution network, Sewage Collection & Transmission network and Landscaping works). Phase I of the Township is operating with 720 residential units and as part of Phase II development, over 670 residential units and 2 hostel blocks with 350 rooms is planned to be added. Education  Industrial Training Institute (ITI) under the aegis of Government of Gujarat is being developed within the zone for imparting customized technical knowledge / training along with the regular technical programs to the local youth as per the demand and requirement of the SEZ units.  Institutions imparting education for Engineering / Management / Medical established near Adipur & Bhuj which are in close proximity. These supply the qualified manpower to the SEZ.  Eco-friendly school campus with modern computer lab, fully catalogued library, medical room, art studio, language labs, sports arena, etc.  In addition to a functioning ‘Calorx Public School’, Adani Foundation jointly with DAV Society has also setup a school inside the economic zone.

313 Healthcare A 100 Bed Multi-specialty Hospital, built by Adani Group and managed by Sterling Hospital, is operational inside the SEZ. Some of the features of the hospital are:  Qualified medical and paramedical staff trained to handle emergencies  A fully-equipped state-of-the-art diagnostic laboratory  A well-equipped radiology department, with computerized tomography machine for CT Scans  A mobile Intensive Care Unit (ICU on Wheels)  Operation Theatres, with advanced surgical equipment and sterile facility, to carry out a range of surgical operations  Fully-equipped physiotherapy centre Recreation Facilities Mundra SEZ offers the following recreational facilities:  Multiplex, sports and recreation club, community halls, libraries, resorts, restaurants, hotels  Neighbourhood parks, playgrounds and a golf course  Shopping centres and malls  Business Hotels of different categories catering to the needs of the business traveller

B.4. Availability of Manpower

According to a study conducted by TELOS Consultancy Services Pvt. Ltd. on Mudra SEZ, the total manpower requirement for the construction and for operation of the Mundra SEZ for 6,000 Ha industrial area could be around 3 lakhs. Being located in Gujarat, one of the major industrial hubs of India, Mudra SEZ has an added advantage in terms of workforce availability. The current overall skill training capacity of Gujarat is more than 13 lakhs according to the Labor & Employment Department, Government of Gujarat. There are total 30 universities in Gujarat. Further it has 50+ engineering and management institutes.

B.5. Proactive Support from Government

The Development Commissioner (DC) is the nodal officer for SEZs. He is mandated to assist in the resolution of problems faced by the SEZ developer or the units in the SEZ. DC of Mundra SEZ has already been appointed & is available in Mundra Port SEZ (MPSEZ). A Unit Approval Committee, consisting of the Development Commissioner, Custom authorities and representative of the State Government, monitors MPSEZ units on an annual basis.  Besides the Government of India benefits, the Gujarat State government has also designed a policy that offers added incentives to the SEZ industrial units. The SEZ provides excellent flexibility through:  Single Window Clearance for statutory requirements  Licenses are not required for imports into MPSEZ. This applies to second hand machinery also.  Waiver of routine Customs examination of imports and exports  Clearance of Export consignments on self-certification  100% FDI permitted through the automatic approval route except the negative list  Relaxed labour policy specifically for SEZ units (as per Gujarat State Labor policy for SEZ)  Freedom to realize and repatriate export proceeds within 12 months  No limit on quantum of DTA sales  Foreign investments allowed for items generally reserved for the Small Scale sector  Contract manufacturing permitted with units outside the SEZ or in other SEZs

314 Annexure C. - Physiography map of Bangladesh

Ann Source: Bangladesh Bureau of Statistics- Physiography Map

315 Annexure D. - Geological map of Bangladesh

Ann Source: Minsitry of Geology, Bangladesh- Website

316 Annexure E. - Seismic Zoning map of Bangladesh

Source: Bangladesh Bureau of Statistics- Seismic Map

317 Annexure F. - Basic Wind speed map of Bangladesh

Source: BMD- Bangladesh

318 Annexure G. - Cyclone affected areas Bangladesh

Ann Source: BMD- Bangladesh

319 Annexure H. - Disaster prone areas in Bangladesh

Source: BMD Bangladesh

320 Annexure I. - Bangladesh Gas Transmission pipeline system

Source: Titas Gas Website

321 Annexure J. - Ground Water Zoning Map in Bangladesh

Source: Deparmtnet of Minerals, Bangladesh

322 pwc.com

© 2015. PricewaterhouseCoopers Pvt Ltd. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Pvt Ltd which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. 323 324 325