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Final Report Initial Site Assessment for Five Economic Zone Sites

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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.
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