The long-anticipated Chinese Economic and Industrial Zone in Chittagong is finally moving forward, nearly ten years after its initial announcement. The project, located in Anwara upazila of the port city, is being revitalised as Bangladesh and China look to deepen their economic partnership amid evolving global trade patterns.
Spanning 784 acres, the zone has already seen the development of approximately 60 acres, which are now ready for potential investors. Infrastructure work is progressing steadily, with essential utility services being rolled out. The Chittagong Water Supply and Sewerage Authority has installed pipelines for a limited water supply, while Karnaphuli Gas Distribution Company Limited has set up a nearby gas station. The Bangladesh Economic Zones Authority (Beza) has also completed construction of the zone’s administrative building and two access roads.
Investor interest, particularly from Chinese manufacturers, has begun to rise. Officials from Beza have confirmed that around 200 Chinese investors are expected to visit the site soon, following initial visits by several prospective stakeholders. The zone is projected to attract over $1 billion in foreign direct investment, particularly in sectors such as apparel, automotive manufacturing, electronics, and logistics.
Although the project was first initiated in 2016 following Prime Minister Sheikh Hasina’s state visit to China in 2014, progress had stalled during the tenure of the previous government. However, with the current interim administration taking charge in August last year, efforts to enhance bilateral trade ties with China, Bangladesh’s largest source of imports have picked up pace.
A significant breakthrough came in 2022, when Beza signed a memorandum of understanding with China’s Ministry of Commerce during another visit by Prime Minister Hasina. As part of the first phase of development, the Bangladesh government has allocated Tk 420 crore, with partial funding sourced through Chinese loans.
Initially, China Harbour Engineering Company Limited was appointed as the zone’s developer, but slow progress and unresolved lease and development agreements led to the termination of that contract in April 2022. In July of the same year, China Road and Bridge Corporation was selected as the new developer, and preparations to restart full-scale construction are now underway.
Located roughly 270 kilometers from the capital Dhaka, the economic zone is expected to bring in around $1.5 billion in investments and generate employment for more than 200,000 people. A special purpose company will be formed to manage zone operations. To improve accessibility, the Roads and Highways Department is planning to float tenders for a new road linking the zone to the Korean Export Processing Zone via the Karnaphuli tunnel. A detailed project proposal has been submitted for government approval and is expected to be reviewed by the Executive Committee of the National Economic Council (ECNEC) later this month.
Beza has also revealed that several Chinese investors are preparing to establish factories in the first phase. Construction is set to begin once the developer agreement is finalized, a process expected to take up to two years. In the meantime, Beza continues regular consultations with potential investors to maintain momentum in the zone’s development.
