Bangladesh Economic Zones Authority (Beza) has applied to the interim government for permission to end the agreement that established SBG Economic Zone Ltd inside Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai of Chittagong.
According to Beza sources, the consortium made up of Sikder Group, Bashundhara Group, and GasMin Ltd. has not developed the project in accordance with their contract, so they intend to cancel the deal with SBG.
“We have already sent a letter to the chief adviser of the interim government seeking his approval in this regard,” said a senior official of Beza on condition of anonymity.
Citing how this is the first time an agreement for establishing an economic zone could be cancelled, the Beza official said they were previously unable to terminate any such project due to political pressure.
The official stated that SBG was required by its contract to complete the 500-acre project site’s preparation by 2020. On the other hand, there has been no advancement in the relevant development works. For instance, there are still unfinished business related to the installation of an effluent treatment plant and the onsite building of internal roads and utility supply lines.
On 12th September of last year, Beza finally fired China Harbour Engineering Company (CHEC) Ltd, the project developer, for missing the deadline. SBG Economic Zone Ltd hired the Chinese engineering and construction firm in January 2019 to carry out the project’s development. The official added that they had warned the SBG to begin development work at least five times.
“But they did not take it seriously and always responded by saying they will begin construction soon,” the official added.
Beza sources said they agreed to provide land at the BSMSN for developing the SBG economic zone in August 2018 as it seemed like a profitable project at the time.
The land was then awarded to SBG through competitive international bidding, but the consortium has since seemingly lost all interest in implementing their proposed project.
The SBG economic zone was predicted by the project proposal to draw US $ 2 billion in international investment, mostly from China and Japan.
Additionally, they disclosed that, by the terms of the land lease agreement, SBG Economic Zone Ltd owes Beza approximately US $ 72.11 lakh (or Taka 85 crore), including interest.
