The development of the Chinese Economic and Industrial Zone in Chittagong is gaining significant momentum nearly ten years after its initial announcement, as Bangladesh and China aim to strengthen bilateral economic ties amid shifting global trade dynamics.
Located in Anwara upazila of the port city, the zone spans 784 acres, with approximately 60 acres already prepared for potential investors. Infrastructure development is underway, with utility services being installed; the Chittagong Water Supply and Sewerage Authority has laid down a pipeline for limited water supply, while Karnaphuli Gas Distribution Company Limited has established a nearby gas station. Additionally, the Bangladesh Economic Zones Authority (Beza) has constructed the zone’s administrative building and two approach roads to facilitate access.
Interest from Chinese manufacturers is growing, with some already visiting the site, and officials anticipate around 200 Chinese investors will soon tour the zone. A senior Beza official highlighted the prospect of over US $ 1 billion in foreign investment from China, emphasising the potential for significant opportunities in apparel, auto manufacturing, electronics, and logistics sectors.
The project, initiated in 2016 following former Prime Minister Sheikh Hasina’s 2014 visit to China, experienced delays during the previous Government. However, since the current interim Government took office last August, there has been renewed enthusiasm for enhancing trade relations with China, Bangladesh’s largest import partner.
In 2022, Beza signed a memorandum of understanding with China’s Ministry of Commerce during Sheikh Hasina’s visit, with the Bangladesh Government allocating Taka 420 crore for the project’s first phase, partly financed through Chinese loans. Initially, China Harbour Engineering Company Limited was appointed as the developer, but progress stalled due to unresolved lease and development agreements, leading Beza to terminate that partnership in April 2022. Subsequently, in July 2022, China Road and Bridge Corporation was selected as the new developer, and efforts to restart construction are underway.
The zone, located approximately 270 kilometers south of Dhaka, is expected to attract around US $ 1.5 billion in investments and generate over 200,000 jobs. A “special purpose company” will be established to oversee operations. To enhance connectivity, the Roads and Highways Department plans to invite tenders for a new connecting road linking the zone with 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 later this month.
Beza officials have indicated that some Chinese investors are preparing to establish factories in Phase 1 of the zone, with construction expected to commence once the developer agreement is finalised, anticipated to take up to two years. Regular dialogue with investors continues to ensure smooth progress in the project’s development.
