The BGMEA and Oriental International Holding, a Chinese company, have signed a billion dollar agreement to develop a new garment industrial park in Munshiganj.
“A memorandum of understanding has been signed today [Tuesday] with the Chinese company in the presence of Prime Minister Sheikh Hasina and her Chinese counterpart Li Keqiang,” BGMEA Vice–President Reaz Bin Mahmood told the Dhaka Tribune.
Sheikh Hasina went to China on June 6 on an official visit and she is scheduled to return home today.
Reaz said the industrial park will be built on 470 acres of land in Gazaria at an approximate cost of $1.2 billion.
Under the MoU, the Chinese company will conduct a complete feasibility study within three months and a framework agreement will be signed between the two parties.
“Oriental will also pay money to the government to procure the land,” he said.
The company will develop land, roads, power plant and necessary constructions and build structures for selling it to the members of BGMEA and BKMEA. “Few accessories factories can be set up there to supply raw materials to the garment industry,” he added.
After completion of feasibility study, within three months OIH will produce all relevant documents from their authority and financiers for financing the project and full fund for the land payment and other costs.
“OIH will devise a marketing plan in consultation with BGMEA so that it can sell assets to the members of BGMEA and BKMEA,” Reaz said, adding that the buyers will pay the OIH in installments.
BGMEA will deliver to OIH a ‘letter of authorisation’ from the government within 14 days of signing the MoU under which the association will have full authority to negotiate with the Chinese company, he added.
Both the parties agreed that the agreement will be governed by British laws and if any dispute arises, they will resort to International Chamber of Commerce for settlement, Reaz said.
The government has allocated 470 acres of land at Baushia in Munshiganj for setting up a readymade garment industrial park.
It will have roads, water, power and gas supply, telecommunication, effluent treatment plant, transportations, hospital, hotel and factory sheds.
The government has authorised Bangladesh Garment Manufacturers and Exporters Association to seek an investor for the project and it has struck the deal with the Chinese company.
Garment is the biggest export earning sector of Bangladesh and accounts for about 90% of the total earnings.
However, China will construct a tunnel under the Karnaphuli River in Chittagong. In this regard, Bangladesh and China signed a memorandum of understanding in Beijing on Monday night, reports BSS.
Communications Secretary Khandakar Anwarul Islam and Vice Minister of the Ministry of Transport and Communication of China Chi-Kuo Mao inked the MoU on behalf of their respective sides, foreign ministry sources said.
As per the MoU, the Chinese government would construct the tunnel at an estimated cost of $1 billion, the sources added.
