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Bangladesh offers economic zone to China

  • Published at 08:01 pm October 13th, 2016
Bangladesh offers economic zone to China

A Memorandum of Understanding (MoU) was signed yesterday between Bangladesh Economic Zone Authority (BEZA) and Power Construction Corporation of China (Power China).

Mohammed Ayub, secretary of Bangladesh Economic Zone Authority (BEZA) Executive Board, and Xiong Lixin, executive vice president of Power China, signed the MoU at the BEZA conference venue.

The MoU was signed regarding giving Power China land to manufacture components and sub-components or parts for any kinds of power plants in the economic zone in Mirershorai, Chittagong.

Power China proposed two projects: manufacturing components for power plants, and a 1000MW renewable solar energy plant.

For the latter project, another 2000 acres of land will be required.

After the signing ceremony, BEZA's Executive Chairman Paban Chowdhury said: “We have the MoU for providing them land in Mirershorai economic zone to manufacture power plant components, but for another project (renewable solar energy), we require approval from the power division, about which we have advised them already.”

He added: “Power China wants this economic zone for their exclusive usage and restrict investment by other investors. We will discuss the terms before reaching a conclusion.”

BEZA will provide Power China the land after assessment. Experts will assess the full proposal and calculate the exact volume of land required for the project.

After the power division's approval, further discussions about the power plant will be held, added Paban.

BEZA has yet to officially announce the approximate Chinese investment in the projects.

But the local partner of Power China, Green Engineering and Development Limited (GEDL) has shed some light on the matter.

GEDL Chairman Nazmul Hoque told the Dhaka Tribune: “The investment for the Mirershorai economic zone will be around $2bn to $4bn.”

GEDL Managing Director Rana Khan added: “Power China has several ongoing projects in India, Sri Lanka, Vietnam, Indonesia, Ethiopia, and Pakistan. They manufacture the components and set up power plants in those countries as well.”