Work on Chinese Economic Zone Picks Up Pace

Construction of Chinese Economic Zone in Chattogram Gains Traction Amid Renewed Bilateral Push

Nearly a decade after its launch, construction of the Chinese Economic and Industrial Zone in Chattogram’s Anwara upazila is gathering pace. The renewed momentum comes as Dhaka and Beijing seek to deepen economic ties and as Chinese manufacturers, pressured by U.S. tariffs, explore relocation opportunities.

Of the 784 acres designated for the project, around 60 acres have already been prepared for investors. Basic utilities are also being installed—Chattogram WASA has laid a pipeline for limited water supply, while Karnaphuli Gas Distribution Company has set up a nearby gas station.

The Bangladesh Economic Zones Authority (Beza) has built the zone’s administrative building and two access roads. Several Chinese manufacturers have visited the site, and around 200 more are expected to tour the zone soon.

“A major Chinese investment worth over $1 billion is on the horizon,” said Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (Bida) and Beza, referring to the recent influx of interest.

The project was initiated in 2016 following former Prime Minister Sheikh Hasina’s 2014 visit to China. Despite this, progress lagged under the previous government. However, since the political shift last August, the interim administration has shown renewed interest in revitalising trade ties with China, Bangladesh’s largest source of imports.

“We’re seeing increasing engagement from Chinese investors,” said a Beza official, noting that potential investments could span apparel, automotive, electronics, and logistics sectors.

An MoU between Beza and China’s Ministry of Commerce was signed during Hasina’s visit, with the government allocating Tk 420 crore for the project’s first phase—partly funded by Chinese loans. Initially, China Harbour Engineering Company was appointed as the developer, but delays over lease and development terms led Beza to cancel the agreement in April 2022.

In July 2022, China Road and Bridge Corporation took over as the new developer, and Beza signed a cooperation agreement to relaunch the project.

Located about 270 km south of Dhaka, the zone is expected to attract $1.5 billion in investment and generate over 200,000 jobs. A dedicated special purpose company will manage its operations.

To improve access, the Roads and Highways Department plans to invite tenders for a road connecting the zone to the Korean EPZ via the Karnaphuli tunnel. A detailed project proposal is now under preliminary review at the Chief Adviser’s Office and is expected to be presented to the Executive Committee of the National Economic Council (Ecnec) later this month.

Chowdhury noted that some Chinese firms plan to begin factory construction in the zone’s first phase. “We’re finalising the developer agreement. Once it’s signed, construction will begin—likely within two years,” he said, adding that some investors may begin building sooner. Regular dialogue with stakeholders is ongoing to ensure a smooth rollout.

Meanwhile, another China-backed project—Chandpur Economic Zone-1—is also progressing under a government-to-government framework. Proposed by Power Construction Corporation of China Ltd (PowerChina), this 3,038-acre zone will be located on an island in Matlab upazila.

A feasibility study is underway, with plans to prioritise renewable energy and agro-based industries due to the site’s remote location on the Meghna River and limited access to the mainland. The project will be submitted to Ecnec following the study’s completion.