Chinese Economic Zone in Chattogram: USD 1.3b investment, over 100,000 jobs expected

A Chinese Economic and Industrial Zone is set to be developed on 783 acres of land in Anwara, Chattogram, strategically located between Chittagong Port to the north, the Karnaphuli Tunnel and Shah Amanat International Airport nearby, and the under-construction Matarbari Deep-Sea Port to the south.

According to the Bangladesh Investment Development Authority (BIDA), the zone is expected to attract USD 1.3 billion in investment—equivalent to about Tk 160 billion—and create more than 100,000 direct and indirect jobs.

The zone's greatest advantage is its location. Anwara is directly connected to Chittagong Port through the Karnaphuli Tunnel. Meanwhile, a new road linking Anwara to Matarbari via Banshkhali and Pekua has been planned. Once completed, it will integrate the industrial zone with both Chittagong Port and the future Matarbari Deep-Sea Port, creating an efficient industrial and freight transport network.

Business leaders, however, caution that geographical proximity alone will not ensure industrialisation. They stress that road connectivity, gas, electricity, water, waste management and fast investment services must all be ensured simultaneously for the zone to realise its full potential.

After nearly a decade of delays, the foundation stone of the industrial zone was laid on Monday, formally launching the project. The official implementation period will begin in January next year, with infrastructure construction scheduled for completion by December 2031.

The economic zone is a joint initiative of the governments of Bangladesh and China. The project was first agreed upon during Chinese President Xi Jinping's visit to Dhaka in 2016.

However, disagreements over the selection of a developer, financing arrangements and contractual terms delayed implementation for years.

Initially, China Harbour Engineering Company was considered as the developer, but the process stalled. In 2022, the Chinese government nominated China Road and Bridge Corporation (CRBC) as the new developer.

During Prime Minister Tarique Rahman's visit to China in June, the Bangladesh Economic Zones Authority (BEZA) and CRBC exchanged the developer agreement.

Earlier, on 16 June, the Executive Committee of the National Economic Council (ECNEC) approved a Tk 41.89 billion project for supporting infrastructure.

Of the total cost, Tk 17.22 billion will come from the government, and Tk 24.67 billion will be financed through foreign loans.

Speaking at the foundation stone-laying ceremony, Finance and Planning Minister Amir Khasru Mahmud Chowdhury said investment in the industrial zone would eventually exceed USD 1 billion, adding that its economic impact would extend beyond Anwara to the whole of southern Chattogram.

The project includes a multipurpose jetty capable of accommodating 20,000-deadweight-ton vessels, a 1,235-metre jetty access road, a bridge, a 1,181-metre, four-lane road, a central effluent treatment plant (CETP) capable of treating 25 million litres of wastewater per day, gas transmission pipelines, two electricity substations, water reservoirs, a solid waste collection centre amd nearly 12 kilometres of boundary wall.

BEZA aims to make at least 60 per cent of the industrial plots factory-ready within the first three years, allowing a significant portion of factories to begin construction by 2030.

Since the opening of the Karnaphuli Tunnel, prospects have grown for developing a coastal industrial corridor stretching from Mirsarai through Anwara to Cox's Bazar.

The corridor could integrate ports, industrial zones, power plants, roads and logistics infrastructure into a single economic belt.

Several complementary projects are already underway. The Karnaphuli Tunnel is operational. Construction of the Chinese industrial zone has begun, a project to widen the Anwara–Chandanaish road to four lanes has been approved, a 58-kilometre regional highway from Kalabibir Dighi in Anwara through Banshkhali and Toitong in Pekua to Matamuhuri in Cox's Bazar will also be widened, improving access to Matarbari Deep-Sea Port.

Matarbari Deep-Sea Port is scheduled to begin operations by 2030, while infrastructure for the Chinese economic zone is expected to be completed by 2031. If implemented on schedule, the ports, road network and industrial zone will become fully interconnected.

The industrial zone will also feature its own multipurpose jetty, allowing some raw materials and finished goods to be transported by river, reducing dependence on road transport.

Before the Karnaphuli Tunnel opened, it was expected to become a major freight route as industrialisation expanded in southern Chattogram and traffic to Matarbari increased.

However, traffic volumes have so far fallen short of expectations.

The tunnel's use is likely to increase once factories in the Chinese industrial zone become operational, as it will be used to transport raw materials and finished products. That increase, however, is not expected immediately, as it will take several years to complete infrastructure, establish factories and begin production.

Entrepreneurs say the zone's strategic location has already attracted investor interest, but its long-term success will depend on ensuring uninterrupted supplies of gas, electricity and water, effective waste management and efficient investment services.

They also stress that road projects connecting the zone to Matarbari Port must be completed on time.

Amirul Haque, president of the Chattogram Chamber of Commerce and Industry, told Prothom Alo that the industrial zone's biggest advantage is its proximity to the port. However, he suggested prioritising industries that do not initially require natural gas.

If infrastructure and essential services are delivered on schedule, this industrial zone could become a key hub in the emerging industrial corridor centred on Chattogram Port, the Karnaphuli Tunnel and Matarbari Deep-Sea Port, he said.