After nearly a decade of delays, Bangladesh’s long-anticipated Chinese Economic and Industrial Zone in Chattogram is finally moving toward implementation. The project, widely seen as a strategic milestone in Bangladesh-China economic cooperation, is now entering its final negotiation phase, with authorities expecting to sign a developer agreement by June. This marks a critical turning point for a project that has remained stalled for more than nine years despite its strong investment potential.
The initiative is being led by the Bangladesh Economic Zones Authority, which is working closely with China Road and Bridge Corporation to finalize the agreement. Once signed, the project will formally transition into the implementation stage, allowing physical infrastructure development to begin. Officials have confirmed that several key negotiations and technical understandings are already in their final stages, creating momentum that had been missing for years.
Read More: BanglaBiz to Become Bangladesh’s Single Investment Portal After 2030
Located in Anwara, on the eastern bank of the Karnaphuli River, the economic zone will cover approximately 783 acres. Its proximity to the Karnaphuli Tunnel, just about two kilometers away, adds to its logistical advantage, making it an attractive destination for both local and foreign investors. The location is strategically important for industrial expansion, especially for export-oriented sectors that require efficient connectivity to ports and transport networks.
The financial structure of the project reflects its scale and ambition. The total estimated cost stands at Tk4056 crore, with a significant portion funded through a $221.18 million loan from the Chinese government. This concessional financing, often referred to as preferential buyer’s credit, is expected to support the development of core infrastructure within the zone. Planned facilities include a jetty, internal road networks, a central effluent treatment plant, and essential utilities such as gas, electricity and water supply systems.
One of the defining aspects of the project is its government-to-government framework. Under this arrangement, BEZA will be responsible for off-site infrastructure, including external connectivity and utility services, while the developer will handle internal development within the zone. However, officials have acknowledged that lack of coordination between these two components was one of the key reasons behind earlier delays. With renewed focus and structured planning, both sides are now working to ensure better alignment moving forward.
The project’s delay can be traced back to initial disagreements over developer selection and contract terms. Originally, China Harbour Engineering Company was expected to lead the development, but negotiations failed to reach a conclusion. This setback resulted in years of inactivity. In 2022, the Chinese government nominated China Road and Bridge Corporation as the new developer, which helped revive discussions. Since then, progress has been gradual but steady, with recent developments indicating a more decisive push.
Policy-level attention has also played a crucial role in accelerating the project. A 180-day action plan presented to the government included the Chinese economic zone as a priority initiative. High-level meetings between Bangladeshi officials and Chinese representatives have further reinforced commitment from both sides. These engagements have helped resolve long-standing issues, particularly those related to Engineering, Procurement and Construction contracts, which are now nearing completion.
From an investment perspective, the economic zone is expected to focus on high-potential sectors such as textiles, pharmaceuticals and light engineering. These industries have been identified based on Bangladesh’s existing strengths and export capabilities. By creating a dedicated industrial ecosystem with modern infrastructure, the zone aims to attract not only Chinese investors but also multinational companies looking to diversify their manufacturing bases.
Read More: Hydroponics Boom Begins with $30.5M Factory and 3,000 Jobs
The broader significance of the project extends beyond its immediate economic impact. Bangladesh currently has only a limited number of foreign economic zones under government-to-government arrangements. Among them, the Japanese economic zone in Araihazar has already demonstrated success, with multiple companies beginning production within a relatively short timeframe. In contrast, the Chinese zone’s prolonged delay has often been cited as a missed opportunity.
If successfully implemented, the Chattogram-based economic zone could help rebalance this narrative. It has the potential to become a major industrial hub, contributing to export growth, job creation and technology transfer. More importantly, it could send a strong signal to global investors about Bangladesh’s commitment to improving its investment climate and executing large-scale projects efficiently.
As the deadline for the developer agreement approaches, expectations are rising. The coming months will be crucial in determining whether the project can maintain its renewed momentum. For Bangladesh, the successful execution of this economic zone is not just about infrastructure development; it is about building confidence, strengthening international partnerships and positioning the country as a competitive destination in the global investment landscape.