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Mirshorai Economic Zone Road Show

At a glance Mirshorai Economic Zone, Proposed incentive package of Bangladesh Economic Zones , Why is Mirshorai Economic zone

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Mirshorai Economic Zone Road Show

  1. 1. 1. Why Mirshorai EZ ? 2. Background 3. Industrial Area 4. Non-Processing Area
  2. 2. Background Location
  3. 3. Background Opportunities • Largest EZ in south Asia (7716 acre) • Only natural deep sea port in Bangladesh • Geographical advantage as a gateway to serve the hinterland of Bangladesh, Eastern India and South- western China
  4. 4. Background Opportunities STRENGTHS • Abundant natural resources • Labor resource with lower cost base • Sufficient land resources for development
  5. 5. Background - The Economic Engine of Mirshorai EZ Economic Engine Economic Engine Catering Domestic Market Catering Domestic Market FDI Generation FDI Generation Employment Generation Employment Generation • Generate jobs for local • Befit local skill sets • Export oriented • Generate jobs for local • Befit local skill sets • Export oriented • Investment in Fixed Assets • Transfer of technologies • Develop higher skills
  6. 6. Background - The Development Framework of Mirshorai EZ MEZ Manufacturing Processing Logistics Supply Base Inclusive (create jobs, local participation) Economically Sustainable Environmentally Sensitive
  7. 7. Background : Development Suitability Analysis Protect Environment Reduce construction cost Reduce construction cost Access to infrastructure Minimize impacts on existing settlements Minimize impacts on existing settlements Minimize risk Minimize risk
  8. 8. Economic Zone- Proposed Location • Located 50 KM west of Chittagong City ( Commercial City of Bangladesh) •900 hectares for Phase 1 development • Total Land size 7716 acre • Adjacent with the Bay of Bengal
  9. 9. Economic Zone- Proposed Location Panoramic view of the proposed Economic Zone
  10. 10. Integrated Residential Area – Proposed Location • Located close to the Bay of Bengal • A beach to the south • Longest Sea beach within 120 KM • International School within 10 KM
  11. 11. Integrated Residential Area Existing Site Conditions
  12. 12. 2. Agenda • Market positioning • Mirshorai Economic Zone Master Plan
  13. 13. Macro Economy Bangladesh key Economy Indicators Population 160 million (estimated) Area 147,570 km GDP Growth 6% (average) Total Exports US$ 23.76 billion (2012-13)* Per capita GDP US$ 1084 (2013-14P)** FDI Inflow US$ 1730 million (2013)* Major Maritime Ports Chittagong and Mongla Major Cities Dhaka and Chittagong Commodity wise export 2012-13
  14. 14. Macro Economy – Drivers for Bangladesh economic growth • Since 2005, Bangladesh has sustained an annual Gross Domestic Product (GDP) growth of approximately 6.3%. This growth can be attributed to the introduction of stable macro-economic and monetary policies, rising industry and service outputs, and a continued high level of remittances coming into the country from the diaspora. In the future, the Government of Bangladesh’s (GoB) main goal is to generate an overall increase in real GDP growth to 8% per annum and reduce the number of people living in poverty in the country from 40% down to 15% by 2021 • Large domestic market – Bangladesh has a population size of about 160.0 million people in 2012 with growing per capita income and has formed a large domestic market for economic expansion. • Large regional market – The South East Asian and North East Asian countries with a combined large population size of more than 1.9 billion people has formed a large consumer market to support Bangladesh export goods. Bangladesh GDP contribution by major sector Source: www.worldbank.org and World Factbook (www.cia.gov) Growth of industrial sector and share to GDP
  15. 15. Investment Prospects in Bangladesh  The government has set its economic growth target to 10% in 2021 with an average of 7.3%, in its Sixth Five Year Plan.  To fulfill this vision the Government has facilitated manufacturing sectors that would eventually contribute 30% to national income.  Stable GDP growth for last decade  Annual export is about USD 24 billion in FY 2012-2013  Export grew 10.7% in 2013  Planning to export USD 5 billion leather goods in the next decade  Predicted RMG export upto USD 40 billion within 2021  IT companies are growing 20-30% a year
  16. 16. Investment Scope in Bangladesh Through export diversification several emerging exports are showing high potentials: Agro-products and agro-processing products Light engineering ( including auto-parts and bicycles) Leather products and footwear Pharmaceutical products Software and ICT products Home textile Ocean-going Ship Building Industries Toiletry products Electronics Plastic
  17. 17. Proposed Industries Construction Materials Industries Fulfill the needs of Bangladesh’s urbanization and reduce imports in the construction sector Textile and Clothing Industries Possible spillover from nearby EPZs/SEZs which are already saturated, due to resource or other limitations Food Processing Industries Utilize marine and other produce resources in this region, and generate jobs that are easier to be adopted by the locals Supply Base Utilize the richness of marine based resources in this region Tourism Utilise the beautiful and well conse Tourism Utilize the beautiful and well conserved natural environment and culture of Babgladesh
  18. 18. Phasing Strategies
  19. 19. Residential  Residential will play a crucial role of providing housing and social infrastructure for the workforce and other residents  Self reliant: integrated residential development will include other supporting infrastructure like hospitals, schools, commercial establishments  Enhance quality of life: parks, places of worship, sports complex, public transport system  Built in phases and market-driven  Sustainable development MARKET RESPONSIVE LINKAGE TO INDUSTRIE S ADAPTAB ILITY DIVERSITY OF REAL ESTATE PRODUCT MINIMISE COST LOW TO MEDIUM RISE SELF RELIANT SELF RELIANT CORE INFRA CORE INFRA SUPPORTING INFRA SUPPORTING INFRA POPULATION SIZE POPULATION SIZE SUSTAINABLESUSTAINABLE ECOLOGICAL PERFORMANCE ECOLOGICAL PERFORMANCE TRANSIT ORIENTED TRANSIT ORIENTED WALKABLEWALKABLE CONTEXT SENSITIVE CONTEXT SENSITIVE
  20. 20. Mirshorai Economic Zone Development Investment Opportunities Road Show, Dhaka, Bangladesh
  21. 21. Investment Opportunities Why invest now? Government support Legal framework Incentives Infrastructure Factors supporting a successful economic zone
  22. 22. Investment Opportunities Why invest now? Dedicated to promote and sustain SEZ Commitment to dedicate resources to monitor and market the SEZ to promote investment into both Phase One and subsequent expansion phases Dedicated to promote and sustain SEZ Commitment to dedicate resources to monitor and market the SEZ to promote investment into both Phase One and subsequent expansion phases Government support Legal framework Incentives Infrastructure Factors supporting a successful economic zone
  23. 23. Why invest now? Government support Legal framework Incentives Infrastructure Factors supporting a successful economic zone Tax Holiday • 10 years tax holiday in 15 years may be approved. • After tax holiday period i.e. 11th year 70%, 12th year 30% may be exempted. • However, no tax relief from 13th year VAT on Electricity • VAT on the electricity bill for the electricity that will be purchased or produced by the developer, may be exempted up to 10 years VAT on Local Purchase • All purchases from Domestic Tariff Area except petroleum can be exempted from VAT Subsidy • Proposal for providing subsidy upto 50% of cost of setting up CETP may be considered Custom Duty • Exemption from custom/excise duties for development of SEZ/EZs may be considered Stamp Duty • Exemption of stamp duty and registration fees for registration of SEZ/EZ land but limited to first transaction only and for registration of loan/credit document, may be considered Stamp Duty • Exemption of registration fees for registration of loan/credit document, may be considered Income tax others • Exemption from dividend tax may be considered Income tax others • Exemption from service taxes payable against the services provided by the developers may be considered Investment Opportunities Proposed incentives to the EZ/SEZ Developers
  24. 24. Why invest now? Government support Legal framework Incentives Infrastructure Head of Incentives Package Tax Holiday • 1st and 2nd year: 100% , 3rd year 80%, 4th year 70%, 5th year 60% , 6th year 50%, 7th year 40%, 8th year 30%, 9th year 20% and 10th year 10% income tax exemption can be considered Custom Duty • Import duty may be exempted for import of capital machinery for using in EZ/SEZ • The same may be exempted for import of construction materials and raw materials which are not locally much available Income Tax Others • Dividend tax exemption may be considered after tax holiday period is elapsed Repatriation • Repatriation of capital and dividend to home country may be considered Free flow of FDI • Provision of no ceiling of FDI may be considered Backward Linkage • Duty on Import of Raw material by backward linkage industries in DTA, feeding 100% export oriented industries, may be exempted Local Sale • Industries in EPA may be allowed upto 20% local sale Subcontracting • Subcontracting with the units in the DTA may be allowed Stamp Duty • Registration fees and stamp duties for registering lease deeds for leasing land/factory space may be exempted by 50% VAT • VAT for use of utilities in SEZ/ EZs may be exempted for 80% instead of proposed 100% Proposed incentives to EZ/SEZ users/investors
  25. 25. Investment Opportunities Why invest now? Proposed incentives to EZ/SEZ users/investors Head of Incentives Package Custom Duty • Duty applicable to export may be exempted CD on Vehicle • CD on import of vehicles (upto two only for one time) within 5 years of establishing the unit in the EZ/SEZs may be exempted. Double Taxation • Double taxation may be avoided subject to existence of double taxation avoidance agreement. IT Individual • 50% rebate on income tax of individuals with technical knowhow employed, upto 5 years of establishment of industrial unit, may be allowed Custom Bond • The facility of custom bond area may be given to the units in the Export Processing Area Foreign Exchange • Foreign currency loan may be allowed based on existing rules and laws Foreign Exchange • Non-resident working in EZ/SEZ may be allowed to open FC account. Foreign Exchange • FC account may also be allowed for both local and joint venture industries. Joint Venture • Foreign investors should be free to enter into joint venture with local investors Royalties • Tax on royalties and fees earned for technical knowhow may be exempted and may be repatriable. Capital Gain • Tax on capital gain from transfer of shares may be exempted Share Transfer • Foreign investors may be allowed to transfer their shares to local shareholders Work Permit • 5% of the staff of an industrial unit, from abroad, may be provided work permit Reinvestment • Repatriable dividends if reinvested may be treated as new foreign investment Residentship • Resident visa may be provided for investment of US$ 75,000 or more. Citizenship • Citizenship may be provided to foreign investors investing US$ 5,00,000 (five lakh) or more
  26. 26. Investment Opportunities Why invest now? Government support Legal framework Incentives Infrastructure Factors supporting a successful economic zone The Government is committed to investing in the surrounding infrastructure in order to spur the development of the SEZ. This includes: ► Energy ► Telecommunication ► Water ► Road upgrades Currently Mirshorai offers the following: ► Domestic airport ► Commercial jetty ► Road connecting Main highway to proposed zone
  27. 27. Probable Future Industry Layout
  28. 28. Location of Mirshorai EZ
  29. 29. Utility Map of Mirshorai EZ
  30. 30. Land Reclamation of Mirshorai EZ
  31. 31. Transportation Network of Mirshorai EZ
  32. 32. River Intake System of Mirshorai EZ
  33. 33. Power Supply Connection of Mirshorai EZ
  34. 34. Gate System of Mirshorai EZ
  35. 35. Figure 1: Proposed sub zone one (Eastern Side of Muhuri Project road ) mirshorai economic zone project
  36. 36. mirshorai economic zone project Figure 2: In-betweens CDSP and BWDB Embankment ( Sunni Mijirteck village- Western side of BWDB Embankment and eastern side of CDSP )
  37. 37. Figure 3 : Eastern side of CDSP (Ponds) Figure 4 : Western side of CDSP ( Forest) mirshorai economic zone project
  38. 38. mirshorai economic zone project Figure 5 : Bamonsundor canal –towards the Bay of Bengal Figure 6 : View of Bamonsundor canal- towards the Bay of Bengal
  39. 39. Figure 8 : End of the Bamonsundor Canal ( Shadur Char North of canal) Figure 7: End of the Bamonsundor Canal ( Shilpa Char South of canal) mirshorai economic zone project
  40. 40. Item Detail Comments Access & Utility 182 KM from Dhaka, 66 KM to Chittagong , 79 Km from Chittagong Airport , 67 KM from Chittagong port Land Gross & Net Gross area 7716.97 acre ( 2170.75 Khas Land, 3126.03 Permanent Lease and 2420.19 private land) Electricity line Mithaichora Sub-station within 9 KM from zone or Zorargonj Sub-station witnin 8 KM of zone which is under construction Gas Line Gas line within 9 KM of zone beside Dhaka-Chittagong high way Source of Sweet water Muhuri river within 10 KM of zone Access Road Zorargonj – Muhuri Project road ( If the zone 1 established at first) or Barotakia-Abu Torab Bazar-Mogadia raod (DC Obaidullah Road) if the Southern part start first. mirshorai economic zone project
  41. 41. facilities of commercial city
  42. 42. facilities of commercial city
  43. 43. facilities of commercial city
  44. 44. recreational placees picture of chittagong division
  45. 45. Sunset At Potenga Sea Beach Chittagong : Patenga is a sea beach located 14 kilometres south of the port city of Chittagong, Bangladesh. It is near the mouth of the Karnaphuli River. recreational placees of chittagong division
  46. 46. Bandarban Golden Temple Chittagong Hill Tracts recreational placees picture of chittagong division
  47. 47. Kaptai Lake, Chittagong Hill Tracts recreational placees picture of chittagong division
  48. 48. Chittagong EPZ existing epz and industries in chittagong city
  49. 49. Moha Maya, the second largest man-made lake in Chittagong after Foy's Lak recreational placees of chittagong division

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