Chittagong Industrial Park LTD

Who We Are

The Government of Bangladesh initiated a bill on Private Export Processing Zone and within a very short period of one month enacted it into a law. The Private Export Processing Zone Act 1996. The first meeting of the newly formed Board of Governors, under Private Export Processing Zone Act, was held in October 1996. Following this meeting our proposal to set up an Export Processing Zone under private sector in Rangunia Thana of Chittagong District under the name and style "Chittagong Industrial Park Ltd" (CIPL) was approved in the Board of Governors meeting held at the Prime Minister's Office on March 29, 1998 under Section of Bangladesh Export Processing Zone Act 1996 to set up the Rangunia Export Processing Zone (REPZ) under the sponsorship of "Chittagong Industrial Park Ltd" which will be the first EPZ of the country in the private sector sponsored by the local entrepreneurs under joint venture with the foreign investors.

The site designated for the establishment of the Chittagong Industrial Park is in the district of Chittagong. Chittagong is a port city situated in the southeast of Bangladesh, bordering the Bay of Bengal and Mayanmar.

It is 260 km by road from the capital city of Dhaka. It is also the main export point of Bangladesh and is well equipped, generally, with modern port facilities, good network of roads, having a sub-tropical climate, Karnaphuli River, which is suitable of alternative or of inland transport.

Being in general is a flat alluvial land but within the district of Chittagong especially on the rim of perimeter of 30-40 km, the land consists of undulating hills ideal for formation of industrial parks.

The site of the Chittagong Industrial Park Ltd. is located about 30 K.M from the Chittagong City on the way to Kaptai on the northern side of River Karnaphuly.

  • Chittagong Industrial Park Ltd.

    CIPL

    (Sponsor Company)

  • Rangunia Export Processing Zone

    REPZ

    (Name of the Project)

  • Earmarked Areas of the REPZ

    • Information Technology (IT) Valley

    • Agro Valley

Salient features of Private Export Processing Zone Act. XX of 1996 are as follows:

  • Entrepreneurs setting up industrial units in the REPZ shall be allowed to import all the construction materials duty free.
  • Entrepreneurs setting up industrial units in the REPZ shall be allowed to import and export 100% of their raw materials and finished products duty free.
  • Income of the entrepreneurs in the REPZ shall be 100% income-tax free.
  • Repatriation of the income and profit of the entrepreneurs in the REPZ shall be allowed 100%.

REPZ investment

Solicit long term investment to develop the infrastructure of the zone

Solicit investment for the development of Rangunia EPZ (REPZ) by Foreign Direct Investment (FDI) by any prospective investor on the basis of either a Joint Venture Company, or on Joint Ownership Company or Built Operate & Transfer (BOT) or Built Operate & Own (BOO) or on any other mutually agreed terms and conditions with CIPL and the prospective investors.

Facilities

Proposed Development Of Back-Up Infrastructure For Rangunia Export Processing Zone:

  1. Internal roads
  2. Boundary walls, culverts, bridges, etc
  3. Hilltop observation tower
  4. Hilltop convention center.
  5. Hilltop retreat center.
  6. Control tower & hilltop helipad.
  7. Police station.
  8. Water supply station
  9. Gas supply station.
  10. Power station.
  11. Maintenance of existing jetty equipped with 200 metric ton capacity crane.
  12. Residential area for officers.
  13. Residential area for workers.
  14. Residential area for female workers.
  15. Central affluent treatment center.
  16. Central cold storage.
  17. Factory buildings.
  18. Central warehouse.
  19. Hilltop water reservoir.
  20. Lake.
  21. Greenery.
  22. Fiber optic cable landing station.
  23. Existing stadium.
  24. Hotel.
  25. School.
  26. Hospital.
  27. Mosque.
  28. Shopping arcade.
  29. Town center.
  30. Play ground.
  31. Green park.
  32. Golf course.
  33. Hilltop Country Club.
  34. Fire Station.

Administrative buildings :

  • Office building.
  • Customs.
  • Banks.
  • Post Office.
  • Courier/ Cargo handling office.
  • IT office.
  • Environment office.
  • Forest office.
  • Test laboratory.

Private Epz Act Allows The Following Facilities And Incentives To The Investors In Rangunia Epz:

All facilities and package of incentives are allowed for REPZ under Private EPZ Act XX of 1986 as allowed for the EPZs in Public Sector as mentioned hereunder:

Non-fiscal facilities

  • All foreign investments are secured by law.
  • All customs formalities shall be done at the factory gate.
  • Import/Export permit shall be issued within the working hour, etc.
  • Full repatriation of profit, capital & establishment.
  • Enjoy MFN status.
  • Foreign currency loan from abroad under Off-Shore Banking Unit (OBU) facilities.
  • Non-resident Foreign Currency Deposit (NFCD) allowed for ‘A’ type industries.
  • Operation of FC account by ‘B’ and ‘C’ type industries allowed.

Fiscal incentives

  • 02 (two) years tax holiday followed by 50% reduced rate for the 3rd and 4th years and 25% rate for the 5th year.
  • No income tax on interests on borrowed capital.
  • No ceiling on foreign investment.
  • No double taxation.
  • No duty on import of machinery, equipment and raw materials.
  • No duty on import/export.
  • No duty on import of construction materials for construction of factory buildings in REPZ.
  • Inter-Zone export permitted.
  • Sub-contracting within REPZ allowed.
  • Re-location of existing industries from abroad allowed.
  • Exemption from dividend tax for tax holiday period
  • Sale of 10% finished products except garments to Domestic Tariff Area (DTA) is allowed
  • Sale of 10% defective finished goods to DTA is allowed subject to approval by a committee.
  • Sale of 10% surplus raw materials to DTA is allowed.
  • Income tax exemption of salaries of foreign technician for three years.
  • Duty free import of two/three duty free vehicles for A & B type industries subject to certain conditions.
  • Intra/inter zone sub-contracting & transfer of goods allowed.
  • Sub-contracting with Export Oriented Industries inside and outside EPZ allowed
  • No UD (Utilization Declaration), IRC (Import Registration Certificate), ERC (Export Registration Certificate) & renewal of bond license required.

Site and location

The access to the project site is the Kaptai road. The Kaptai road links the project site with Chittagong City. Project site is located within 30 k.m. from Chittagong City and within 10 k.m. from Kaptai. Within 2 k.m. from the project site, across Chittagong-Kaptai Road, on the bank of River Karnaphully a jetty with all the back-up logistics is already built by BPDB (Bangladesh Power Development Board). The jetty can be used for transportation cargoes by barge to and from the main Chittagong Sea Port for import and onward shipment to the international market by ocean going ship.

The road network around the area includes a newly constructed bridge crossing over the river Karnaphuli within 3 k.m. from the project site is a unique cut-short road passage to Cox's Bazar on ward to Myanmar and Far Eastern countries.

the geographical location gives enormous benefits and competitive advantages such as

  1. Accessibility to markets in Myanmar, a country having a population of 40 million people
    • Accessibility to markets in the seven sisters sates of India having a population of 250 million people.
    • Accessibility to untapped markets in Bhutan, Sikkim and Nepal,
    • Alternative 'door' to one of the biggest market in the world - China. Namely south - western part of China, a regional
  2. Bangladesh being one of the emergency supplier of trained and easily to be groomed manpower in the global market of information technology, computer software and computer hardware, importing countries may set up high tech industries in the REPZ, and can benefit from competitive advantage of low labor cost of trained manpower Chittagong University of Engineering and Technology (CUET) located within only 5 k.m. from the zone can be the immediate source of skilled workers needed for the high tech industries.
    • To transmit computer software programs and data through fiber optic network can be an added advantage to the entrepreneur.
    • The REPZ shall provide an unique job opportunities to the abundance supply of trained and to be trained workers of the adjoining CHT and rural areas.
  3. The zone being located very near to the Chittagong Hill Tracts the available thousands of sq. miles of the adjoining areas of the cultivable land for fruits and vegetables and Kaptai lake and Rangamati lake for hatchery and pisci-culture can provide a unique opportunity to the entrepreneurs to set up export oriented agro based industries in the zone with abundance supply of raw materials as backward linkage from the cultivable land and lakes which are easily available within their reach.
    Currently Bangladesh enjoys its major income from remittance from their workers working in all major industrialized nations from Europe to Middle East and Asia this in due to the particular fact that it has an enormous supply of the labor force and characteristically, the Bangladesh workers are easily molded and trained to suit the varied conditions of the host countries. It has a labor force of approximately 50 million, wages paid in comparison to the foreign countries, is comparatively very low, averaged at us $150 per moth.
    With this opportunity predominantly available in Bangladesh the foreign relocated/ new industries should be able to overcome their current shortcomings.
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Salient features

  1. Our company is the first licensee to establish private EPZ in the country under Private EPZ Act. XX of 1996.
  2. Have already completed contour and topography survey of about 450 acres of land on scale of 1:1000 mt. in and around our project site by the British survey team “Weeks Ltd.”.
  3. Have already registered about 87 acres of land in the name of the company. Further area is in pipeline.
  4. Have already obtained to acquire further 219.50 acres of land from the highest authority of the GoB to make the project site workable.
  5. Have already got the consent to use the existing jetty with 30 metric ton capacity crane of Raojan Power Plant located just across our project site Rangunia for transportation of raw materials and finished products to and from our Zone to the Chittagong Sea Port via River Karnaphully.
  6. Setting up of a 30 MW Furnace Oil Based Power Plant and 5 MW Solar Power Plant is under way, in addition to the existing Kaptai Hydro power Plant and Raozan Power Plant.
  7. 132 MW and 11 MW electric line crosses over our project land making BPDB and REB electric connectivity readily available within the reach.
  8. Acquisition of further 182 acres of land is underway.
  9. Have already got the consent from the National Board of Revenue (NBR) for duty free import of materials and equipment for the infrastructure of the Zone.
  10. Main gas line to Kaptai passes under ground through our project site making it readily available within the reach.
  11. Main sourcing fresh water from River Karnaphully is available just across our project site, plus preservation of rain water and under ground water can also be the alternate source making it readily available within the reach.
  12. Tribal Leaders have agreed to involve their tribal and rural people in our proposed tripartite arrangements of farming.
  13. The leading NGOs of the country have shown their interests to finance the farmers under our tripartite arrangements.
  14. Potential local and foreign investors to set up export oriented food processing plants in the Zone are in touch with us.

 

Private EPZ act allows the following facilities and incentives to the investors in Rangunia EPZ

Competitive advantage

Unlike public sector EPZs of our country, the main thrust sectors of priority in our REPZ shall be the following environment and investment friendly, backward and forward linkage export oriented industries:

  1. Information Communications Technology Industries to be located in the earmarked area of ICT Valley.
  2. Agricultural cum Food Processing Industries to be located in the earmarked area of Agro Valley.

ICT VALLEY:

ICT Valley shall be connected to the international submarine fiber optic cable backbone which is already in existence in the country. At present the international fiber optic cable station being located in Cox’s Bazar, the connectivity for REPZ shall be brought from the current Cox’s Bazar—Chittagong Road through Bandarban, Sharap Bhata area of Rangunia, all the way crossing River Karnaphully to REPZ project site. The said infrastructure connectivity shall attract more than US 250 million as FDI by the prospective locators creating jobs opportunities for about 50,000 rural and tribal youths in the ICT sector of the Zone. ICT locators in the Zone may utilize the advantage of the time difference between Bangladesh and the ICT importing western countries and avail the opportunities in providing them with the back-office support. The World Bank has already agreed in principle to arrange the off-zone fiber optic cable connectivity for the ICT section of the Zone.

AGRO VALLEY:

Shall operate on a tripartite agreement:

1st Party: Financier and Technical know-how provider to cultivate agricultural items round the year scientifically.

2nd Party: Tribal & rural farmers, growers/cultivators of the Chittagong Hill Tracts (CHT) and surrounding rural areas.

3rd Party: Export Oriented Food Processing Industries in the Zone shall purchase the cultivated items from the growers for processing and exporting of the value-added agricultural items.

Distinctive competency

Exporters of the neighboring countries may avail unique triple benefits by setting up export-oriented industries in the REPZ:

1st:Avail Export Incentives from the Government of the exporting country by exporting unfinished or semi-finished raw materials from the exporting country into the REPZ.

2nd:Avail Duty-Free Benefits in Bangladesh for importing unfinished/ semi-finished raw materials from exporting country into the REPZ.

3rd:Avail Duty/Tax Free Benefits in Bangladesh by exporting the unfinished or semi-finished raw materials imported from the exporting country being processed and finished from the REPZ.

  • As the Zone is located adjacent to the CHT which covers almost 1/10 area of our country and is untapped and extremely potential source for easy and cheap supply of resources for the food processing industries of the Zone, such as, pineapple, jack-fruit, orange, lemon, tomato, baby-corn, sugarcane, cashew nut, ginger, orchid flower, including poultry, beef fattening, dairy and pisci-culture of sweet water fish in the Rangamati and Kaptai Lakes.
  • The area is another source for supply of potential workforce. In the CHT and surrounding rural areas tribal and rural youths individually or collectively may cultivate the above items in their areas opening a new door of job opportunities for about 250,000 tribal and rural people.
  • The Zone may also open a new horizon of opportunity to do business with the ‘Seven-Sister State’ of India, Bhutan, Nepal, China, Myanmar, Thailand, USA, Canada, Europe etc.
  • Meanwhile, a number of foreign and local investors who are presently in the food processing export business are in touch with us. They are interested to set up their food processing industries in our Zone.

Contact Us

A. Qaiyum Chowdhury

Managing Director & Founder.

Chittagong Industrial Park Ltd.

Office: Equity- Taneesha Noor
Apt # D9, 9th Floor
H # 44, R # 2
Chittagong - 4203
Bangladesh

Email: info@cipbd.com

Mobile: +880 1711 747 383