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

2. 1. Why Mirshorai EZ ?
2. Background
3. Industrial Area
4. Non-Processing Area

3. Background Location

4. 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

5. Background Opportunities
STRENGTHS
• Abundant natural resources
• Labor resource with lower cost base
• Sufficient land resources for development

6. 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

7. Background
- The Development Framework of Mirshorai EZ
MEZ
Manufacturing Processing Logistics Supply
Base
Inclusive (create jobs, local participation)
Economically Sustainable
Environmentally Sensitive

8. 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

10. 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

11. Economic Zone- Proposed Location
Panoramic view of the proposed Economic Zone

12. 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

13. Integrated Residential Area
Existing Site Conditions

14. 2. Agenda
• Market positioning
• Mirshorai Economic Zone Master Plan

15. 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

16. 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

17. 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

18. 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

19. 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

20. Phasing Strategies

21. 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

22. Mirshorai
Economic Zone Development
Investment Opportunities
Road Show, Dhaka, Bangladesh

23. Investment Opportunities Why invest now?
Government support Legal framework
Incentives Infrastructure
Factors supporting a
successful economic zone

24. 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

25. 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

26. 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

27. 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

28. 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

29. Probable Future Industry Layout

30. Location of Mirshorai EZ

31. Utility Map of Mirshorai EZ

32. Land Reclamation of Mirshorai EZ

33. Transportation Network of Mirshorai EZ

34. River Intake System of Mirshorai EZ

35. Power Supply Connection of Mirshorai EZ

36. Gate System of Mirshorai EZ

37. Figure 1: Proposed sub zone one (Eastern Side of Muhuri Project road )
mirshorai economic zone
project

38. 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 )

39. Figure 3 : Eastern side of CDSP (Ponds) Figure 4 : Western side of CDSP ( Forest)
mirshorai economic zone
project

40. mirshorai economic zone
project
Figure 5 : Bamonsundor canal –towards the Bay of Bengal
Figure 6 : View of Bamonsundor canal- towards the Bay of Bengal

41. 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

42. 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

43. facilities of commercial city

44. facilities of commercial city

45. facilities of commercial city

46. recreational placees picture
of chittagong division

47. 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

48. Bandarban Golden Temple Chittagong Hill Tracts
recreational placees picture
of chittagong division

49. Kaptai Lake, Chittagong Hill
Tracts
recreational placees picture
of chittagong division

50. Chittagong EPZ
existing epz and industries in
chittagong city

51. Moha Maya, the second largest
man-made lake in Chittagong
after Foy's Lak
recreational placees of
chittagong division