Introduction

Background of Bangladesh Export Processing Zones Authority (BEPZA)

In order to stimulate rapid economic growth of the country, particularly through industrialization, the government has adopted an 'Open Door Policy' to attract foreign investment to Bangladesh. The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the government to promote, attract and facilitate foreign investment in the Export Processing Zones. The primary objective of an EPZ is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures. In 1976, a working paper prepared by an interministerial committee first recommended setting up EPZs in Bangladesh. As a consequence, in 1978, after several consultations and visits to probable locations, the Government of Bangladesh (GOB) decided to establish the first EPZ in Chittagong, adjacent to the seaport. The GOB established the Bangladesh Export Processing Zone Authority (BEPZA), an autonomous authority directly under the Prime Ministers Office (PMO), responsible for the creation, development, operation, management and control of EPZs and all connected matters. This was further supported by the 1981 act, which delineated the organizational structure of BEPZA; its linkage with the national government superstructure; its governance process; and also provided the power necessary to create and enforce the rules and regulations regarding EPZ governance. This act, and further ordinances provided BEPZA with the outright authority in all activities related to land acquisition and the infrastructural development of the zone; to processing applications for setting up industries; the provision of customsbonded facilities; to issue permits for the importing of machinery and raw materials; the provision of necessary banking facilities within the zone; to establish liaisons with the port, and other, authorities; and to sanction permits for foreign nationals to be employed within the zone. The GOB also enabled BEPZA to undertake activities related to the promotion of FDI within the zone and so BEPZA was not only developed as the over-arching institution for the development, promotion and administration of EPZs, but also as a one window Service provider for foreign investors.

Mission and Objective of BEPZA

2.1 Mission Of BEPZA

To strengthen the economic base of bangladesh by promoting investment & generation of employment

2.2 Objective Of BEPZA

1. Promotion of foreign (FDI) & local investment. 2. Promotion of export. 3. Diversification of export. 4. Development Of backward & forward linkages. 5. Promotion of employment. 6. Transfer of technology. 7. Upgradation of skill / dexterity. 8. Development of management. 9. Promotion of international marketing skill.

EPZ, BEPZA, EPZs of Bangladesh

EPZ: An Export Processing Zone is a territorial or economic enclave in which goods may be imported and manufactured and reshipped with a reduction in duties / and/or minimal intervention by custom officials (World Bank, 1999) An EPZ can be defined as an industrial zones with special incentives to attract foreign investment in which imported materials undergo some degree of processing before being exported again (ILO,1998).

BEZA:

The Bangladesh Export Processing Zones Authority (BEPZA), which is responsible for the Export Processing Zones (EPZs) in Bangladesh, is a key institution in attracting and managing Foreign Direct Investment (FDI) in Bangladesh.

EPZs of Bangladesh: We have eight EPZs in Bangladesh . At the moment six of them is in operations and other two ( Ishwardi and Karnaphuli ) are in implementation stage. Five of them are described below: DHAKA EXPORT PROCESSING ZONE Location : Savar 35 kms from Dhaka city center 25 kms from Zia International Airport, Dhaka Zone Area : 58 hectares (142 acres)

 CHITTAGONG EXPORT PROCESSING ZONE Location: 2.40 kms from Chittagong Sea Port 5.63 kms from the main business center of Chittagong 7.24 kms from the Chittagong International Airport Zone Area: 255 hectares (630 acres)

Figure 1 EPZ's of Bangladesh

 ADAMJEE EXPORT PROCESSING ZONE Location: Adamjee Nagar, Shiddirgong, Narianganj 15 kms from Dhaka city centers 40 kms from Hazrat Shazalal International Airport 255 kms from chittagong port.

UTTARA EXPORT PROCESSING ZONE Location: Shongalshi, Nilphamari 18 kms from Syedpur Airport 360 kms from Dhaka 460 kms from Chittagong Port.

Karnaphuli EXPORT PROCESSING ZONE Location: Chittagong Steel Mills Area, North Patenga 5.6 kms from Chittagong Port 8 kms from main business centers 4.7 kms from Chittagong International Airport.

Management and Organogram of BEPZA

4.1 Management:

BOARD OF GOVERNORS CHAIRED BY THE HONBLE PRIME MINISTER

EXECUTIVE BOARD CHAIRED BY THE EXECUTIVE CHAIRMAN

BEPZA HEADED BY THE EXECUTIVE CHAIRMAN

EPZ HEADED BY GENERAL MANAGER

4.2 Organogram:

Function and Facilities of BEPZA

Function of BEPZA: The functions that are being performed by BEPZA, these can be divided into four broad categories: 1. Functions related to infrastructure, basic services (electricity, gas, water, telephone, banking etc.) and customs related support. 2. Assistance in performing the procedures for setting up industries and also the setting up of principles for preferential industries; 3. Undertaking promotional steps to attract foreign, as well as local, investment and 4. To work with companies to reform and readjust the services as necessary.

Facilities of BEPZA: The industries which are established their factory in EPZ area BEPZA provides them some special facilities, those are noted below: o o o o o o o o o o o o o o o o o o o Custom office Post office Medical center Fire station Police station Investors club School & college Shopping center Banks C & f agents Courier service Day care centre Female worker s dormitory worker Restaurant Health club Recreational centre In house security Commissariat Green area

o Sports complex o Exclusive telephone exchange o Electric substation s