Life has never been easy for the sponsor-the Seoul-based Youngone Corporation- of the Korean Export Processing Zone (KEPZ), since the signing of a memorandum of understanding (MoU) in 1995 to establish the first private EPZ in Bangladesh. The government allotted land and promised all the facilities and incentives to the EPZ, now situated on the bank of the river Karaphuli in Anwara of Chittagong. Sheikh Hasina as the Prime Minister of the then Awami League government in 1999 attended the ground-breaking inauguration of the KPEZ and pledged all support for the private EPZ. But the government agencies concerned did the opposite later. The company, allegedly, faced hurdles at every step, from getting the clearance from the department of environment (DoE) to power and water supply. It may sound bizarre that the KPEZ authorities got operational licence during the rule of the military-backed caretaker government – eight years after that inaugural function. The DoE in March 2012 had cancelled environmental clearance alleging that the KEPZ was cutting the hills and causing damage to environment. However, the clearance was restored later when the allegation was found to be false. It did not also get the supply of the promised volume of gas and power. Rather once in 2012, the authorities concerned had cut off power supply to the EPZ. The supply was restored after more than a year following an order passed by the Supreme Court. It is widely believed that the land allotted to the KPEZ has been the main source of troubles for the Korean company. Some influential quarters, having political links, have been trying hard to make things difficult for the private EPZ with a view to grabbing a part of its land. The KPEZ was originally allotted nearly 2,500 acres of land. But it could not develop the land in time for not getting the ownership title to the same. All sorts of delay were being caused under different pretexts. Due to the non-completion of the land transfer deal, the KEPZ could not lease out industrial plots to foreign investors willing to set up factories there. Being instructed by the Prime Minister’s Office, the KPEZ in 2012 submitted details plans covering an area of 500 acres of the allotted land. But the zone authorities have developed more than 1,000 acres of land. It is widely believed that after the development, the land in question has become very lucrative which has lured the local crooks to grab a part of the same. Only very recently, some influential people, allegedly, have grabbed a portion of the KEPZ land, storming into its premises and uprooting the boundary pillars. They have, in fact, taken possession of six acres of land. The grabbers have done the mischief in the name of saving the land of a graveyard. The KPEZ authorities have drawn the attention of the PMO and lodged complaints with the local police. The police, it is alleged, have been non-reactive to the issue. The Anwara Police has reportedly not even recorded the incident as a regular case. All the developments have raised strong suspicion among the KPEZ honchos that some very powerful quarters are active behind-the-scene to grab a part of their land. If one follows the incidents involving the KPEZ, which now employs more than 10,000 workers and staff and has the potential to create employment opportunities for nearly 200,000 people, right from the beginning, one would smell something wrong with the government’s intention. The government’s enthusiasm about getting a private EPZ was found somewhat diluted, apparently, out of the realization that it had not been proper to allot such a large area of precious land for the establishment of one private EPZ. The reason for delay in signing the land transfer deal could be due to such realization or opposition from influential people coming from the same locality. The mistake, if there was any, was committed by the government, none else. But the negative developments centring the KPEZ are unlikely to go well with prospective sponsors from some other countries wanting to set up private export processing zones in Bangladesh. The message they are getting through the troubles being encountered by the KPEZ remains a demoralising one. Against this backdrop the government has recently invited investors from a couple of countries to set up their own export processing zones. But the investors concerned are expected to think twice before coming to a country where official incentives are aplenty and the cost of labour one of the cheapest but business environment on the ground remains somewhat hostile. The authorities concerned should try to change the situation, make moves that are necessary and bring an end to sufferings, if there is any, of the KPEZ and send positive signals to prospective foreign investors.
