In a letter dated the October 13, BEZA Executive Chairman Paban Chowdhury urged the senior secretary of the economic relations division (ERD) to make provisions for developers to borrow money from the World Bank's Investment Promotion Financing Facility (IPFF) project, which is being implemented by Bangladesh Bank.
“It is recommended to set a lower rate of interest for the zone developers under the project which can be settled by consulting the World Bank and the Bangladesh Bank,” Paban wrote in the letter.
Providing investors with initial support would enable them take on the risk of long-term investment, he observed.
Paban made the recommendations as per a discussion that took place at an earlier BEZA meeting held on September 19, at which a WB representative told the economic zone authority that private zone developers would be able to borrow money from the IPFF project.
In his letter to the ERD senior secretary, Paban added: “At this stage of economic zone development in Bangladesh, it is advisable that the project take responsibility of the mode of financing for the EZ developers.”
He added that supporting developers would spur investment in the economic zones and help the government achieve its goal of reducing poverty and generating employment by attracting foreign direct investment.
Over the last two years, BEZA has issued 12 licenses to corporate houses and another six more are expected to be issued within the next six months.