Investors at the Bangladesh Export Processing Zones Authority (BEPZA) Economic Zone in Mirsarai are facing growing uncertainty as the industrial hub continues to operate without a dedicated gas transmission pipeline nearly eight years after development activities began.
Several companies that have completed factory construction and installed production machinery say the lack of gas supply is delaying commercial operations and raising concerns about the investment environment within one of Bangladesh’s largest industrial zones.
Among the affected investors is SBS Zipper Bangladesh Co Ltd, a Chinese-backed manufacturer that has invested nearly $20 million to establish a facility producing zippers, sliders, tapes, buttons and related garment accessories.
The company has completed infrastructure development and machinery installation but remains unable to begin production due to the absence of a gas connection.
Company representatives said uncertainty surrounding utility availability has forced the postponement of planned production schedules, despite the factory being operationally ready.
Industry sources indicate that several other manufacturers within the zone are facing similar challenges. Some investors have adopted liquefied petroleum gas (LPG) as a temporary alternative to support limited operations while awaiting a permanent gas supply solution.
In addition to gas shortages, investors have also highlighted concerns regarding water availability and quality. Sources noted that available water supplies contain high salinity levels and are unsuitable for many industrial applications, prompting authorities to prioritise investment in relatively low water-consuming industries.
Businesses operating in the zone also report administrative challenges, citing the need to obtain nearly 28 separate approvals from various government agencies before establishing industrial facilities.
According to project sources, authorities had initially planned to install a dedicated gas transmission pipeline extending more than five kilometres from the Karnaphuli Gas Distribution Company Limited station in Mirsarai. However, the project has yet to be implemented.
An alternative plan to utilise a gas pipeline installed by Bashundhara Group for its adjacent economic zone has also failed to materialise, leaving investors without a long-term utility solution.
Mohammad Anamul Haque, Project Director of the BEPZA Economic Zone, acknowledged the importance of utility infrastructure in sustaining investment growth and said authorities have allowed some factories to temporarily use LPG until a permanent gas supply arrangement is secured.
Officials said discussions are ongoing regarding a possible memorandum of understanding between Bangladesh Economic Zones Authority (BEZA) and Bashundhara Group to facilitate future gas connectivity.
Despite infrastructure challenges, investor interest in the zone remains strong due to its strategic location near Chittagong Port and Shah Amanat International Airport, as well as limited land availability in Chattogram’s existing export processing zones.
According to BEPZA data, 354 of the zone’s 539 industrial plots have already been allocated to 61 companies. Twelve enterprises have commenced operations and exports, while three additional firms are preparing to begin export activities. Construction work is currently underway at 32 industrial facilities.
As of April, total investment commitments in the zone reached $90.79 million, generating exports worth $45.14 million and creating approximately 6,000 jobs.
The zone has attracted investors from China, South Korea, Sri Lanka, the United States, the United Kingdom, Canada, Singapore, India, the United Arab Emirates, the Netherlands, Malaysia, Ireland and Bangladesh.
BEPZA estimates that the fully developed industrial zone could attract nearly $7 billion in investment and create employment opportunities for around 400,000 people, making it one of the country’s most significant industrial development projects.
