Final English METI-圧縮済み PDF

FY2018 STUDY ON BUSINESS OPPOTURNITY OF HIGH QUALITY
INFRASTRUCTURE TO OVERSEAS
FEASIBILITY STUDY OF MIRSARAI OCEAN FRONT ECONOMIC ZONE AND

PORT, PEOPLE’S REPUBLIC OF BANGLADESH
FINAL REPORT
28th February 2019
Prepared by:
Japan Development Institute Ltd.
Sojitz Corporation
Figure: Project Location Site
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Abbreviation
Abbreviation Name
ADB Asian Development Bank
BEZA Bangladesh Economic Zone Authority
BIWTA Bangladesh Inland Water Transport Authority
BWDB Bangladesh Water Development Board
CPA Chittagong Port Authority
DL Datum Line
EIA Environmental Impact Assessment
EZ Economic Zone
FSRU Floating Storage Regasification Unit
IFC International Finance Corporation
IRR Internal Rate of Return
JICA Japan International Corporation Agency
MOFEZ Mirsarai Ocean Front Economic Zone
MPM Multi-point Mooring
MSL Mean Sea Level
OSS One Stop Service
PMO Prime Minister Office
PPP Private-Public Partnership
SPC Special Purpose Company
SPM Single Point Mooring
STS Ship to Ship
WB World Bank
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Table of Contents
Abbreviation ..................................................................................................................................................... 3
Table of Contents ............................................................................................................................................. 4
Summary .......................................................................................................................................................... 8
1.Introduction ................................................................................................................................................. 14
1.1 Overview and National Vision of Bangladesh .................................................................................. 14
1.2 Economic development policy of Bangladesh government ............................................................. 15
1.3 Bottlenecks of Bangladesh Economy ............................................................................................... 16
1.4 Benefit to Bangladesh: Proposal of MOFEZ .................................................................................... 17
2. Data Collection, Survey and Analysis for Development of Economic Zone ............................................ 18
2.1 Location & Site Condition ................................................................................................................... 18
2.1.1. Strategic Location of Mirsarai ................................................................................... 18
2.1.2 Site Condition of Zone 22-23 ..................................................................................... 20
2.1.3 Selection of Zone 22-23 ............................................................................................. 25
2.2. Physical Conditions ............................................................................................................................ 26
2.2.1 Current conditions of land usage ................................................................................ 26
2.2.2 Topography ................................................................................................................ 27
2.2.3 Macro Ecological Environment ................................................................................. 28
2.2.4 Fauna of Zone 23........................................................................................................ 29
2.2.5 Fish of Zone 23 .......................................................................................................... 29
2.2.6 Flora of Zone 23 ......................................................................................................... 30
2.2.7 Socio Economic Aspects ............................................................................................ 30
2.2.8 Geological conditions ................................................................................................. 31
3. Market and Competition Analyses ............................................................................................................. 34
3.1 Steel Industry ....................................................................................................................................... 34
3.2 Cement and Construction Industry ...................................................................................................... 37
3.3 Grains & Animal Feed Industry .......................................................................................................... 41
3.4 Energy Industry (LPG) ........................................................................................................................ 47
3.5 Energy Industry (HFO) ........................................................................................................................ 50
3.6 Type of Industry Expected (Industry Mix) .......................................................................................... 51
4. Expected Demand & Type of Industry for 2019-2030 .............................................................................. 54
4.1 Macroeconomic Assumptions ............................................................................................................. 54
4.2 Steel Industry .................................................................................................................................... 55
4.3 Cement and Construction Industry ...................................................................................................... 55
4.4 Grain & Animal Feed Industry ............................................................................................................ 56
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4.5 Demand Projection for MOFEZ .......................................................................................................... 56
5. Master Plan of MOFEZ .............................................................................................................................. 58
5.1 Project Land of MOFEZ ...................................................................................................................... 58
5.2 Basic Concept of MOFEZ Master Plan ............................................................................................... 58
5.3 Land Use Plan ...................................................................................................................................... 59
6. Preliminary Infrastructure Design of MOFEZ ........................................................................................... 62
6.1 Road & Dyke Net Work ...................................................................................................................... 62
6.2 Drainage System .................................................................................................................................. 63
6.3 Power and Gas Supply & Net Work ................................................................................................. 63
6.4 Water Supply ....................................................................................................................................... 70
6.5 Wastewater Treatment Plant ................................................................................................................ 70
6.6 Telecommunication System ................................................................................................................ 71
6.7 Administrative Building ...................................................................................................................... 71
6.8 Railway and Stations ........................................................................................................................... 71
6.9 Housing ................................................................................................................................................ 72
7. Cost Estimation of MOFEZ ....................................................................................................................... 73
8. Financial Plan ............................................................................................................................................. 74
8.1 Equity ................................................................................................................................................... 74
8.2 Long and Short Term Loan ................................................................................................................. 74
9. Data Collection, Survey and Analysis for Development of Port ............................................................... 75
9.1 Site & Oceanographic Condition ......................................................................................................... 75
9.2 Market and Competition Analyses ...................................................................................................... 78
9.3 Type of Cargo Demand & Projection .................................................................................................. 84
9.3.1 Steel Industry ............................................................................................................. 84
9.3.2 Cement and Construction Industry ............................................................................. 84
9.3.3 Grain & Animal Feed ................................................................................................. 84
9.3.4 Energy Industry (LPG) ............................................................................................... 86
9.3.5. Energy Industry (HFO) ............................................................................................. 87
9.3.6 Summary of Demand for MOFEZ Jetties .................................................................. 87
10. Proposed Port Master Plan ....................................................................................................................... 89
10.1 Port Planning ..................................................................................................................................... 89
10.2 Required Berth number...................................................................................................................... 89
10.3 Basic Facilities and Dimension of the Port ....................................................................................... 91
10.4 Quay Wall .......................................................................................................................................... 91
10.5 Energy Infrastructure in MOFEZ ...................................................................................................... 92
11. Cost Estimation of Port ............................................................................................................................ 95
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11.1 Revenue from Port ............................................................................................................................. 95
12. Data Collection, Survey and Analysis for Development of Navigation Channel ................................... 96
12.1 Proposed Navigation Channel ........................................................................................................... 96
12.2 Turning Basin .................................................................................................................................... 97
12.3 Dredging of Channel ...................................................................................................................... 98
12.3.1 Cost Estimation .................................................................................................... 99
12.3.2 Management & Operation System of channel ......................................................... 99
13. Management & Operation Organization of MOFEZ ............................................................................. 100
14. Financial Analysis .................................................................................................................................. 102
14.1 Purpose of the Financial Analysis ................................................................................................... 102
14.2 Methodology of the Financial Analysis .......................................................................................... 102
14.3 Assumptions for the Financial Analysis .......................................................................................... 102
14.3.1 Base Year Prices in the year of 2019 are used in the financial analysis................. 102
14.3.2 Project Life The project life for the financial analysis is determined as 25 years. . 102
15. Scope of Project ..................................................................................................................................... 103
15.1 Economic Zone Development ......................................................................................................... 103
15.2 Port Development ............................................................................................................................ 107
16. Environmental and Social Issues ........................................................................................................... 110
16.1 Legal framework of Environmental and Social Impact Assessment .............................................. 110
16.2 Potential Project Activities .............................................................................................................. 110
16.3 Potential Impacts from Ecological Perspective ............................................................................... 111
16.4 Potential Impacts from Socio-Economic Perspective ..................................................................... 112
16.5 Mitigation Measurers ....................................................................................................................... 113
16.5.1 Mitigation Measures for Ecological Impacts ......................................................... 113
16.5.2 Mitigation Measures for Socio-Economic Impacts ................................................ 115
16.6 Recommendations............................................................................................................................ 117
17. Risk Analysis ......................................................................................................................................... 118
18. Advantages of Japanese Companies and Expected Beneficial Economic Effects for Japan ................ 119
18.1 Involvement of Japanese companies in MOFEZ and superiority of Japanese technology ............. 119
18.2 Cost competitiveness of Japanese companies in Bangladesh ......................................................... 120
19. Possibility and Measures for Replicating the Proposed Infrastructure Development Project in other
Areas of Bangladesh and other Countries .................................................................................................... 122
19.1 Other Areas in Bangladesh .............................................................................................................. 122
19.2 Other Countries ................................................................................................................................ 122
20. Recommendations .................................................................................................................................. 124
20.1 Future Action ................................................................................................................................... 124
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20.2 Potentiality of Corporation by Japanese government authority ...................................................... 124
20.2.1 Technical Corporation ............................................................................................ 124
20.2.2 Financial Corporation ............................................................................................. 124
20.3 Schedule ........................................................................................................................................... 125
Appendix: Draft TOC for Full EIA .............................................................................................................. 126
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Summary
Bangladesh faces rapid economic growth. The government of Bangladesh has declared its target
to be a Middle-Income Country by 20211. While the economic development of Bangladesh is
getting attentions from the world, there are some obstacles to disturb its real economical take off.
These obstacles include 1) lack of sufficient volume of energy and power, 2) insufficient
logistic facilities, such as ports, roads, bridges and railways to handle industrial materials, and
3) lack of resources for construction and production such as aggregate, clinker, steel and other
raw materials.
Especially, the insufficient logistic in port sector has a serious port conjunction problem which
leads to the cost increase of import and export as well as delay of business. The situation is
getting worse and worse yearly as the volume of import and export increase.
Due to this circumstance, the country has less attraction to invest comparing to other Asian
countries. In the matter of fact, Doing Business of World Bank remains in low rank in the
world: 176 out of 190 in 16th edition of 20192.
As such, the study team has proposed the development of Mirsarai Ocean Front Economic Zone
(MOFEZ) mitigate the problem of Bangladesh. Mirsarai Ocean Front Economic.
MOFEZ is one of the most effective solutions to mitigate the current serious port conjunction as
well to attract new industries to Bangladesh. MOFEZ is planned to be an Economic Zone in
Bangabandhu Industrial City which equipped with an international port which allows clients in
the Economic Zone direct access to the ocean. All other countries such as China, India, Thailand
and Vietnam, have adopted the idea of ocean front Economic Zone successfully and now
MOFEZ is planned to be a multi-modal EZ with (1) Port, (2) Highway Connection and (3)
Railway connection.
The development of MOFEZ will be expected to contribute to Bangladesh in the following

ways.
- Improvement of handling capacity of imports will enable to increase total importing and
exporting volume in Bangladesh and accelerate the trade,
- Create a number of new employment opportunities since many of factories would start
us new productions in the area,
- Attract foreign direct investment from worldwide,
- Trigger new or advanced technologies, and
- Mitigate centralization of population in the capital city, Dhaka.
1 Bangladesh Vision 2021, Government of Bangladesh, 9th December 2006

2 Doing Business 2019, World Bank Group Flagship Report, January 2019
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This Feasibility Report of Mirsarai Ocean Front Economic Zone and Port examines the
geographical and financial feasibility of development of MOFEZ.
Upon our study, the team has found that navigation channel to the project site of Mirsarai Ocean
Front Economic Zone (MOFEZ) is kept at least 8.5 m depth, allowing 10,000 - 15,000 tons
ships to be operational for 24 hours and up to 30,000 tons ships can navigate during the high
tide period.
Since the project will involve multiple components ( or sub-projects) each of which may have
different types of adverse impacts of the environment, DoE may require EIA study to be
conducted through multiple EIA studies if a single EIA is considered not sufficient to document
the comprehensive impacts.
In the meantime, Bangladesh Government, namely Bangladesh Economic Zone Authority
(BEZA), is already implementing key infrastructure in Bangabandhu Industrial city, or around
MOFEZ site, such as (1)Sitakunda- Chittagong Super dyke/road, (2) three access roads to the
Dhaka-Chittagong highway to Bangabandhu Industrial City, where MOFEZ is planning to
locate, (3) 150 MW power plant and distribution system, (4) Water treatment plant &
distribution system, (5) Railway extension to the proposed project site and (6) OSS &
Administration Building. This proves that Bangladesh government is putting their strong effort
to develop Mirsarai area as one of the most important production area of Bangladesh.
The development of MOFEZ will also bring benefit to Japan. There are several spaces where
Japanese companies can play important role. We expect Japanese companies’ involvement in
the areas below.
1) Investors of the Economic Zone development,
2) Investors of the port development,
3) EPC contractors of the Economic Zone,
4) EPC contractors of the port
5) Suppliers of construction equipment
6) Economic Zone management & operator,
7) Port management & operator (bulk cargo terminal and in future container terminal),
8) Tenants/Investors to the Economic Zone,
9) Port users, and
10) Suppliers of Economic Zone facility such as sewage treatment plant
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Based on rough calculations of some of the expected Japanese companies’ involvement to
MOFEZ, the following are expected beneficial economic effects to Japan.
Table 1 Forecasting Assumptions of Benefit to Japan

1 Operation of EZ and Port for Bulk Cargo ¥50 billion
2 Installment of Cargo Handling Crane (for Bulk and Container Cargo) ¥2 billion~
3 Installment of LPG Onshore Pipeline, Storage Tank, Conveyor, etc. ¥15 billion~
4 Installment of Sewage Treatment Plant ¥1 billion~
5 Construction, Civil Engineering Construction and Maintenance (Industrial ¥34.3 billion~
Park, Port)
Rough Estimation ¥102.3 billion~
During the study, the team has conducted market survey. From the study, it is the team has
identified that the demand for the EZ and port service seems to be positive. 20 companies out of
30 companies showed initial interest to be the client of MOFEZ during study interview.
On top of the benefit to Japan, the concept of MOFEZ could be implemented in some other
places in Bangladesh as well as countries nearby such as India, Thailand and Vietnam.
Expected industries which may be attracted to the MOFEZ are (1) Steel industry, (2) Cement
industry, (3) Construction material industry, (4) Food processing industry such as wheat, sugar,
edible oil processing, (5) Animal feed industry, and (6) Energy firms handling LPG. All of them
require raw materials to be imported by ships.
Table 2 Basic Concept of MOFEZ

Location Zone 22 and 23 of Bangabandhu Industrial City, Mirsarai, Chiattgong,
Bangladesh
Scale Phase 1 (454ha): EZ area 324 ha (Zone 22) and Port area 130 ha (coastal side
of Zone 20 and Zone 22: 2.6km)
Phase 2 (572ha): EZ area 447 ha (Zone 23) and Port area 125 ha (2.2km)
(coastal side of Zone 23)
Total development area: 1,026 ha (4.8 km)
On site ①Substation, ②Electricity line, ③Petroleum pipelines, ④Water supply
Facility system (surface water / deep well), ⑤Sewerage treatment plant and pipeline,
⑥Internal roads, ⑦Jetties for energy and bulk cargo,
⑧Telecommunication substations, ⑨Security fences / SOLAS system
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Business Development and Operation of the EZ
・Development of on-site facility
・Operation: marketing, leasing, EZ & port operation, security, water supply,
electricity supply, telecommunication supply, custom clearance and others
Upon acknowledging the demand in different sector, the study team has proposed a Master Plan
of MOFEZ as shown in the figure below.
Figure 1 Master Plan of MOFEZ
The preliminary financial feasibility is also checked during the study. The preliminary
investment cost is estimated as about USD 506.9 million (USD 308.9 million for port
development and USD 198 million for EZ development). The expected return on investment
from the port is estimated as FIRR of 22.9% and NPV of USD 304.7 million. The expected
return on investment from the EZ is estimated as FIRR of 15.03% and NPV of USD 19 million.
Since the investment cost is huge, financial corporation by Japanese government authority for
development of MOFEZ will be essential factor to justify some of the remained concerns during
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this study. For example, detailed geographic and oceanographic conditions have to be studied
through boiling test. Also, EIA is required to mitigate the environmental impact through the
development. Thus, Detailed feasibility study has to be conducted. For example, JICA has a
scheme, PPP FS, to support finance to conduct detailed feasibility study for such private and
public related project. Thus, after this study, the team will consider to utilize the scheme.
There is also possibility of requesting for the financial support from Japanese government
agency for infrastructure development in MOFEZ, such as dredging work, development of
basement of the port and water break, using short-term and long-term loan.
MOFEZ is expected be opened in 2023 if the following schedule is proceeded smoothly. There
will be necessity of conducting detailed feasibility study and EIA study to finalize the
investment decision. Then, after arranging necessary finance and EPC for development, the
construction will start.
Table 3 Prospective Implementation Schedule
During the phase of detailed study, some of the concerns and risks have to be solved and/or
furtherly clarified. Those risks include the list below.
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① Whether the access road and necessary infrastructure, such as water, power, gas
and etc., in Bangabandhu Industrial City will be constructed as per the planned
schedule
② Whether the railway is extended to MOFEZ’s jetty area
③ Whether the project site has suitable geological characteristics with enough
strength
④ Whether Zone 22 and 23 will be officially acquired by the developer
⑤ Whether the land under Ministry of Environment, Forestry and Climate Change
in Zone 23 will be transferred to BEZA
⑥ How to mitigate possible impact to endangered and/or specially protected
species in the project site
⑦ Consideration of an expansion plan
 In case of developing a container port in future, breakwater structure
may be required.
 In case of developing a deeper navigation channel, an early planning (at
the stage of developing phase 1) is required.
In order to dispel the raised risk the study team needs further communication and coordination
with Bangladesh government. Also, identification of potential customer will supplement the
feasibility of MOFEZ.
Based on the result of the study, the proposed MOFEZ is likely viable and a timely project for
Bangladesh, reducing the biggest bottlenecks of shortage of well-equipped EZ and Jetty.
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1.Introduction
1.1 Overview and National Vision of Bangladesh
Bangladesh, located on the Bay of Bengal in Southeast Asia, is a country facing a rapid
economic growth in past few years. In the year of 2017, Bangladesh had GDP of over 7% 4 and
GDP per capita goes over USD 1,600. UN report, the World Economic Situation and Prospects 5,
reported that Bangladesh will be the third fastest growing economy in the world in terms of
achieving high GDP in 2019. The government of Bangladesh has declared its target to be a
Middle-Income Country by 20216. In the election held in December 2018, Awami League has
won and thus, this vision remains as a common goal of the country.
Figure 2 Map of Bangladesh
Source: Central Intelligence Agency, the World Fact Book “Bangladesh”
Table 4 Overview of the Bangladesh

Country People's Republic of Bangladesh
Area 147,570 km2
Population 161,750,000 (2016-2017, Bangladesh Bureau of
4 JETRO, Bangladesh Overview

5 United Nations Department of Economic and Social Affair, World Economic Situation
and Prospects, 21st January 2019
6 Bangladesh Vision 2021, Government of Bangladesh, 9th December 2006
14
Statistics)
Capital Dhaka
Population: 12,040,000
(2011-2017, Bangladesh Bureau of Statistics)
Language Bengali (national language)
Religion Muslim (national religion)
Table 5 Economic summary of Bangladesh (Year of 2017)

GDP 7.14%
Nominal GDP USD 261.4 billion
Nominal GDP per capita USD 1,602
Exporting USD 31,328 million
Importing USD 47,751 million
Current Balance USD △6,365 million
Trade Balance USD △12,255
million
Foreign Direct Investment USD 2,51 million
Source: JETRO, Bangladesh Overview
Table 6 Politics in Bangladesh

Constitution Republic
Parliamentary system Unicameral system
Prime Minister Sheikh Hasina (Reelected in December, 2018)
1.2 Economic development policy of Bangladesh government

While the country does not have rich natural resources, it has strengths of its massive population
of young and educated people. In order to maximize the utilization of manpower as well as to
encourage rapid national economic development through diversification of industries and
augmentation of employment, production and export, the government is now focusing on their
development of Economic Zone, with their national slogan “100 Economic Zone Plan on 75,000
acres of land to create 10 million job by 2030”, which is initially presented by the Japan
Development Institute Ltd. Economic Zone is an area in which the business and trade laws are
different from rest of the country. In Bangladesh, Bangladesh Economic Zones Authority
(BEZA) takes the lead of Economic Zone development, and the enterprises in Economic Zone
have incentive of income tax exemption, custom duties and etc. By January 2019, BEZA has
15
approved 88 economic zones including 59 public and 29 private economic zones 7. Among those
approved Economic Zones, BEZA is focusing on the development of Bangabandhu Industrial
City, also called as Mirsarai Economic Zone or Bangabandhu Sheikh Mujib Shilpa Nagar. The
size of the Bangabandhu Industrial City is 12,000 hector and located a strategic
Dhaka-Chittagong highway and 50 Km of ocean front allows to develop ports. The project site
for this Feasibility Study locates in the Bangabandhu Industrial City.
Figure 3 Economic Zone Development Plan in Bangladesh
Source: BEZA
1.3 Bottlenecks of Bangladesh Economy

While Bangladesh faces rapid economic growth, there are some obstacles to disturb its
economical take off. Those include:
 Lack of sufficient volume of energy and power,

 Insufficient logistic facilities, such as ports, roads, bridges and railways to handle
7 “Economic Zones site,” BEZA website, 7th January, 2019
16
industrial materials, and
 Lack of resources for construction and production such as aggregate, clinker, steel
and etc.
Especially, Chittagong port, handling about 90% of import and export activities with small
vessels, has a serious problem of conjunction which leads to the cost increase of import and
export. The situation is getting worse and worse as the volume of import and export increase.
One leading firm claimed that they have to wait more than 2 weeks and has to pay 15,000 -
20,000 dollar per day as demurrage.
Due to this circumstance, the country has less attraction to invest comparing to other Asian
countries. In the matter of fact, Doing Business of World Bank remains in low rank in the
world: 176 out of 190 in 16th edition of 20198.
As such, Bangladesh needs comprehensive solution to continue its economic growth.
1.4 Benefit to Bangladesh: Proposal of MOFEZ

Mirsarai Ocean Front Economic Zone (MOFEZ), proposed by Japan Development Institute Ltd.,
is one of the most effective solutions to mitigate the current serious port conjunction as well to
attract new industries. MOFEZ is planned to be an Economic Zone in Bangabandhu Industrial
City which equipped with an international port which allows clients in the Economic Zone
direct access to the ocean. All other countries such as China, India, Thailand and Vietnam, have
adopted the idea of ocean front Economic Zone successfully and now MOFEZ is planned to be
a multi-modal EZ with (1) Port, (2) Highway Connection and (3) Railway connection.
The development of MOFEZ will also contribute to Bangladesh in the following ways.
- Create a number of new employment opportunities since many of factories would start
us new productions in the area,
- Attract foreign direct investment from worldwide,
- Trigger new or advanced technologies, and
- Mitigate centralization of population in the capital city, Dhaka.
This Feasibility Report of Mirsarai Ocean Front Economic Zone and Port examines the
geographical and financial feasibility of development of MOFEZ.
8 Doing Business 2019, World Bank Group Flagship Report, January 2019
17
2. Data Collection, Survey and Analysis for Development of Economic Zone
2.1 Location & Site Condition
2.1.1. Strategic Location of Mirsarai
Since 2014, Bangladesh and Japan have pursued economic cooperation under the initiative of
"the Bay of Bengal Industrial Growth Belt," or BIG-B. The BIG-B initiative is “to accelerate
industrial agglomeration along the Dhaka-Chittagong-Cox's Bazar belt area and beyond,
encompassing developing economic infrastructure, improving investment environment and
fostering connectivity”. Some of Japan’s projects contributing “Big-B” are listed below.
Some of Japan’s Projects contributing “Big-B”

1) Economic infrastructure development Figure 4 Schematic Illustration of Big-B
- Matarbari Ultra Super Critical Coal-Fired
Power Project
- Dhaka-Chittagong Main Power Grid
Strengthening Project
2) Improvement of Investment environment
- Foreign Direct Investment Promotion
Project
- Project for Development of Economic Zones
and. Capacity Enhancement of Bangladesh
Economic Zones Authority
3) Enhancement of connectivity
- The Kanchpur, Meghna and Gumti Bridges
Project
The proposed MOFEZ is one of the most suitable large sites in the country along the strategic
Dhaka-Chittagong industrial corridor. Mostly because of its strategic location, it has the
potential to contribute to the economic development of the country by attracting Foreign Direct
Investment (FDI) as well as domestic investment.
18
Figure 5 Strategic Location of Bangabandhu Industrial City
Bangabandhu Industrial City is located at the end of the eastern side of the Bay of Bengal,
surrounded by the coast and Mirsarai Town. It is 10 km west of the national Highway
(Dhaka-Chittagong Highway) and 11.5 km west of the nearby Railway Station, with Chittagong
City 60 km south of this location. The Shah Amanat International Airport in Chittagong is
located south of the site at a distance of 79 km, and, the seaport is 67 km south of the site.
Bangabandhu Industrial City has potentiality to become the biggest industrial cities in the
country because of the Government’s ownership of the vast land in one chunk. Generally, it is
quite difficult and time-consuming to secure a large land for any industrial development in other
areas of Bangladesh. In this sense, Bangabandhu Industrial City has a unique advantage for
realizing prompt and large-scale industrial development.
19
MOFEZ’s location is planned to be at Zone 22 and 23 of Bangabandhu Industrial City as shown
in the figure below. BEZA has already signed land lease agreements with more than 30
companies in different zones in the industrial city.
Figure 6 Master Plan of Bangabandhu Industrial City and Proposed Project Land
Source: BEZA
2.1.2 Site Condition of Zone 22-23

Bangabandhu Industrial City is being developed from the northern part by BEZA. The
development of off-site infrastructure is explained in the table, figure and photos below.
20
Table 7 Off-Site Infrastructure of Bangabandhu Industrial City
Infrastructure Progress Information

・Currently, the World Bank is conducting master plan of 12,000
Bangabandhu Industrial
① ha. (the study supposed to have been done in January 2019, but
City Master Plan
still ongoing)
・ADB conducted Master Plan &FS in 2013
Dhaka-Chittagong ・ADB is planning under PPP (Design Project)
②
Expressway ・Start and completion of construction are not yet clear
・218km road with 6-lane
Access road to ・Three connecting roads from the highway to the Industrial City
Bangabandhu are under preparation.
Industrial City from ・Main access road (③-1), named as Sheikh Hasina Avenue with
③ Dhaka-Chittagong 4-lane (10km), is under construction and will be completed in June
Connectivity Roads
Highway 2019.
・Road inside of Bangabandhu Industrial City is planned to
Internal road of connect most of zones including Zone 22&23. (BEZA Annual
Bangabandhu Report 2017)
Industrial City ・Currently preliminary roads for construction machinery are
④
prepared.
・BWDB is constructing 80km super dyke (or marine road or
Sitakunda-Chittagong Protection Embankment) from Chittagong under G to G finance
⑤ Super dyke with China.
・The super is expected to complete in 2022-23
・Managed by Ministry of Railway with the support of World
Bank.
⑥ Railway
・Feasibility Study of railway connectivity between Chittagong and
the Industrial City is completed.
・BR Powergen is planning 150MW power plant for the Industrial
City in corporation with Ministry of Energy
・Under construction and plan to start around in 2020
⑦ Gas Power Plant ・The construction of Gas Pipeline is under sponsoring of Energy
and Mineral Resource Division, Ministry of Power, Energy and
Mineral Resources.
・The plan will be upgraded to 500MW in the future,
・Chittagong Port Authority（CPA）conducted Feasibility Study
and completed in June 2018
⑧ Mirsarai / Sitakunda Port
・Mainly handling for container and small amount for bulk
・Located in Zone 25 of the Industrial City.
・Feasibility Study under ADB is completed
⑨ Bay Container Terminal ・Location is north of Chittagong
・Phase1 may complete in 2023-4（according to CPA）
・Depth of DL -8.5 meter remains up to Sitakunda Container port
(4km south), which is a port proposed by CPA (from Chittagong
⑩ Channel to the project site Alfa anchorage). 2 points have to be dredged between Chittagong
and Sitakunda).
・Thus, dredging will be required only for 4km from the Sitakunda
21
port.
・However, if the demand for deeper channel is high, dredging up
to DL-11.0 meter may be required, jointly with CPA later (perhaps
by 2025 or 26). This decision is made depends on the operational
situation.
・Waiting points may be required for the circumstance of ship
failing to pass through the channel while the water level is deep
enough.
・BEZA is planning water supply system river water from India
Water supply and
⑪ ・FMO is showing interest in water treatment project in
treatment system
Bangabandhu Industrial City
Electricity transmission
⑫ ・Managed by BEZA and Ministry of Energy
line in the Industrial City
22
Figure 7 Off-Site Infrastructure of Mirsarai Industrial City
23
Figure 8 Current Development Condition of Bangabandhu Industrial Zone
Access Road to Mirsarai EZ (Road ③-1) BEZA’s Administration Building under

construction in the Industrial City
150 MW Power plant construction site (Zone 5) Preliminary internal road of the Industrial City
Super Dyke Construction site in Zone 23
24
2.1.3 Selection of Zone 22-23
1) Target Area of MOU with BEZA

According to the MOU signed in October 2018 between BEZA and the Japanese consortium led
by Sojitz Corporation, the target area for a feasibility study is defined as Zone 22 and 23. The
consortium may choose either Zone 22 or Zone 23 or both.
2) Land availability and Physical Survey

BEZA already owns Zone 22 and ready to lease the land. However, there is a river crossing
Zone 22, which may make a difficulty in development. Therefore, at the beginning of this study,
Study team decided to conduct a topology survey, environmental and social survey only for
Zone 23, assuming that the conditions should be almost same in Zone 22. Due to this decision,
this report includes a physical survey results for Zone 23 only.
For Zone 23, some part of the land is still owned by Ministry of Environment, Forest and
Climate Change and it may take some time to transfer the ownership to BEZA.
3) Internal road of Bangabandhu Industrial City connecting to MOFEZ site

An internal road will be constructed by BEZA by 2023, before MOFEZ is expected to open.
BEZA will tender the access road of about 6 km which will cover up to Zone 22.
4) Potential customers
A steel company has shifted to Plot 20 and this firm is willing to invest for 3 million tons hot
rolling mill (200 ha land) which will require a large amount of bulk cargo handling annually. A
steel company requests the study team to seek potentially of building port in front of Zone 20 in
order to handle their bulk cargo so that they can use our port as a first customer.
A food processing company is also willing to locate their edible oil factory and other food
processing factories in the Zone 22 or 23 requiring 40 ha of land and 1 million ton of bulk cargo
shall be handled by our port annually.
In consideration of the above facts, Zone 22 (and the port area of Zone 20) may be more
suitable for initial development phase for MOFEZ, and later expand to Zone 23. This report is
written based on this tentative phasing plan. However, a final decision on selection of land for
Phase 1 will be made during the next detailed feasibility study.
25
Figure 9 Phasing Plan of MOFEZ
2.2. Physical Conditions

2.2.1 Current conditions of land usage
In this section, the current conditions of Zone 23 are explained based on topographic and
bathymetric survey. As explained in the previous section, study team assumes that Zone 22
should have similar conditions due to its proximity to Zone 23.
Majority of the land within the perimeter of Zone 23 is covered with coastal forests. It is found
that there are some houses for locals as well as buffalo farms outside of the zone.
The road in Zone 23 is unpaved. To the west of the unpaved road there is a large pond used for
fish cultivation. Outside of the northern corner of Zone 23, there is a sluice gate to control the
flow of salt water into the freshwater streams from the hilly areas.
A few major establishments is seen outside of Zone 23, in the Gazaria Village, at the
north-eastern exterior region of the zone. In this area, there are a mosque, a cyclone shelter and
a primary school. Lastly, there is CP poultry farm located about 5km from the northern corner
of the zone.
26
Figure 10 Land Use Map of Zone 23
ss
2.2.2 Topography
The slope of the land is generally towards southwest direction, towards the sea. Inside the zone,
the elevation varies from 5.25 meter MSL to 3.25 m MSL near the sea and also in some local
depressions within the project area.
Data from the bathymetric survey area show that the depth of the sea varies from around -1m
MSL to -8m MSL near the northwestern edge of the survey area. However, in most of the areas,
the depth was above -4 m MSL in the coastal area.
27
Figure 11 Contour Map of Zone 23
2.2.3 Macro Ecological Environment

The macro ecological environment of the studied area mainly consists of floral and faunal
diversity including fish species. Faunal diversity includes four biological classes namely
amphibia, reptilia, aves and mammalia. Fish diversity includes the freshwater and marine /
brackish water dependent fish species under biological class Osteichthyes. Floral diversity
includes respective botanical family of each identified floral species.
28
Figure 12 Photos of Zone 23 during ecological study
2.2.4 Fauna of Zone 23

A total of 56 terrestrial faunal species have been identified from Zone 23 and adjacent areas.
Out of this, 34 terrestrial fauna species exists within Zone 23 and birds are the dominant
biological class. Two threatened species were identified: Grey Monitor Lizard (Varanus
bengalensis) and Yellow Monitor Lizard (Varanus salvator).
A total of 19 aquatic faunal species have been identified from Zone 23 and adjacent areas, out of
which, 14 aquatic fauna species exists within Zone 23 and birds are again the dominant
biological class.
2.2.5 Fish of Zone 23

There are two types of fish diversities, marine water fish and fresh water fish, which exist in
Zone 23 and adjacent areas. Marine / brackish water dependent fish are naturally grown and are
available in canals and marine water-bodies. Fresh water dependent fish are commercially
29
cultivated in large ponds. Also small scale fish cultivation in villages is also available for
house-hold consumption. Small ditches and non- cultivated ponds that exist outside of Zone 23
also have natural fresh water fish which grow naturally. The identified fish habit indicates that
the fresh water dependent fish represents the dominant fish diversity and the marine water
dependent fish represents the non-dominant fish diversity.
2.2.6 Flora of Zone 23

The coastal ecosystem in Zone 23 provides moderate habitat for growing mangrove floral
species. Two types of flora, exists both in the forest and non-forest sections of Zone 23 and
adjacent areas, which are terrestrial flora and aquatic flora, that can be further classified into
saline water dependent flora and non-saline water dependent flora.
Terrestrial flora occupied most sections of Zone 23. The Mangrove Swamps (Excoecaria
agallocha), Flat- Leaved Spurred Mangrove (Ceriops decandra), Mangrove Apple (Sonneratia
apetala), the Mangrove Holly (Acanthus illicifolius), and the Paddy (Oryza sativa) were the
dominant species found across the plot.
A total of 51 terrestrial floral species have been identified from Zone 23 and adjacent areas from
which 28 species exists within Zone 23. Terrestrial floral habit indicates that trees represent the
dominant habit of terrestrial flora.
A total of 12 aquatic floral species have been identified from Zone 23 and adjacent areas from
which 4 aquatic floral species exists within Zone 23. Aquatic flora grows in pond, ditch,
seasonal wetland and low lying agricultural land as submerged, free-floating, or rooted floating
state. Brackish water dependent flora grows at the edges of canal or shallow marine water
bodies. The aquatic floral habit indicates that herb represents the dominant habit of aquatic
flora.
2.2.7 Socio Economic Aspects

Zone 23 consists of forest and non-forest sections with various types of socio-economic aspects.
In terms of area, the forest section is more than the non-forest section. Fuel wood are collected
by local people regularly for household & commercial purposes. Buffalo rearing happens inside
& outside of the coastal forest. There are four large ponds used for freshwater fish cultivation.
There are six continuous ponds with and / or without freshwater fish cultivation. Brackish/
marine water dependent fish, crab, shrimp, etc. are collected from tidal shoreline of Zone 23.
There are few tin-made structures (sheds) at the non-forest section that are being used for cattle
shed. There are large paddy field under cultivation. There are some fruit bearing tree in the
non-forest section. Few shops and / or tin-made houses exist in the peripheral side of
embankment road.
30
2.2.8 Geological conditions
Recently a geo-technical survey was conducted for a project site for proposed Sitakunda Port,
which is about 4km away from the south corner of Zone 23 of MOFEZ project site. The study
team officially received the report from BEZA, assuming that the geological condition of
MOFEZ is similar to those of proposed Sitakunda Port site.
According to the Sitakunda report, the investigation comprises 8 onshore geotechnical
boreholes and have been completed to a depth between 42.5 and 48.5 m below surface as shown
in the map below. The borings included performance of Standard Penetration Tests (SPT).
Figure 13 Location of boring investigation for Sitakunda port site
Source: “Techno-Economic Feasibility study of Mirasarai/Sitakunda Port

(August 2018: Chittagong Port Authority)”
According to the report, six major continuous soil layers were encountered in the boreholes of
the investigated area.
31
1) Top Clay Layer (Layer 1)
2) Silty Sand Layer (Layer 2)
3) Clay Layer (Layer 3)
5) Clay Layer (Layer 5)
The soil layers are shown in the soil profiles below.
Figure 14 Soil profile of proposed Sitakunda port site 1
32
Figure 15 Soil profile of proposed Sitakunda port site 2
Source: “Techno-Economic Feasibility study of Mirasarai/Sitakunda Port (August 2018:

Chittagong Port Authority)”
The bottom layer of the drilled depth is composed of grey non-plastic, dense to very dense fine
grained silty sand and contains mica. The depth of this layer varies from 32 m to 38.8 m from
the existing ground level. The layer is present all over the investigated area. This silty sand layer
is a stable layer, the N values of this layer is over 50 in all the boreholes except in the top one
SPT at BK-3 where it is 40.
33
3. Market and Competition Analyses
3.1 Steel Industry
1) Current status of the sector
Steel industry is facing rapid growth and evolution in Bangladesh as the development of country
accelerates. Steel is a basic raw material for any infrastructure development especially for
construction of infrastructure. Thus, the demand for still will inevitably grow as the country’s
economic and infrastructure develop.
Classification of steel is roughly categorized into two classes of products, which are long steel
(MS road/TMT bar) and flat steel (mainly CI sheet and CR coil). Currently, most construction
in Bangladesh uses long steel produced locally.
The domestic production capacity of steel is more than 8 million MT per year in 2018.
Industrial leader says that the steel industry has been witnessing 5-7% growth from year to year
and the industry is expected to be more than 15% growth. The consumption of the steel will be
54kg per capita in 2021 from 19kg per capita in 2013.
2) Import, Production and Market Size

The import of billet used to be the main major import for steel industry: 1.6 million in 20149.
However, the capability of the billet production became self-sufficient, and the import of billet
has reduced notably in recent years: 1.3 million in 2016 and less than 1 million in 2018. In line
to that, the major raw material became iron scrap to make iron billet. The amount of importing
scrap reached over 6 million in 2017 while there was only importing volume of 0.2 million in
2013.
Figure 16 Import of Iron Scrap in Bangladesh
Source: World Steel Association, EBLSL Research “Bangladesh Steel Industry Review” and
JDI Research
9 World Steel Association and EBLSL Research, Bangladesh Steel Industry Review
34
Table 8 Projection of Steel Import, Capacity and Per capita Consumption
2014 2015 2016 2017 2018 2019 2020 2021
Import
3,150 3,623 4,166 4,791 5,509 6,336 7,286 8,379
(1,000MT)
Production
capacity 3,465 3,985 4,582 5,270 6,060 6,969 8,014 9,217
(1,000MT)
Per Cap
Consumption 22 25 28 32 36 41 47 54
(kg)
Reference: JDI Research
3) Import Route and Domestic Logistics

According to Bangladesh Auto Re-rolling & Steel Mill Association, most of raw materials for
steel, 50%-80%, are imported and only a small amount of rewired scrap materials is available
from local sources (ship breaking business and local scrap). Those raw materials are imported
from different countries such as Japan, Korea, USA, India, Turkey, etc. depending on the
market cost.
4) Geographical trend of Industry Location

Almost all of the major steel enterprises locate their factories in Chittagong area and within 30
km from Chittagong Port. Some ware houses were identified in Khluna area. Almost all steel
firms first import their raw materials to Chittagong port. Then, they bring to their factory in
Chittagong – Mirsarai area by trail or truck.
This geographical map shows that steel industry could be the target client of MOFEZ.
35
Figure 17 Geographical map of Steel Industry
5) Major players and Market Shares

AKS and BSRM are the top two of the steel industry firms and have capacity of over 1 million
MT as of today. However, recently firms such as PHP increase the volume of production. The
chart below shows the main steel firms in Bangladesh. The comparison of their capacity in 2016,
referred from EBLSL’s research, and in 2018, based on the hearing to a few companies during
the study, shows the rapid growth of steel sector.
Table 9 Major Players in Steel Market

Major Players in Steel Market Capacity in MT Capacity in MT
In 2016 In 2018
1 Abul Khair Steel (AKS) 1,275,000 2,600,000
2 BSRM Group 1,150,000 2,000,000
3 Mohsteel Limited 500,000 -
4 Kabir Steel Rolling Mills Ltd. 400,000 -
(KSRM)
5 Anwar Ispat Limited 360,000
6 Rantapur Steels Re-Rolling Mills 187,200 200,000
Limited (RSRM)
7 Baizid Steel Industries 180,000 -
8 Bashundhara Steel Complex 160,000 -
Limited
9 GPH Ispat Limited (GPH) 120,000 -
36
10 Bandar Steel Limited 120,000 -
11 PHP - 2,000,000
3.2 Cement and Construction Industry

1) Current Status
Clinker is one the raw materials of Cement which is used as a building material for construction.
Mainly, Clinker is made of limestone and clay and those materials are limited availability in
Bangladesh. Therefore, Bangladesh, as a one of the largest importers in the world is importing a
large amount of clinker which is supposed to be 14-16 million ton annually from abroad. While
Cement is made of clinker and its ratio is around 70 %, Concrete is composed of cement and
aggregate. Cement and Concrete are vital materials for construction and building.
Due to the Economic Growth in Bangladesh and the Government’s upcoming construction
projects, the demand of Cement and Cement based materials such as Concrete, Pre-Cast
Concrete have been increasing as the years go by. However, because of unavailability of
materials, LafargeHolcim Bangladesh Limited is the only company producing Cement and
Clinker using limestone imported from India whose annual production capacity is 1.3-1.4
million ton at the moment. In order to meet the demand, Bangladesh need to depend on import
and keep importing clinker continuously for producing construction materials.
It should be noted that Bangladesh Government does not imposed any regulation on importing
of clinker itself, and custom duty is ranged from 5-25 %, based on the stone’s materials.

As mentioned earlier, LafargeHolcim Bangladesh Limited is the only company producing
clinker in Bangladesh. Its annual production volume is 1.4 million ton. This can be regarded as
the entire domestic production volume of Bangladesh.
Table 10 Annual Volume of Cement Clinker of LafargeHolcim Bangladesh Limited
Source: LafargeHolcim Bangladesh Limited
37
While Bangladesh is importing clinker of 14-16 million ton annually, most of import activities
are being conducted in Chittagong Port. Cement manufacturers are importing clinker from India,
Middle East and South-East Asia.
Table 11 Commodity Wise Import Handled in Chittagong Port9
Demand for cement has been dramatically increasing driven by economic growth, generation of
middle income households who are seeking for modern housing and expected mega
construction projects, and its demand is supposed to be about 10 million ton. Chittagong Port’s
handling average growth rate from 2012 to 2016 is 13% and is expected to see a steady growth.
Cement Market is considered to grow rapidly, so as the demand of Clinker will be increasing
continuously.
The demand for Cement is closely linked with the growth of Construction and Real Estate
Sectors. Those sectors are expected to be growing steadly and Cement companies’ operation
would be expanding as well. Therefore we could anticipate huge demand of construction
materials from the cement companys in the future.
38
Table 12 Industry Demand and Growth of Cement Industry
Source: LafargeHolcim “Cement Industry Demand and Growth”
The followings are our Demand Forecast for clinker. For import part, we surmise the handling
volume in Chittagong Port as a whole import volume in Bangladesh from 2012 to 2016, since
almost all handling are being conducted in the port. In the same way, we consider
LafargeHolcim Bangladesh Limited’s production volume as a total domestic production in
Bangladesh.
Table 13 Demand Forecast for Clinker
3) Geographical trend of Industry Location.

Bangladesh’s major cement players’ factories are located in either around Dhaka, Chittagong or
surrounded areas. And most of them are importing materials through Chittagong Port. Some of
them need to transport those materials to their own factories or customers by land rout such as
truck and lorry or waterways from Jetties. Dhaka and Chittagong are the areas consume cement
the most in this country.
39
Figure 18 Geographical Location of Cement Industries
4) Major players and Market Share

Cement is mainly consumed by Construction and Real Estate Sector. There are around 30
cement companies in Bangladesh. Shah Cement Industries Ltd has the largest market share,
followed by LafargeHolcim Bangladesh Limited and Bashundhara Group.
Table 14 Major Players of Cement Industries
Source: Industry Players Estimates and EBLSL Research
40
5) Industry Specific Conditions
As shown in the table below, 70-80% of total production volume of cement is composed of
clinker in the global standard. Therefore, this ratio could be utilized to estimate future importing
volume of clinker.
Table 15 Clinker to Cement Ration in Major Countries
Source: GNR Project Reporting CO2
3.3 Grains & Animal Feed Industry

In Bangladesh, major industries importing and processing grain crops are wheat flour mills,
animal feed mills and soybean oil crushing mills. These mills process cereals and legume grains
as below.
Figure 19 Raw materials for Grain Crop Processing Industries
41
The major issue to these three industries is that the factory size is relatively small located along
rivers nearly Dhaka and transportation of raw materials depends on small feeder vessels
(500-2000 ton). Therefore, the economy of scale does not function well both in terms of
processing and transportation, resulting in relatively high production and transportation cost.
Table 16 Import, Production and Supply of Wheat, Corn and Edible Oil

Currently, grain processing industries import wheat, maize and soybean by using about 50,000
ton vessels from abroad up to Kutubdia outer anchorage, where the sea is deep enough to anchor
up to 100,000 ton vessels. At Kutubdia outer anchorage near Matarbari, about 50% of the cargo
is transshipped to small vessels (500 – 2000ton), which transport the cargo through inland
waterway nationwide. After the half transshipment at Kutubdia outer anchorage, the mother
vessel moves to Chittagong outer anchorage and transship the cargo again or approaches to a
berth of Chittagong port for unloading the cargo. This whole transshipping and unloading
method usually takes not more than 15 days. However, if it takes more time than the free time
period given by the shipping line, the shipper or consignee needs to pay the demurrage charge.
42
Figure 20 Transportation of Grains

<Wheat flour factories>
Major wheat flour factories are located near Dhaka along the rivers of Shitalakshya and
Buriganga. There are a few factories in Chittagong and boarder areas. Factories of edible oil are
also located in similar locations.
43
Figure 21 Locations of Major Wheat Flour Factories in Bangladesh
However, animal feed factories are more dispersed all around the countryside. And the number
of factories also much more than wheat flour and edible oil factories.
5) Major players and Market Shares
Major wheat flour manufacturers are listed in the table below.
Table 17 List of Wheat flour manufacturers in Bangladesh

Year of
Name of Company Capacity (ton/day)
Establishment
ACI Pure Flour Limited 2008 300
T.K Group 1972 300
Rabeya Flour Mills Limited 1978 180
Fauji Flour Mills 1965 180
Hasan Flour Mills 1998
750
Shampa Flour Mills 2009
IFAD Multiproducts Limited 2003 150
Bashundhara Food and Beverage
1,200
Industries Limited (BFBIL)
Source: USDA 2013
44
Animal feed manufacturers are listed in the table below.
Table 18 List of Animal feed manufacturers in Bangladesh
Source: PBD
Soybean Oil manufacturers are listed as below.

Figure 22 Soybean Oil Manufacturers
Source LightCastle Primary (2014)
45
<Wheat Flour Factories>
There is almost no cultivation of wheat in Bangladesh. Therefore, the consumption almost
entirely depends on import.
<Animal Feed Factories>

A typical feed formula for broiler pellet feed is shown in the figure below. The demand for
maize is estimated as 60% of feed production.
Figure 23 Typical feed formula for broiler pellet feed in Bangladesh
Meat and Bone

Meal Others
5% 10%
Soybean meal
25%
Maize
60%
Source: Prepared based on Bangladesh Oilseeds and Products Annual 2018 (Source: USDA
FAS)
<Soybean Crushing Factories>

There are 86 registered edible oil refineries while only two factories crush soybean for
producing oil and meal production. Currently the majority of edible oil consumption is palm oil
in Bangladesh.
46
Figure 24 Production of Soybean Oil and Palm Oil
3.4 Energy Industry (LPG)

LPG demand in Bangladesh has experienced strong year-on-year growth, with import volume
set to reach 1 million tons in 2018. Demand growth is largely driven by increase in residential
consumption as domestic natural gas supply to the residential sector decreases. While LPG
demand has grown strongly, domestic LPG production has not increased, due to limited refinery
capacity. As such, the supply-demand gap has widened considerably, leading to increasing
volume of LPG being imported.
As more households and CNG vehicles convert to LPG usage in the next few years, LPG import
volume is set to continue on an upward trajectory. As LPG import volume continue to rise, a
large-scale import terminal for Bangladesh would become necessary in order to lower the LPG
import cost in the future, thereby reducing the cost of energy for Bangladesh.

Import: 900,000MT in 2018 (forecast)
Production: 12,000MT in 2018 (forecast)
Market Size: 912,000MT in 2018 (forecast)
47
Import Route: Due to the limited draft of the existing import terminals in Bangladesh, currently
almost all LPG cargoes are imported in pressurized vessel of 2,500 – 3,000MT parcel sizes.
Such cargoes are supplied by international traders and generally contracted on a one-year term
basis.
In international trade, LPG cargoes are generally first shipped in large volumes (of 44,000MT)
from the producing countries (such as Middle East). In order to bring the cargoes to Bangladesh,
it is necessary for the international suppliers to conduct break-bulk operations in order to meet
the draft requirements of the import terminals., For the break-bulk operations, the international
suppliers make use of land-based or floating-vessel storage facility to first receive the
44,000MT cargo from large refrigerated vessel, followed by reloading them into smaller parcels
of 2,500 – 3,000MT to smaller pressurized vessel. These facilities are assumed to be located at
Maldives, Indonesia or Singapore, with some limited break-bulk operations being conducted off
Bangladesh waters via ship-to-ship transfers.
Domestic Logistics: From the import terminal, domestic logistics can involve 3 ways: (1) Barge
shipment (2) Bulk Road Trucks (3) Bottle lorry distribution
① Barge shipment: are operated by the importers to distribute the LPG cargo from
the main import terminal to the smaller satellite terminals across the country. Such
barge can carry smaller parcel sizes (300 – 600MT) in shallower draft; hence they
are more suited to the shallow river conditions across the country. The satellite
receiving terminals have storage tanks to receive the cargo from the barges and
bottling plant nearby to bottle the LPG into cylinders for subsequent sales to final
consumers.
② Bulk Road Trucks: can deliver around 16-18 tons per truck and can be used to
distribute LPG cargo from the main import terminal to smaller bottling plants or
industrial/bulk consumers via road network. Although the initial cost of the trucks
are smaller than the barges, the useful life-span and carrying volume of each trucks
are much smaller than barges. As such, this increased the difficulty of logistic
management and operating cost, which as a result meant that logistic cost for LPG
truck deliveries are more expensive than barge deliveries on a per unit-ton basis.
③ Cylinders lorry delivery: LPG bottling plants are located across the country, often
situated beside the main import terminal or satellite terminals of the importer.
48
From the bottling plants, LPG are bottled into cylinders of different sizes (generally
12 kg, 35 kg and 45kg)
These cylinders are subsequently distributed from the bottling plants to the
retailers via cylinder lorries. As the carrying capacity of these lorries are relatively
smaller, then per unit cost for such transportation is the highest.

Most import terminals are located at Mongla and Sitakunda . From these import terminals,
cargoes are further distributed via small barges/road truckers to satellite plants distributed across
the country. Most satellite plants are located around the demand centre of Dhaka and Chittagong,
while some satellites plants also exists at Bogra, Comillia and Khulna. From these import
terminals or satellites plants, bottling plants will be constructed to further bottle the LPG gas
before being distributed to the end consumers via retailers.
Figure 25 Location of Major Players
5) Major Players and Market Share

1. Bashundhara LPG: ~17,500MT/month (~23% of market share)
49
2. BM Energy: ~15,000MT/month (~20% of market share)
3. Omera Petroleum: ~12,500MT/month (~17% of market share)

The LPG shipping industry is generally classified into two separate categories, namely
pressurized and refrigerated vessels.
For the pressurized LPG shipping vessels, various sizes are available but generally most vessels
are clustered around the 2,500 MT or 3,000 MT capacity. For the refrigerated LPG shipping
vessels, various sizes are also available; however, most of the vessels are belonging to the
44,000MT capacity.
Due to the limited availability of vessels in between the two main categories, it is important to
ensure that the import terminal is able to cater to the technical requirements of the majority of
the vessels which the terminal is designed for.
3.5 Energy Industry (HFO)

HFO are both produced and imported in Bangladesh to support the HFO power generation
capacity within the country. The total installed HFO generation capacity is estimated at around
3,000MW, which suggests total HFO demand to be approximately 2,750,000MT/year.
Independent power producers (IPP) with their own generation capacity are given import license
to import HFO. However, these fuels are not allowed to be traded or on-sold onto other
companies. Bangladesh Petroleum Corporation is another entity which is heavily involved in the
Bangladesh HFO market, as the off-taker for the HFO produced from Eastern Refinery. While
there are some new HFO power plants planned over the next few years, the capacity of the new
installation are relatively small as the country will likely focus on coal and LNG derived
generation capacity. In addition, HFO logistics is fairly established with several tank terminals
and STS operator already in operation.

Import: 2,500,000MT in 2018 (forecast)
Production: 250,000MT in 2018 (forecast)
Market Size: 2,750,000MT in 2018 (forecast)
50
3.6 Type of Industry Expected (Industry Mix)
As a part of the market analysis, we conducted interview for 29 companies which include 7
energy companies and questionnaires surveys with 20 companies in Bangladesh. So we
approached 49 companies in total. Those are all large-scale companies which are currently
importing raw materials in Chittagong Port from abroad. We set Specific Manufacturing Sectors
such as Steel, Animal Feed, Construction, Processed Food, Ceramics, Plastic, Glass, Paper and
Cement as Target Sectors for our project. Regarding Energy Companies, we mention in another
chapter as a specific topic.
Table 19 Target Sectors for MOFEZ
Target Sectors
Steel
Animal Feed
Construction
Processed Food
Ceramics
Plastic
Glass
Paper
Cement
Out of 49 companies interviewed, we could obtain valid responses on our project from 30
companies. Out of 30 companies, 20 companies gave quick responses in regards to becoming
tenants in MOFEZ. The following is the sector wise share of response. Steel Sector is the largest
share among the respondents.
Figure 26 Sector Wise Shares of Responses (20 Companies in Total)
51
While 14 companies are interested in EZ itself, all 20 companies show their interest in being
Jetty users. Especially, Steel Sector has a strong positive response on Jetty. They have or are
planning to have manufacturing plants around Chittagong and hope to use Jetty only. Regarding
EZ demand, their land requirements vary from 19 to 250 acre. Some of them have no idea how
much acres they want for this EZ but they would like to locate their factories in this area.
Table 20 Result of Market Survey
EZ Annual Importing
Companies JETTY
Demand for Acre Volume
Steel - ● -
(500)
Steel Plan to locate their ● -
factory next to our site
Steel - ● -
Steel - ● -
Steel: 18,000-30,000 ton
20
Steel ● Ferro Alloys: 15,000-25,000 ton
●
Sponge Iron: 15,000- 25,000 ton
30-40
Steel ● -
●
19 Corn:
Animal Feed ●
● 12,000-21,000 ton
200
Animal Feed ● -
●
Construction ● ● -
Processed Food ● ● -
Processed Food - ● -
100
Processed Food ● -
●
100
Ship Building ● -
●
Ship Building ● ● -
100
Ceramics ● -
●
100 Plastic Raw Materials:
Plastic ●
● 2,500-4,500 ton
20 Petro Chemical:
Plastic ●
● 21,600-28,800 ton
Glass ● ● -
Paper ● ● -
Cement ● ● -
Note: “●” in the table stands for “Interested in MOFEZ”
In this Markt Survey, all interviewees are Chittagong Port users and their concern over the
current importing activities is port congestion in Chittagong. Currently, they are importing from
neighboring countries such as India, China, South-East Asia, Middle-East and so on. In
52
Chittagong Port, according to our survey, unloading takes from 2 days to 20 days and detention
takes from 5 days to 25 days. In case of importing by large-scale ships/vessels, lightning is
required due to the limited space capacity of Chittagong Port. Therefore, they are expecting less
congested and larger-scale importing port in Bangladesh. Their expectations for MOFEZ are
shown below. Most of respondents are considering to use MOFEZ from around 2022-2025
which means they would like to use Jetty right after the completion of Jetty Construction based
on our tentative schedule. One of our potential tenants is already requesting one of the Asphalt
Manufacturer to shift its existing plant to MOFEZ in Mirsarai. They are planning to expand 50
acres with 1.0 million import by 2025.
Although some of the companies did not show their interest to be a tenant at the moment, most
of them gave us positive responses since they plan to expand their operation in the future.
Based on the market survey result, we estimate the industry mix for MOFEZ (Phase 1) as
below.
Table 21 Estimated Industry Mix for MOFEZ (Phase 1)
type of industry Share
Steel 17%
Construction (cement & concrete) 33%
Energy (tanks) 10%
Food (edible oil) 13%
Food (grain processing) 17%
Other Industries 10%
100%
53
4. Expected Demand & Type of Industry for 2019-2030
4.1 Macroeconomic Assumptions
1) Current situation (2014-2018)
Due to stabilization of political situation and pro-development policy of the Hasina
Administration, the average of GDP growth have been about 7% for the past 5 years. And this
year (2018) is projected to reach nearly 8% according to ADB.
2) The next 5 years (2019-2023)

Assuming the continued stable political situation for the coming 5 years with the
pro-development policy, we are expecting GDP growth of 8 to 9% and likely to reach 10% by
2023 achieving the Middle Income Country per-capita of $2,000 (2 year delay of the current
target).
WB, ADB and UN are predicting GDP growth of 7% plus for the coming 5 years but taking into
the stability of political situation with the pro-development policy on-going and planned many
mega-project, GDP growth is likely to be higher as we projected as 8-9%. For a long term
projection, PwC is projecting Bangladesh to be 23rd largest economy by 2030 (Current 31st in
2016). Also Goldman Sachs is projecting Bangladesh to be the next 11th potential countries in
2016.
3) 2024-2030 Period
If the next 5 years, the Bangladesh government is able to solve the bottlenecks of (1)
Energy/Power and (2) Logistics (Especially Port and road) successfully, Bangladesh economy
will take off and GDP growth will be over 10% and keep high GDP growth for some period
(15-20 years) as Japan, Korea, other ASEAN countries, China and India have been experienced.
GDP per-capita will reach $4,000 by 2030.
4) Overall Period
The basic assumption of overall projection period is summarized in the table below.
Table 22 Overall Projection Period
54
Growth of importing of all commodities is normally equal to or higher than (1) Energy/Power,
(2) Construction materials and (3) Metal (steel and aluminum). Food item will grow equal to or
less of GDP growth. Since we are expecting the economic take-off in the coming 5 years,
per-capita consumption of all commodities are likely to increase as all other developing
countries have experienced.
4.2 Steel Industry

While most of steel firms locate in Chittagong and they all could be the target of MOFEZ and
port facility, one steel firm has showed their interest to use MOFEZ port for their steel
production of 3 million MT Hot Roll (HR) coils by importing raw material of 8 million MT
import per year. This firm already had an approval of BEZA getting the Zone 16 in
Bangabandhu Industrial City for their production of HR coils. However, after getting interested
in the MOFEZ, they issued a letter to BEZA to re-locate their land to Zone 20, which is next to
MOFEZ in order to utilize the port facilities. Once MOFEZ port is opened successfully, this
firm could be the client of using the port.
Beside this one specific firm, there are more potential clients from steel sector. During the study,
some other steel companies also showed their interest of using MOFEZ port. A firm commented
that the utilization of port depends on the service cost. If the cost of MOFEZ port is not much
different comparing to Chittagong port, they said that they prefer to use Chittagong port because
they are used to it. On the other hand, another firm showed strong interest. This firm conducted
a Feasibility Study to set up their own private jetty along the coast of Mirsarai because they
faced serious issue of port conjunction in Chittagong port. Thus, if the timeline of port
development fits to their demand, it will be also a client of MOFEZ port. It has capacity of 2
million tons in 2018.
4.3 Cement and Construction Industry

One of the largest cement companies shows the interest in being a tenant in MOFEZ. They have
45 acres existing plant and plan to expand their operation in 2020. It will be a big potential
customer.
Some other companies also show interest to be a tenant in MOFEZ.
Cement manufacturers are importing Clinker, Slag, Zypsum from abroad. We consider two
plants with 3 million ton annual capacity are expected to be located in the MOFEZ.
55
4.4 Grain & Animal Feed Industry
1) Assumptions of Projection
It is assumed that tenant factories have direct access to the jetties by covered belt conveyers.
MOFEZ is assumed to develop one jetty specialized for grain crops. The scale or capacity of
expected tenant factories are of the largest size in the country. The number and scale of tenant
factories in other Asian countries are also considered as references.
2) Projection Result
<Wheat Flour Factories>
One of the firms is developing the largest factory in Bangladesh with production capacity of
700,000 ton per year, located in Keraniganj, which probably shall depend on small vessel for
transportation of raw materials. This factory is second wheat flour factory. Their first factory
has been operational with the capacity of 350,000 ton per year. Considering this situation,
MOFEZ may attract 1-2 tenant factories with the size of 300,000-700,000 ton per year.
<Animal Feed Factories>

Some major players have several factories in different regions with each factory covering their
catchment areas including boarder areas. Therefore, regional demands for each region may as
well be calculated based on the population share of the region. The current largest factories
are of the order of 200,000 ton per year (while it is about 800,000 ton per year in Japan).
Considering this situation, MOFEZ may attract 1-2 tenant factories with the size of
200,000-400,000 ton per year. Bangabandhu industrial city and outside area may also attract 10
tenant factories with the capacity of 100,000 ton per year. The demand for maize is calculated as
60% of feed demand.
<Soybean Crushing Factories>

There are only two crushing factories in Bangladesh while other edible oil factory is refining
factories. Their crushing capacity is not disclosed but is estimated as 100,000 ton per year.
Considering this situation, MOFEZ may attract 2 tenant factories with the size of 200,000 ton
per year.
4.5 Demand Projection for MOFEZ

The sector-wise demand projections in the previous sections are summarized as below.
56
Table 23 Projected Industrial Mix for MOFEZ: 2023-2031
2023 2024 2025 2026 2027 2028 2029 2030 2031
1. EZ area
(ha)
Steel 0 50 50 100 100 100 100 150 150
(in Plot 20) (200) (200) (200) (200) (200) (200) (200) (200) (200)
Construction
(Cement, 40 40 100 100 100 100 100 100 100
concrete,)
Energy
30 30 30 30 30 30 30 30 30
(Tanks)
Food (edible
40 40 40 60 60 60 60 60 60
oil)
Food (grains) 0 0 50 50 100 100 100 100 100
Other
0 0 30 50 50 50 50 50 50
Industries
Sub-total 110 160 300 390 440 440 440 490 490
2. Port area
Aggregate
10 20 30 40 50 50 50 50 50
yard
Scrap yard 20 25 25 30 30 30 30 30 30
Others 10 10 20 20 20 30 30 30 30
Sub-total 40 55 75 90 100 110 110 110 110
3. Total 150 215 375 480 540 550 550 600 600
57
5. Master Plan of MOFEZ
5.1 Project Land of MOFEZ
As shown in the figure below, the project land of MOFEZ is consisted of the following three
parts: Zone 22, Zone 23 and Port. The land of Zone 20 is not included in MOFEZ but its
waterfront is shared.
Figure 27 Dimension of Zone 20, 22 and 23
5.2 Basic Concept of MOFEZ Master Plan
The basic concept of MOFEZ master plan is summarized in the table below.
58
Table 24 Basic Concept of MOFEZ
Location Zone 22 and 23 of Bangabandhu Industrial City, Mirsarai, Chiattagong,
Bangladesh
Scale Phase 1 (454ha): EZ area 324 ha (Zone 22) and Port area 130 ha (coastal
side of Zone 20 and Zone 22: 2.6km)
Phase 2 (572ha): EZ area 447 ha (Zone 23) and Port area 125 ha (2.2km)
(coastal side of Zone 23)
Total development area: 1,026 ha (4.8 km)
On site ①Substation, ②Electricity line, ③Petroleum pipelines, ④Water supply

Facility system (surface water / deep well), ⑤Sewerage treatment plant and
pipeline, ⑥Internal roads, ⑦Jetties for energy and bulk cargo,
⑧Telecommunication substations, ⑨Security fences / SOLAS system
Business Development and Operation of the EZ

・Development of on-site facility
・Operation: marketing, leasing, EZ & port operation, security, water supply,
electricity supply, telecommunication supply, custom clearance and others
5.3 Land Use Plan
The proposed land use plan is illustrated in the figure and table below.
59
Figure 28 Preliminary Master Plan
Table 25 Land Use Plan of MOFEZ

Unit: ha
Phase 1 Phase 2
Area (hector)
(Plot -22) (Zone 23)
1 Factory area 220 373
2 Housing and commercial zone 16 0
3 Administration building and substation 14 0
4 Water supply plant 14 14
5 Waste water plant 7 7
6 Railway station 3 3
7 Internal road 35.5 35.5
8 Internal dyke 14.5 14.5
Total 324 447
60
Unit: %
Phase 1 Phase 2
Area (hector)
(Plot -22) (Zone 23)
1 Factory area 68% 83%
2 Housing and commercial zone 5% 0%
3 Administration building and substation 4% 0%
4 Water supply plant 4% 3%
5 Waste water plant 2% 2%
6 Railway station 1% 1%
7 Internal road 11% 8%
8 Internal dyke 4% 3%
Total 100% 100%
61
6. Preliminary Infrastructure Design of MOFEZ
6.1 Road & Dyke Net Work
(1) Super Dyke Road and External Road
The height of Super Dyke is set to be 10 meters above sea level, while the height of the
“external roads” (here defined as the roads outside MOFEZ in this report: Sheikh Hasina
Avenue- South) is 8 meters. These roads are constructed by Bangladesh Water Development
Board and BEZA.
Figure 29 Super Dyke and External Road
(2) Internal Roads of MOFEZ

The height of the “internal roads” (here defined as the roads inside MOFEZ in this report) is set
to be 7 meters above sea level.
Internal Dyke and Road shall be 8 meter and EZ area plan to be 7 meter. Port area will be 7.8
Meter at the ocean front and 10 meter at the Super Dyke. Slop will be 0.5 per 100 meter. Cross
section of super dyke will be equipped with traffic lights.
62
Figure 30 Road Network of MOFEZ Phase 1
6.2 Drainage System

For water drainage, the land inside the EZ shall be sloped from North to South for the Zone 20
& 22 (in the left side of the River in the map below). But for the Right side of the River the
slope shall be opposite direction (from South to North). All rain water shall be drained to the
Retention pond.
6.3 Power and Gas Supply & Net Work

(1) Substations and Transmission Lines in Mirsarai
Currently a 33/11kV substation has been constructed by BEZA in Mirsarai EZ as shown in the
photo below.
63
Figure 31 Completed 33kV substation in Mirsarai EZ
BEZA is planning to develop power infrastructure in the following schedule.
Table 26 Power Infrastructure Projects

Power Infrastructure Project Status and Plan
1 33/11kV substation Completed
2 230/33 kV GIS grid substation in Mirsarai EZ (Capacity: To be completed in Oct 2019
2×120/180 MVA)
3 400 kV double circuit transmission line from 230/33kV To be completed in June
Mirsarai EZ substation to 230/33kV BSRM substation 2019
4 150 MW Power Plant To be completed in 2019
Dec7
5 Connection of Mirsarai Substation to 400/132kV 3-4 years Later
Korerhat substation
Source: BEZA HP
According to BEZA, Power Grid Company Bangladesh Limited (PGCB) is constructing a new
230/33 kV GIS grid substation at Mirsarai Economic Zone. Initially this substation will be
connected to 230 kV GIS grid substation at BSRM. The initial capacity of the substation is
2×120/180 MVA.
Currently 17 km length’s 400 kV double circuit transmission line is implementing to feed the
substation. The substation is expected to commission in 2019. In future, Mirsarai 230/33 kV
GIS grid substation will be upgraded to 400 kV voltage level and eventually will be connected
to upcoming power hub at Karerhat 400/230/132 kV grid substation for a strong tie to the
national Grid as shown in the map below.
64
Figure 32 400 kV double circuit transmission line
According to the plan of BEZA, Mirsarai EZs will require 500 MW power by 2025 based on the
forecasted load demand. The upgrading of substations at Mirsarai to 400/230 kV and the
associated 400 kV double circuit line will create basic capacity of more than 2,000 MW of
power supply for the Mirsarai EZ.
65
Figure 33 Location Map of the Substations and Transmission Lines
To strengthen the Dhaka-Chittagong transmission backbone system, one 400/230kV and one
400/132kV substations at Korerhat will be established through the Modunaghat – Meghnaghat
400kV DC line. This will improve system stability and reduce losses. This proposed substations
will help upgrade the Mirsarai 230kV substation to higher capacity at the 400kV level and will
be directly connected to Korerhat substation (through extension of Mirsarai – BSRM 400kV
line up to Korerhat substation) to enhance the power supply capability of the Mirsarai Economic
Zone under a World Bank funded project “Enhancement & Strengthening of Power Network in
Eastern Region Project”.
66
Figure 34 Locations of Substation and Power Plant
(2) Power Generation in Mirsarai

BR Powergen 150 MW Power Plant will start its operation on December 2018 after that
the plant will be upgraded to 500 MW by 2021. BR Powergen Ltd is a joint venture (JV) of the
two state-owned power companies - Bangladesh Power Development Board (BPDB) and Rural
Power Company Ltd (RPCL).
Figure 35 Photo of Commencement of the 150MW Power Plant in Mirsarai EZ
(3) Power Demand at MOFEZ

Referring to the latest utility demand and industrial mix, the total power requirement for the
MOFEZ is considered to be 129MW.
67
In order to accommodate the power demand, the following steps could be followed:
(4) Substations inside MOFEZ

The power infrastructure development plan discussed above will ensure sufficient supply of
power to MOFEZ. Therefore, MOFEZ will reply on them and will develop its own substations.
Two substations will be developed inside MOFEZ at the next to Administration Building as
below.
Figure 36 Location of Substation in MOFEZ
(5) Gas Substation and Gas supply network

Karnaphuri Gas Distribution Company Limited (KGDCL) is constructing a gas distribution line
tapping from the national gas grid to Mirsarai EZ and plan to supply gas to 150MW power plant
in Zone 5 by June 2019.
68
Figure 37 Gas Distribution Network Development Plan in Mirsarai Area
Figure 38 Gas Substations in Mirsarai
69
6.4 Water Supply
BEZA is developing a water treatment plant with the capacity of 51,000㎥/day taking surface
water from Feni river as shown in the figure below.
Figure 39 Water Treatment Plant Plan in Bangbandhu Industrial City
BEZA will develop the water pipeline from Feni river up to the entrance of Mirsarai EZ.
Water Supply: Phase 1 (240 ha x 20m2= 4800m2)

Phase 2 (440 ha x 20m2= 8800m2):
Total demand of 13,600m2
6.5 Wastewater Treatment Plant

Waste-water treatment plants 2 sites: Phase 1 (80% of water used: 3840 m3) and Phase 2 (7040
m3): Total 10,880m3
70
Figure 40 Waste Water Treatment Plants in MOFEZ
6.6 Telecommunication System

BEZA will install the telecommunication network for Bangabandhu Industrial City by 2020.
The construction work supposed to start in the beginning of 2019.
The SPC of MOFEZ will develop a telecommunication sub-station within the administration
building taking an area of 10 x 10 meter.
6.7 Administrative Building

Administration buildings area + substation: about 20 ha
Figure 41 Administration Building in MOFEZ
6.8 Railway and Stations

Required width of right of way is 50 m (one-way) plus two Stations: 200 m x 40 m for two
areas (1.6 ha)
71
Figure 42 Railway Stations in MOFEZ
6.9 Housing
Housing zone may be built as a separate project along the Eco-Park: one site with 20 ha depends
on the demand.
72
7. Cost Estimation of MOFEZ
Table 27 EZ Infrastructure Cost
73
8. Financial Plan
8.1 Equity
We consider ¥8.9 billion ($1=¥111, at Oanda Rates as of 26th Jul 2018) as Equity for this project.
The following table is our tentative investors.
Table 28 Image of Equity

Financial Investment: 30% Borrowing: 70%
Arrangements Sojitz Financing from institutional
Energypac banking and private financial
BEZA institutions
Others
We will consider capital
contribution ratio.
Amount： US$151.8 million US $354.2 million
Total: US$ 506 million
8.2 Long and Short Term Loan

Long Term Debt（Construction Funds, etc.）：About US $354.2 million
We are considering to apply for finance from international financial agency such as World Bank
Group, Asian Development Bank and JBIC as well as international corporation agency such as
JICA. Their schemes of overseas loans and investments, foreign currency long-term debt,
Two-Step Loans for domestic banks, bonds acquisition, local buyer’s credit could be applicable.
The finance could be utilized for SPC and construction of infrastructure/equipment.
There is also possibility of getting long-term financing from private banks in Japan.
Short term Loan (Working Capital and etc) will be available by local banks such as IDCOL and
BIFFL which is specialized in mega infrastructure project in Bangladesh.
74
9. Data Collection, Survey and Analysis for Development of Port
9.1 Site & Oceanographic Condition
(1) Wave conditions
The wave direction toward the Sandwip channel is mainly S to SE as the project site is located
behind the Sandwip Island with the sea area open from S7°E to S31°direction.
Figure 43 Sandwhip Channel and Wave Direction

75
Figure 44 Wave rose for Sandwip Channel
note: directions are defined as “coming from”

On the other hand, existing data on waves near Chittagong shows that the main wave direction
is SSW. In case of Mirsarai area, there is no direct wave of SSW. However, it should be noted
that there is some wave which come around behind South corner of the Sandwip Island.
Table 29 Wave Frequency in Chittagong Area
Source: Preparatory Survey on Chittagong Area Coal Fired Power Plant Development Project in
Bangladesh (JICA, 2015)
76
Taking into account the wave direction of S – SE and the PIANIC’ limiting operation conditions,
the expected operation rate of the proposed MOFEZ Port is about 95% (= 100 - 5.28). Besides,
if we consider the wave coming around behind the South corner of the Sandwip Island, the
operational rate will be about 80%. Therefore, Study team concludes that a breakwater structure
is not necessary for MOFEZ Port.
Table 30 Wave Frequency Analysis for MOFEZ Port

SE SSE S
Number of Waves of over 1.0 meter height in 31 323 1,955
SE - S direction
Number of Waves with over 1.0 meter height in 5.28%
SE - S direction / Total wave number
(2) Wind
According to the Sitakunda port report, the southern winds in the summer months are stronger
than the northern winds in the winter months. However, it is also indicated that the wind speeds
do not exceed the navigational and operational threshold of 15 m/s and 20 m/s, respectively.
That means that the load from the wind on the quay structure is so low that it can be neglected.
(3) Water Levels

The following figures show the tidal variation at the proposed Sitakunda Port site for reference.
Table 31 Water Level at Proposed Sitakunda Port

(4) Current Speed

According to the Sitakunda port report, large tide-dominated water level variations yield large
current speeds several times per day. Hydraulic modelling has shown that the undisturbed
77
current speed at site can reach 2.5m/s. Residual wind-generated currents are insignificant
compared to the tide-induced currents. Due to the high current speed, the amount of sediment
transport is also high. This means that the quay structure has to be an open structure, to allow
for the sediments to pass and not build up.
Figure 45 Current Speed at Proposed Sitakunda Port
Source: “Techno-Economic Feasibility study of Mirsarai/Sitakunda Port (August 2018:

9.2 Market and Competition Analyses

(1) Overview of Ports development in Bangladesh
Bangladesh currently has two running sea-port: Chittagong Port and Mongla Port. Most of the
import and export cargos go to Chittagong and small portion goes to Mongla Port. Some ports
are under planning or under construction as the development accelerates and conjunction in
Chittagong port has been publicly noticed. However, the port development is still slow and most
of the planed ports do not have remarkable progress since they are initially proposed or after
conducting Feasibility Study. Most of them have not started the land acquisition, which takes
the most time for development, as well as surrounding infrastructure connecting port and main
roads.
In the meantime, JICA is supporting a deep-sea port in Matabari area, which will be base of
importing coal and finished products. As MOFEZ is focusing more on raw material such as
billet, clinker and edible oil for the enterprises in Economic Zone, clear segregation of roles of
ports could be done, and they will be benefit mutually.
78
Figure 46 Location of existing and planned ports in Bangladesh
Table 32 Running ports in Bangladesh111213

No Port Name Handling volume (2017) Maximum depth Number of berths
1 Chittagong Port Cargo: 78,208,580 tons -9.5m 19 berths
Container: 2,566,597 teu
2 Mongla Port Cargo: 751,300 tons -8.5m 11 berths
Container: 26,950 teu
11
Chittagong Port Authority Annual Report 2017
12
Daily Sun, Dredging plan to enhance Mongla Port’s large ship handling capacity, 16th April 2017,
13
The New Nation, Government to adopt 44b project for upgradation of Mongla Port, 12th Nov 2016,
79
Table 33 Planed port in Bangladesh141516171819
No Port Name Planed handling volume and Planed Maximum Number of berths
capacity Depth
st
1 Mongla Port 1 phase: 872,000 TEU -10.5m -
2nd phase: 4.5 million TEU
2 Bay Terminal 2.7 million TEUs -13m or -14m 13 berths
3 Payra Port 120,000 tons TEU -9.5m -
8,000 containers TEU -16m
st
4 Matabari Port 1 : upto 1.1 million TEU -17m 1st: 450 m berth,
2nd: 2.8-million ton 2nd: 1,850 m berth
3rd: 2.25 million tons 3rd: 300 m berth
5 Mirsarai 1.86 million TEU by 2025 -9.5m 10 berths
Sitakunda Port
Table 34 Status of Planed port in Bangladesh141516171819

No Port Name Status Schedule of
completion
1 Mongla Port Construction for dredging to expand the capacity is 1st phase: in 2025
likely to begin in the first quarter of 2019. The 2nd phase: by 2049
constructer was selected (Chinese).
2 Bay Terminal Feasibility study was in 2015 under support of In 2019
ADB. However, no further progress is seen, such as
land acquisition is surrounding infrastructure
preparation.
3 Payra Port The feasibility study on Payra port conducted by In 2025
the British firm in 2016. British company DP Rail
in December signed a memorandum of
understanding to build a 240-kilometer rail line
between Dhaka and Payra
4 Matabari Construction is undergoing with support of JICA. In 2023
14
The New Nation, Government to adopt 44b project for upgradation of Mongla Port, 12th Nov 2016
15
Bdnew24.com, Payra port fulfils Bangladesh’s needs and aspirations, 18th Jan 2017
16
The Financial Express, Four global port giants queue up, Aug 20th 2018
17
The Financial Express, Bay Container Terminal: Taking the port capacity to next stage, Nov 30th
2017
18
Chittagong Port Authority, Techno-Economic Feasibility Study of Mirsarai/Sitakunda, Aug 2018
19
JOC.com “Matabari Port’s expansion goal is 8,000 TEU ships by 2021” Jan 23rd 2018
80
5 Mirsarai/ Feasibility Study was conducted in 2018 under In 2021
Sitakunda Chittagong Port Authority. There’s no further
Port progress seen.
(2) Present Status of Individual Ports

i. Chittagong Port11
The Chittagong Port is the principal seaport of Bangladesh located in a little way up the
Karnaphuli river, 14 kilometers upstream from the Bay of Bengal. The port handling over 90%
of import-export trade of the country. Under management of Chittagong Port Authority (CPA),
Chittagong port handled over 78 million metric tons of cargo and 2.5 million TEUs
containerized cargo during the year of 2016-2017.There are 19 jetty berths of which 2 dedicated
container berths are provided with 4 rail mounted quay gantry crane. 9 jetties are provided with
shore cranes for handling general cargo. 5 jetties are provided with railway Tracks. 10 Jetties
are provided with transit sheds. Berth are available for bulk cargo like wheat, cement clinker,
rock phosphate, urea and liquid ammonia.
Table 35 Handled volume at Chittagong Port (Calendar Year)11

(Figure in metric tons)
ITEM 2017 2016 2015 2014 2014
Import (Tons) 71,295,969 63,283,134 53,556,525 44,239,643 39,074,247
Export (Tons) 6,912,611 6,342,754 5,736,833 5,694,622 5,192,031
Total (Tons) 78,208,580 69,625,888 59,293,358 49,934,265 44,266,278
Container (TEUs) 2,566,597 2,332,892 2,024,207 1,731,219 154,517
Vessels 3,370 3,015 2,709 2,410 2,156
Table 36 Commodity wise import handled (Calendar year)11

(Figures in Metric tons)
Commodity 2017 2016 2015 2014 2013
1 Food Grain 5,996,199 5,093,555 3,137,483 2,324,287 1,934,810
3 Cement Clinker 19,591,547 18,896,249 14,583,377 13,866,821 12,285,945
4 Fertilizer 1,623,828 1,564,329 1,614,147 1,579,979 1,125,403
5 Coal 1,514,027 1,353,429 2,765,956 28,258 24,212
6 Salt 758,058 441,743 341,910 - -
7 Sugar 2,485,958 1,878,535 2,265,743 1,930,428 1,699,362
8 Edible 2,274,187 2,030,995 2,305,684 1,768,957 1,641,218
81
9 Pol 7,085,879 6,896,850 5,548,103 5,953,105 5,478,838
10 Others 29,966,286 25,127,449 20,994,122 16,787,808 14,885,224
Total 71,295,969 63,283,134 53,556,525 44,239,643 39,074,247
ii. Mongla Port

Mongla port is the second seaport of Bangladesh where only a few small vessels can anchor. It
is located in Bagerhat District in the southwestern part of the country which is 62 km north of
the Bay of Bengal coast. The port has 11 jetties and 8 warehouses and uses 12 swinging
moorings in deeper sections in the river. Handling items include most types of cargo, including
breakbulk, project, vehicles, clinker, fertilizer grain, coal, salt, LPG, edible oils and containers.
The port is connected by the railway to the Khulna Metropolitan Area. Mongla handled about
4,429,449 tons and 26,950 teu in 2015.
There is an ongoing plan to expand the capacity of Mongla port by dredging channel to drafts of
10.5 meters (currently 8.5m) which enable to invite bigger vessels. Local newspaper reported
that, on October 14, 2017, Bangladesh and China signed a memorandum of understanding
(MoU) to develop Mongla Port20. This construction work is likely to begin in the first quarter of
2019.
Table 37 Handled volume at Mongla Port

ITEM 2015 2014 2013 2012 2011
Import (Tons) 4,429,449 3,402,402 2,946,222 2,482,432 2,529,853
Export (Tons) 100,830 141,547 201,352 137,465 166,418
Total (Tons) 4,530,279 3,543,949 3,147,574 2,619,897 2,696,271
Container (Teus) 42,137 43,007 43,873 30,055 27,123
iii. Bay Terminal

The Chittagong Port Authority (CPA) intends to construct a new port, named Bay Terminal, on
an artificial 1,200 acres island to decrease pressure on the existing port facilities with high
operation grades at present. The location of the port is at the Western Coast of Bangladesh at the
Bay of Bengal and Kumira, Sandwip Channel near Chittagong City. This would have a draught
of up to 13m or 14m.
Bay Terminal is not a deep sea port as its maximum draft would be up to 13 or 14 meters, but it
would allow for larger ships to come directly into port.17
20
Dhaka Tribute “Tk3,000cr Mongla Port development projects to begin soon”, 5th January
2019.
82
German consulting firm, Hamburg Port Consulting has completed the feasibility study of the
Bay Terminal with the support of ADB. As per projection, the port will have handled over 2.7
million TEUs of container. Land acquisition has not been done. The Bay Terminal is planned to
be equipped with two Dolphin jetties – one for handling coal to be imported for coal-fired plants
in Bangladesh and the other for handling cement clinkers.
iv. Payra Port

The feasibility study on Payra port was conducted by a British firm, HR Wallingford.
According to the Payra Port Authority statement, under the project capital and maintenance
dredging work will be completed by 36 months to facilitate up to 10.5 drafts of 40,000 metric
tons of deadweight bulk carriers. According to the plan of government, construction of five
thermal power plants (coal-based) and an LNG terminal are under construction in the areas of
Payra Port. Container ships of 3,000 TEUs and the bulk cargoes of 40,000 tons will be able to
come directly to the port jetty.15
v. Matabari Port
A deep-sea terminal with jetty and yard facilities with a 14.5-km long port channel (250 metre
wide and 17 m deep) is planned in Cox Bazar under support of JICA. This port development
comes with construction of two 600 MW power plants with a high voltage power line,
development of a township, local infrastructure, rural electrification, rehabilitation of people and
purchase of land. In Matabari port, container ships featuring 8,000 teu will start by July 2023. In
the first phase of construction, the container terminal will be built on 18 hectares, have a
460-meter berth, be able to accommodate 8,000 teu vessels, and have an annual capacity of
600,000 to 1.1 million teu. Later, the container terminal will be expanded, comprise 70 hectares,
have a 1,850-meter berth, and have a 2.8-million-tonne capacity. And finally, the multi-purpose
terminal will be built on 17 hectares, have a 300-meter berth, and be able to accommodate
vessels with up to 70,000 dwt. Its annual capacity will be 2.25 million tons. 19
vi. Mirsarai/Sitakunda Port

Mirsarai/ Sitakunda Port locates in Sandwip Channel, in and around Sitakunda Upazila near
Mirsarai and opposite of the Sandwip Island. The location was selected as water depth of 11.5m
could be secured all the way from deep sea. Feasibility Study done by Demark consultant in
2018 estimates that Sitakunda terminal is capable of attracting 2.6 million teu. It is planned to
be operated in 2021. However, there is no new progress seen during the study of MOFEZ.18
83
9.3 Type of Cargo Demand & Projection
9.3.1 Steel Industry
1) Assumptions
As the consumption of the steel is expected be 54kg per capita in 2021 from 19kg per capita in
2013 and would increase more with the growth rate of over 15%.
2) Project result
Based on the growth rate and hearing to leading steel companies, the study team has projected
the demand forecast as the table below.
Table 38 Demand forecast of Steel industry
9.3.2 Cement and Construction Industry

1) Assumptions: As the Bangladesh economy continue to grow a high rate (8% or above), per
capita cement demand will increase from 129Kg in 2017 to 209 Kg by 2022.
2) Project result
The per capita consumption of Clinker is calculated based on the past 4-5 years. The national
import quantity is estimated by multiplying this per capita consumption by future national
population and Chittagong division’s share of the national population.
Table 39 Clinker Demand Forecast: 2019-2030
9.3.3 Grain & Animal Feed

1) Assumptions of Projection
<Wheat>
The per capita consumption is calculated based on the past 4-5 years. The per capita
consumption is assumed to grow at the same level as the GDP growth rate up 60kg per year,
84
where the growth is peaked off. This level is set based on the data of other Asian countries such
as India (61kg), Indonesia (19kg), Japan (41kg), and Malaysia (31kg). The national import
quantity is estimated by multiplying this per capita consumption by future national population
and Chittagong division’s share of the national population. The import at MOFEZ’s jetties is
estimated based on the expected number and scale of tenant factories discussed in Chapter 2.
<Maize>
consumption is assumed to grow at the same level as the GDP growth rate up 83 kg per year,
as India (28kg), Indonesia (159kg), Japan (41kg), Malaysia (113kg). The national import
quantity is estimated by multiplying this per capita consumption by future national population
and Chittagong division’s share of the national population. The import at MOFEZ’s jetties is
<Soybean>
consumption is assumed to grow at the same level as the GDP growth rate up 60kg per year,
as India (61kg), Indonesia (19kg), Japan (41kg), Malaysia (31kg). The national import quantity
is estimated by multiplying this per capita consumption by future national population and
Chittagong division’s share of the national population. The import at MOFEZ’s jetties is
<Wheat>
Table 40 Projection Result of Wheat
85
<Maize>
Table 41 Projection Result of Maize
<Soybean>
Table 42 Projection Result of Soybean
9.3.4 Energy Industry (LPG)

2018: 900,000MT
2025: 2,000,000MT
2030: 3,400,000MT
2) Discussion
The growth of LPG import is anticipated to remain strong in the short and mid-term. As the
volume of LPG import increases, large-scale LPG import bases becomes increasing feasible, as
the logistic cost of large-scale importation is cheaper than small-scale importation. However, as
the import volume continues to growth, it is anticipated that new import terminals with better
site suitability will arise, limiting the growth of each terminal location.
From 2019 – 2025: LPG growth at 12.5% to reach 2,000,000MT/year in 2025. This is based on
the assumption that household consumption will increase by the current of 800,000MT in 2018
(25% market penetration) to reach 1,600,000MT in 2025 (50% market penetration). Other LPG
demand would be from automotive sector where LPG will displace CNG as the fuel choice for
some vehicles.
From 2025 – 2030: LPG growth at 10% to reach 3,500,000MT/year in 2030. This is based on
the assumption that household consumption will continue to grow to 2,400,000MT in 2030
(75% market penetration). Additional, automotive sector will contribute 1,000,000MT of
demand, as well as 200,000MT of industrial demand for niche uses.
86
9.3.5. Energy Industry (HFO)
1) Assumption of Projection
From 2019 – 2025: Assuming that HFO power generation capacity to grow from approximately
2,200MW to 3,500MW (10% growth rate)
From 2025 – 2030: Assuming that total power generation capacity in Bangladesh would be
30,000MW while HFO power generation capacity to be approximately 4,000MW (ie ~10%).
Although the total power generation capacity from all sources have increased, the HFO power
generation capacity may remain flat. This is mainly due to increased share of generation from
gas, coal and renewable.
2018: 2,250,000MT
2025: 3,750,000MT
2030: 3,750,000MT
3) Discussion
While power generation demand is anticipated to grow, HFO power generation demand is not
anticipated to grow in tandem as the power mix becomes more reliant on gas, coal and
renewables (including the possibility of nuclear power).
As such, HFO demand is not anticipated to grow sharply, with existing infrastructure
anticipated to provide sufficient logistic support for the demand. Furthermore, the existing
importers have established a reliable system of supply chain using internal self-owned terminal
and barges, and third-party infrastructure is not anticipated to be strongly necessary.
9.3.6 Summary of Demand for MOFEZ Jetties
87
Table 43 Demand Forecast for Port: 2023-2031 (Unit: 1,000MT)
88
10. Proposed Port Master Plan
10.1 Port Planning
The planned port location is in the deep inner part of Bengal Bay. The length of the navigation
channel is about 50km from the offshore area of the Chittagong Port. In the previous feasibility
study for the Sitakunda Port which is only 4km away from Mirsarai Port, various navigation
channel had examined and resulted the most economical channel which was 260m in width and
-8.5m in depth. In order to minimize the initial investment for this project, we will utilize the
same navigation channel in the Sitakunda F/S Report. It means that the vessel to be studied in
this report has some restriction to the maximum draft.
10.2 Required Berth number

(1) Cargo Handling Volume
Based on the demand forecast, type and volume to be handled in this port is as follows;
① Steel Scrap (as the material for the iron manufacturing) 8mil. tons/year
② Steel Scrap (as the material for the iron manufacturing) 3mil. tons/year
③ Construction material such as aggregate 3mil. tons/year
④ Crops 3.25 mil. tons/year
⑤ Mixed Bulk Cargo TBD (2 berths)
(2) Size of Vessels

The number of the required berth for each bulk cargos will study considering the safety vessel
maneuvering in the channel. The existing guideline and technical standard such as PIANC
shows that the depth of the navigation channel is to be accommodating the 1.1 × Draft of the
target vessels. And also, we can refer the Technical standard for Port and Harbor in Japan. In the
Japanese technical standard, there is a reference for the draft of cargo vessel, which is not fully
loaded. The equation to compute the rate of the draft for not fully loaded to the maximum draft
is shown as follows;
Rate of the equivalent draft (%) = 0.4727×ｅ(0.745×loading weight) Eq (1)
It should be noted that Eq (1) is developed for the large cargo vessel which is more than about
85,000 DWT. When we use this equation, we have to keep it in our mind. The case study,
however, had been carried out for various cargo vessels, which are 10,000DWT to 55,000DWT.
The result of the case study is as follows.
89
Table 44 Case study of the Draft for various Cargo Vessels
The result of the case study shows that；

A) For 10,000 DWT vessels no restriction for ship maneuvering even when full loading.
B) For 15,000DWT vessels for safety maneuvering in the navigation channel, it better to apply
80% loading.
Cargo volume is 12,000 tons.
C) For 30,000DWT vessels only 50% of loading is applicable for safe maneuvering.
Cargo volume is 15,000 tons.
(3) Annual Operation Days

Based on the existing wave climate study results for Bengal Bay, the annual operational day for
cargo handling is assumed about 80% in days. It means that the port can operate about 290 days
per year.
(4) Berth Planning

From the result of case study shown above, maximum cargo handling volume is 16,000 tons per
vessel. It will be obvious, however, the private sector who is hired the area will not use that
large vessels because the cargo can load only 30-40% of full loading capacity from the
economical point of view. It means, the maximum loading capacity of one vessel will be set to
14,000 tons (use 20,000DWT vessel and 70% loading).
When we assume that all end user for this port will utilize the same size of cargo vessel, the
maximum cargo handling volume for one berth will become
14,000 ton/vessel ×290 day/year = 4,060,000 tons/year.
The berth plan to be accommodate the handling cargo volume which are shown in previous
article (1) will be as follows;
90
For cargo ① Steel scrap needs 2 berth, and the others can be handled by 1 berth each for cargo
②～④, and additional 2 berths for Mixed bulk cargo. Total berth number is 7 berths.
10.3 Basic Facilities and Dimension of the Port

 Port area 2600m by 500m in length (Total area is 130ha by reclamation)
 Quay wall 2600m continuous quay wall by steel piled sheet piles.
 Planned water depth is DL-10.0m to be accommodated to the
 10000DWT cargo vessel or 20,000DWT Cargo Ship with 70%loading.
 Turning Basin 800m diameter circle.
 Navigation Channel 250m in width and DL 8.5m in depth.
10.4 Quay Wall

The basic structure of the quay wall is steel piped sheet pile with anchor plate. The specification
of the sheet pile is φ=1200mm, t=16mm, STK490, L=42.0m. Based on the Japanese technical
standard, the crown height of the quay wall is DL+7.8m considering the H.W.L. (= DL+6.3m)
at the project site. The design water depth is DL -11.0m to be accommodated to the 20,000DWT
cargo ship in future. (Draught is 9.5m based on the existing study e.g. “Study on Ship
Dimension by Statistical Analysis”(Oct.2017). The maximum ship length is about 125m and
this quay wall is almost equivalent to 17 berths. The standard cross section of the quay wall is
shown in the figure below.
91
Figure 47 Standard Cross Section of the -11.0m Quay Wall
10.5 Energy Infrastructure in MOFEZ

Governmental entities such as BEZA, CPA shall provide sea, subsea and surface infrastructures
such as navigation channels, turning basins, wharves, tidal stay & wait points, navigation aids,
etc. in MOFEZ to sell or lease them to the Concessionaires21 who will actually operate projects
in the MOFEZ.
However, the main sea, subsea and surface plants and facilities must be developed in
accordance with design particulars, functions, specifications, etc. of their desired plants and
facilities in the MOFEZ by the Concessionaires who will operate projects in the MOFEZ.
The following energy plants and facilities shown on the table below will be envisaged there,
but not limited to:
Table 45 Energy Infrastructures in MOFEZ

a)
No. Name and type of No., capacity, WD of Annual offtakeb) Remarks
21 “Concessionaires” will be private concessionaires, tenants and/or operators of actual

miscellaneous projects operated in the port and EZ. They have not an ownership but an
operatorship of projects in the seas and lands. They must pay concession fees such land
fees, wharfage, etc. to the Land Owners to provide their operational plants and facilities
by themselves.
92
plants and facilities basins, etc. of
visiting/moored
carriers
( Offshore Sea Berths and Terminals c)– Sea, Subsea and Surface Plants and Facilities)
① Offshore Floating 1 berth, LNG 3~6MMtpa Visiting LNG carries,
LNG Import Terminal carrier (145,000~ FSRU or LNG power
(SPM e)) comprising 270,000m3 (Qmax)) . barge to be moored to
Tower & Yoke , Water depth (WD) of the SPM system.
PLEM and subsea basin: DL-13m
unloading pipelines （Max.）.
② Offshore Floating LPG 1 berth, LPG carrier 2.5~2.7 MMtpa Propane, Butane &
3
Import Terminal (80,000~ 85,000 m their mixture, and
f)
(MPM ) comprising class). ethylene g).
multiple mooring Water depth (WD) of
buoys, PLEM and basin: DL-13m
subsea unloading (Max.).
pipelines
➂ Offshore Floating 1 berth, 50,000 DWT ~2.6 MMtpa Heavy fuel oils.
Other Petroleum class. Water depth
Product Import (WD) of basin:
f)
Terminal (MPM ) DL-13m （Max.）.
comprising multiple
mooring buoys, PLEM
and subsea unloading
pipelines
（Onshore Berths & Terminals in Open Wharves （Port Zone in the MOFEZ)
④ Onshore LPG Export 1 ~ 2 berthsf), 2.5~2.7MMtpa Propane (C3), butane
Terminal comprising ~ 20,000m3 class. (C4) & their mixture
onshore pipelines and Water depth: and ethylene to
loading arms DL-11m. satellite terminals.
f)
⑤ Offshore Other 3 ~ 4 berths , ~1.0 MMtpa Heavy fuel oils, and
Petroleum Products ~ 6,000 DWT class. hot asphalt to satellite
Export Terminal Water depth: terminals. However,
including onshore DL-11m. hot asphalt
pipelines and, loading loading/unloading
arms berths and its storage
93
tanks h) shall be also
provided near the
onshore export
terminal.
(Onshore Energy Plants and Facilities in Economic Zone (EZ))

⑥. Petroleum product Propane (C4), butane
pipelines, storage (C5) & their mixture,
tanks and filling stands ethylene, HFOs, and
& stations of LPGs, hot asphalt to satellite
HFOs, ethylene, etc. terminals. The hot
asphalt storage tanks h)
shall be provided at
port area
Notes: a) No. on the above table is referred on Figure-? as a location of the plants and facilities.
b) The annual offtakes have been multiplied by a visiting frequency of carriers (once a week).
c) The berth generally means a basin for floating vessels (ships and boats). However, the
terminal means a berth in a narrow sense, and in a broad sense, berths and onshore plants and
facilities such as storage tanks, etc. d) SPM: Single Point Mooring such as Tower Yoke, CALM,
SALM,STM, etc. e) MPM: Multi-point Mooring Buoy, applied in LPG UGS (Underground
Gas Storage) of LPG, etc. in Japan which is cheaper in price and easy in operation than SPM
(Single Point Mooring) System. f） The required no. of berths will be governed by kinds and
offtakes of petroleum products, visiting frequency of takers. g) At present, being imported from
Iran, Kuwait and China. The kinds and offtakes of petroleum products are not determined yet.
h) To shorten the length of heated and thermal insulated asphalt pipelines to its storage tanks as
much as possible.
In order to import LNG, LPG and ethylene safely and surely in Bangladesh, they should be
imported in the calm and gentle Bay of Bengal except monsoon and cyclone seasons to reserve
them in the existing/abandoned gas fields or storage tanks.
In order to transport them to coastal/inland satellite terminals in Bangladesh efficiently, larger

volume of shallower drafted carriers shall be chartered as much as possible. Therefore, the sea
and river lanes shall be well maintained by dredging by BIWTA, etc.
94
11. Cost Estimation of Port
The construction cost of the port zone for Phase 1 with 2,600m x 500m area is estimated as
below.
Table 46 Construction cost of Proposed Jetties
11.1 Revenue from Port

The revenue source from Port operation includes 1) land lease for yard area 2) land lease for
jetty area, and 3) cargo handling charge for the projection period.
95
12. Data Collection, Survey and Analysis for Development of Navigation Channel
12.1 Proposed Navigation Channel
For the navigation channel, we can refer the existing study which is “Techno-Economic
Feasibility study of Mirsarai/Sitakunda Port (August 2018: Chittagong Port Authority)”. In this
study, the route of the navigation channel had examined from the south border of the Chittagong
Port area to project site. The length of the channel is about 40km.
Figure 48 Entrance channel to the proposed Sitakunda port from Chittangong
Source: Prepared by Study team based on “Techno-Economic Feasibility study of Mirsarai/

Sitakunda Port (August 2018: Chittagong Port Authority)”
The project site of this study is only 4km apart from the target location for this Sitakunda Port
study. Their proposed navigation channel will be extended to our project site.
The width of the channel proposed by Study team is 250m based on the PIANC Technical
standard. The depth of the channel is normally decided as the 1.15 x draught of the ship. So that,
the depth of the navigation channel is set to MSL-11.5m (= DL-8.5m) which is 1.15 x 7.7m
=8.855m → 8.5m. The route of the navigation channel is shown in figure below.
96
Figure 49 Plan and dimension of Navigation Channel
12.2 Turning Basin

The standard dimension of the turning basin is the 2-3 times of maximum ship length diameter
circle based on the Japanese technical standard. The quay structure for this study extending
about 2600m, the area for turning basin is set to shown in Figure below.
Figure 50 Plan and dimension of Turning Basin
97
12.3 Dredging of Channel
(1) Dredging for the route from Chittagong to Sitakunda Port site
According the Sitakunda port report, the following dredging volumes have been calculated
dependent on the need of navigational depth.
o DL -8m - No dredging needed

o DL -8.5m - Minor dredging volume: 10,400 m3
o DL -9m - Minor dredging volume: 10,400 m3 pthalc
o DL -12.5m Minor dredging volume: 10,400 m3 pthal
Study team recommends a 250 meter width of the navigation channel for MOFEZ. Based on
this specification, Study team estimated 2,000 m3 of dredging for the route from Chittagong
to Sitakunda Port site. As shown in the figure below, there are two shallow places for dreding
in the navigation channel.
Figure 51 Dredging areas for a water depth of DL 8.5m

(2) Dredging for Sitakunda Port site to MOFEZ site

The length of the route from Sitakunda Port site to MOFEZ site is about 5,600 m. However,
considering the depth of DL -8.5 m, it is necessary to dredge only 2,950 m for the route
extension. The calculated dredging volume is 1,750,000 m3.
98
(3) Dredging for Berth Pocket of MOFEZ (Phase 1)
For the berth pocket in front of MOFEZ Phase 1 berths of 2,600m, Study team recommends the
following specifications.
- Width: 800m
- Depth: DL -10.0m
Study team calculated the dredging volume of 11,000,000m3 for the berth pocket.
(4) Dredging for Offshore Berth for LPG

In case an offshore berth for LPG import is developed, Study team calculated the dredging
volume of 12,350,000m3 for DL -13m depth.
12.3.1 Cost Estimation
Table 1 Dreding Cost
Dredging Volume Dredging Cost

Dredging Area
(m3) (USD)
Dredging for the route from Chittagong to

1 1,000,000 2,500,000
Sitakunda Port site
2 Dredging for Sitakunda Port site to MOFEZ site 1,750,000 4,375,000
3 Dredging for Berth Pocket of MOFEZ (Phase 1&2) 11,000,000 27,500,000
4 Dredging for Offshore Berth for LPG 12,350,000 30,875,000
12.3.2 Management & Operation System of channel

As the dredging volume for the 8.5 m depth channel is relatively small, it can be dredged during
the landfilling process of Zone 22 and 23. Therefore, at this moment we believe it can be
managed by SPC on private basis. However, in the future, the channel may require periodical
maintenance. Therefore, the developer needs to discuss with CPA over how, who and what
should be done for the future maintenance.
In case the overall channel of >50 km is dredged to the depth such as DL -10m or DL -11m, the
total dredging volume will be a huge amount, which cannot be managed on private basis. For
99
the overall dredging will require public involvement. Therefore, this issue should be discussed
with the government of Bangladesh after Phase 1 of MOFEZ is implemented.
13. Management & Operation Organization of MOFEZ

We will establish SPC in Bangladesh to manage and operate MOFEZ: Jetty and Economic Zone.
The organogram is shown as below.
(1) SPC
Figure 52 SPC Image
(2) EZ Department
Figure 53 Operation & Management Organization of EZ
100
(3) Jetty Department
Figure 54 Operation & Management Organization of Jetty
101
14. Financial Analysis
14.1 Purpose of the Financial Analysis
The purpose of the financial analysis is to appraise the viability of the proposed economic zone
and port of Phase 1 from the year of 2020.
14.2 Methodology of the Financial Analysis

The viability of the project is assessed using the Financial Internal Rate of Return (FIRR) by
means of the discounted cash flow method. The FIRR is a discount rate that makes the expenses
and the revenues during the project life equal. When the calculated FIRR exceeds the weighted
average interest rate of the total funds for the investment of the project, the project regarded as
financially feasible.
14.3 Assumptions for the Financial Analysis

14.3.1 Base Year
Prices in the year of 2019 are used in the financial analysis.
14.3.2 Project Life

The project life for the financial analysis is determined as 25 years.
102
15. Scope of Project
15.1 Economic Zone Development
(1) Development schedule
The scope of this financial analysis covers the 324 ha of MOFEZ Phase 1. The implementing
schedule is shown in the table below.
Table 47 Development Schedule of the economic zone of MOFEZ

2020 2021 2022 2023
Land filling
Construction
Operation
(2) Expenses
a) Initial Investment Costs
The initial investment cost for the Economic Zone are shown in the table below.
103
Table 48 Initial Investment Cost for the Proposed Economic Zone
The depreciation period of basic infrastructure and facility/equipment utilization are 40 years
and 15 years, respectively.
b) Personnel and Administration Expenses

The personnel costs required for Economic Zone management are shown in table below.
104
Table 49 Personnel Cost for EZ
no. of USD/month USD/year
employment
1 Marketing & Public Relation 4 450 21,600
2 Technical (IT) 8 450 43,200
3 Technical (Utility, Garden/cleaning) 25 129 38,700
4 Legal/ One Stop Service / Trouble
10 566 67,920
Shooting
5 Finance and Accounting 4 283 13,584
6 General Administration & HR 4 283 13,584
7 Security & Fire 12 129 18,576
8 Local Deputy Manager 1 566 6,792
9 Local Manager 4 900 43,200
10 General Manager 1 10,000 120,000
Total 73 387,156
c) Operation and Maintenance Expenses
The maintenance and repair expenses are assumed 1 - 10% of initial costs of the infrastructure.
3% of marketing agency cost is assumed.
(3) Revenue
a) Land lease fee
Based on the market survey, the following lease schedule is assumed for Phase 1. The total
leasable area is 236 ha.
Table 50 Leasing schedule for the economic zone (Phase 1)

Year 2023 2024 2025 2026 Total (ha)
Lease Ratio 25% 25% 25% 25%
Industrial Plots 55.00 55.00 55.00 55.00 220
Residential & Commercial 4.00 4.00 4.00 4.00 16
Total 236
The land lease fee for industrial plots is set as USD100/ha/50years
105
The land lease fee for housing and commercial plots is set as USD150/ha/50years.
b) Utility tariff
It is assumed that power, gas and water are supplied from governmental agencies first to the
SPC of MOFEZ and then the SPC supply them to individual tenant factories. The assumed
tariffs are based on Chittagong Export Processing Zone although actual tariffs shall be
determined through need negotiations. Therefore, The SPC shall take the service charges on
them. The rate of the service charge is set as 10%. It is also assumed that the SPC shall invest in
its own wastewater treatment plant and provide wastewater treatment service. The SPC shall
collect “EZ service fee” from all the tenant factories at USD0.72/m2/year.
The utility charges are shown in the table below.
Table 51 Revenue from Utility Services

Type of Utility Fee Unit
Power tariff (BDT8.97/kWh at CEPZ in 2018) 0.112 USD/kWh
Power Service Charge (10%) 0.011 USD/kWh
Gas tariff (BDT8.54/m3 at CEPZ in 2018) 0.107 USD/m3
Gas Service Charge (10%) 0.011 USD/m3
Water Charge (BDT37.56/m3 at CEPZ in 2018) 0.4695 USD/m3
Water Service Charge (10%) 0.047 USD/m3
Wastewater Charge 0.35 USD/m3
EZ Service Fee 0.72 USD/m2/y
Source: BEPZA website and JETRO website
(4) FIRR
a) Base Case
The FIRR is calculated as shown in Table. The results are 15.03%.
Table 52 FIRR for Base Case

Value
FIRR 15.03%
NPV USD 19 million
b) Sensitivity Analysis
There is a possibility that unexpected changes surrounding the project conditions occur in which
cost could increase and/or revenue decrease. Accordingly, the FIRRs when cost increases and/or
revenue decreases are calculated as follows.
106
Table 53 Sensitivity Analysis of FIRR
FIRR
Base case 15.03 %
Case 1 (expense 10% plus) 13.35 %
Case 2 (revenue 10% minus ) 11.66 %
Case 3 (expense 10% plus revenue 10% minus ) 10.17 %
In case of the worth scenario, Case 3, FIRR has less attractive value. Therefore, study team will
reexamine the analysis of FIRR in more details.
15.2 Port Development

(1) Development schedule
The scope of this financial analysis covers the 14 berths in Phase 1. The implementing schedule
is shown in the table below.
Table 54 Development Schedule of the Port of MOFEZ

2020 2021 2022 2023
Land filling
Quay construction
Operation
(2) Expenses
a) Initial Investment Costs
The initial investment cost (direct cost) for the terminals are shown in the table
below. The indirect cost is estimated at 40% of the direct cost.
107
Table 55 Initial Investment Cost for the MOFEZ Port
The depreciation period of basic infrastructure and cargo handling equipment are 40 years and
15 years, respectively.
b) Personnel and Administration Expenses

The personnel costs required for managing cargo, vehicle and grain terminals are shown in table
below.
Table 56 Personnel Cost for MOFEZ Port
Salary/Mo. Cost/Year
Nos
(USD) (USD)
Administration
Manager 14 3,308 555,800
Staff 28 1,538 516,600
Total 42 1,072,400
c) Operation Expense
This financial analysis is based on “lease model”. Therefore, there is no operation expense.
d) Maintenance and Repair Expenses

The maintenance and repair expenses are assumed to be 1% of initial costs of the infrastructure
and 3% of initial costs of the cargo handling equipment.
The basin in the project requires maintenance dredging due to sedimentation; dredging volume
amount to 1.4 million m3 per year for the berth pocket and the channel.
108
(3) Revenue
There are two sources of revenue in the lease model. They are 1) land lease fee and 2) berth
lease fee.
a) Land lease fee

The port area behind the quay wall is about 117 ha (= 450m x 2600m). This area can be leased
for warehouses, cargo yards etc. The lease fee is set as USD3/m2/year with USD 0.3 increase
every 5 years.
b) Berth lease fee

In case of lease model, SPC lease 14 berths to individual port operators. The lease fee is set as
USD7.5 million/berth/year with USD750,000 increase every 5 years.
(4) FIRR
a) Base Case
The FIRR is calculated as shown in Table. The results are 22.91%.
Table 57 FIRR for Base Case

Value
FIRR 22.91 %
NPV USD 304.7 million
b) Sensitivity Analysis
There is a possibility that unexpected changes surrounding the project conditions occur in which
cost could increase and/or revenue decrease. Accordingly, the FIRRs when cost increases and/or
revenue decreases are calculated as follows.
Table 58 Sensitivity Analysis of FIRR

FIRR
Base case 22.91%
Case 1 (expense 10% plus) 21.44%
Case 2 (revenue 10% minus ) 21.07%
Case 3 (expense 10% plus revenue 10% minus ) 19.56%
The results show that, even in the worst case scenario, the FIRRs are deemed to be financially
feasible.
109
16. Environmental and Social Issues
16.1 Legal framework of Environmental and Social Impact Assessment
Department of Environment is responsible for a grant of environmental clearance to a project.

According to the Section 12 of the Environment Conservation Act 1995, no project will be
established or undertaken without obtaining permission, in the manner prescribed by the
Environment Conservation Rules 1997, an Environmental Clearance Certificate from the
Director General. In preparation of EIA report, the following act and rule should be followed.
・ Environment Conservation Act, 1995 (subsequent amendments in 2000 and 2002)

・ Environment Conservation Rule, 1997 (subsequent amendments in 2002 and 2003)
In addition, Bangladesh has signed most of international treaties, conventions and protocols on
environmental protection and these international treaties should be practiced. In case there exist
insufficient provision for standard in Bangladesh, or significant discrepancy between
international standards, the project proponent may comply with standards overseas or
international organizations.
The activities of the proposed project would fall under the ‘red’ category according to the
Bangladesh Environment Conservation Rules (ECR) 1997 and therefore, the project proponent
will need to conduct EIA studies to obtain site and environmental clearance from the DoE.
Since the project will involve multiple components ( or sub-projects) each of which may have
different types of adverse impacts of the environment, DoE may require EIA study to be
conducted through multiple EIA studies if a single EIA is considered not sufficient to document
the comprehensive impacts.
16.2 Potential Project Activities
During the construction phase, the important project activities at Zone 22 and 23 of MOFEZ
may include clearance of forest flora, removal of flora at non-forest area, land clearing, land
alteration, pond fill-up by soil, people movement, vehicle movement, materials placement, earth
excavation, construction work, accident (e.g. spills, leaks of chemicals), etc.
During the operational phase, the important project activities may include improper waste
disposal, chemical accidents, etc.
110
16.3 Potential Impacts from Ecological Perspective
The ecological impact assessment procedure for the proposed project at Zone 23 of Mirsarai
economic zone involves ecological impact identification and evaluation processes. Impacts are
identified through interactions between the proposed project activities and ecological
sensitivities, while impacts are evaluated on the strengths of the likelihood of occurrence as well
as the rating of their magnitude and significance.
The following are the identified potential ecological impacts (direct/ indirect/ permanent/
temporary/ long term/ short term):
Terrestrial & Aquatic Fauna

Amphibia
 sensitive amphibians may disappear or be compelled to leave their habitat for
project activities, aquatic & terrestrial habitat change may affect amphibians,
 amphibians may face challenge in altered habitat for survival,
 removal of undergrowth / small vegetation may affect amphibians,
 accumulation of sediment at / near amphibian habitat may jeopardize
amphibian life,
 water contamination, if any, may affect amphibians’ habitat and survival, etc.
(1) Reptiles
 sensitive reptile may disappear or be compelled to leave their habitat for project
activities,
 sediment accumulation at / near reptilian habitat may jeopardize reptilian life,
 pond dry-up may affect reptilian life and livelihood,
 visible reptile, if any, may be killed by project personnel, etc.
(2) Aves
sensitive birds may disappear or be compelled to leave their habitat for project
activities,
 uprooting forest flora may displace birds, hence affect life and livelihood,
 trees with nest, if cut for project action may jeopardize birds’ life,
 birds may abandon their nests due to human disturbance,
 human presence may disturb bird’s foraging, resting and nesting time,
 food shortage from flora due to uprooting may jeopardize birds’ life,
 shoreline tidal land up-rise may affect waders’ life and livelihood, etc.
(3) Mammals
111
sensitive mammal may disappear or be compelled to leave their habitat for
project activities,
 hunting prey by mammal may not be successful due to human presence,
 sediment accumulation at / near mammal habitat may jeopardize mammal life,
 visible mammal, if any, may be killed by project personnel, etc.
(4) Marine Water & Fresh Water Fish
 fish may disappear because of dry-up / fill-up of pond,
 land alteration may disturb fish passage during monsoon,
 accumulation of sediment at / near fish habitat may jeopardize fish survival,
 fill-up of shallow water-body may destroy fish habitat,
 water contamination, if any, may induce fish mortality, etc.
(5) Terrestrial & Aquatic Fauna
 forest flora may disappear forever due to project activities,
 non-forest flora may disappear due to project activities,
 land alteration, flora uprooting, etc. may affect floral survival,
 pond and ditch dry-up and fill-up may destroy floral habitat,
 fallow-land alteration may destroy undergrowth, etc.
16.4 Potential Impacts from Socio-Economic Perspective

The socio-economic impact assessment procedure for the proposed project at Zone 23 of
Mirsarai economic zone at Chittagong involves socio-economic impact identification and
evaluation processes. Impacts are identified through interactions between the proposed project
activities and socio-economic sensitivities, while impacts are evaluated on the strengths of the
likelihood of occurrence as well as the rating of their magnitude and significance.
Based on preliminary assessment, the following are the identified potential socio-economic
impacts (direct/indirect/permanent/temporary/long term/short term):
(1) Local people’s lives & livelihood will be affected. There will be loss of income for
those who are dependent on forest resources such as fish, fuel wood, buffalo rearing,
etc. Houses beside the embankment road may have to be resettled;
(2) Forest and non-forest land clearing, alteration & utilization will hinder land use
and cause loss of free resource collection;
(3) Traffic in roads and waterways will create pressure on existing road & waterway
networks;
112
Road accidents may increase due to people & vehicle movements and increased
usage of roads and waterways;
(4) There may be a shortage of land use;
(5) Opportunity for short employment may materialize due to excavation;
(6) Local business will flourish due to contract opportunity, supply of food & associate
items;
(7) Conflicts / third party agitations may happen over employment;
(8) Social life and events may be hampered due to nuisance noise, dust, emission, and
lighting;
(9) Environmental pollution may occur due to generation of domestic waste / sewage
disposal;
(10) Water pollution will occur (sanitation issues) if not handled properly;
(11) Social crimes may occur as people compete for getting materials / equipment, that
are new to them, etc.
16.5 Mitigation Measurers

16.5.1 Mitigation Measures for Ecological Impacts
Based on preliminary assessment, the following are the suggested mitigation measures for
ecological impacts.
Terrestrial & Aquatic Fauna

(1) Amphibia
Ensure the halting of the project personnel entrance into the amphibian
aquatic reservoirs,
 Ensure that the amphibians’ aquatic habitats do not dry up,
Ensure non-destruction of amphibian eggs, tadpoles, etc. during pre & post
breeding season,
Ensure non-accumulation of project related sediments at / near the amphibian
aquatic reservoirs,
Ensure non-contamination of amphibian aquatic reservoirs by disposing
project related chemical or any other materials at their designated disposal
sites,
Ensure the development of program for not clearing of undergrowth / shrub
fully that are used by the terrestrial amphibians
Ensure to restrict activities at / near terrestrial places where amphibians are
staying, etc.
113
(2) Reptiles
 Ensure the avoidance of human and vehicle movement over undergrowth
or burrow,
Ensure the non-accumulation of sediment that may come from project
activities at / near burrow / undergrowth where reptiles stay,
Ensure the development of program does not get the visible reptiles (e.g. snake,
lizard) killed by the project personnel or local people.
Aves
Ensure non-disturbance of bird, during forage, build nest, etc.,
Ensure non-destruction of bird habitat, either in tree, undergrowth, soil,
Topographic, Bathymetric and Environmental Surveys of Mirsharai Economic Zone Zone 23
 Ensure non-uproot of trees with bird nests,
 Ensure project activities are restricted at / near burrowing bird habitat,
Ensure non-alteration of shoreline land, etc.
(3) Mammals
Prevent the undergrowth vegetation, tree and shrub dominating areas where
mammal stay,
 Reduce noise disturbance that may generate from machinery, generator or
vehicle use,
 Allow sufficient time for mammals to move from one place to another place,
 Restrict project activities at / near mammal habitat during pre & post breeding
season,
 Ensure non-disturbance / non-uprooting of nesting tree / hole / land of mammal,
etc.
(4) Fish
 Ensure ponds, ditches, etc. do not dry up,
 Ensure non-disturbance of fish passage during monsoon,
 Ensure non-accumulation of sediments at / near fish habitat,
 Ensure non-fill-up of shallow water-body that are used as fish habitat,
 Ensure non-contamination of water to halt fish mortality, etc.
(5) Terrestrial & Aquatic Flora
 Restrict project activity that may enhance the disappearance of forest flora as
well as
(6) non-forest floras,
 Restrict non-uprooting of flora, as much as possible,
 Restrict land alteration that have flora,
114
 Ensure non-dry-up and non-fill-up of pond & ditch that have flora,
 Ensure non-alteration of fallow-land that have undergrowth,
Ensure to develop program for re-plantation and / afforestation of similar
floral species, etc.
16.5.2 Mitigation Measures for Socio-Economic Impacts

Based on preliminary assessment, the following are the suggested mitigation measures for
ecological impacts.
(1) Land clearing and alteration

a. Few people will be displaced who live beside the embankment road and will also lose
their resources e.g. house, cattle shed, pond, etc.
Early communication with the project affected people (PAP) / family needs to
be ensured earlier for compensation of land & structures as well as PAP resettlement
issues.
b. Land raising may create water logging to the nearby land for long time which will
ultimately create an adverse situation to the local community.
i. Early communication with the affected community is essential for water logging issues.
(2) Loss of Flora

a. A remarkable number of floras exist within the Plot 23 that may need to be cleared for project
implementation.
The entitlements of these floras have to be ensured first. Then early
communication needs to be established with the owners of the affected floras for
removal issues.
Ensure proper compensation and also quick disbursement of compensation
payment for affected flora as per GoB rules and regulations.
Same species or native floral plantation program (one tree felling require three
tree plantation) needs to be ensured in the available vacant spaces for
restoring the existing ecosystem to some extent.
(3) Hindrance of land use
115
a. Some land use for cattle and buffalo grazing, fish culture and collection of natural vegetables
and fodders.
i. Movement of people inside the Zone 23 will be restricted; hence, early communication
with the affected people / community is needed to disseminate the information on
hampering of their livelihood forever for those lands,
ii. Ensure proper compensation and quick disbursement of compensation payment as per
GoB rules and regulations.
(4) Loss of Income

a. Various types of income related activities occur within and outside of the Plot 23 such as
agricultural practice, fish culture & collection of fish & vegetable, shrimp culture, business,
shop, etc.
Loss of income may result from inability to use the proposed land as well as a
particular piece of land / establishment (e.g. road-side shop or agricultural
land, etc.) for income generation activities.
i. Ensure early communication with the affected owners or renters for this issue,
ii. Ensure proper compensation and quick disbursement of compensation payment with
easy process for income loss that might be incurred for the proposed project as per GoB
rules and regulations.
iii. Ensure scheduled construction work for those areas to minimize nearby areas’ business
or other type of income loss, if any.
(5) Communication and Road Traffic

a. The adjacent areas of the Plot 23 have non-paved narrow embanked roads that may use all
sorts of communication and transportation of materials, equipment, etc. Temporary disruption
of communication is expected during the construction work.
Early communication with the respective department has to be ensured to keep minimum
disruption of vehicular traffic and public safety issue.
Traffic congestion resulting from movement of vehicles carrying material and equipment needs
to be addressed with proper traffic management and avoid stockpiling of materials in a way that
could hamper traffic movement.
(6) Safety Issues

a. General construction activities beside narrow road could increase risks to pedestrian and
vehicular movement.
i. Scheduling of work and delivery of construction material and proper management of
116
traffic are very important to minimize such impacts.
ii. Shaherkhali or Domkhali canal may be used for waterway transportation and safety of
local boat will be an important issue.
Occupational safety issues are important aspects for general construction
activities, which need to be addressed as part of occupational health and safety
plan.
iii. Safety / stability of structures located very close to the Plot 23 could be an important
issue. Vulnerable structures need to be identified before commencement of construction
work, and special care needs to be taken for this issue to avoid damage to such
structures.
(7) Domestic Waste Generation / Sewage Disposal

i. Environment friendly domestic / sewage wastes removal action plan should be
developed fast and then execute it through the workers to reduce such impact.
16.6 Recommendations
More detailed ecological baseline study will be required for inclusion in the Initial
Environmental Examination (IEE) and Environmental Impact Assessment (EIA) reports for the
proposed Zone 22 and 23 of Mirsarai Zone, Chittagong. The possible impacts of the proposed
project activities have been evaluated here preliminarily against the present identified baseline
conditions and mitigation measures have also been suggested preliminarily based on identified
potential impacts. Seasonal surveys on flora, fauna and fish over a year should be carried out to
provide complete list of diversity with seasonal variation in Zone 23 and adjacent areas. Floral
assessment for sensitive species will need to be conducted.
In Appendices of this report, a tentative Terms of Reference (ToR) for EIA study for this project
is presented in Appendix. ToR shall determine the contents of assessments for EIA study to be
carried out, thus ToR must be officially approved by DoE. ToR for EIA of this project could be
further evaluated before submission to DoE for an approval.
117
17. Risk Analysis
In order to develop MOFEZ, the study team has to justify the condition below.
① Whether the access road and necessary infrastructure, such as water, power, gas
and etc., in Bangabandhu Industrial City will be constructed as per the planned
schedule
② Whether the railway is extended to MOFEZ’s jetty area
③ Whether the project site has suitable geological characteristics with enough
strength
④ Whether Zone 22 and 23 will be officially acquired by the developer
⑤ Whether the land under Ministry of Environment, Forestry and Climate Change
in Zone 23 will be transferred to BEZA
⑥ How to mitigate possible impact to endangered and/or specially protected
species in the project site
⑦ Consideration of an expansion plan
 In case of developing a container port in future, breakwater structure
may be required.
 In case of developing a deeper navigation channel, an early planning (at
the stage of developing phase 1) is required.
118
18. Advantages of Japanese Companies and Expected Beneficial Economic Effects
for Japan
18.1 Involvement of Japanese companies in MOFEZ and superiority of Japanese technology
In MOFEZ development, there are several spaces where Japanese companies can involve. We
expect Japanese companies’ involvement in the areas below.
1) Investors of the Economic Zone development,
2) Investors of the port development,
3) EPC contractors of the Economic Zone,
4) EPC contractors of the port
5) Suppliers of construction equipment
6) Economic Zone management & operator,
7) Port management & operator (bulk cargo terminal and in future container terminal),
8) Tenants/Investors to the Economic Zone,
9) Port users, and
10) Suppliers of Economic Zone facility such as sewage treatment plant
For example, among above list 4), EPC contractor for the Port is expected to utilize Sheet Piling.
This is the widely used safe technology and common in Japan and other developed countries.
However, this technology is not known in West Asia such as India and Bangladesh. Therefore,
it may be the first innovative technology for Bangladesh. Especially one of the key materials of
Sheet Piling methodology, Tie Wire is a special made in Japan product. In such way, Japanese
products will play an important role in this development.
Based on rough calculations of some of the expected Japanese companies’ involvement to

MOFEZ, the following are expected beneficial economic effects to Japan.
Table 59 Forecasting Assumptions

1 Operation of EZ and Port for Bulk Cargo ¥50 billion
2 Installment of Cargo Handling Crane (for Bulk and Container Cargo) ¥2 billion~
3 Installment of LPG Onshore Pipeline, Storage Tank, Conveyor, etc. ¥15 billion~
4 Installment of Sewage Treatment Plant ¥1 billion~
5 Construction, Civil Engineering Construction and Maintenance (Industrial ¥34.3 billion~
Park, Port)
Rough Estimation ¥102.3 billion~
119
The following is calculation methods for this study.
1) Operation of SEZ, Industrial Park and Port for Bulk Cargo

Industrial Park (income form lease): About ¥27 billion + Port (Charging Fees on Berth, Crane,
etc.) : ¥33 billion=About ¥50 billion
2) Installment of Cargo Handling Crane (for Bulk and Container Cargo)

Cargo Handling Crane: About ¥500 million per machine×4 machines=¥2 billion~
3) Installment of LPG Onshore Pipeline, Storage Tank, Conveyor, etc.

Total of Facilities for receiving Gas=Total ¥15 billion yen~
4) Installment of Sewage Treatment Plant

Total of Sewage Treatment Plant=¥1 billion~
5) Construction, Civil Engineering Construction and Maintenance (Industrial Park, Port)Total of

Construction, Civil Engineering Construction=¥31.5billion~
From rough assumption, we calculated at least ¥102.3 billion as beneficial economic effects to
Japan.
While Bangladesh is still facing difficulties of shortage of industrial parks and energy import
bases, Japanese companies are already holding advantages technologies and could be offering
the consistent services in the fields of development, operation and maintenance of infrastructure.
If this project would be successful, we could expect 1) increase of investment from Japanese
companies to Bangladesh , 2) acceleration of bilateral trade between Japan and Bangladesh will
expand and 3) increase of import volume of equipment especially handling equipment of LPG
and storage tank from Japan.
18.2 Cost competitiveness of Japanese companies in Bangladesh

One of the difficulties of Japanese technologies and equipment is cost competitiveness since
high technologies require high cost in the end. In the meantime, cost competitiveness could be
kept using special financing system of Japan such as loan system of JBIC and private companies.
Also, by importing required production materials or products not from Japan but from
surrounding countries such as Vietnam, Thailand, India and Myanmar, the cost could be
minimized.
120
Japan also provides insurance system for Japanese products to mitigate the risk of exporting.
NEXI is one of the examples of the insurance to cover the loss due to country risk. Utilization of
such service will reinforce the competitiveness of Japanese companies.
121
19. Possibility and Measures for Replicating the Proposed Infrastructure
Development Project in other Areas of Bangladesh and other Countries
19.1 Other Areas in Bangladesh

Similar projects can be implemented in some places between Mirsarai and Chittagong.
Especially other coastal zones in Bangabandhu Industrial City are potential areas. In fact, the
proposed project can be expanded to next zones if there is enough demand. Study team already
found this possibility in nearby zones.
19.2 Other Countries

Countries such as India, Thailand and Vietnam used to have situations similar to present
Bangladesh. As industrialization takes place in these countries, they have promoted private
industrial parks with own jetty as their solutions.
(1) India:
India faced a similar port shortage crisis in the 1970 s: Largest port of Bombay was congested
and difficult to expand port facility. Gujrat Government allowed Adani Group to develop
Mundra SEZ with a jetty back in 1987 and immediately attracted ships to load and unload
cargos. Adani Group has been expanding the port facilities over India until now, and they
became the largest owner and operator of ports and largest SEZ plus power plant.
(3) Thailand:
Thailand faces a similar port crisis in 1980 s. Bangkok port was congested and ships were
waiting 2-3 weeks to unload cargos. Industrial Estate Authority of Thailand (IEAT) decided to
develop two industrial parks in the Eastern board area with own port: Laem Chabang (for light
industry) and Map Ta Phut (Deep Sea port for heavy industry). Thailand succeeded to attract
thousands of FDI to these industrial parks which have own port facilities and become Detroit of
Asia by 1990s.
(4) Vietnam:
Vietnam started industrialization from 1990 s due to breaking up of soviet union in the late 1980
s By 2000s, Saigon port was congested due to limited port capacity. Therefore, Vietnam
government decided to develop several ports in the Vung Tau area, o0ne by government and
other several ports by private sector. Because of completion of several ports, logistic services in
Vietnam got competitive and became a logistic hub of South East Asia which Vietnam further
rapid industrialization.
122
Besides, all industrialized counties have many similar projects including Japan, US and EU
Countries.
Possibility of replicating similar projects may exist in countries who currently have similar
problems such as Myanmar and Indonesia. Study team also expect similar possibilities in
countries of Africa and Latin America, which are going to industrialize in near future.
123
20. Recommendations
20.1 Future Action
① Securing sufficient land required:
Either Zone 22 or Zone 23 is needed for the port: Phase 1 (Bulk & Energy import) and
Phase 2 (Further expansion of bulk cargo plus Container port if the market demand
exist). Further discussion with BEZA is needed.
② Identification of potential customer.
In order to develop the port integrated manner, we should investigate serious user of our
EZ and port. Some firms are already requesting us to take care of port and provide
logistic service. A firm shows their interest in soya edible oil & palm oil industry (100
Acre).
③ Implementation of Detailed Study & Survey
The team will seek potential funds for further detailed study & survey.
④ Further communication and proposal with/to Bangladesh government
The study team needs to have further and close communication with Bangladesh
government, especially BEZA, for mainly 1) preparing appropriate off
site-infrastructure, 2) securing land and 3) other EZ and port management.
20.2 Potentiality of Corporation by Japanese government authority

20.2.1 Technical Corporation
The Association for Oversea Technical Cooperation and Sustainable Partnerships (AOTS)
conducts human resources development in developing countries to promote technical
cooperation through training, experts dispatch and other programs. There is a space of utilizing
this scheme to train some of the member of SPC, such as chief engineers, operators and
managers, to gain skills of construction as well as management.
20.2.2 Financial Corporation

Financial corporation by Japanese government authority for development of MOFEZ will be
essential factor to justify some of the remained concerns during this study. For example,
detailed geographic and oceanographic conditions have to be studied through boiling test. Also,
EIA is required to mitigate the environmental impact through the development. Thus, Detailed
feasibility study has to be conducted. For example, JICA has a scheme, PPP FS, to support
finance to conduct detailed feasibility study for such private and public related project. Thus,
after this study, the team will consider to utilize the scheme.
124
There is also possibility of requesting for the financial support from Japanese government
agency for infrastructure development in MOFEZ, such as dredging work, development of
basement of the port and water break, using short-term and long-term loan.
20.3 Schedule
Since this project seems to be feasible and needed for Bangladesh, the development schedule
should be kept as short as possible. The proposed schedule is as followed.
Table 60 Prospective Implementation Schedule
125
Appendix: Draft TOC for Full EIA
Executive Summary
i. Introduction
ii. Context
iii. Proposed Project Site
iv. Location & Road Networks of the Proposed Site
v. Project Activities & Schedule
vi. Drainage System
vii. Resource & Utility Requirements for Proposed Construction
viii. Project Cost Analysis
ix. Baseline & Social Environment
x. Environment & Social Impacts Assessment
xi. Cumulative Impact Assessment
xii. Environmental Management Plan
1. Introduction: (Background, brief description and rationale of the project, scope of the
assessment, methodology, limitations, EIA team, Conformance to ToR)
2. Legislative, regulation and policy consideration (legal, administrative, planning and policy
framework within which the ElA will be prepared; environmental clearance procedure)
3. Project Description
i. lntroduction
ii. Project Objective
iii. Project Options and Costs
iv. Project activities: A list of the main project activities to be undertaken during site clearing,
construction as well as operation
v. Project schedule: The phase and timing for development of the project
vi. Resources and utilities demand: Resources required to develop the project, such as
manpower, soil and construction material and demand for utilities (water, electricity, sewerage,
waste disposal and others), as well as infrastructure (road, drains, and others) to support the
project
vii. Map and survey information- location map, cadastral map showing land plots (project and
adjacent area), geological map showing geological units, fault zone, and other natural features.
viii. Project Plan, Design, Standard, Specification, Quantification, etc.
126
4. Environmental and Social Baseline
4.1 Meteorology
4.1.1 Temperature
4.1.2 Humidity
4.1.3 Rainfall
4.1.4 Evaporation
4.1.5 Wind Speed
4.1.6 Sunshine Hours
4.2 Air Quality and Noise
4.2.1 Ambient Air Quality of the project situ with respect to Standards of ECR, 1997
4.2.2 Ambient Noise level of the project site with respect to Standards of Noise Pollution
(Control) Rules, 2006
4.2.3 Air pollutant and noise sources from existing and known sources
4.3 Water Resources
4.3.1 Surface Water System
4.3.2 Tropical Cyclones and Tidal Flooding
4.3.3 Salinity
4.3.4 Drainage Congestion and Water Logging
4.3.5 Erosion and Sedimentation
4.3.6 River Morphology
4.3.7 Navigation
4.3.8 Ground Water System
4.4 Land Resources
4.4.1 Agro ecological Regions
4.4.2 Land Types
4.4.3 Soil Composition
4.4.4 Land Use
4.4.5 Topography
4.4.6 Seismicity
4.5 Agriculture Resources
4.5.1 Farming Practice
4.5.2 Cropping Pattern and Intensity
4.5.3 Cropped Area
4.5.4 Crop Production
4.5.5 Crop Damage
4.5.6 Main Constraints of Crop Production
127
4.6 Livestock and Poultry
4.6.1 Feed and Fodder Shortage
4.6.2 Livestock/Poultry Diseases
4.7 Fisheries
4.7.1 Introduction
4.7.2 Problem and Issues
4.7.3 Habitat Description
4.7.4 Fish Production and Effort
4.7.5 Fish Migration
4.7.6 Fish Biodiversity
4.7.7 Fisheries Management
4.8 Ecological Resources
4.8.1 Bio-ecological Zone
4.8.2 Common Flora and Fauna
4.8.3 Ecosystem Services and Function
4.9 Socio Economic Baseline
4.9.1 Socio Economic Condition
4.9.2 Quality of Life Indicators
4.9.3 Income and Poverty
4.9.4 Gender and Women
4. 9.5 Common Propet1y Resources
4.9.6 Conflict of Interest and Law and Order Situation
4.9.7 Historical, Cultural and Archaeological Sites
5. Identification and Analysis of Key Environmental Issues (Analysis shall be presented with
Scenarios, Maps, Graphics, etc. for the Case of Anticipated Impacts on Baseline)
5.1 Environmental Sensitivity Investigation
5.2 Environmental Assets
5.3 Environmental Hot Spots
5.4 Likely Beneficial Impacts
5.5 Community Recommendations
5.6 Analysis of Alternatives
6. Environmental and Social Impacts

6.1 Introduction
6.2 Impact on Air Quality and Noise
128
6.2.1 Pre-Construction Phase
6.2.2 Construction Phase
6.2.3 Post-Construction Phase
6.3 Impact on Water Resources
6.4 Impact on Land Resources
6.5 Impact on Agriculture Resources
6.6 Impact on Fisheries
6. 7 Impact on Eco System
6.8 Socio-Economic Impacts
7. Public Consultation and Disclosure

7.l Introduction
7.2 Objectives of Public Consultation and Disclosure Meeting
7.3 Approach and Methodology of Public Consultation and Disclosure Meeting
7.4 Public Consultation Meetings (PCMs)
7.5 Public Disclosure Meetings (PDMs)
8. Environmental Management Plan and Monitoring Indicators
129
8.1 Introduction
8.2 Mitigation Plan
8.3 Enhancement Plan
8.4 Contingency Plan
8.5 Compensation Plan
8.6 Monitoring Plan
8.7 Monitoring Indicators
8.8 Grievance Redress Mechanism
9. Cost Estimation for Environmental Mitigation Measures and Monitoring
10. Emergency Response Plan & Disaster Impact Assessment
11. Conclusions and Recommendations
130

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FY2018 STUDY ON BUSINESS OPPOTURNITY OF HIGH QUALITY

FEASIBILITY STUDY OF MIRSARAI OCEAN FRONT ECONOMIC ZONE AND

28th February 2019

The development of MOFEZ will be expected to contribute to Bangladesh in the following

1 Bangladesh Vision 2021, Government of Bangladesh, 9th December 2006

Table 1 Forecasting Assumptions of Benefit to Japan

Table 2 Basic Concept of MOFEZ

Figure 1 Master Plan of MOFEZ

Table 3 Prospective Implementation Schedule

Figure 2 Map of Bangladesh

Source: Central Intelligence Agency, the World Fact Book “Bangladesh”

Table 4 Overview of the Bangladesh

4 JETRO, Bangladesh Overview

Table 5 Economic summary of Bangladesh (Year of 2017)

Table 6 Politics in Bangladesh

1.2 Economic development policy of Bangladesh government

Figure 3 Economic Zone Development Plan in Bangladesh

1.3 Bottlenecks of Bangladesh Economy

 Lack of sufficient volume of energy and power,

7 “Economic Zones site,” BEZA website, 7th January, 2019

1.4 Benefit to Bangladesh: Proposal of MOFEZ

Some of Japan’s Projects contributing “Big-B”

2.1.2 Site Condition of Zone 22-23

Infrastructure Progress Information

Access Road to Mirsarai EZ (Road ③-1) BEZA’s Administration Building under

Super Dyke Construction site in Zone 23

1) Target Area of MOU with BEZA

2) Land availability and Physical Survey

3) Internal road of Bangabandhu Industrial City connecting to MOFEZ site

2.2. Physical Conditions

2.2.3 Macro Ecological Environment

2.2.4 Fauna of Zone 23

2.2.5 Fish of Zone 23

2.2.6 Flora of Zone 23

2.2.7 Socio Economic Aspects

Figure 13 Location of boring investigation for Sitakunda port site

Source: “Techno-Economic Feasibility study of Mirasarai/Sitakunda Port

The soil layers are shown in the soil profiles below.

Figure 14 Soil profile of proposed Sitakunda port site 1

Source: “Techno-Economic Feasibility study of Mirasarai/Sitakunda Port (August 2018:

2) Import, Production and Market Size

Figure 16 Import of Iron Scrap in Bangladesh

3) Import Route and Domestic Logistics

4) Geographical trend of Industry Location

5) Major players and Market Shares

Table 9 Major Players in Steel Market

3.2 Cement and Construction Industry

2) Import, Production and Market Size

Table 10 Annual Volume of Cement Clinker of LafargeHolcim Bangladesh Limited

Source: LafargeHolcim Bangladesh Limited

Table 11 Commodity Wise Import Handled in Chittagong Port9

Source: LafargeHolcim “Cement Industry Demand and Growth”

Table 13 Demand Forecast for Clinker

3) Geographical trend of Industry Location.

4) Major players and Market Share

Table 14 Major Players of Cement Industries

Source: Industry Players Estimates and EBLSL Research

Table 15 Clinker to Cement Ration in Major Countries

Source: GNR Project Reporting CO2

3.3 Grains & Animal Feed Industry

Figure 19 Raw materials for Grain Crop Processing Industries

2) Import, Production and Market Size

3) Import Route and Domestic Logistics