Editorial
KEPZ hobbling without a licence
Into the fifth year, still a non-starter!
The Korean Export Processing Zone (KEPZ), baptized in 1999 through a gazette notification to be built up over a huge acreage of land on the eastern bank of the river Karnaphuli remains a non-starter even to this day. The Korean entrepreneurs led by the Youngone company have so far invested about Tk 100 crore to develop the basic infrastructure in the area. Even allowing for the fact that a long gestation period has to be given to such a huge undertaking, one sees no rhyme or reason in withholding the grant of licence to the designated Korean corporation without which the EPZ cannot be operational.It is difficult to understand why the Korean private sector corporation having been given a go-ahead to develop the EPZ would not automatically get a licence to operate as an integral part of a package deal supposed to have been struck with it! The process to set up the KEPZ had been initiated as far back as in 1995 following the visit of the then prime minister Begum Khaleda Zia to South Korea amidst optimism that a new buoyancy has been flagged off in the economic relations with Seoul. The private EPZ Act, however, came into being during the succeeding AL rule. But when the BNP assumed power in October 2001, questions began to be raised in certain circles about some 'irregularities' in KEPZ as well as anomalies in the EPZ Act of the previous AL vintage. Consequently, the PMO which deals with private EPZ, formed several committees to go into the alleged irregularities and anomalies. But a high powered committee in November 2003 determined that there was no need for change in the Act and, therefore, recommended that "in the interest of national image and foreign investment, KEPZ should be allowed to function without any delay." The indecision is drawing out a heavy price from projected gains. Investors from Vietnam, China and India have evinced a keen interest in the EPZ, but the foot-dragging could dampen the enthusiasm. When commissioned it will be the biggest EPZ with 500 factories and one and a half lakh workers under their employ promising Tk 120 crore in export earning. A year and a quarter has passed since the positive PMO committee decision was taken. Yet, the licensing is inexplicably in hibernation. Let's see an end to this costly governmental vacillation over a vital matter of national interest.
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