Creation of industrial zone sometimes require creating laws to govern its issues and activities. For example, Bangladesh Export Processing Zones Act of 1980 was created under which BEPZA was formed and EPZs came into being.

The most important issues related with creation and management of Industrial Estates is creation of infrastructures and facilities of utilities and environment management. Port facilities, transportation facilities (roads, highways) and communication facilities (telephone), information technology (Internet, radio link), housing facilities (dormitory), utilities (gas, electricity, water), environment facilities (effluent treatment, industrial waste treatment, incineration etc.), security (police station) are all needed to set up and run an industrial estate.

Generally, the Authority of the Industrial Estates charges service charges and takes premium rates for the facilities created and maintained by them. BEPZA takes 10 per cent service charge on gas, electricity and water it manages from BGSL or Titas, PDB or DESA and WASA. Industrial plots are allotted against rents and sometimes pre-erected factory buildings are also available at higher rates. Many Industrial Estates make plots available on lease or freehold basis. Freehold arrangement enables investors to buy the plots in their names whereas under lease arrangement generally a long-term lease is given against rent.

Uninterrupted availability of utilities should be ensured in the first place because without utilities no production can take place. Environment issues are coming up with priority now-a-days and needed to be addressed as a pre-requisition for buyers' compliance and social demand recognised by countries under UN charter.

Industrial Estate Management Authorities should take up with significance the issues of utilities and environment and create a production friendly environment. Chittagong Export Processing Zone (CEPZ) after about 20 years of its inception is still facing water shortage to run manufacturing activities. Sometimes it is so acute that even drinking water is not available. Almost all enterprises of CEPZ need to buy water from WASA by container.

There is no designated space or facilities where industrial wastes can be disposed here at CEPZ. Incineration (machine that burns out waste materials) is a must for industrial estate for burning hard waste materials and effluent treatment plant is necessary for treating liquid waste. Unfortunately none of these essential facilities have been created by BEPZA in CEPZ.

There remain many other issues that need immediate attention of the Authority (BEPZA) and government to facilitate the production and export form EPZs of Bangladesh. In the ever-changing business environment of the world we need to adjust fast with the changes and requirements of the buyers to survive with dignity.

Simplification of customs rules and practices is another very important issue for the government for success of EPZs. We all know in EPZs, enterprises can import duty free raw materials and machinery and building materials. This is equally true for 100 per cent export oriented industries outside EPZ too. But there are many items that are needed for EPZ enterprises, which they intend to buy (not import) from local market. Such items include stationery, utensils, medicine, parts and spares, food, furniture, electrical appliances and equipment. But due to non-clarity only limited items are allowed by Customs again Value Added Tax (VAT) issue creates second-degree complicacies. Many items purchased from local market are not supported by VAT receipt but Customs authority asks for that and enterprises face difficulties to comply Customs rules in this regard.

Sub-contract between enterprises within zones is a common affair. It is widely practiced by and between industries outside zone, that is, Duty and Tariff Area (DTA). In an EPZ it is allowed only after observance of formalities that are burdensome. Since all the factories are within the Duty Free Zone and inside the fence from where nothing can go out without valid papers such formalities may be considered to be simple.

Security is a vital issue for an industrial zone where hazardous activities take place and thousands of people work. Any troublesome incident or accident can claim many valuable lives in such places, which is densely populated. Industrial safety issues needs to be highlighted to avoid fire incidents, blasts of boilers, chemical disasters, and act prudently during natural disaster like cyclone, earth quake etc. To prevent entry of undesired elements who may plan for destruction within or around the industrial zones strong surveillance should be guaranteed. If any unwanted destructive devastation takes place, the country will lose huge foreign investment and people will lose employment.

Labour problem has already struck EPZs of the country with the introduction of Workers Representative Welfare Committee (WRWC) under a newly created law. This law, however, allows forming WRWC to represent workers group to the Management of the companies and to the BEPZA as an official and legal body to discuss issues of mutual benefits especially those concerning working conditions at the plant level. Though it was said that WRWC is not a form of Trade Union but it is a pre-stage of Trade Union, which by the provisions of the new law will come into existence after October 2006. This phase is described as limited function Trade Union. Practically we are seeing that many enterprises seem to face problems when WRWC attempts to act as Trade Union. So BEPZA, and government should handle this delicate affair with great care just from now.

Shakil Monzur is Executive Director, Mithun Knitting & Dyeing (CEPZ) Ltd.