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Bangladesh Economic Zones Authority (BEZA) Prime Minister’s Office

Site Assessment Report of Anwara -2 l Economic Zone

A. Introduction

This rapid assessment of sites was undertaken in early February 2015 and was done on

Anwara EZ-2,Chittagonj, adjacent to the KAFCO and Karnophuli river. It should be noted

that this assessment was undertaken during the dry season, which allowed the team to see the

sites existing condition. The observations of the on-site conditions in this report should be

kept in mind by future analysts and visitors to the sites, who may observe very different

conditions in other times of the year.

B. Overview

This report is intended to provide four types of information to the reader: i) Geographical

and social information of Anwara Upazila, ii) an up-to-the moment snapshot of site location,

iii) the key strengths and weaknesses of site, and iv) an identification of location’s critical

development issues and constraints.

This site assessed against best practice factors, which included: i) locational and physical

attributes of the land, ii) access to key transport modes, iii) on- and off-site infrastructure and

utilities, iv) environmental and social impacts, and 5) quality of life elements. There were no

immediate fatal flaws to the site.

C. Rapid site Assessment

Each site below has been assessed in the following manner:

i) A snapshot overview of the site – the assessment

ii) A strengths and weakness analysis (SWOT) of each site

iii) Identification of critical development issues and constraints

The rapid assessment will allow all parties to review the site in more detail and keep in mind

the critical development issues and

constraints as they move forward towards

feasibility studies.

1. Upazila Level information

As of the 1991 Bangladesh census, Anwara

has a population of 219446. Males constitute

50.99% of the population, and females

49.01%. The number of adult (age 18+)

person in the Upazila is 107408. Anowara

has an average literacy rate of 30.6% (7+

Anwara

-2 EZ

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years), and the national average of 32.4% literate. Being adjacent to the port city of

Chittagong most of the affluent people of Anwar resides in the city.

Anwara Upazila (Chittagong district) with an area of 173.53 sqkm, is bounded by Patiya

upazila on the north, Banshkhali upazila on the south, Chandanaish upazila on the east and

Bandar (Chittagong port) thana on the west. Main rivers are Karnafuli and Sangu. The main

forests are DheangPahar, Battoli and Baramat.

Anwara is located at 22.2167°N 91.9111°E. Anwara Sadar consists of one mouza with an

area of 3.34 sq km. The upazila consists of 10 union parishads, 78 mouzas and 78 villages.

Annual average temperature maximum 32.5°C, minimum 13.5°C, total annual rainfall 2687

mm. Main rivers in the vicinity are Karnafuli, Halda and Sangu. Archaeological heritage and

relics: Mohsin Awlia'sDargah; Monu Miah's Cannon (now preserved in National Museum).

Main occupations: Agriculture 31.51% wage labourer 2.65%, agricultural labourer 18.46%,

industry 1.78%, construction labourer 1.2%, transport 2.95%, commerce 13.99%, service

12.27% and others 13.65%.

Land use: Single crop 35.57%, double crop 34.05% and treble crop 30.38%.Main crops:

Paddy, potato, brinjal, vegetables. Dairies, poultries, cattle breeding and milk processing

centers are also found here..Communication facilities- Roads: pucca road 20 km, semi pucca

59 km and mud road 60 km. KAFCO (KarnafuliFertiliser Company Limited) is only 500 m

away.NGO activities: Operationally important NGOs are BRAC, caritas, ASA, Prochesta,

World Vision and grameen bank.

2. Site Justification:

The proposed Anwara2 Economic Zone (EZ) is destined to become the first “Chinese

Economic and Industrial Zone (CEIZ)” in in the country. Current plans call for this

ambitious development to unfold on 820.13 acres (333.38hectares) of land. The proposed

Anwara2 EZ has all the potential required to meet thenecessary conditions to become a

successful EZ for the nation. It will strengthen the long-standing friendly relationship with

China.

The main objective of the proposed Economic Zone is to establish EZ under a G2G model.

The site is situated 500 m south of KAFCO and 500 m west of Banskhali-Anwara road. Land

raising will not be required. It is an attractive location having close proximity to the port and

Chittagong city. The CHECL (China Harbour Engineering Company Ltd), recommended by

the Chinese government, has expressed an interest for the development of the EZ. CHECL is

willing to invest for the land development, construction of standard factories as required,

import factories from China and make sure that the business target could be achieved.

Existing fifty families now residing at the site, may be resettled in “Asryan Project “near by.

Local representatives are in favor of establishment of the zone.

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3. Location and Present Condition:

The proposed Anwara - 2 EZ is composed of 820.13 acres of land. Out of which 370.40 acre

is privately owned, 199.40 acre is khas and the rest 250.15 acre is leased. It is located at the

northern peninsula of the Sangu river’s estuary. It is located at 500 m south of KAFCO road

and 500 m west of Anwara Banskhali road.On the north there is KEPZ-CUFL road, CUFL

housing road on the west and Maulana Ershad Ulla Jame mosque on the south. It is a hilly

terrain and free from seasonal floods. It is 28 Km south from Chittagong City and 46 Km

south from Shah Amanat International Airport, Chittagong. The railway station is 32 Km

away by road. The main plot is located at the south east hilly regions of KAFCO.

4. Study Findings:

There exists no power transmission line, no gas supply and no piped water supply system.

Access road to the site is a combination of earthen road (40%) and pucca road

(60%).Assuming that the Anwara EZ will provide all necessary facilities, the One Stop

Services (OSS) will provide the necessary services to Chinese Direct Investment. The

demand for theAnwara2 Economic Zone plots is expected to be very high, well beyond the

supply of land. It may be predicted that the plots/land in this EZ will be completely leased out

by 2020.Aggregated variables include price, capacity, andzone size variables, which have

been appropriately standardized.

5. Possible Industrial Mix and Schedule of Land Sale:

A demand survey on industries have been done to ascertain the demand and industrial mix for

serviced land at Anwara 2. The demand survey shows that, there is a demand for a huge

industrial land in this EZ location. The highest demand has been found in RMG industries,

pharmaceuticals, leather goods and light engineering industries.

The industrial mix has been prepared, taking into account the strategic location of the site and

the potential market demand of the land derived from the demand survey. The proposed

Anwara -2 site will be very suitable for RMG, textile, leather goods, pharmaceuticals, light

engineering and electronic goods industries.

6. Employment Estimate for Anwara 2 Economic Zone:

To achieve the national goal of becoming a middle-income country by 2021, is heavily

dependent on attracting foreign direct investment and expanding export baskets through

successful implementation of Economic Zones in the country. Expeditious implementation of

the EZ would result in massive economic and social development in the country by creating

new jobs and alleviating poverty. It is expected that almost 50,000 workers will be employed

in this EZ.

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7. Master Plan :

Out of the total 820.13 acres of land currently in the plan, 370.40 acres is privately owned

and 250.15 acres is leased property, which needs to be acquired before the initiation of any

development works in the proposed EZ. The impoverished farming community living

currently at site are willing to relinquish the land for establishment of the envisaged EZ.

199.58 acres of Land is khas (owned by the government), which does not need any

acquisition process, whereas 620.55 acres of land is to be acquired. The land owners are

willing to relinquish their land for the better interest of industrialization of their area,

provided they are properly compensated/resettled. A wide green area is to be planned along

the boundary areas. A unique eco-design may be prepared for energy conservation systems

and water recycling. Rainwater will be recycled for the water supply system and treated.

Finally, water from the waste water treatment plant will be reused to maintain the green

areas.

The feasibility study is carried out within February 2015. Zone approval, land acquisition,

and detailed design will be done within 2016. The construction of the whole area will start in

2017 and will be finished by the end of September 2020 in a single phase.

Building guidelines are to be prepared for the site and they should include Architectural

Plans, Compulsory Open Space Requirements, Compulsory Exterior Requirements. Utility

Connections will be done as per the requirement of EZ. Specific figures are proposed for

designating the high quality standard of this economic zones.

Possible Environmental Impact:

The Initial Environmental Examination (IEE) covers existing environmental conditions and

provides a qualitative assessment of the environmental impacts of land filling activities and

associated economic zone project components, including recommended mitigation measures

and environmental monitoring. The physical environment focus is on climate, topography,

soil, geology, water resources, water quality, flooding and drainage, and the diversity of flora

and fauna. The EMP, which will deal with mitigation measures, implementation

responsibilities and monitoring plans, will result in minimal adverse impacts. The Project will

have an overall beneficial impact.

However, preliminary impacts of the proposed Project have been identified as follows:

* Loss of paddy land and marshy areas due to the proposed EZ location

* Minor risk of degradation of aquatic habitat due to chemical pollution from the

proposed industrial operations in the EZ

* Contamination of surface and ground water

* Leaching and disposal

* Effects on the natural environment.

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In order to determine the impacts more precisely, a detailed Environmental Impact

Assessment(EIA) is recommended. This will include monitoring and mitigation of a wide

range of important environmental components for project sustainability, covering aspects

such as (a) Identification, quantification, and valuation of impacts to ensure appropriate

monitoring of parameters; (b) Generating reliable data and further analyzing the same to

serve as a supplement to results and data from other sources; and (c) Assessing implications

of other existing and proposed projects and studies.

8. Social Assessment:

The social analysis is done considering the World Bank’s policies on involuntary

resettlement, gender physical and cultural resources, land acquisition and requisition of

immovable property ordinance 1982. Potential social impacts on people living on the EZ site

and individuals affected by off-site infrastructure development of the EZ were also

assessed. During the field visit and survey, it was found that 50 households will be affected

by the establishment of the CEIZ and they need to be resettled. The project plans to resettle

these households adjacent to the CEIZ area with modern amenities. However, the population

that will enjoy the great benefits and positive impacts of jobs being created by the advent of

this zone will not be limited to the immediate Upazila, but include adjacent communities as

well.

9. Snapshot Overview

Table 1 : Snapshot overview

Assessment Factors Assessment Results

LOCATIONAL

ATTRIBUTES

Size 843.51 acre

Contiguous Expansion Potential Expansion depending upon land ownership

patterns. Need further investigation

Land Ownership Khas Land 225.23 acre , Permanent settlement 250.15

and Private Land 368.13 Acre

Surrounding Context Industrial Area

Adjacent to the Karnophuli River

At the foot of the KAFCO

Existing Korean Export Processing Zone eastern side

Locational Vulnerability Along the Karnophuli River so flooding during monsoon

season but last 25 years have not affect flood /cyclone

this area

Existing Land Use Major portion of area agricultural land one crop

Topography Alluvial lands with low vegetation and a few groups of

low trees

Soil Conditions Silt, peat and clay

Some active natural levee deposits

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High land . So, no needs to be raised .

Access

Access to Major Transport

Modes Adjacent Chaturibazar –KAFCO road and

Bashkhali-Anwara road .5 Km of west

Potential for water transport. Requires further

investigation

Access to Urban Hubs Approximately 24 KM from Chittagong commercial

city

INFRASTRUCTURE

Existing On-site

Infrastructure There are electricity lines besides the site. Quantity of

availability of electricity is unknown. Requires further

investigation. KAFCO and Korean EPZ are using

electricity

Existing Off-Site Roads The site is adjacent the ChaturiBazar-KAFCO highway

(22 feet) future expansion possible with minimum

resettlement

The site is besides the Karnophuli river . So, river port

can be established for export the products

Existing Off-Site Power Power is in the vicinity but quality and quantity available

is unknown

Existing Off-Site Water Karnophuli river but need further investigation

Existing Off-Site

Wastewater AT Korean EPZ and KAFCO have a separate wastewater

treatment plant but a Central effluent treatment plan

needed for the proposed zone.

Existing Off-Ste Drainage No drainage channels

Existing Off-Site Telecom Mobile telecom is available

Telecom is in the vicinity but need further investigation

Quality of Life

Existing International Housing Located in Chittagong (10km)

Existing International Schools/Hospitals Located in Chittagong (10km)

Existing Parks/Open Space Located in Chittagong and Parky sea

beach within 7 KM .

Security issues Secure for investment

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9.1 Key Strengths and Weaknesses:

The following are the key strengths and weaknesses of the site.

Table 2 : Key strengths and Weakness

Strengths Weaknesses

Location Potentially 843.51 acres. 12 km from Chittagong and access

to Chittagong Airport Adjacent to the ChaturiBazar-KAFCO road and and the Karnophuli river

Direct access to Chittagong Airport, main industrial area of Chittagong

River jetty/port can be suitable Adjacent an industrial cluster

Location Land is in a flood plain and may be

vulnerable during super flood Existing ChaturiBazar-KAFCO road (22

feet) need to expansion with minimum resettlement

Land Ownership

225.15 acre is Khas Land which is

besides river

Land use Land condition is good for high-rise

building

Land Ownership

Maximum land is private land which is

618.28 acre. So need land acquisition

Land use Presently agriculture purpose

Physical Characteristics High land so no need earth filling

Flat and unencumbered lands

Little vegetation (low shrubs and small trees)

Physical Characteristics The land needs to be raised and a boundary

wall is required to protect it from the River

On/Off-Site Infrastructure

Existing ChaturiBazar-KAFCO

road can handle industrial traffic Potential for water transport Some existing power in the area Telecom exists in the area

On/Off-Site Infrastructure Additional power most likely will be

required Gas will not be available, like other

areas in the country Proper drainage will be required for

the site An Effluent Treatment Plant will be

required for the development The site needs to be raised and

secured from rising waters

Environmental Impacts The site has not been used for

previous heavy industry so the ground is not contaminated

Environmental Impacts Sensitivity to location because it is adjacent

the River, though there is industrial precedents besides site boundaries

The site is a flood plain and comprised of alluvial soil An environmental assessment is required

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Social Impacts 50 HHs will affect so minimum

resettlement required Opportunity to develop using low

carbon and green technology to mitigate impact on the river

Skilled and unskilled labor in close proximity

Social Impacts An social assessment is required

Suitable for Industrial Project

Good location as it is in close proximity to Chittagong and easy access to the existing industrial area in Chittagong

Lands are already adjacent to an industrial cluster

Will allow employment from the immediate region including Chittagong

Modern facilities will be established at project area which will help to reduce pressure or traffic from Chittagong city

Suitable for IT/Industrial Project Alluvial land along the River which may

become flooded during the monsoon season Due to its location along the River, it will

be considered environmentally sensitive District plan may not allow development

but an industrial precedent is already in place

Moving or incorporating the informal industries on the site

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9.3 Critical Development Issues for the proposed site

Land Ownership

According to information of assistant commissioner (land) of Anwara 225.23 acre is

fully Khas land where no need resettlement but maximum 618.28 acre is private land where

only 50 HHs resettlement required but need livelihood restoration plan for affected land

owner. Future expansion is possible but need immediate planning.

Flood/Cyclone/Earthquake/Water logging

The site is located in a besides Karnophuli river area. This makes the site environmentally

sensitive. Permission to build on these lands will be required. It should be noted that

development permissions have already been granted for a similar project, which is located

besides the Karnophuli river . Note that the site will need to be protect from water erosion.

Public Movement

Maximum land is private where more than 250 families involved with agriculture activities

for this reason need to preparation a livelihood and income restoration plan for improvement

of livelihoods. BEZA with the support of developer or donor can prepared a livelihood

restoration plan or can pay attractive remuneration to minimize the loss. Anwara-2 EZ needs

ENVIRONMENT AND SOCIAL IMPACTS

Environment

Impact/Contamination Adjacent the Karnophuli River so

environmental mitigation will be required

200 to 300 small tress will affect the

project. So, need environment clearance

from Union Chairman as well as DOE

Loss of Livelihoods Partial Land is not being used for

agricultural purposes

Private land owner will be affected. So,

needs a livelihood restoration plan (LRP)

Historic/Religious/Cultural

Landmarks/Building No Historic/Religious/Cultural

Landmarks/Building will affect the

project but Must be further investigated

during feasibility study

Existing Labor Available skilled and unskilled labor from

surrounding villages, towns and

Chittagong region

Resettlement Only 50 residential resettlement required

but further investigation is needed

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both skill and unskilled labor where affected land looser can priority for jobs. Moreover, a

serious of public consultation needed for information sharing.

Environment negative impact

The site is besides the river, a flood plain for high flood, and comprised of alluvial soil an

environmental assessment is require.

Conclusion and Recommendations:

The proposed Anwara2 site has some inherent difficulties. There is no gas or power

connection at the site. Due to hilly terrain a huge amount of cutting and filling of soil will be

required. Trees will be required to be uprooted to implement the project. However, that can

be overcome with the planned infrastructural development and new plantation.

The total area is much above the “Highest Flood Level”. As such there is no possibility of

flood there. The sea (Bay of Bengal) and river Karnaphuly are not very far from the site.

The site is also very near to Chittagong-Coxs Bazar highway and well connected by road.

It is recommended that BEZA/Bangladesh Government coordinate the next steps such as (i)

Land acquisition process; (ii) Discussion with local residents about rehabilitation and

resettlement. (iii) Discussion with the EZ about the number and depth of soil testing and

presence of heavy metal in the EZ area.

The feasibility study may be reviewed according to the detail survey results. Considering the

severe

shortage of well-equipped economic zones in Bangladesh and the potentially high demand for

fully serviced industrial land, the Anwara-2 EZ project has a good chance to come up

successfully. However, the early benefits of the Project will greatly depend on how quickly

EZ mobilizes for the implementation of the project.

When all on and off-site infrastructural facilities are developed, this Anwara-2 may likely to

become one of the best EZs in the country. Although this study was carried out within a short

period as a preliminary Feasibility Study & Master Plan, taking all the information collected

and evidence into consideration, the conclusion may be drawn that the proposed site is likely

to be viable for the establishment of an Economic Zone.

Panoramic view of the Besides Anwara-2 EZ

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Panoramic view of the KAFCO besides Anwara-2 Economic Zone

Panoramic view of the proposed Anwara-2 Economic Zone