Project Description – Enhancement of Pre-feasibility Study for Sylhet Special Economic Zone (SEZ)

The International Finance Corporation’s Bangladesh Investment Climate Fund (IFC-BICF) engaged Young Consultants (YC) to undertake a detailed pre-feasibility study for the proposed establishment of a Special Economic Zone (SEZ) in Sylhet, Bangladesh. The assignment aimed to assess the feasibility and development potential of the proposed zone by examining its locational suitability, infrastructure requirements, market prospects, competitiveness, institutional arrangements, and financial and economic viability. YC, in association with an international economic zone specialist, conducted the study to provide a comprehensive analytical basis for assessing the proposed SEZ and informing decisions regarding its future development and implementation.

The assignment commenced with stakeholder consultations and a review of existing studies, reports, and relevant information from key institutions, including the Sylhet Chamber of Commerce and Industry (SCCI), the Board of Investment (BOI), and the Bangladesh Small and Cottage Industries Corporation (BSCIC). These activities supported an understanding of the regional economic context, existing industrial development initiatives, investment opportunities, and the institutional environment relevant to the proposed SEZ. A site assessment was also undertaken to examine the suitability of the proposed location and identify key considerations affecting its potential development.

YC assessed the existing and required on-site and off-site infrastructure, including associated development costs, to identify the facilities and services necessary for establishing and operating the proposed economic zone. The study also incorporated a transport assessment to examine connectivity and logistical considerations relevant to the movement of goods, access to markets, and the zone’s potential attractiveness to investors. In parallel, a competitiveness analysis was conducted to evaluate the proposed SEZ’s potential positioning in relation to relevant investment locations and industrial development opportunities.

The market and industry assessment examined potential industrial sectors, business opportunities, and market prospects for the proposed zone. Based on the assessment, demand forecasting was undertaken to estimate potential demand for the SEZ and support the evaluation of its development prospects. A market strategy was also developed to guide the positioning and promotion of the proposed zone, with consideration given to its potential to attract investment and support industrial growth in Sylhet and the surrounding region.

The assignment further examined the institutional framework and potential public-private partnership (PPP) models for developing and operating the proposed SEZ. Financial and economic modelling was undertaken to assess the project’s potential viability, taking into account relevant development costs, anticipated demand, and the broader economic rationale for the investment. These analyses were intended to support an integrated assessment of the proposed zone’s commercial prospects, infrastructure needs, institutional arrangements, and potential contribution to regional economic development.

The assignment culminated in the preparation and presentation of a detailed pre-feasibility study report consolidating the findings of the site, infrastructure, transport, competitiveness, industry and market, demand, institutional, financial, and economic assessments. The report and accompanying presentation provided IFC-BICF with an evidence-based framework for evaluating the development potential of the proposed Sylhet SEZ and considering the key requirements for its subsequent planning and implementation.

Key Assignment Details

Client: International Finance Corporation – Bangladesh Investment Climate Fund (IFC-BICF)
Country and location: Sylhet, Bangladesh
Assignment duration: November 2007 – April 2008 (6 months)
Total staff input: 6 staff-months
Associated consultants: Not applicable; YC worked in association with an international economic zone specialist as stated in the project description.