Project Description – Feasibility Study to Assess the Sustainability of Establishing an Industrial Park in and around Sylhet

The Sylhet Chamber of Commerce and Industry (SCCI) engaged Young Consultants (YC) to conduct a feasibility study to assess the viability and sustainability of establishing an Industrial Park or Economic Zone in and around Sylhet, Bangladesh. The study aimed to evaluate the region’s industrial development potential by examining its socioeconomic characteristics, locational advantages, resource availability, investment prospects, infrastructure requirements, and potential constraints to industrialization. It also considered opportunities for domestic and international investment, community participation, environmental sustainability, and regional economic cooperation to identify viable approaches for establishing and operating the proposed industrial development facility.

The study began with an assessment of the socioeconomic background of Sylhet and the surrounding region, focusing on the prospects and constraints affecting industrial development. YC examined the availability of natural and economic resources, potential sources of raw materials, location-specific advantages for domestic and international trade, and opportunities for developing industries based on the region’s resource endowment. The assessment also identified major obstacles to industrialization and considered the availability of external institutional and financial support that could facilitate the establishment and sustainable operation of an Industrial Park or Economic Zone.

A key component of the assignment involved evaluating potential locations for the proposed facility and assessing the investment and financial implications of its establishment. YC examined suitable alternative locations, estimated the costs associated with developing the Industrial Park or Economic Zone, and reviewed potential financing and ownership arrangements. These included funding through foundations, private-sector investment, public-private partnerships, and private-community partnerships. The study considered the respective roles of relevant stakeholders in supporting the development process and sustaining the proposed facility over the longer term.

The assignment also examined the importance of community support and participation in the planning and development of the proposed Industrial Park or Economic Zone. Environmental impacts within the surrounding region were considered as part of the broader sustainability assessment, highlighting the need to account for local community interests and environmental considerations in industrial development planning.

In addition to the local and national assessment, the study investigated potential economic and industrial cooperation between Sylhet and the seven northeastern states of India, commonly known as the “Seven Sisters.” YC reviewed the industrial development scenario in these states and explored areas of potential collaboration that could support industrialization and cross-border economic engagement. The analysis considered the implications of existing industrial policies, investment incentives and subsidies, existing and planned infrastructure, current and prospective industrial development, and the sociocultural characteristics of communities in northeastern India. These factors were examined to understand the comparative advantages of the region and the potential competitive challenges that enterprises in Sylhet might face.

To draw relevant lessons for the proposed initiative, the study also reviewed practices in the establishment and operation of Industrial Parks and Economic Zones in other Asian countries. This review covered ownership and management structures, operational policies, financing mechanisms, infrastructure facilities and amenities, regulatory frameworks, relevant policies, and investment promotion approaches. The comparative analysis helped identify alternative models and practices that could inform the planning and institutional design of the proposed facility in Sylhet.

The assignment culminated in a comprehensive feasibility study report addressing the region’s industrial prospects, resource and infrastructure requirements, investment and financial viability, alternative site options, financing arrangements, community participation, environmental considerations, and opportunities for regional cooperation. The report provided SCCI with an analytical basis for evaluating the feasibility and sustainability of establishing an Industrial Park or Economic Zone in and around Sylhet, while identifying relevant considerations for its potential development and long-term operation.

Key Assignment Details

Client: Sylhet Chamber of Commerce and Industry (SCCI)
Country and location: Sylhet, Bangladesh
Assignment duration: December 2005 – June 2006 (6 months, as stated)
Total staff input: 6 staff-months
Associated consultants: Not applicable