China's Kunming Iron will submit final proposal by Oct

$2.3b steel plant

Mir Mostafizur Rahaman | Published: July 19, 2018 10:09:46 | Updated: July 19, 2018 21:56:54

Picture used for illustrative purpose

Chinese steel goliath Kunming Iron and Steel Holding Company (KISC) is likely to submit its final proposal for its 2.3 billion dollar steel plant project by October this year.

Chairman Zhao Yongping left Dhaka on Wednesday after holding a series of meetings with senior officials of the government and the state-run Bangladesh Economic Zones Authority (BEZA), people familiar with the development said.

Kunming informed the authority that it would submit the final proposal by October this year, BEZA executive chairman Paban Chowdhury told the FE on Wednesday.

Some members of the Kunming delegation visit the proposed site at Mirersarai today (Thursday).

They will hold talks with their local partner, Star Infrastructure Development Consortium Limited after returning from Chittagong, officials said.

During its meeting with the BEZA, the Kunming team renewed its willingness to go ahead with the project.

"They wanted to know how long it would take to arrange the land and utilities. We said we would arrange those as soon as possible after getting formal application from them," the BEZA executive chairman said.

After getting their offer, BEZA will evaluate it and then it will be forwarded to the Prime Minister for approval.

BEZA will give 1,000 acres of land for the project at a rate of Tk 4.8 million per acre. The project will create jobs for 30,000 people, officials said.

This will be the largest investment in manufacturing sector in the country.

Kunming will make the investment through its subsidiary company Chinese Yunnan Yongle Overseas Investment Co Limited, which aims to produce 2.0-million-tonnes integrated iron and steel production annually.

Star Infrastructure Development Consortium Limited, comprising 17 Bangladeshi companies including Nitol Group, Unique Group, Crown Group and BSRM is acting as the local partner of Kunming.

Last November, two Memorandums of understandings (MoUs) were signed between the BEZA, Chinese Yunnan Yongle Overseas Investment Co Limited and Bangladeshi Star Infrastructure Development Consortium Limited in this regard.

A coal-fired 167 megawatt power plant, transfer platform in deep-sea and private jetty, device and machine manufacture, logistics and distribution, cement and building materials and steel structure fabrication will be developed under the project.

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