The Bangladesh Economic Zones Authority (Beza) has sought approval from the interim government to terminate an agreement for establishing SBG Economic Zone Ltd inside the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai of Chattogram.

Sources at Beza said they aim to cancel the agreement with SBG as the consortium comprising Sikder Group, Bashundhara Group and GasMin Ltd has not developed the project as per their contract.

"We have already sent a letter to the chief adviser of the interim government seeking his approval in this regard," said a senior official of Beza on condition of anonymity.

Citing how this is the first time an agreement for establishing an economic zone could be cancelled, the Beza official said they were previously unable to terminate any such project due to political pressure.

The official informed that according to their contract, SBG was supposed to finish preparing the 500-acre project site by 2020. However, the related development works have not seen any progress.

For example, the onsite construction of internal roads and utility supply lines as well as the installation of an effluent treatment plant is still pending.

The official also said they had issued at least five warnings to the SBG, urging them to start development works.

"But they did not take it seriously and always responded by saying they will begin construction soon," the official added.

Beza sources said they agreed to provide land at the BSMSN for developing the SBG economic zone in August 2018 as it seemed like a profitable project at the time.

The land was then awarded to SBG through competitive international bidding, but the consortium has since seemingly lost all interest in implementing their proposed project.

As per the project proposal, the SBG economic zone was expected to attract foreign investment amounting to about $2 billion from mainly Japan and China.

They also informed that SBG Economic Zone Ltd owes Beza about $72.11 lakh (approximately Tk 85 crore) including interest as per the land lease agreement.

Phones of Mahbub Rahman Ruhel, managing director of SBG Economic Zone Ltd, and Mohammad Salahuddin, the project's point of contact, were found switched off when The Daily Star tried to contact them for comment.