EIPP Pre-Feasibility Study: Project Commercial Viability Review
This article reviews the findings of the pre-feasibility study (FS, Feasibility Study) for the EIPP Mirsharai Economic Zone new city project. It organizes the core data Korean companies need for investment screening, including the economic case, technical feasibility, financing structure, environmental and social considerations, and major risk factors.
2.3
B/C Ratio
Commercially viable
15.2%
IRR
Internal rate of return
$4.5B
NPV
Net present value
8 years
Payback
Recovery period
$20B
Total Investment
Split over 15 years
1M+
Employment Impact
Direct + indirect
Economic Analysis
The FS concludes that the project is economically feasible, with a B/C Ratio of 2.3, an IRR of 15.2%, and an NPV of USD 4.5 billion. The underlying assumptions reflect Bangladesh's 6.5%+ GDP growth outlook, accelerating industrialization, and continued export expansion.
Economic Analysis Scenarios
| Scenario | B/C | IRR | NPV | Payback | Assumption |
|---|---|---|---|---|---|
| Optimistic | 3.1 | 20% | $8.0B | 6 years | GDP 8%+, 90% occupancy |
| Base Case | 2.3 | 15.2% | $4.5B | 8 years | GDP 6.5%, 70% occupancy |
| Conservative | 1.5 | 10% | $1.5B | 12 years | GDP 5%, 50% occupancy |
| Downside | 0.9 | 5% | -$0.5B | 15+ years | GDP 3%, 30% occupancy |
Technical Feasibility
01
Ground and Civil Works
Geotechnical surveys indicate that soft-ground treatment will be required in the Mirsharai area. Korean ground improvement methods such as PBD and SCP are considered suitable, with ground treatment costs estimated at USD 1.5 billion.
02
Power Supply
The economic zone is expected to require 2,000MW of power. The FS envisions a mix of nearby coal-fired, gas-fired, and renewable energy sources, together with new transmission lines and substations.
03
Water Resources
To meet daily water demand of 1 million tons, the study considers parallel development of Karnaphuli River intake facilities and seawater desalination. Three new wastewater treatment plants are also required.
04
Transport Accessibility
Accessibility is to be secured through a 50km Chittagong-Mirsharai expressway, the expansion of Chittagong Airport, and a planned rail connection.
Financing Structure
Public Finance (60%)
MDB Loans$6.0B (ADB, WB)
EDCF$2.0B (Korea)
JICA$2.0B (Japan)
Bangladesh Govt.$2.0B
Private Investment (40%)
PPP$3.0B
FDI$3.0B
Korean Firms$1.0B target
Others$1.0B
FS Completion
Pre-feasibility study completed, with B/C 2.3 confirmed
→↓
Detailed Design
Korean engineering firms begin detailed design work
→↓
Financing Secured
MDB and EDCF loan talks proceed, while PPP sponsors are recruited
→↓
Construction Launch
Phase 1 industrial district construction begins
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