Maheshkhali, an island upazila in Cox’s Bazar known for its salt, shrimp, and betel leaf cultivation, is undergoing a remarkable transformation with several power, energy, and logistics megaprojects reshaping its landscape.
Once reliant on traditional livelihoods along the Bay of Bengal, the island has seen rapid industrialisation and infrastructure development since 2014, including the construction of a coal-fired power plant, a single-point mooring, a deep-sea port, and an economic zone.
Now, the government has undertaken a master plan to transform Maheshkhali into a modern, seaport-driven island city.
Stakeholders envision the city featuring industrial zones, power facilities, fisheries processing centres, and essential infrastructure like roads, telecommunications, and utilities.
To implement the master plan, the government has already established the Maheshkhali Integrated Development Authority (Mida), which was gazetted on 23 July and became operational on 1 August.
Ashik Chowdhury, chairman of the Bangladesh Investment Development Authority (Bida), has been appointed as the head of Mida. A four-member core team has been formed to oversee the authority’s operations.
Mida’s jurisdiction covers over 34,181 acres across four unions – Matarbari, Dhalghata, Kalamarchhara, and Hoanak – in Maheshkhali upazila.
Stakeholders say expanding industrial activities in Maheshkhali could generate up to five lakh jobs over the next 20 to 30 years. Proper project implementation is expected to attract both local and foreign investors to the island.
Sarwar Alam, member of Mida, told TIMES of Bangladesh, “We expect direct employment for around five lakh people in the power, energy, and industrial sectors. Planned housing, schools, colleges, and healthcare facilities will accompany this development.”
“The Japan International Cooperation Agency (Jica) has assisted with the initial feasibility study, and further studies are underway. We will present our master plan to the public soon,” he added.
Experts lauded the government’s initiative, saying establishing an authority to coordinate Maheshkhali’s ongoing development is timely and appropriate.
“With Mida in place, effective coordination among ministries and development projects will be ensured, paving the way for a modern township alongside industrial expansion,” said Mainul Islam, former professor of economics at Chittagong University.
Officials say the master plan is expected to be approved within four months. It will designate zones for export processing, domestic market-oriented industries, and areas specifically for foreign investment.
To attract both domestic and international investors, Mida will offer a one-stop service integrated with Bida, along with bonded warehouse facilities and customs incentives. Export-oriented industries will be eligible for benefits under the Export Processing Zones Act.
Maheshkhali Upazila Nirbahi Officer (UNO) Hedayet Ullah said the island currently has a population of around four lakh. “Factory workers come from across the country, with housing provided by the respective institutions. The upazila administration has proposed giving priority to local residents if an EPZ is established in Dhalghata.”
“Implementation of Mida’s plan will create the first modern island city in Bangladesh. Efforts are underway to establish a permanent office for Mida in Maheshkhali,” he added.
Bustling development activities
Maheshkhali has undergone significant industrial and developmental transformations in recent years, following the framework of Japan’s Bay of Bengal Industrial Growth Belt (BIG-B).
The 1,200MW ultra-super-critical coal-fired power plant in Matarbari was completed at a cost of Tk51,855 crore.
The Single Point Mooring (SPM) project, a vital oil transfer facility, cost Tk8,341 crore.
Two floating LNG terminals, built by Excelerate Energy and Summit Group, represent an investment of around $200 million.
Additionally, the Matarbari Deep Sea Port – a South Asian transshipment hub – is under construction at a cost of Tk24,381 crore, while the Dhalghata Economic Zone (EPZ) is valued at Tk1,860 crore.
Thousands of workers, both local and foreign, are employed in these projects and other industries, residing in project dormitories or nearby rental accommodations.
The master plan, to be developed and implemented by Mida, divides Maheshkhali into primary and auxiliary hubs.
Primary hubs will include ports, logistics, industrial zones, power facilities, and fisheries processing centres, while auxiliary hubs will focus on modern townships and essential infrastructure such as roads, telecommunications, and utilities.
Mida’s responsibilities encompass the construction of electricity and gas distribution networks, water reservoirs, sewerage and drainage systems, dams, dykes, solid waste treatment plants, effluent treatment facilities, and telecommunication infrastructure.
The authority will also oversee housing, education, healthcare, recreational and tourism facilities, public transport, and disaster management systems, including cyclone shelters and fire protection.
According to Coal Power Generation Company, around 700 personnel, including 450 permanent employees, are currently working at the Matarbari coal-fired power plant.
KMM Resalat Rajib, executive director (operations and conservation) of Coal Power Generation Company Bangladesh Limited, told Times of Bangladesh that workers reside in dormitories, while some commute from nearby Chakaria.
He welcomed the proposed township, noting that it would improve housing and amenities for staff and local communities alike.
Focus on private and foreign investments
Maheshkhali is no longer limited to government-led mega-projects. Major private industrial groups have also begun investing heavily in energy and industrial ventures, positioning the island as a future hub of economic growth.
Among these initiatives, one of the country’s largest conglomerates, TK Group, is establishing a massive industrial complex on 500 acres of land in Dhalghata Union. The project will include an oil refinery, petrochemical plant, and LPG terminal, with an investment commitment of $2 billion over the next 15 years.
Mohammad Mustafa Haider, director of TK Group, told Times of Bangladesh, “Of the 500 acres allocated by Beza, we have already developed 250 acres. In the next 15 years, our projects in the oil refinery, petrochemical, and LPG sectors will create employment for around 7,000 people.”
“While no single industrial group can build a township, the government’s plan to develop one in Maheshkhali will encourage further domestic and foreign investment,” he added.
Abu Morshed Chowdhury Khoka, president of the Cox’s Bazar Chamber of Commerce and Industry, said, “The Matarbari Deep Sea Port will position Maheshkhali as a regional transshipment hub. Rail connectivity will further integrate Cox’s Bazar into multimodal transport networks.”
“Housing shortages in the district make this township initiative timely. However, development must be carefully planned, ensuring local participation,” he added.
Following the formation of Mida, the Ministry of Power, Energy, and Mineral Resources formed a committee on 10 August to prepare a layout plan for LPG and land-based LNG terminals within the Maheshkhali-Matarbari Integrated Development Area.
Md Sarwar Alam has been appointed convener, with representation from the Ministry of Shipping, Chittagong Port Authority, Petrobangla, Bangladesh Petroleum Corporation, and other stakeholders.
Local residents and former public representatives said the ongoing development has already reshaped the socio-economic landscape of Maheshkhali. Land prices have surged several times, bringing financial benefits to the community, while infrastructural improvements are starting to deliver visible gains.
Former MP of Cox’s Bazar-2 (Maheshkhali-Kutubdia), Hamidur Rahman Azad, said, “The government’s township plan will not only house project workers but also provide locals with access to education, healthcare, and facilities.
“While land prices have increased sharply, authorities must ensure that these projects do not disrupt the livelihoods of local people.”