Rancon Lubricants Limited has signed a 50-year lease for 6.5 acres at the National Special Economic Zone in Mirsarai, Chattogram, where it plans to invest $19.65 million in a new industrial unit.
The project is expected to create more than 250 jobs, Invest Bangladesh said in a press release on Monday.
Nahian Rahman Rochi, member for investment development at Invest Bangladesh, signed the agreement on behalf of the investment promotion agency, while Rancon Lubricants Managing Director Imran Zaman Khan signed for the company.
Invest Bangladesh said the deal was its first land lease agreement since the merger of three investment promotion agencies.
The land is due to be handed over within 90 days of signing. Rancon Lubricants is expected to begin construction within 120 days of taking possession and start operations within 36 months of handover.
The lease runs for 50 years from the date of possession and can be renewed on terms set by Invest Bangladesh.
Under the agreement, Invest Bangladesh will facilitate utility connections and access to applicable government-declared customs duty, VAT and tax incentives.
Rancon Lubricants will be responsible for obtaining regulatory approvals and meeting environmental, labour and safety requirements.
The company must also provide effluent and sewage treatment facilities and connect to the zone’s common effluent treatment and waste-management systems.
The agreement includes provisions for performance and compliance monitoring, a period to remedy breaches before termination and arbitration under the Arbitration Act 2001.
Rochi said commitments from anchor investors such as Rancon Lubricants could help build confidence in the newly merged investment promotion agency and encourage other investors.
