[🇧🇩] Sea Ports/Air Ports/River Ports/Bridges/Mega Projects
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Why the cost of Matarbari deep-sea port project is going up
Four years after its approval, the cost of the Matarbari deep-sea port project in Cox’s Bazar has escalated, while the deadline has been pushed back too.
Why the cost of Matarbari deep-sea port project is going up
Four years after its approval, the cost of the Matarbari deep-sea port project in Cox's Bazar has escalated, while the deadline has been pushed back too.
Although the real physical progress on the project is still zero, authorities say five major factors have contributed to the project registering a 37 percent cost increase.
These factors include depreciation of the taka, additional land acquisition expenses and design changes, according to official documents submitted to the Executive Committee of the National Economic Council (Ecnec) meeting on Monday.
After the Ecnec revision, the project's total cost now stands at Tk 24,381 crore -- Tk 6,604 crore more than the initial cost of Tk 17,777 crore.
When the project, namely "Matarbari Port Development," was taken in March 2020, it was supposed to be completed by 2026. It has now been pushed back to December 2029.
As of May this year, the authorities spent Tk 710 crore. However, the real progress is still zero as the main construction work of the project has not started yet, according to official documents.
The project was taken up to increase the cargo handling capacity of the country, reduce the pressure on Chattogram port and meet the future international trade needs.
The concept of a deep-sea port in Matarbari emerged in conjunction with the government's coal-based power plant project in the area. The power plant required a wider channel and a port to receive fuel imports.
Of the five factors contributing to the cost increase, the project authorities have cited the fluctuation of the foreign currency exchange rate as the primary driver.
Although the real physical progress on the project is still zero, authorities say five major factors have contributed to the project registering a 37 percent cost increase
When the project was taken up in 2020, the US dollar exchange rate was around Tk 84, but it has now reached Tk 119.
Besides, the authorities have mentioned the increased spending for revenue payments, such as customs duty and value-added tax (VAT), as well as higher costs for land acquisition.
Thirdly, the authorities have allocated an additional Tk 675 crore due to changes in the detailed design, officially categorised as a "change of work scope".
As per the project documents, the length of roads and highways for the port will be 16.53 kilometres, which was 27.51km in the initial plan. In the revised plan, the length of bridges has been extended to 10km from the previous 7km.
These, all together, have caused the cost escalation for the "change of work scope".
Fourthly, the rate schedule of the construction work has been changed as prices of construction materials have increased over the years.
Lastly, the project authorities estimate that consultation expenses will rise further due to the three-year extension.
"Not a single penny will be spent unnecessarily"
At a press briefing after the Ecnec meeting, Planning Adviser Prof Wahiduddin Mahmud said although the main project is the construction of the deep-sea port, a large chunk of money will be spent on the construction of the approach road and bridge.
In response to questions about the costs of roads and bridges, the adviser said that no "unnecessary" or "extra money" would be spent.
The adviser said the Ecnec approval is not the final step, as the Implementation Monitoring and Evaluation Division (IMED) and relevant ministries will continue to assess project development regularly.
"Our development partners have also agreed that they will cooperate with us so that no irregularities take place during implementation," he said.
"We can't say what the next government will do. We want to make some rules in this regard," he added.
A planning ministry official said they have to seek consent from the government to review the existing projects. In particular, they got directives to move on with the foreign-funded projects.
At the press briefing, Prof Mahmud said, "We badly need a deep-sea port in Bangladesh as other ports, including Chattogram and Payra, do not have enough capacity to handle the excessive pressure of the future trades."
In the absence of a deep-sea port, the country's business transportation turns costlier thanks to loading and unloading containers on mother vessels at Singapore or Colombo port.
"It's also a time-consuming issue," he said.
"There was a lot of tension about whether China or India would do this project. Nothing was really happening for geopolitical reasons."
Finally, the government has selected Japan as the development partner, which charges lower interest and offers a longer repayment period, Mahmud said.
Besides, Japan usually completes projects timely, which they demonstrated in previous metro rail and the third terminal of Dhaka airport projects, he said.
"We never heard of any Japanese company involved in project corruption," he said.
"For this reason, Japan has been picked up for the project," he said.
Four years after its approval, the cost of the Matarbari deep-sea port project in Cox's Bazar has escalated, while the deadline has been pushed back too.
Although the real physical progress on the project is still zero, authorities say five major factors have contributed to the project registering a 37 percent cost increase.
These factors include depreciation of the taka, additional land acquisition expenses and design changes, according to official documents submitted to the Executive Committee of the National Economic Council (Ecnec) meeting on Monday.
After the Ecnec revision, the project's total cost now stands at Tk 24,381 crore -- Tk 6,604 crore more than the initial cost of Tk 17,777 crore.
When the project, namely "Matarbari Port Development," was taken in March 2020, it was supposed to be completed by 2026. It has now been pushed back to December 2029.
As of May this year, the authorities spent Tk 710 crore. However, the real progress is still zero as the main construction work of the project has not started yet, according to official documents.
The project was taken up to increase the cargo handling capacity of the country, reduce the pressure on Chattogram port and meet the future international trade needs.
The concept of a deep-sea port in Matarbari emerged in conjunction with the government's coal-based power plant project in the area. The power plant required a wider channel and a port to receive fuel imports.
Of the five factors contributing to the cost increase, the project authorities have cited the fluctuation of the foreign currency exchange rate as the primary driver.
Although the real physical progress on the project is still zero, authorities say five major factors have contributed to the project registering a 37 percent cost increase
When the project was taken up in 2020, the US dollar exchange rate was around Tk 84, but it has now reached Tk 119.
Besides, the authorities have mentioned the increased spending for revenue payments, such as customs duty and value-added tax (VAT), as well as higher costs for land acquisition.
Thirdly, the authorities have allocated an additional Tk 675 crore due to changes in the detailed design, officially categorised as a "change of work scope".
As per the project documents, the length of roads and highways for the port will be 16.53 kilometres, which was 27.51km in the initial plan. In the revised plan, the length of bridges has been extended to 10km from the previous 7km.
These, all together, have caused the cost escalation for the "change of work scope".
Fourthly, the rate schedule of the construction work has been changed as prices of construction materials have increased over the years.
Lastly, the project authorities estimate that consultation expenses will rise further due to the three-year extension.
"Not a single penny will be spent unnecessarily"
At a press briefing after the Ecnec meeting, Planning Adviser Prof Wahiduddin Mahmud said although the main project is the construction of the deep-sea port, a large chunk of money will be spent on the construction of the approach road and bridge.
In response to questions about the costs of roads and bridges, the adviser said that no "unnecessary" or "extra money" would be spent.
The adviser said the Ecnec approval is not the final step, as the Implementation Monitoring and Evaluation Division (IMED) and relevant ministries will continue to assess project development regularly.
"Our development partners have also agreed that they will cooperate with us so that no irregularities take place during implementation," he said.
"We can't say what the next government will do. We want to make some rules in this regard," he added.
A planning ministry official said they have to seek consent from the government to review the existing projects. In particular, they got directives to move on with the foreign-funded projects.
At the press briefing, Prof Mahmud said, "We badly need a deep-sea port in Bangladesh as other ports, including Chattogram and Payra, do not have enough capacity to handle the excessive pressure of the future trades."
In the absence of a deep-sea port, the country's business transportation turns costlier thanks to loading and unloading containers on mother vessels at Singapore or Colombo port.
"It's also a time-consuming issue," he said.
"There was a lot of tension about whether China or India would do this project. Nothing was really happening for geopolitical reasons."
Finally, the government has selected Japan as the development partner, which charges lower interest and offers a longer repayment period, Mahmud said.
Besides, Japan usually completes projects timely, which they demonstrated in previous metro rail and the third terminal of Dhaka airport projects, he said.
"We never heard of any Japanese company involved in project corruption," he said.
"For this reason, Japan has been picked up for the project," he said.
Saif
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No FDI in Ctg port against country’s interest
The interim government will not approve any foreign direct investment (FDI) in the Chattogram port that will end up compromising the country’s interests, said Brig Gen (retd) Sakhawat Hussain, adviser to the shipping, textile and jute ministries, yesterday.
No FDI in Ctg port against country’s interest
Adviser says
The interim government will not approve any foreign direct investment (FDI) in the Chattogram port that will end up compromising the country's interests, said Brig Gen (retd) Sakhawat Hussain, adviser to the shipping, textile and jute ministries, yesterday.
The port's benefit to Bangladesh will be the foremost consideration in appointing a foreign operator, he said, adding that FDI was also important.
Hussain was addressing a press briefing at a Chattogram port jetty after visiting different project sites and infrastructure.
Chittagong Port Authority (CPA) Chairman Rear Admiral SM Moniruzzaman and senior port officials were also present.
Referring to Patenga Container Terminal (PCT) being leased out to Saudi firm Red Sea Gateway Terminal International, the advisor said the port authority was still earning revenue in spite of a foreign operator handling operations.
Mentioning that the PCT had outpaced expectations and was earning the port $18 per container, Hussain said, "Now, if these foreign investments are questioned for the benefit of someone, foreign investors will be reluctant to come."
Regarding the proposed Bay Terminal project, he said, "I don't see any problem in the Bay Terminal project. Foreign investment will arrive for this project. Different foreign entities, including the World Bank, are eager to invest in the project."
However, he said, the port authorities had been directed to place a detailed presentation on the Bay Terminal project to relevant ministries. The ministry will then sit with other stakeholders.
Regarding the previous government's plan to appoint a foreign operator for the port's largest terminal, New Mooring Container Terminal (NCT), the advisor said transparency would be ensured over the whole project irrespective of the final decision.
He added that a committee would be formed to iron out the issue.
Urging patience, he said the government would consider appointing a foreign operator for the NCT only if it was good for the port and its income and safeguarded the job security of the existing terminal workers.
Locals work at Patenga Container Terminal, informed Hussain.
Mentioning that there were many irregularities at the port and allegations of nepotism in issuing licenses in the past, the advisor said, "We have knowledge of everything."
He said there would be no more tenders under the direct procurement method (DPM) from now on.
"All work has to be done through an open tender process," he said.
"To that end, we will review the terms and conditions of the tender, so that it does not go to any particular firm, whether local or foreign," said Hussain.
"The direct procurement method will only be followed for government-to-government projects. They will also be properly reviewed," said the adviser.
He also underscored the need to introduce full automation, auctioning off year-old cargo and vehicles, and curbing irregularities to make port operations more efficient and speedier.
Replying to a query, CPA Chairman Moniruzzaman said misinformation was being spread about the CPA investing Tk 2,500 crore to construct the PCT.
"In fact, the investment was around Tk 1,300 crore. Over the next 22 years, we expect to get an income of Tk 5,500 crore. Furthermore, the foreign operator will invest Tk 22,500 crore to set up equipment," he said.
Adviser says
The interim government will not approve any foreign direct investment (FDI) in the Chattogram port that will end up compromising the country's interests, said Brig Gen (retd) Sakhawat Hussain, adviser to the shipping, textile and jute ministries, yesterday.
The port's benefit to Bangladesh will be the foremost consideration in appointing a foreign operator, he said, adding that FDI was also important.
Hussain was addressing a press briefing at a Chattogram port jetty after visiting different project sites and infrastructure.
Chittagong Port Authority (CPA) Chairman Rear Admiral SM Moniruzzaman and senior port officials were also present.
Referring to Patenga Container Terminal (PCT) being leased out to Saudi firm Red Sea Gateway Terminal International, the advisor said the port authority was still earning revenue in spite of a foreign operator handling operations.
Mentioning that the PCT had outpaced expectations and was earning the port $18 per container, Hussain said, "Now, if these foreign investments are questioned for the benefit of someone, foreign investors will be reluctant to come."
Regarding the proposed Bay Terminal project, he said, "I don't see any problem in the Bay Terminal project. Foreign investment will arrive for this project. Different foreign entities, including the World Bank, are eager to invest in the project."
However, he said, the port authorities had been directed to place a detailed presentation on the Bay Terminal project to relevant ministries. The ministry will then sit with other stakeholders.
Regarding the previous government's plan to appoint a foreign operator for the port's largest terminal, New Mooring Container Terminal (NCT), the advisor said transparency would be ensured over the whole project irrespective of the final decision.
He added that a committee would be formed to iron out the issue.
Urging patience, he said the government would consider appointing a foreign operator for the NCT only if it was good for the port and its income and safeguarded the job security of the existing terminal workers.
Locals work at Patenga Container Terminal, informed Hussain.
Mentioning that there were many irregularities at the port and allegations of nepotism in issuing licenses in the past, the advisor said, "We have knowledge of everything."
He said there would be no more tenders under the direct procurement method (DPM) from now on.
"All work has to be done through an open tender process," he said.
"To that end, we will review the terms and conditions of the tender, so that it does not go to any particular firm, whether local or foreign," said Hussain.
"The direct procurement method will only be followed for government-to-government projects. They will also be properly reviewed," said the adviser.
He also underscored the need to introduce full automation, auctioning off year-old cargo and vehicles, and curbing irregularities to make port operations more efficient and speedier.
Replying to a query, CPA Chairman Moniruzzaman said misinformation was being spread about the CPA investing Tk 2,500 crore to construct the PCT.
"In fact, the investment was around Tk 1,300 crore. Over the next 22 years, we expect to get an income of Tk 5,500 crore. Furthermore, the foreign operator will invest Tk 22,500 crore to set up equipment," he said.
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Cargo movement halts at Ctg port
The transportation of export-import laden containers to and from Chattogram Port has been halted since yesterday morning due to a 48-hour strike enforced by prime mover drivers and their helpers.
Cargo movement halts at Ctg port
Drivers and helpers of prime movers call 48hr strike
Drivers and helpers of prime movers demand issuance of appointment letters and identity cards. Photo: Rajib Raihan
The transportation of export-import laden containers to and from Chattogram Port has been halted since yesterday morning due to a 48-hour strike enforced by prime mover drivers and their helpers.
The strike, called by the Chattogram District Prime Mover Trailer, Concrete Mixer, Flatbed, Dump Truck Workers Union, began at 6:00am yesterday and will continue until 6:00am on Wednesday.
The workers are pressing for several demands, including the issuance of appointment letters and identity cards, which they claim have long been denied by prime mover owners.
The union's president, Md Selim Khan, said that despite repeated requests, the owners have failed to address these issues. Additional demands include the implementation of fixed work hours and a minimum wage, reports our local correspondent.
As a result of the strike, cargo transport between private inland container depots (ICDs) and Chattogram port has been suspended.
Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depots Association, confirmed that prime mover drivers and helpers have ceased operations at all 20 ICDs since the strike began.
However, Abu Bakar Siddique, executive president of the Prime Mover Owners Association, dismissed the demand for appointment letters as "illogical", saying that the workers operate on a "no work, no pay" basis.
He added that the owners' association is meeting to address the situation and resume operations.
Over 10,000 prime movers are involved in cargo transport across the country, with around 4,000 responsible for moving containers to and from Chattogram port.
Drivers and helpers of prime movers call 48hr strike
Drivers and helpers of prime movers demand issuance of appointment letters and identity cards. Photo: Rajib Raihan
The transportation of export-import laden containers to and from Chattogram Port has been halted since yesterday morning due to a 48-hour strike enforced by prime mover drivers and their helpers.
The strike, called by the Chattogram District Prime Mover Trailer, Concrete Mixer, Flatbed, Dump Truck Workers Union, began at 6:00am yesterday and will continue until 6:00am on Wednesday.
The workers are pressing for several demands, including the issuance of appointment letters and identity cards, which they claim have long been denied by prime mover owners.
The union's president, Md Selim Khan, said that despite repeated requests, the owners have failed to address these issues. Additional demands include the implementation of fixed work hours and a minimum wage, reports our local correspondent.
As a result of the strike, cargo transport between private inland container depots (ICDs) and Chattogram port has been suspended.
Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depots Association, confirmed that prime mover drivers and helpers have ceased operations at all 20 ICDs since the strike began.
However, Abu Bakar Siddique, executive president of the Prime Mover Owners Association, dismissed the demand for appointment letters as "illogical", saying that the workers operate on a "no work, no pay" basis.
He added that the owners' association is meeting to address the situation and resume operations.
Over 10,000 prime movers are involved in cargo transport across the country, with around 4,000 responsible for moving containers to and from Chattogram port.
Saif
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Govt to formulate national maritime port strategy
Shipping adviser Brigadier General (retired) M Sakhawat Hussain on Wednesday said that the government would formulate ‘National Maritime Port Strategy or NMPS’ for an effective and sustainable port management to attract more domestic and foreign investments...
www.newagebd.net
Govt to formulate national maritime port strategy
Bangladesh Sangbad Sangstha . Dhaka 30 October, 2024, 22:44
Shipping adviser Brigadier General (retired) M Sakhawat Hussain speaks at a meeting at the meeting room of the Ministry of Shipping in the capital Dhaka on Wednesday. Bangladesh Investment Development Authority executive chairman Chowdhury Ashik Mahmud Bin Harun and shipping secretary (in-charge) Delwara Begum, among others, were present. | Focusbangla photo
Shipping adviser Brigadier General (retired) M Sakhawat Hussain on Wednesday said that the government would formulate ‘National Maritime Port Strategy or NMPS’ for an effective and sustainable port management to attract more domestic and foreign investments.
‘The government will formulate ‘National Maritime Port Strategy’ for ensuring an effective and sustainable port management to attract more domestic and foreign investment in our maritime sector,’ he said.
Sakhawat Hussain, also adviser of the Ministry of Textiles and Jute, said this at a review meeting on the progress of the activities of Chittagong Port Authority, Mongla Port Authority, Payra Port Authority, Land Port Authority, BIWTC, BIWTA and Department of Shipping at the meeting room of the Ministry of Shipping, said a press release.
He said, ‘An integrated, strong and modern port structure will be developed through this strategy paper.’
The adviser also said that maritime single window would be introduced to bring all port centric services on one platform where businesses are expected to get hassle-free service in the shortest time.
He expressed his optimism for starting a new chapter in the country’s maritime sector by formulating this NMPS.
He issued directives to form a committee in this regard to prepare and submit a strategy paper at the earliest.
The shipping adviser emphasised the need of proper management of all the activities of the seaports and inland-river ports by linking the land ports in parallel with this strategy.
He said that the maritime sector had been playing a very important role in the economic development of Bangladesh, mentioning that the port-centric business and trade, as well as import-export were contributing widely to the country’s GDP.
He, however, said that unfortunately, even in the last fifty years, no integrated port management strategy paper had been formulated in Bangladesh.
Modern and smart port management is the demand of time in Bangladesh, like in the developed world, he added.
‘Famous ports of the world are now managing their operations through digitalization, and that is why there are more and more foreign investments,’ he said.
Bangladesh Investment Development Authority executive chairman Chowdhury Ashik Mahmud Bin Harun and shipping secretary (in-charge) Delwara Begum along with officials concerned were present.
Bangladesh Sangbad Sangstha . Dhaka 30 October, 2024, 22:44
Shipping adviser Brigadier General (retired) M Sakhawat Hussain speaks at a meeting at the meeting room of the Ministry of Shipping in the capital Dhaka on Wednesday. Bangladesh Investment Development Authority executive chairman Chowdhury Ashik Mahmud Bin Harun and shipping secretary (in-charge) Delwara Begum, among others, were present. | Focusbangla photo
Shipping adviser Brigadier General (retired) M Sakhawat Hussain on Wednesday said that the government would formulate ‘National Maritime Port Strategy or NMPS’ for an effective and sustainable port management to attract more domestic and foreign investments.
‘The government will formulate ‘National Maritime Port Strategy’ for ensuring an effective and sustainable port management to attract more domestic and foreign investment in our maritime sector,’ he said.
Sakhawat Hussain, also adviser of the Ministry of Textiles and Jute, said this at a review meeting on the progress of the activities of Chittagong Port Authority, Mongla Port Authority, Payra Port Authority, Land Port Authority, BIWTC, BIWTA and Department of Shipping at the meeting room of the Ministry of Shipping, said a press release.
He said, ‘An integrated, strong and modern port structure will be developed through this strategy paper.’
The adviser also said that maritime single window would be introduced to bring all port centric services on one platform where businesses are expected to get hassle-free service in the shortest time.
He expressed his optimism for starting a new chapter in the country’s maritime sector by formulating this NMPS.
He issued directives to form a committee in this regard to prepare and submit a strategy paper at the earliest.
The shipping adviser emphasised the need of proper management of all the activities of the seaports and inland-river ports by linking the land ports in parallel with this strategy.
He said that the maritime sector had been playing a very important role in the economic development of Bangladesh, mentioning that the port-centric business and trade, as well as import-export were contributing widely to the country’s GDP.
He, however, said that unfortunately, even in the last fifty years, no integrated port management strategy paper had been formulated in Bangladesh.
Modern and smart port management is the demand of time in Bangladesh, like in the developed world, he added.
‘Famous ports of the world are now managing their operations through digitalization, and that is why there are more and more foreign investments,’ he said.
Bangladesh Investment Development Authority executive chairman Chowdhury Ashik Mahmud Bin Harun and shipping secretary (in-charge) Delwara Begum along with officials concerned were present.
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Mongla Port set for major expansion
Mongla Port is undergoing significant development to transform it into a modern, world-class maritime hub. Brigadier General (Retd.) Dr. M. Sakhawat Hossain, Advisor to the Ministries of Shipping and Textiles, announced several key projects during a meeting with port officials in Khulna on Tuesday
Mongla Port set for major expansion
UNB
Published :
Nov 05, 2024 21:53
Updated :
Nov 05, 2024 21:53
Mongla Port is undergoing significant development to transform it into a modern, world-class maritime hub.
Brigadier General (Retd.) Dr. M. Sakhawat Hossain, Advisor to the Ministries of Shipping and Textiles, announced several key projects during a meeting with port officials in Khulna on Tuesday.
The initiatives include dredging the Pashur Channel, upgrading port facilities, and constructing two new jetties. These projects will increase the port’s capacity to handle 800,000 TEU containers, 4 million metric tons of cargo, and 30,000 vehicles annually.
Adviser also encouraged neighboring Nepal and Bhutan to utilize the Mongla Port, suggesting it would boost regional trade and economic growth. He emphasized that greater international promotion of the port’s services, including through Bangladesh’s foreign missions, is crucial.
These developments aim to enhance Mongla Port’s efficiency and global competitiveness, strengthening Bangladesh’s role in South Asian maritime trade.
UNB
Published :
Nov 05, 2024 21:53
Updated :
Nov 05, 2024 21:53
Mongla Port is undergoing significant development to transform it into a modern, world-class maritime hub.
Brigadier General (Retd.) Dr. M. Sakhawat Hossain, Advisor to the Ministries of Shipping and Textiles, announced several key projects during a meeting with port officials in Khulna on Tuesday.
The initiatives include dredging the Pashur Channel, upgrading port facilities, and constructing two new jetties. These projects will increase the port’s capacity to handle 800,000 TEU containers, 4 million metric tons of cargo, and 30,000 vehicles annually.
Adviser also encouraged neighboring Nepal and Bhutan to utilize the Mongla Port, suggesting it would boost regional trade and economic growth. He emphasized that greater international promotion of the port’s services, including through Bangladesh’s foreign missions, is crucial.
These developments aim to enhance Mongla Port’s efficiency and global competitiveness, strengthening Bangladesh’s role in South Asian maritime trade.
Saif
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Building multibillion-dollar Bay Terminal takes new nudge
Building the planned multibillion-dollar Bay Terminal in Chattagram takes new nudge in the changed political context as government authorities are set to evaluate progress and set new course of action. Officials have said the ministry of shipping will sit with all parties concerned next we
Building multibillion-dollar Bay Terminal takes new nudge
FE REPORT
Published :
Nov 06, 2024 00:16
Updated :
Nov 06, 2024 00:16
Building the planned multibillion-dollar Bay Terminal in Chattagram takes new nudge in the changed political context as government authorities are set to evaluate progress and set new course of action.
Officials have said the ministry of shipping will sit with all parties concerned next week for the stocktaking and deciding what it takes to kick-start the construction process with local and foreign financing.
The ministry officials, including the shipping adviser of the incumbent interim government, will sit with the Chittagong seaport officials, the probable local and foreign investors, officials from the Public-Private Partnership Authority (PPPA), the transaction adviser, and people concerned, they added.
Local and foreign investors are intent on investing some US$8.0 billion in the project for construction of the terminal near the Halishahar coast of the Bay of Bengal.
The PPPA appointed UK-based Ernst & Young LLP as transaction adviser in 2022 for the Bay Terminal. However, the company has yet to submit reports to the authority, sources said.
As such, the interim-government has decided to evaluate the progresses the project made so far and what steps can be taken to expedite the project implementation in the changed political and financial perspectives.
Suraiya Pervin Shelley, Additional Secretary at the Ministry of Shipping, told the FE the ministry would convene a meeting to discuss and take decision about the shipping-terminal project.
"We will set a strategy on how the project will go forward in the changed political situation," she said.
This June, the World Bank granted a loan package worth $650 million to finance the dredging of the main access channel and construction of breakwater for the Bay Terminal.
The Chittagong Port Authority (CPA) in May announced that foreign and local companies came forward to put in some $8.0 billion in the terminal which will help enhance Chittagong port's annual handling capacity by 5.0 million Twenty-foot Equivalent Units (TEUs).
Of the financiers, AD Ports Group wants to invest $1.0 billion in construction of multipurpose terminal, while PSA Singapore and DP World are interested to invest $1.5 billion each separately in the two container terminals.
Moreover, local conglomerate East Coast Group and its foreign partners want to invest $3.5 billion in the liquid bulk terminal. The Bay Terminal will have at least 12-meter water draft allowing 300-meter-long ships with 5,000-TEU-container-carrying capacity to take berth in the jetties any time in day and night. The terminal will be built on 2,500 acres of land, according to officials concerned.
FE REPORT
Published :
Nov 06, 2024 00:16
Updated :
Nov 06, 2024 00:16
Building the planned multibillion-dollar Bay Terminal in Chattagram takes new nudge in the changed political context as government authorities are set to evaluate progress and set new course of action.
Officials have said the ministry of shipping will sit with all parties concerned next week for the stocktaking and deciding what it takes to kick-start the construction process with local and foreign financing.
The ministry officials, including the shipping adviser of the incumbent interim government, will sit with the Chittagong seaport officials, the probable local and foreign investors, officials from the Public-Private Partnership Authority (PPPA), the transaction adviser, and people concerned, they added.
Local and foreign investors are intent on investing some US$8.0 billion in the project for construction of the terminal near the Halishahar coast of the Bay of Bengal.
The PPPA appointed UK-based Ernst & Young LLP as transaction adviser in 2022 for the Bay Terminal. However, the company has yet to submit reports to the authority, sources said.
As such, the interim-government has decided to evaluate the progresses the project made so far and what steps can be taken to expedite the project implementation in the changed political and financial perspectives.
Suraiya Pervin Shelley, Additional Secretary at the Ministry of Shipping, told the FE the ministry would convene a meeting to discuss and take decision about the shipping-terminal project.
"We will set a strategy on how the project will go forward in the changed political situation," she said.
This June, the World Bank granted a loan package worth $650 million to finance the dredging of the main access channel and construction of breakwater for the Bay Terminal.
The Chittagong Port Authority (CPA) in May announced that foreign and local companies came forward to put in some $8.0 billion in the terminal which will help enhance Chittagong port's annual handling capacity by 5.0 million Twenty-foot Equivalent Units (TEUs).
Of the financiers, AD Ports Group wants to invest $1.0 billion in construction of multipurpose terminal, while PSA Singapore and DP World are interested to invest $1.5 billion each separately in the two container terminals.
Moreover, local conglomerate East Coast Group and its foreign partners want to invest $3.5 billion in the liquid bulk terminal. The Bay Terminal will have at least 12-meter water draft allowing 300-meter-long ships with 5,000-TEU-container-carrying capacity to take berth in the jetties any time in day and night. The terminal will be built on 2,500 acres of land, according to officials concerned.
