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G Bangladesh Defense

WB approves $650m to help Bangladesh develop Bay Terminal
29 June, 2024, 13:14

The World Bank's board of executive directors on Friday approved $650 million to help Bangladesh invest in infrastructure critical for developing the Bay Terminal deep seaport.

The Bay Terminal, located in the Anandangar/Sandwip channel, west of the Chattogram port and close to existing road and rail links to Dhaka, is expected to handle 36 per cent of Bangladesh's container volumes.

It will significantly improve Bangladesh's global trade competitiveness and reduce import and export costs by increasing port operational efficiency and mobilising private investment, said a press release.

The Bay Terminal Marine Infrastructure Development Project will construct a 6 km climate-resilient breakwater to protect the harbor from the force of waves, current, and extreme weather.

It will also carry out dredging of the port basin, entrance, and access channels. The new, modern Bay Terminal, to be operated by leading international terminal operators, will accommodate larger size vessels, such as panamax vessels, and substantially decrease vessel turnaround time, potentially saving the economy about US$1 million daily.

Currently, the Chittagong Port-which is the maritime gateway for over 90 per cent of Bangladesh's international trade volume and 98 per cent of its container traffic-can only receive small feeder vessels during limited hours of the day.

'Bangladesh's international trade heavily relies on Chittagong Port, which faces significant capacity constraints,' said Abdoulaye Seck, World Bank country director for Bangladesh and Bhutan. 'The Bay terminal project will be a game changer. It will improve Bangladesh's export competitiveness through enhanced port capacity and reduced transportation cost and time, opening new opportunities to key global markets.'

Moreover, the project will mobilise private investment for the development of container terminals. The World Bank investment along with the government funding will bolster investor confidence and contribute to mitigating risks associated with the overall Bay Terminal Development.

Furthermore, the World Bank group's private sector arm, the IFC is considering investing in one of the proposed private sector led terminal.

'The Bay Terminal will contribute to modernising the country's seaport infrastructure and improving its connectivity to regional and international markets,' said Hua Tan, World Bank senior transport specialist and team leader for the project.

Over one million people, half of whom women, are expected to directly benefit from improved access to sustainable transport services, including shipping companies, business communities, importers, exporters, and freight forwarders.​
 
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Here is a video log for Bay Terminal construction status - it is in tender stage now.

 
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Container delivery, transport from Ctg port gaining momentum
Online assessment process began Tuesday evening

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Import container and cargo delivery from Chattogram port yards and transfer of containers from port to the private inland container depots (ICDs) gained momentum since Tuesday evening following the relaunch of online assessment process with the partial resumption of broadband internet.

Some 1,286 TEUs (twenty-foot equivalent units) of import cargo could be delivered to the consignees from the port yards in the 24 hours to 8am today, according to the Chittagong Port Authority (CPA).

It was possible due to the recommencement of online assessment by the custom authority following the resumption of broadband internet service on Tuesday evening, CPA Secretary Md Omar Faruk said.

Moreover, 583 TEUs of import containers were transferred to the export processing zones and 1,007 TEUs to the private ICDs in the same period.

The number of total containers lying in different port yards came down to 41,459 TEUs as of 8am today, against 41,620 TEUs a day ago.

The CPA secretary hoped the container congestion inside the yards would improve in the next few days.

Chattogram Custom House Joint Commissioner Tarek Hasan confirmed that they could get access to the Asycuda World System of the server of the National Board of Revenue after partial resumption of broadband internet since Tuesday afternoon.

Clearing and forwarding agents usually submit import and export documents, like bill of entry and bill of export, to the NBR server from their respective offices.

Since internet service was yet to be resumed at individual users, the customs authority gave server connectivity to four computers at a room at the custom house's office to allow the C&F agents to submit these documents since Thursday afternoon.

Bangladesh Inland Container Depots Association Secretary Ruhul Amin Sikder informed that transport of export load containers from the private ICDs to the port is declining in last few days as arrival of export cargo by trucks at the ICDs from Dhaka and elsewhere remained poor due to the closure of factories.

Sikder, also an official of Isack Depot, a private ICD near the port, said they received only six covered vans of export cargo in the last 24 hours, down from 150 vehicles of any regular day.​
 
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Payra Seaport: A white elephant in the making?
ATIQUL KABIR TUHIN
Published :
Jul 24, 2024 22:20
Updated :
Jul 24, 2024 22:20
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A sound feasibility study is the key to successful implementation and effective functioning of any project. But in Bangladesh, the importance of conducting a feasibility study before project implementation is often overlooked, leading to implementation delays and cost overruns. Worse still, in some cases, the opinion of experts is even ignored. Construction of the Payra Seaport is a case in point. Before the construction of the seaport, various quarters had opined that construction of the port would not be viable as its site is prone to heavy siltation. Moreover, its location near the Sunderbans had given rise to concerns over potential biodiversity and habitat loss in the world's largest mangrove forest.

A 2019 study by a team of researchers from Germany, Belgium, and Bangladesh raised concerns about excessive sedimentation at Payra Port channel. The study found that the Bay of Bengal receives a staggering 1.1 billion cubic meters of sediment annually from the Himalayas through the rivers. Of this, a significant amount, roughly 400 million cubic meters, accumulates around the Payra River channel each year. Experts warned that such substantial siltation could pose operational difficulties for the port. The study estimates that removing this accumulated silt annually would cost approximately 80 to 100 billion taka. Additionally, researchers have expressed concerns that a moderate storm could render the port unusable due to rapid siltation. In sum, the study suggests that Payra Port's functionality might be significantly compromised by sedimentation.

Yet, the government went ahead with its plan to construct Payra Port, the country's third seaport, located on the western bank of the Rabnabad Channel at the confluence of Rivers Galachipa and Tetulia in Patuakhali. Initially, the government had planned to develop Payra as a deep-sea port with a 16-metre draft to enable the entry of large vessels that cannot do so at Mongla and Chattogram ports. But later, the government backtracked from the deep seaport project at Payra and opted for constructing a seaport there as the water draft in the area linking the Bay of Bengal appeared to be challenging.

The Payra Port is one of the 10 fast-track mega projects of the government. Although the port has been operational in a limited capacity since 2016, construction of a full-fledged port is still limping on. According to a recent report of the Financial Express, the Payra Port Authority initiated a Tk 11.28 billion project titled 'Development of Necessary Facilities at the Payra Port for its Smooth Operation Project' in 2015 for the smooth functioning of the port. It was supposed to be completed in June 2018. Unfortunately, the project has not been completed yet, while the project cost has jumped to Tk 43.75 billion - an increase by 287 per cent from the original allocation.

After missing the initial three-year deadline, the PPA in its first revision got the cost inflated to Tk 33.50 billion, and the deadline extended to June 2020. After failing to complete the project in 2020, the port authority sought the second revision shooting up the cost to Tk 43.75 billion with another two years of extension up to June 2022. The authorities, however, failed to meet the deadline and applied for one-year more time extension up to June 2023. Again, the port authority failed, compelling the government to extend the deadline to June 2024. Now, the project awaits another extension of the deadline and, possibly, an increase in funds as well.

Observers are of the view that repeated failure to complete the project in time has already made the purpose of the project outcome vulnerable, while the country has failed to get the expected port services for the past six years. The government has invested a huge amount of money for the port facilities. But the outcome remained elusive for the project delays.

Meanwhile, the fear of heavy siltation hampering the port's navigability also came true. The PPA has already spent TK 65.35 billion in carrying out capital-and-maintenance dredging of Rabnabad channel. The funds mostly came from Bangladesh's fast-depleting forex reserves. The Rabnabad channel, a 75-kilometre-long main navigation channel of the seaport, was dredged by spending 524 million Euros from the forex reserves and some Tk 11 billion in local currency. Now due to heavy siltation, the channel is in need of dredging again, and the PPA is pursuing a Tk 52 billion project with the Ministry of Finance for maintaining the navigability to the port through the channel.

Given the huge amount of money that the authorities have already spent and will be required in future to maintain the navigability of the port channel, many believe that Payra Port is another white elephant project of the government after the Rooppur Nuclear Power Plant. When the Payra Port project was conceived, it was envisaged that the port with its 16 metres berth depth would be the country's premier seaport by 2022. Both the Chittagong and Mongla ports have berth depth of around 10 metres. Moreover, the Chattogram Port is 260 kilometres off the capital and the Payra Port 190-km away, while with 170 kilometres distance Mongla Port is the nearest seaport from Dhaka. The capital is surrounded by a large number of industries that have so far depended entirely on the far away Chattogram Port, thereby incurring a higher cost and loss of time. Use of the Mongla and Payra ports was expected to be more convenient for businesses located in Dhaka, especially following the construction and inauguration of the Padma Bridge.

But the hope that Payra seaport would offer a much more convenient port facility to businesses in Dhaka and adjacent areas was dashed when the project implementation authorities finally came to terms with the reality that the site is not suitable for the construction of a deep-sea port. Now, a seaport is being constructed there when the nearby Mongla seaport cannot be utilised to its full capacity due to a lack of infrastructural development, and about 92 per cent of the country's exports and imports take place through Chattogram seaport. Moreover, it is anticipated that the cost of maintaining the navigability of the Payra port channel would far outweigh the revenue the port would generate. One can only hope that the government exercises greater caution and conducts thorough feasibility studies before implementing such mega-projects. Ideally, project selection should be based on sound economic and strategic considerations, not on political consideration.​
 
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Dhaka Airport 3rd terminal update - this vlogger always puts up Sheikh Hasina's picture on updates.

 
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Fund-sapping motivated megaprojects may be axed
Adviser indicates, as 'irregularities' galore
FE REPORT
Published :
Aug 20, 2024 00:36
Updated :
Aug 20, 2024 00:36

1724112675455.webp


Ongoing large and megaprojects will be reviewed and less-priority and "politically motivated" ones scrapped, says Planning and Education Adviser Prof Wahiduddin Mahmud of the interim government.

"There are irregularities in taking up projects as some are undertaken by the influence of the contractors and some are by dishonest persons," he said while briefing journalists Monday at the Planning Commission in Dhaka.

"Each of projects needs to be reviewed and scrutinised, as mostly are in indiscipline state…. Firstly, there are problems in the negotiations with the lenders for the foreign-funded megaprojects," he said.

He emphasized release of the funds in the pipeline which are committed by some development partners as that would give a cushion to the foreign-exchange-reserves crisis.

"Some approved projects are yet to be started, some in the middle and some in the last stage…Some projects are politically motivated, which are pledged by the political leaders in their election constituencies," says the economist-turned-functionary of the interim government, installed following the fall of the Sheikh Hasina government.

Those projects which do not have priority and better outcomes have to be reviewed and have to be scrapped, he categorically said in resetting priorities.

Prof Mahmud suggests the PC officials scrap the projects which are approved but involve waste of money.

"There are lots of irregularities in project design, cost estimation and execution period. The irregularities could be for a lack of capacity and could be for the influence of the contractors."

Referring to what is billed highest unit-cost record in Bangladesh's road constructions, the Planning Adviser said since there were irregularities, especially in the infrastructure-related big projects, their cost and time have been overrun.

The last Awami League government took up some megaprojects of which few are completed and many still ongoing. The ongoing 10 megaprojects have received nearly Tk 510-billion allocations in the current fiscal year (FY) 2024-25 Annual Development Programme (ADP).

The Roopur nuclear power plant alone has got an allocation worth Tk 105.02 billion, MRT-6 Tk 19.75 billion, MRT-1 Tk19.42 billion, MRT-5 (northern) Tk 59.68 billion, Bangabandhu Rail Bridge construction project Tk 25.60 billion.

Besides, the ongoing Padma rail-link project has received Tk 35.44 billion, Dohazari-Ramu-Ghundum rail line Tk 14.53 billion.

Some other megaprojects, including the Matarbari port development, Pyra port development, Dhaka Elevated Expressway, Dhaka-Ashulia elevated expressway, Airport 3rd terminal, and Elenga-Hatikamrul-Rangpur 4-lane highway projects, are also going on.

In the meantime, Dhaka-Chittagong Highway, Joydevpur-Elenga highway, and Tunnel under Karnaphuli river megaproject have already been completed.

Professor Mahmud said sometimes the ministries take non-priority projects for constructing complexes and buildings which remain idle and unutilised now.

"There is direct link between the public expenditure and macro-economy as our main target at this moment is stabilising economy and curbing inflation. For this reason, we have to reduce development expenditure which will cut the budget deficit and bring down inflation."

In overall macroeconomic management, project implementation, expenditure, and development budget have a big role, the adviser notes.

"There are some questions about the figure on GDP, inflation and other statistics of the BBS. We will review those and try to establish a credible statistical body of the government."

Terming faulty the past government's higher public-expenditure policy for enhancing GDP of the country, Prof Mahmud said they had only run for enhancing the growth rather not for creating employments.

Higher GDP growth is not the only factor in the macro-economy--employment creation is very important, notes the economist in upending the past 'development' pursuit.

For enhancing the GDP growth, the last government earlier tried to invest more in infrastructure development, considering it "very prestigious".

"I have earlier said only the infrastructure development will be like a skeleton without flesh and blood if we fail to develop our manpower," he reminds

"If we make delay in implementing projects, then price and time will get extended. You know that time is a big factor in the economy."

Prof Mahmud adds: "Some people think that their projects should not be stopped after some expenditure. However, we should consider-- how more funds will be spent and how much return we will get."

The adviser instructed the IMED to make a report on reasons behind 3-4 times revision of the projects, changing design at the middle and any negligence there.​
 
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Fund-sapping motivated megaprojects may be axed
Adviser indicates, as 'irregularities' galore
FE REPORT
Published :
Aug 20, 2024 00:36
Updated :
Aug 20, 2024 00:36

View attachment 7609

Ongoing large and megaprojects will be reviewed and less-priority and "politically motivated" ones scrapped, says Planning and Education Adviser Prof Wahiduddin Mahmud of the interim government.

"There are irregularities in taking up projects as some are undertaken by the influence of the contractors and some are by dishonest persons," he said while briefing journalists Monday at the Planning Commission in Dhaka.

"Each of projects needs to be reviewed and scrutinised, as mostly are in indiscipline state…. Firstly, there are problems in the negotiations with the lenders for the foreign-funded megaprojects," he said.

He emphasized release of the funds in the pipeline which are committed by some development partners as that would give a cushion to the foreign-exchange-reserves crisis.

"Some approved projects are yet to be started, some in the middle and some in the last stage…Some projects are politically motivated, which are pledged by the political leaders in their election constituencies," says the economist-turned-functionary of the interim government, installed following the fall of the Sheikh Hasina government.

Those projects which do not have priority and better outcomes have to be reviewed and have to be scrapped, he categorically said in resetting priorities.

Prof Mahmud suggests the PC officials scrap the projects which are approved but involve waste of money.

"There are lots of irregularities in project design, cost estimation and execution period. The irregularities could be for a lack of capacity and could be for the influence of the contractors."

Referring to what is billed highest unit-cost record in Bangladesh's road constructions, the Planning Adviser said since there were irregularities, especially in the infrastructure-related big projects, their cost and time have been overrun.

The last Awami League government took up some megaprojects of which few are completed and many still ongoing. The ongoing 10 megaprojects have received nearly Tk 510-billion allocations in the current fiscal year (FY) 2024-25 Annual Development Programme (ADP).

The Roopur nuclear power plant alone has got an allocation worth Tk 105.02 billion, MRT-6 Tk 19.75 billion, MRT-1 Tk19.42 billion, MRT-5 (northern) Tk 59.68 billion, Bangabandhu Rail Bridge construction project Tk 25.60 billion.

Besides, the ongoing Padma rail-link project has received Tk 35.44 billion, Dohazari-Ramu-Ghundum rail line Tk 14.53 billion.

Some other megaprojects, including the Matarbari port development, Pyra port development, Dhaka Elevated Expressway, Dhaka-Ashulia elevated expressway, Airport 3rd terminal, and Elenga-Hatikamrul-Rangpur 4-lane highway projects, are also going on.

In the meantime, Dhaka-Chittagong Highway, Joydevpur-Elenga highway, and Tunnel under Karnaphuli river megaproject have already been completed.

Professor Mahmud said sometimes the ministries take non-priority projects for constructing complexes and buildings which remain idle and unutilised now.

"There is direct link between the public expenditure and macro-economy as our main target at this moment is stabilising economy and curbing inflation. For this reason, we have to reduce development expenditure which will cut the budget deficit and bring down inflation."

In overall macroeconomic management, project implementation, expenditure, and development budget have a big role, the adviser notes.

"There are some questions about the figure on GDP, inflation and other statistics of the BBS. We will review those and try to establish a credible statistical body of the government."

Terming faulty the past government's higher public-expenditure policy for enhancing GDP of the country, Prof Mahmud said they had only run for enhancing the growth rather not for creating employments.

Higher GDP growth is not the only factor in the macro-economy--employment creation is very important, notes the economist in upending the past 'development' pursuit.

For enhancing the GDP growth, the last government earlier tried to invest more in infrastructure development, considering it "very prestigious".

"I have earlier said only the infrastructure development will be like a skeleton without flesh and blood if we fail to develop our manpower," he reminds

"If we make delay in implementing projects, then price and time will get extended. You know that time is a big factor in the economy."

Prof Mahmud adds: "Some people think that their projects should not be stopped after some expenditure. However, we should consider-- how more funds will be spent and how much return we will get."

The adviser instructed the IMED to make a report on reasons behind 3-4 times revision of the projects, changing design at the middle and any negligence there.​

It is true some of the mega projects were undertaken due to the express need for corruption, but the people of Bangladesh will be the losers if some of them are not completed and put to use as planned. They need to be judged on a case-by-case basis, trimmed and scaled down if needed.

In my mind, whatever helps job-growth and logistics for communication and exports (such as container logistics for rail links and Metro rail), has to be prioritized ASAP. These include Road, Rail infra between major export zones and ports (selectively, making sure the politically motivated ones were not undertaken to help Hasina win votes, like rail link to Patuakhali).

Road infra and SEZ for job creation, such as Dhaka Bypass Expressway project and all the larger SEZs (Mirsarai) and foreign-country-dedicated SEZs (such as Japanese SEZ near Dhaka) need to be completed ASAP. FDI has to be attracted to projects in these SEZs as well.

Of critical importance is to immediately discontinue any project that is connected to transit and port use by the neighbor and discontinue sea-link cable-sourced bandwidth export and LNG-sourced gas export to India (Sagar and Runi lost their lives over this - Summit people have to be brought to book on this crime). We need all the bandwidth and LNG we can gather. Other countries will have to manage their own.

We should not have any interest in spending our money to provide free transport or transit services to any other country when they block our exports at every opportunity.
 
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A pleasant surprise at Dhaka airport for incoming passengers
Passengers say they have been getting their luggage quickly at airport previously known for long delays

1725062213302.webp

Representational image. Photo: Collected

For passengers with past experience of the Dhaka airport, the prospect of flying into Bangladesh's capital has not been a pleasant one, chiefly because of the seemingly interminable delays in getting their checked-in baggage.

But things appear to have changed as passengers are now getting their luggage very soon after landing at the Hazrat Shahjalal International Airport.

"It's a dramatic change at the airport. Earlier, we had to wait for a long time to get luggage and also for completion of immigration formalities. But at present the scenario has changed. I have got my luggage immediately after reaching the luggage belt," said Md Kamal Hossain, who came from New York by a Qatar Airlines flight recently.

Different groups in Facebook lauded the recent positive change at the Dhaka Airport over the past two weeks or so.

Abul Kasem, who recently came from Singapore, said the behaviour of immigration and other officials had changed. He also said that he got his luggage within 20 minutes of landing.

Group Captain Kamrul Islam, executive director of HSIA, told The Daily Star, "We are trying our best to ensure passengers get their luggage smoothly."

He said under the leadership of the new chairman of Civil Aviation Authority of Bangladesh, Air Vice Marshal Md Monjur Kabir Bhuiyan who was appointed on August 18, all of their efforts are to ensure accountability.

He also said that with the constant coordination of Biman Bangladesh Airlines, which is providing ground handling facilities at the HSIA, the airport staffers are working throughout the day to improve the quality of baggage handling facilities.

"Alhamdulillah, passengers are getting 80 to 85 percent of their luggage within the stipulated time and for the rest of the luggage we are in a constant process to improve. It's a continuing process."

He said the first piece of luggage is now available at the belt within 18 minutes of the aircraft touching the boarding bridge and shutting down its engines and the last item is available within 60 minutes.

"We are trying our best so that passengers get the luggage and complete immigration formalities in the shortest possible time," he also said.​
 
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