Bay Terminal: Tk14,908cr support project set for final govt approval

The government is set to approve a support project worth Tk14,908.83 crore as part of the preparations for constructing the Bay Terminal in the Anandabazar area in North Halishahar, Chattogram.

Under the proposed Bay Terminal Marine Infrastructure Development Project (BTMIDP), a breakwater and navigation access channel will be constructed. Additionally, the project will include the construction of common facilities, connecting roads, railways, water, electricity, and gas supply to the terminal, internal roads within the terminal, and a service jetty.

According to the Planning Commission sources, the project will be presented at the upcoming Executive Committee of the National Economic Council (Ecnec) meeting on Sunday for approval.

The Planning Commission stated that the proposed project is targeted for completion by June 2031. However, it is expected that the construction of three Bay Terminals will commence before that.

Of the three terminals, two will be built under public-private partnership (PPP) arrangements. A memorandum of understanding (MoU) for Terminal 1 was signed in March 2018 between the PPP Authority and Enterprise of Singapore. Another MoU was signed in July 2019 with DP World of the UAE for Terminal 2.

Additionally, in May last year, the Chattogram Port Authority signed an MoU with Abu Dhabi Ports Group for the construction of a multipurpose terminal.

The Chattogram Port Authority has emphasised that international companies interested in terminal construction under PPP will lose confidence unless the government starts implementing the proposed infrastructure project. For this reason, the current government is prioritising this initiative.

So far, the World Bank has initially approved a loan of $650 million for the construction of the breakwater and navigation channel under the BTMIDP. The total loan requirement for this project is estimated at $850 million. The World Bank has assured that it will provide the additional loan as well, according to minutes from a recent inter-ministerial meeting on the project.

According to the project proposal, the proposed BTMIDP includes an estimated cost of Tk8,269.85 crore for breakwater construction, Tk1,979.45 crore for building the navigation access channel, Tk57.70 crore for the installation of Aids to Navigation, and Tk3,434.68 crore for common facilities and hinterland connectivity.

The government took the policy decision to build the Bay Terminal in 2013 as part of Chattogram Port's expansion. In the same year, Hamburg Port Consultant of Germany conducted a pre-feasibility study. Then, in 2017, a decision was made to carry out a full feasibility study and develop a master plan.

Subsequently, in 2021, a Korean company named Kunhwa was awarded the work order for the feasibility study and master plan, which has been submitted to the Chattogram Port Authority.

The Bay Terminal is thought to be critical for accommodating future demand and supporting foreign direct investments (FDIs), export/import activities, and national development.