Govt plans Tk14,908cr integrated project to fast-track Ctg Bay Terminal construction
Officials say the Bay Terminal at the Chattogram port is a landmark project expected to increase the capacity of the country’s main trade gateway by up to six times
The government plans to undertake a Tk14,908 crore integrated project, which will include the construction of a breakwater, navigation access channel, rail and road connectivity, and other infrastructure, to expedite the construction of the Bay Terminal at Chattogram Port.
According to port officials, these works were initially planned under three separate projects, which would have prolonged the approval process.
By integrating them into a single project, titled the Bay Terminal Marine Infrastructure Development Project (BTMIDP), approval can now be accelerated, they say.
Md Mahbub Morshed Chowdhury, chief of planning at the Chattogram Port Authority, told TBS, "The previously proposed construction of the breakwater and navigation access channel has been merged into a comprehensive project."
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According to officials of the Chattogram Port Authority (CPA), the approval for the project is expected within the current fiscal year, with the implementation set to be completed by 2031. However, the construction of the breakwater and navigation access channel is expected to be completed by 2028.
Earlier, in mid-2023, the CPA submitted a project proposal to the Planning Commission for the Tk11,132 crore construction of the Bay Terminal's breakwater and navigation access channel. However, delays occurred in preparing project proposals for rail and road connectivity.
Officials say the Bay Terminal at the Chattogram port is a landmark project expected to increase the capacity of the country's main trade gateway by up to six times.
On 12 December last year, in a meeting chaired by Finance Adviser Dr Salehuddin Ahmed, a decision was taken that all supporting projects related to the terminal's construction would be implemented in an integrated manner for faster execution.
Officials say failure to initiate the proposed project could undermine the confidence of international investors interested in developing the terminal under Public Private Partnership (PPP). This is why the current government is emphasising its implementation.
Proposal to secure Tk10,272.40 crore from WB
Officials from the Chattogram Port Authority said the estimated cost of the BTMIDP project includes a proposal to secure Tk10,272.40 crore from the World Bank and Tk4,636.43 crore from the port's own fund.
A loan of $650 million will be used for the construction of the breakwater and navigation channel, which was approved by the World Bank's board in June. However, due to the addition of new rail and road connections, an additional loan proposal of $192 million will be submitted to the World Bank for the implementation of the project. If the additional loan is not approved, the port authority will cover the required funds from its own resources.
According to the project proposal, the proposed BTMIDP project includes Tk8,269.85 crore for the construction of the breakwater, Tk1,979.45 crore for the construction of the navigation access channel, Tk57.70 crore for the installation of aids to navigation, and Tk3,434.68 crore for the common facility and hinterland connectivity.
$2.8 billion Bay Terminal PPP project
In 2013, the government made a policy decision to expand the Chattogram port by constructing a bay terminal. A pre-feasibility study was conducted in 2013 by the German firm Hamburg Port Consultant. In 2017, a decision was made to proceed with the feasibility study and master plan.
Subsequently, in 2021, a work order was issued to the Korean company Kun Hwa for the feasibility study and master planning. The company has completed the feasibility study and submitted it to the Chattogram Port Authority.
Based on the feasibility study, the port authority has announced that the total cost for building the entire bay terminal, including three terminals, an access channel, and a breakwater, will be $2.8 billion. The construction of Terminals 1 and 2 will each cost $609.44 million, while the cost for building the third terminal will be $755.11 million.
The Bay Terminal project was approved as a PPP project by the Cabinet Committee on Economic Affairs (CCEA) in 2019.
