Govt reviews Mongla Port jetty project contract with Chinese firm

The interim government is reconsidering the appointment of China Civil Engineering Construction Corporation tasked with building two jetties at Mongla Sea Port.

Initially awarded through the direct purchase method, the project may now face a fresh tender process to ensure transparency.

The Chinese corporation had been granted the project without open competition, which has raised concerns within the government. The direct purchase method is viewed as susceptible to improper benefits for certain vested interests under the previous administration.

Shipping Adviser Brigadier General (Retd) M Sakhawat Hossain expressed doubts about the transparency of the process, stating, "I am not alleging corruption, but the purchase process raises doubts. We will reassess and make a decision later."

The government plans to reevaluate the current arrangement and may opt for an open tender to promote transparency and reduce costs.

The shipping adviser highlighted that a competitive tender process would likely lower project costs and safeguard public funds.

Meanwhile, construction of four additional jetties is progressing under separate projects.

Two of these are being developed by the local firm Saif Powertec Ltd under a public-private partnership, while two others are being built by India.

India is also conducting a study to construct two more jetties at the seaport, as part of its secured transhipment facilities to transport cargo to and from its landlocked northeastern states.

A few months ago, India expressed interest in operating the Mongla port, with a delegation from India Ports Global Limited, an entity under its Ministry of Ports, Shipping and Waterways, visiting the site.

Mongla Port Chairman Rear Admiral Shaheen Rahman confirmed that Saif Powertec's project is over 70% complete, with a handover expected by December. The detailed designs for the Indian-led jetties are ongoing, and physical work is expected to commence soon.

Shaheen also mentioned the government's decision to reassess the two jetties planned under the Chinese contractor.

The Mongla Port Authority signed a Memorandum of Understanding with the Chinese engineering corporation on 24 August 2021, and the company submitted its financial and technical proposals on 28 January 2023.

Under the "Expansion and Development of Mongla Port Facilities" project, China agreed to invest $400 million, which would increase the port's handling capacity.

Project faced earlier delays

Despite being selected by the previous government, China Civil Engineering Construction Corporation has faced delays in starting the project.

The implementation was supposed to begin on 1 July this year, but various obstacles, including internal reviews and lack of clarity from officials, have caused setbacks. 

However, officials from the concerned department and ministry failed to provide any specific reasons for the delays.

The Development Project Proposal for the Chinese project was presented at a meeting of the Executive Committee of the National Economic Council (ECNEC) on 12 September 2023.

While the Ministry of Planning's former state minister Shamsul Alam said that the project had received approval alongside 18 others, the minutes of the meeting did not mention it specifically.

Four months later, in December, the Planning Commission sent a letter to the Shipping Ministry requesting a re-evaluation of the project.

A committee was subsequently formed, and by July, it submitted a report that reviewed the port's recent activity, including data on ship arrivals, cargo volume, and future prospects.

A port official involved in the review noted that much of the information had already been covered in the project's initial feasibility study, questioning the reason for the delays.

"We are unsure why the government prolonged the project in this way," the official said.

There are rumours that the previous government delayed the project under pressure from India, shared the official.