Payra Port is an abscess on economy: Planning adviser

Highlights:

• Cost of Payra Port's first terminal and ancillary facilities increased by Tk911 crore to Tk5,228 crore
• Economic benefit of grading and transporting imported coal will be assessed annually
• Only 72% of the project has been completed in six years

Planning Adviser Wahiduddin Mahmud has raised concerns over Payra Port's poor navigability, warning that it could become an economic burden – "an abscess on the economy".

"It will not even be a river port, let alone a seaport. It is essentially being built to transport coal for a power plant," he said at a press briefing on the Executive Committee of the National Economic Council (Ecnec) meeting.

Ecnec today approved a revised project for Payra Port's first terminal and ancillary facilities, increasing the cost by Tk911 crore to Tk5,228 crore, subject to conditions.

The planning adviser said the project received conditional approval due to the possibility of cancellation. However, until a final decision is made following an inspection, essential infrastructure for coal transportation will continue. He also announced plans to personally visit the site.

To maintain navigability and justify its seaport status, he said, Payra Port requires dredging twice a year. The economic benefit of grading and transporting imported coal will be assessed annually. With the power plant's capacity set to rise from 170MW to 400MW, the project's viability will depend on whether losses outweigh benefits.

Wahiduddin said the commerce and power and energy advisers have already visited the port, concluding that it functions more as a jetty than a true seaport.

Initially approved in 2019 for Tk3,982 crore, the project's cost rose to Tk4,516.75 crore before the latest revision increased it further to Tk5,427 crore.

The original plan aimed to construct a 650-metre terminal, a 3.25 lakh square metre backup yard, a 6.35-kilometre six-lane road, and a five-kilometre transmission line by 2021.

Wahiduddin said despite six years of work, only 72% of the project has been completed, with half of the first revised budget already spent. The Planning Commission reported that the contractor is now demanding an additional Tk145 crore for jetty construction. Due to currency depreciation, the cost has risen by Tk161 crore, bringing the total increase to Tk306 crore.

The Ecnec meeting approved 15 projects worth Tk21,139 crore, including cost increases for eight ongoing projects. The Phase-3 revision of the Saidabad Water Treatment Plant was also approved conditionally, pending inspection.

Wahiduddin criticised the lack of research on rivers, stating that pollution, encroachment, and neighbouring countries' actions are causing their decline. He announced that the Water Development Board would soon launch a project to revive 10 rivers, including the Titas and Korotoa.

Additionally, Tk5,452.42 crore has been allocated for a primary school feeding programme in 150 poverty-stricken upazilas, providing dry food, eggs, bread, bananas, and biscuits, with plans for nationwide expansion.

The adviser also revealed amendments to the Government Procurement Act to curb corruption, removing the clause for cancelling tenders with fewer than 10% of bidders and modifying contractor experience criteria. All tenders will now be conducted online to improve transparency and competition.

A new directorate under the Implementation Monitoring and Evaluation Division will oversee government development projects, with all project documents published online to prevent political interference.