Government can now prioritise local companies for megaprojects

Among the local companies, BSRM, the country's largest steel manufacturer, is playing a significant role in the development of the country's megaprojects, such as supplying 100% of steel products to the Rooppur Nuclear Power Plant, 90% steel to the Padma Rail Link, 58% steel products to Cox's Bazar airport, and 72% to the Bangabandhu Tunnel. 

In an interview with The Business Standard's Chattogram Bureau chief, BSRM Managing Director Aameir Alihussain discusses how local companies can contribute more to the nation's megaprojects, the obstacles and policy challenges to such contributions, the prospects of local involvement in big infrastructure projects, and how it will play an important role in Bangladesh's economy. 

What contributions did BSRM have to the construction of the Bangabandhu Tunnel?

BSRM is proud to be part of South Asia's first-ever underwater tunnel, which is also a proud moment for the country.

We feel proud that we can be part of all the important mega infrastructure projects in Bangladesh. We hope we will continue our contribution and be a part of the country's growth. 

On behalf of the BSRM family, I want to thank Prime Minister Sheikh Hasina for all the infrastructure projects her government has undertaken to develop the country. No one ever dreamt of implementing so many projects simultaneously. She has set a new benchmark for the country and proven that it is no big matter to implement megaprojects. 

There might be a few challenges to overcome, which is a part of any megaproject. We are happy that megaprojects are implementable in our country. It means that as a nation we are capable. We have the skills, we have the talent, and we have the vision. We have to keep our focus right. We have to keep our commitment. The BSRM family is always ready to support any infrastructure projects in the country. 

How does BSRM maintain the quality of its products?

We maintain quality parameters from the beginning of the production process starting with acquiring materials. The quality parameters we control are very consistent. We keep quality consistency within a very narrow range. 

Our products were sent abroad for quality tests several times. Every time, they managed to pass the quality test. And consistent quality is very important for this type of critical project.  

How can local companies be encouraged to supply materials for this type of project?         

Not only for the steel industry, whatever industry a country has should get support. No products should be allowed to be imported without duty for any project if the country produces the products. The government should exclude the conditions to allow material imports during the negotiation of any major infrastructure project to support the local industries. 

Are local industries capable of supplying materials to megaprojects? If not, what initiatives can be taken to enhance their capacity?

We are fully capable of supplying materials to megaprojects. The capacity will further develop in the future if the industries are assured that the megaprojects will procure materials from the local companies and there will be no option for importing materials. 

Local companies will then keep themselves ready to supply materials to upcoming megaprojects.

In your opinion, how will the Bangabandhu Tunnel contribute to the economy?

Any infrastructure project will benefit the country, no doubt. But as a country, our resources are very limited. So, when we implement an infrastructure project, we must think of its pros and cons. 

The Bangabandhu Tunnel will definitely benefit the economy — it will make both private and commercial movement easier. But to get the most out of it, we will have to strengthen the auxiliary connectivity on both sides of the tunnel and we will have to do it as early as possible.

The tunnel will turn Chattogram into 'One city, two towns'. So, firstly, the connectivity should be quick. If it takes hours to cross the tunnel, it will not work. 

Secondly, we have to evaluate that the transport cost is saved. Logistics costs in our country are very high, mainly, because of infrastructure issues. So, when we implement an infrastructure project we must think of reducing the logistics costs. The auxiliary roads and highways must be developed considering international standard load capacity. If the soil quality is not good, RCC highways can be constructed. We have to increase the load limitation of vehicles to reduce the logistics cost. Maybe, it will cost more today to make higher load-bearing capacity highways and roads. But that is very important for the country in the long run.

How do you think the tunnel will impact international connectivity?

The tunnel will connect the country to Matarbari Port, then Ghundhum in Myanmar in the east. It will also connect India through Ramgarh. It will save connectivity time but not the cost due to the highways with low load limits. 

So, we need to build higher load limit capacity roads and highways. We must enhance the Dhaka-Chattogram Highway. The government planned an elevated expressway on the route, which might be expensive, but it would benefit us to a greater extent.