A total of 16 projects, involving an overall estimated cost of Tk24,247.24 crore, received approval at the Ecnec meeting

The Executive Committee of the National Economic Council (Ecnec) on Sunday approved the Bay Terminal Marine Infrastructure Development Project (BTMIDP), involving an estimated cost of Tk13,525.57 crore, aimed at facilitating the construction of the Bay Terminal in Chittagong.

The approval came during an Ecnec meeting held at the NEC Conference Room in the capital, with Ecnec Chairperson and Chief Adviser Professor Muhammad Yunus presiding.

A total of 16 projects, involving an overall estimated cost of Tk24,247.24 crore, received approval at the meeting.

Of the total project cost, Tk3,001.34 crore will come from the government of Bangladesh, Tk16,719.73 crore as project loans, and Tk4,526.17 crore from the own funds of the respective implementing organizations.

Among the approved projects, 13 are new, while 3 are revised.

Planning Adviser Professor Dr Wahiduddin Mahmud briefed reporters following the meeting. He noted that although the Bay Terminal project had been under discussion for a long time, it has now finally been approved, and necessary work will commence soon.

He emphasized that, considering the anticipated increase in business operations over the next 15 to 20 years and the geopolitical significance of the region, the facilities at Chittagong Port must be enhanced accordingly.

According to the planning adviser, following separate Memoranda of Understanding (MoUs) signed with the Public-Private Partnership (PPP) Authority, Terminal-1 of the Bay Terminal will be constructed by the Enterprise of Singapore, while Terminal-2 will be developed by DP World of the UAE.

Out of the total cost of Tk13,525.57 crore, the World Bank will provide Tk9,333 crore in loan support, he said.

This funding will enable Bangladesh to invest in critical infrastructure for the development of the Bay Terminal deep seaport, which is expected to significantly enhance the country’s global trade competitiveness and reduce import-export costs by improving port efficiency and mobilizing private investment, added the adviser.

As part of the Bay Terminal Marine Infrastructure Development Project, a 6km climate-resilient breakwater will be constructed to protect the harbour from waves, currents, and extreme weather. The project will also include dredging of the port basin, entrance, and access channels.

The new, state-of-the-art Bay Terminal, to be operated by leading international terminal operators, will accommodate larger vessels such as Panamax-class ships and drastically reduce vessel turnaround time.

Currently, Chittagong Port — which handles over 90% of Bangladesh’s international trade volume and 98% of its container traffic — can only accommodate small feeder vessels and that too during limited hours.

Additionally, the project aims to mobilize private investment for the development of container terminals.

The combination of World Bank and government funding is expected to boost investor confidence and mitigate the risks associated with the Bay Terminal project.

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, is also considering investing in one of the proposed private-sector-led terminals.

The terminal will be located in the Anandanagar/Sandwip channel, west of Chittagong Port and near existing road and rail links to Dhaka.

It is projected to handle 36% of Bangladesh’s container volume.

The project is expected to benefit over one million people, half of whom are women, by improving access to sustainable transport services.

Beneficiaries include shipping companies, business communities, importers, exporters, and freight forwarders.

On June 28, 2024, the World Bank’s Board of Executive Directors approved $650 million to help Bangladesh develop this critical infrastructure.

This forms part of a record $3.4 billion that the World Bank committed to Bangladesh in FY 2023-24, including support for this project.

_{Source: Dhaka Tribune}