A sound feasibility study is the key to successful implementation and effective functioning of any project. But in Bangladesh, the importance of conducting a feasibility study before project implementation is often overlooked, leading to implementation delays and cost overruns. Worse still, in some cases, the opinion of experts is even ignored. Construction of the Payra Seaport is a case in point. Before the construction of the seaport, various quarters had opined that construction of the port would not be viable as its site is prone to heavy siltation. Moreover, its location near the Sunderbans had given rise to concerns over potential biodiversity and habitat loss in the world's largest mangrove forest.
A 2019 study by a team of researchers from Germany, Belgium, and Bangladesh raised concerns about excessive sedimentation at Payra Port channel. The study found that the Bay of Bengal receives a staggering 1.1 billion cubic meters of sediment annually from the Himalayas through the rivers. Of this, a significant amount, roughly 400 million cubic meters, accumulates around the Payra River channel each year. Experts warned that such substantial siltation could pose operational difficulties for the port. The study estimates that removing this accumulated silt annually would cost approximately 80 to 100 billion taka. Additionally, researchers have expressed concerns that a moderate storm could render the port unusable due to rapid siltation. In sum, the study suggests that Payra Port's functionality might be significantly compromised by sedimentation.
Yet, the government went ahead with its plan to construct Payra Port, the country's third seaport, located on the western bank of the Rabnabad Channel at the confluence of Rivers Galachipa and Tetulia in Patuakhali. Initially, the government had planned to develop Payra as a deep-sea port with a 16-metre draft to enable the entry of large vessels that cannot do so at Mongla and Chattogram ports. But later, the government backtracked from the deep seaport project at Payra and opted for constructing a seaport there as the water draft in the area linking the Bay of Bengal appeared to be challenging.
The Payra Port is one of the 10 fast-track mega projects of the government. Although the port has been operational in a limited capacity since 2016, construction of a full-fledged port is still limping on. According to a recent report of the Financial Express, the Payra Port Authority initiated a Tk 11.28 billion project titled 'Development of Necessary Facilities at the Payra Port for its Smooth Operation Project' in 2015 for the smooth functioning of the port. It was supposed to be completed in June 2018. Unfortunately, the project has not been completed yet, while the project cost has jumped to Tk 43.75 billion - an increase by 287 per cent from the original allocation.
After missing the initial three-year deadline, the PPA in its first revision got the cost inflated to Tk 33.50 billion, and the deadline extended to June 2020. After failing to complete the project in 2020, the port authority sought the second revision shooting up the cost to Tk 43.75 billion with another two years of extension up to June 2022. The authorities, however, failed to meet the deadline and applied for one-year more time extension up to June 2023. Again, the port authority failed, compelling the government to extend the deadline to June 2024. Now, the project awaits another extension of the deadline and, possibly, an increase in funds as well.
Observers are of the view that repeated failure to complete the project in time has already made the purpose of the project outcome vulnerable, while the country has failed to get the expected port services for the past six years. The government has invested a huge amount of money for the port facilities. But the outcome remained elusive for the project delays.
Meanwhile, the fear of heavy siltation hampering the port's navigability also came true. The PPA has already spent TK 65.35 billion in carrying out capital-and-maintenance dredging of Rabnabad channel. The funds mostly came from Bangladesh's fast-depleting forex reserves. The Rabnabad channel, a 75-kilometre-long main navigation channel of the seaport, was dredged by spending 524 million Euros from the forex reserves and some Tk 11 billion in local currency. Now due to heavy siltation, the channel is in need of dredging again, and the PPA is pursuing a Tk 52 billion project with the Ministry of Finance for maintaining the navigability to the port through the channel.
Given the huge amount of money that the authorities have already spent and will be required in future to maintain the navigability of the port channel, many believe that Payra Port is another white elephant project of the government after the Rooppur Nuclear Power Plant. When the Payra Port project was conceived, it was envisaged that the port with its 16 metres berth depth would be the country's premier seaport by 2022. Both the Chittagong and Mongla ports have berth depth of around 10 metres. Moreover, the Chattogram Port is 260 kilometres off the capital and the Payra Port 190-km away, while with 170 kilometres distance Mongla Port is the nearest seaport from Dhaka. The capital is surrounded by a large number of industries that have so far depended entirely on the far away Chattogram Port, thereby incurring a higher cost and loss of time. Use of the Mongla and Payra ports was expected to be more convenient for businesses located in Dhaka, especially following the construction and inauguration of the Padma Bridge.
But the hope that Payra seaport would offer a much more convenient port facility to businesses in Dhaka and adjacent areas was dashed when the project implementation authorities finally came to terms with the reality that the site is not suitable for the construction of a deep-sea port. Now, a seaport is being constructed there when the nearby Mongla seaport cannot be utilised to its full capacity due to a lack of infrastructural development, and about 92 per cent of the country's exports and imports take place through Chattogram seaport. Moreover, it is anticipated that the cost of maintaining the navigability of the Payra port channel would far outweigh the revenue the port would generate. One can only hope that the government exercises greater caution and conducts thorough feasibility studies before implementing such mega-projects. Ideally, project selection should be based on sound economic and strategic considerations, not on political consideration.
© 2024 - All Rights with The Financial Express
