Dhaka seeks $1.2b Chinese credit to fund deep sea port

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Sheikh Shahariar Zaman
Bangladesh has sought $1.2 billion in loans from China to help finance the planned deep sea port at Sonadia as it has initiated move to mobilise funds.
China's recent interest in financing Asian ports has led the government to explore the Chinese involvement as a co-financier in the multi-billion dollar project, an official of the Shipping Ministry said.
The port is slated for completion in three phases and the annual container handling capacity of the Sonadia port is estimated to be 3.0 million TEUs (twenty-foot equivalent unit) and the bulk cargo handling to be 100 million tonnes.
The government will provide 30 per cent of the Tk 150 billion project, with the rest coming in from domestic and external sources, the official said.
He said that Chittagong Port Authority was expected to give Tk 10 billion while the development budget will make up the government portion.
If operational, the port will become a major hub in the region, providing services to Nepal, Bhutan, southern China, Myanmar and the northeastern region of India.
The official said mother vessels can also berth at the proposed port given Sonadia's draught and it will reduce the trade costs of the local businessmen.
The port will be connected through a bridge of 10-12 kilometre long at Cox's Bazar and 40-kilometres of railway tracks and roads between Chittagong and Cox's Bazar, he said.
Another shipping ministry official said the government is drafting a law to regulate the proposed Deep Sea Port Authority.
The draft is almost finalised and the ministry will send it soon to the Law Ministry for vetting, he said, adding, "It is expected that the bill can be placed by early next year."
The bill will include definition, formation of the authority, its scope and general authority provisions, the official said.
Pacific Consultants International (PCI) of Japan submitted a detailed study report on the feasibility of the deep-sea port in April.
The first phase of the deep-sea port, to be completed by 2016, will have two harbours of nine 300-metre (long) jetties along with the required infrastructure and back-up facilities, the PCI study report said.
The second phase, to be completed by 2035, would see two more harbours with the same specifications. The deep-sea port would ultimately have six harbours when the third phase is completed by 2055.