Execution delayed as CPA fails to utilise three-fourths of funds

The authority now seeks a whopping Tk 43.79b allocations in next ADP

FHM Humayan Kabir | Published: May 11, 2024 23:10:34

The Chittagong Port Authority (CPA) has sought nearly six times higher funds in the upcoming development budget for Matarbari port development project despite its failure to spend three-fourth of the allocations in the current budget, officials said on Saturday.
In the current fiscal year (FY 2023-24), the CPA surrendered 74 per cent of its original allocations, Tk 28.59 billion, in the Revised Annual Development Programme (RADP), resulting in delays of the port development work, insiders said.
However, the authority sought Tk 43.79 billion for the project in the upcoming ADP which is 5.86 times higher than the revised allocation of Tk 7.47 billion for the current FY.
Of the fund demand, the CPA sought a whopping Tk 24.76 billion as project aid (PA), expected to be provided by the Japanese lender - Japan International Cooperation Agency (JICA), and Tk 7.0 billion from the internal resources.
"The CPA surrendered almost three-fourth of its fund allocations in the current RADP, but it is interesting to note that the authority is seeking nearly six times higher funds in the upcoming ADP," said a senior Planning Commission (PC) official.
"We are strictly reviewing the demand for the fund and especially its capacity to utilise the proposed funds," he added.
The government in March 2020 undertook the Matarbari port development project at a total cost of Tk 177.77 billion with the financial support from JICA.
The JICA is contributing Tk 128.92 billion in the deep-sea port development project while the CPA and the government will provide Tk 22.13 billion and Tk 26.71 billion respectively.
The government has already revised the project once and extended the execution deadline up to December 2026. Another PC official said the failure in utilising 74 per cent of the allocated funds has already delayed implementation of the key "fast-track" project.
Earlier, the government allocated Tk 28.59 billion in favour of the project in its original ADP for the FY2024. But after the first half of the FY, the port authority made the largest cut by Tk 21.12 billion to Tk 7.47 billion in the revised ADP.
Sanjoy Kumar Banik, additional secretary at the Shipping Ministry, said that since there were some delays in getting concurrence from JICA on documents regarding their funding to the project, utilising the entire allocated funds this fiscal was not possible.
So, the ministry has surrendered the funds in the RADP, Mr Banik said, adding that the unutilised funds would be carried over into the next FY.
The project encompasses two main components: a Tk 89.75-billion port- development scheme undertaken by the port authority and a Tk 88.32-billion road-construction project managed by the Roads and Highways Department (RHD).
The current deadline for completion of both the projects is December 2026.
Nobody from the port authority was available for comment in this regard.
However, a CPA official said construction of the first terminal at Matarbari is imminent with the tender process for selecting a contractor is nearing completion.
While the terminal construction awaits its official start, visible progress has been made on creating a 14.3-kilometre artificial navigation channel connecting the proposed terminal to the sea, said the CPA officials.
This channel was initially developed by Coal Power Generation Company Bangladesh Limited (CPGCBL) for its Matarbari Ultra Super Critical Coal-Fired Power Project before being handed over to the port authority in September 2023.
According to project officials, the first phase of the Matarbari Port Development Project comprises the first terminal, featuring a 460-metre container jetty and a 300-metre multi-purpose jetty, both with an 18.5-metre draught, alongside container yards.
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