A government initiative to finance a waste treatment plant has apparently bogged down for the time being due to escalation of cost by nearly five times impeding relocation of tanneries to leather industrial estate in Savar by 2010.
In the original proposal in 2003, the government estimated Tk 1.75 billion as initial establishment cost of a three-year project, but the amount increased to Tk 5.45 billion in the revised proposal in 2008.
Establishment cost of Central Effluent Treatment Plant (CETP) has now been estimated at Tk 3.82 billion and dumping yard at Tk 517 million against Tk 770 million and Tk 47 million respectively.
As per the agreement with the leather industry owners, the government is committed to initially bear all establishment cost of the industrial estate. After completion of infrastructure the government will hand over the leather industrial estate to the industry owners.
The industry owners will, however, have to pay back the establishment cost of CETP and dumping yard over a period of 20 years according to a memorandum of understanding (MoU).
In 2003, Bangladesh Small and Cottage Industries Corporation (BSCIC), Bangladesh Finished Leather, Leather Goods and Footwear Exporters' Association (BFLLFEA) and Bangladesh Tanners Association (BTAA) signed a tripartite agreement to implement the project.
The government has initiated the move to relocate the 195 tanneries of Hazaribagh area to Savar to save the Dhaka city from toxic pollution of the waste disposed from the tanneries.
Commerce ministry last week held an inter-ministerial meeting to discuss the issue with the leather industry owners.
Main objective of relocation of industrial estate is to save the environment from disposed waste of tanneries for which establishment of CETP is necessary, said leather industry owners.
Although the government has completed building necessary infrastructure on 200 acres of land, including road construction and utility service, but industry owners will not be able to shift the industries without the CETP.
The government has assured the industry of bearing all establishment cost through the MoU, but it is trying to escape from the responsibility, said a leather industry owner.
Industry ministry official said the government might request the leather industry owners to share the CETP establishment cost due to unexpected rise in expenditure.
"We expect that the government will comply with all the conditions as per the MoU," said Rezaul Karim Ansary, chairman of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLFEA).
