The Ministry of Shipping (MoS) has decided to go ahead with the construction of the multibillion-dollar Bay Terminal in consultation with stakeholders, sources said.
In a meeting on Sunday, it also decided to seek the advisory council's approval after the transaction adviser of the project submits a report.
Shipping adviser Brig Gen (retd) Dr M Sakhawat Hussain chaired the meeting attended by officials from the Bangladesh Investment Development Authority (BIDA), Public-Private Partnership Authority (PPPA) and Chittagong Port Authority (CPA).
Representatives from the prospective local and foreign investors and shipping ministry officials were also present.
Contacted over phone, Mr Hussain did not talk about the meeting's outcome, saying that the public relations officer of his ministry might issue a press release to this end.
BIDA executive chairman Chowdhury Ashik Mahmud Bin Harun, who attended the meeting, told the FE that the project would go ahead on its own course.
"There is no change of outlook over the project," he said.
Mr Harun said the terminal was vital for the country, adding that the cabinet would give its final approval on the completion of a study. "We've evaluated the progress of the project today."
Commodore Kaosar Rashid, member (engineering) of the CPA, told the FE said the stakeholders concerned have placed the progress report of the project at the meeting.
"The adviser said he understood the necessity of the Bay Terminal and will discuss it at the cabinet meeting and will carry on the project," he said.
Local and foreign investors are intent on investing some $8.0 billion in the project for construction of the terminal near Halishahar coast of the Bay of Bengal.
The PPPA appointed UK-based Ernst & Young LLP as transaction adviser in 2022 for the terminal. However, the company has yet to submit any report to the authorities, sources said.
This June, the World Bank granted a loan package worth $650 million to finance the dredging of the main access channel and construction of breakwater for the terminal.
The CPA announced in May that foreign and local companies came forward to put in some $8.0 billion in the terminal which will help enhance Chittagong Port's annual handling capacity by 5.0 million Twenty-foot Equivalent Units (TEUs).
Of the financiers, AD Ports Group wants to invest $1.0 billion in construction of the multipurpose terminal, while PSA Singapore and DP World are interested to invest $1.5 billion each separately in the two container terminals.
Moreover, local conglomerate East Coast Group and its foreign partners want to invest $3.5 billion in the liquid bulk terminal.
The Bay Terminal will have at least 12-metre water draft allowing 300-metre ships with 5,000-TEU-container-carrying capacity to take berth in the jetties any time in day and night.
The terminal will be built on 2,500 acres of land, according to officials concerned.
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