Planning Adviser Dr Wahiduddin Mahmud irately likens the Payra port to a festering wound to the economy and says a seaport is being built at a location that is not even suitable for a river-port.
"At best, it could serve as a simple Ghat," the adviser of the interim government told reporters about the project taken up by the past government.
He made the remarks Sunday at a press briefing following the day's meeting of the Executive Committee of the National Economic Council (ECNEC) which approved a second revision proposal on the Payra port's terminal project with an estimated cost of Tk 54.28 billion, over 36- percent higher than initial estimate.
"With over 72% of the works completed and substantial funds already spent, canceling the project is no longer an option, even if it is considered an economic burden," the adviser, however, said.
Earlier, the seventh meeting of the current interim government was held at the NEC auditorium in the capital with Chief Adviser Professor Dr Muhammad Yunus in the chair.
Wahiduddin Mahmud stated at the briefing that a total of 15 projects were approved at the ECNEC meeting, including seven new ones, while the remaining eight are revisions of ongoing projects to extend timelines and increase costs.
These approved projects would require new investment worth Tk 211.39 billion --Tk 141.94 billion to be financed from government exchequer and Tk 4.07 billion to be spent from the own sources of the implementing agencies. The remaining Tk 65.39 billion is to be managed from foreign sources as loans and grants.
The combined estimated costs of eight revised projects come to Tk 287.82 billion, which was Tk 136.07 billion at the initial stage. The cost of these projects is set escalate by Tk 151.75 billion or 111.53 per cent.
Highlighting some key reform measures of the interim government, he stated that amending the Public Procurement Act would prevent repeated contract awards to a single group.
Additionally, he mentions the launch of an online project-monitoring system and the establishment of a directorate to strengthen the Implementation Monitoring and Evaluation Division (IMED).
The meeting approved the second revision of the Sayedabad Water Treatment Plant Phase-3 project of Dhaka WASA with a revised cost of Tk 160.15 billion.
The project was approved in June 2015 with a cost of Tk 45.97 billion with a four-year deadline. However, it achieved only 9.81-percent progress in the last decade with the spending of only 2.44 per cent of the allocation.
The delays in the implementation of the project pushed up the cost by Tk 114.18 billion.
Wahiduddin mentioned that, initially, water was sourced from the Buriganga River for the Sayedabad Treatment Plant but now it is being drawn from the Shitalakshya.
However, owing to increasing pollution in the Shitalakshya waters, steps have been taken to source water from the Meghna River instead.
Commenting on the growing pollution in the Meghna River, he added that the current government plans to implement new projects aimed at providing protection to at least 10 rivers.
The cost of a project to improve Munshiganj's road connectivity with Dhaka and its surrounding areas has increased 49.04 per cent.
The project involves widening 10.813 kilometres of roads and constructing 9.06 kilometres of elevated roads from Panchabati in Narayanganj to the Muktarpur Bridge on the Dhaleshwari River.
Initiated in January 2021, the project's estimated cost was Tk 22.43 billion. Now the Bridges Division has sent the first-revision proposal increasing the cost to Tk 33.43 billion and extending the deadline by one more year.
The meeting approved widely discussed "Feeding Programme in Government Primary Schools" to provide nutritious midday meals to students in all government primary schools across 150 upazilas, at a total cost of Tk 54.52 billion.
The project will provide fortified biscuits, bananas or seasonal fruits, buns, eggs, and UHT milk to 3.13 million students in 19,419 schools across 135 high-and very-high poverty-prone upazilas and 14 medium-and low-poverty-prone upazilas.
The government's highest economic-policymaking body approved the first revised project title strengthening the capacity of the existing runway and taxiway of Chattogram Shah Amanat International Airport, with a revised cost of Tk 6.22 billion.
It also gave the all-clear to a new project to acquire land for a sewerage-treatment plant at Kalurghat in Chattogram, with a budget of Tk 21.55 billion.
During the Covid-19 pandemic, when global trade was facing uncertainty, the Ministry of Shipping signed agreements with several Chinese companies to construct the Payra Seaport terminal, even amid lockdown restrictions, said officials of the Planning Commission.
However, works were disrupted due to the pandemic, leading contractor companies to demand over Tk8.0 billion in compensation. Additionally, the significant depreciation of the taka over recent years has further escalated cost.
In the briefing, the planning adviser stated that while Payra is referred to as a seaport, it was originally constructed to bring coal for a power plant.
"It could be considered a ghat due to the river's navigability and it would require annual dredging, which would incur significant costs," the planning adviser said, quoting the commerce adviser.
The commerce adviser also suggested that coal could be transported by air as a more cost-effective alternative, said the planning adviser.
Despite being a flawed project with significant investments already made, it must be completed to ensure coal can be brought in and the power plant remains operational.
"I've been tasked with visiting the site, as parts of the Sundarbans have been damaged by the coal plant's construction. I'll look into it, though there may be little that can be done," he concludes.
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