As China has held out hefty finances for bankrolling Bangladesh's development programmes, the Paira Port Authority (PPA) proposed that the government keep port's two major components on next year's priority list of funding.
The two nations are in talks on preparing priority list of projects to be funded by China. Chinese fiscal year starts on January 1st and ends on December 31st.
Officials at Bangladesh's Economic Relations Division (ERD) usually sit with Chinese officials during October-November period to set priorities regarding projects for next year.
The two important components of the seaport are core port infrastructure and riparian liabilities, for which the PPA wants funds next year.
The PPA signed a memorandum of understanding (MoU) in December last year with China Harbour Engineering Company Ltd (CHECL) on implementation of the core port infrastructure, and another MoU with China State Construction Engineering Company Ltd (CSCECL) on implementation of the component named riparian liabilities.
However, work to implement neither of the components has started yet. These two segments will be implemented under government-to-government arrangement.
A senior official at the ministry of shipping (MoS) told the FE the ministry had forwarded the proposal to the ERD to include the two components in next year's Chinese funding-priority list.
"The Paira port is one of government's fast-track projects. Its implementation deserves priority," he said to substantiate their proposal on priority funding.
Though there has been no tangible progress on execution of the project, the port authority has set a target for a full-fledged operation of the country's third-largest seaport in Patuakhali district by 2019.
So far, apart from land acquisition and the launch of an anchorage port, the authority has signed a MoU with a Belgium-based company, Jan De Nul NV (JDN), for the dredging of main channel of the seaport.
However, the dredging work of the channel, which needs a US$600 million worth of foreign loan, has yet to start.
Prime Minister Sheikh Hasina on November 19, 2013 formally inaugurated the port so that a limited operation could be carried out before construction of the full-fledged port.
According to a feasibility study, conducted by British consultancy company Wallingford, construction of the full-fledged port may involve US$20 billion.
Of the amount, some $3.5 billion will be spent on capital dredging to make the port channel navigable. The rest of the money--$16.5 billion--will go for establishing connectivity of the port towards Dhaka through waterways and railways, buying equipment, and building terminals and jetties.
The study also said each year some $350 million will be needed for maintenance dredging of the port channel.
Officials said neighbouring India has already been allowed to use Chittagong and Mongla ports for carrying goods to its remote states via Bangladesh territory. Bhutan and Nepal have also expressed interest in using the seaports.
The capacity of these sea ports will go down in the near future, thus establishing the third seaport is a priority need of the country, they noted. syful-islam@outlook.com
