The interim government has finally decided to scrap the project to establish a specialised jute textile mill in Jamalpur, named after former Prime Minister Sheikh Hasina, whose ouster resulted from a student-led mass movement last year.
The Bangladesh Jute Mills Corporation (BJMC) had spent Tk398.28 million on the Tk5.19 billion project over seven years of sluggish progress, reveal the minutes of a Project Evaluation Committee (PEC) meeting held at the Planning Commission to officially terminate the project, leaving several components incomplete.
"Two years after the project was launched, the Ministry of Textiles and Jute announced the closure of 25 BJMC-owned jute mills and decided to terminate the project during a steering committee meeting, after spending Tk108.50 million," said an official of the planning commission.
However, the project continued solely because it carried the name of Sheikh Hasina, resulting in an additional expenditure of Tk289.78 million from government funds, the official added.
The meeting led by Md Ruhul Amin, member (Secretary), Industry and Energy Division, expressed disappointment and asked for delayed initiatives to conclude the project with a higher cost, revealed the minutes.
However, officials at the Ministry of Textiles and Jute said that although the Parliamentary Standing Committee had recommended resuming the project, the Prime Minister's Office later instructed its discontinuation based on a summary submitted in response to the committee's suggestion.
Sources said that the Executive Committee of the National Economic Council (ECNEC) approved the Tk5.19 billion project in July 2018 to establish a specialised jute textile mill in Madarganj of Jamalpur district with a scheduled completion dateline of June 2020, just within two years of approval.
Planning Commission officials said the factory had originally been planned to be set up on unused land at BJMC's Latif Bawani Jute Mills in Demra, Dhaka.
However, at the insistence of then State Minister for Textiles and Jute, Mirza Azam, the location was shifted to Jamalpur, citing the availability of workers and raw jute.
The project aimed to produce eco-friendly blended yarn and fabrics using jute and cotton to gain GSP benefits, reduce production costs, boost exports-especially of denim garments-and generate employment, while also promoting diversified jute-based products for both industrial and household use, reveals the document.
However, the tenure of the project had been extended with another year to June 2021 responding with an initial delay.
"Although the report from the Implementation Monitoring and Evaluation Division (IMED) recommends formulating a limited Revised Development Project Proposal (RDPP) covering land development and other works, the submitted proposal does not specify the amount of money spent or the extent of work completed," revealed the meeting minutes.
Additionally, the RDPP must clearly specifically whether the initiating ministry and the implementing agency conducted on-site inspections and verified the completed work following the decision to discontinue project activities and declare the project complete, it added.
The meeting agreed that the RDPP should include detailed information on the actual work completed and its associated costs and appropriate actions must be taken in accordance with government rules regarding the vehicles acquired under the project, officials said.
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