Breakthrough in Chinese funding for deep-sea port in the offing

Chinese funding for construction of a deep-sea port in Bangladesh may see a breakthrough soon as Prime Minister Sheikh Hasina is going to visit Beijing next month, officials say.
A meeting at the ministry of foreign affairs last week took an update about the progress relating to funding for the deep-sea port and included it in the Prime Minister's agenda of discussion.
"The Prime Minister's Office (PMO) is looking into the issue of funding for deep-sea port construction. During her Beijing visit she will discuss the issue with her Chinese counterpart," Shipping Minister Shajahan Khan told the FE.
The minister said he had talks with the Prime Minister recently about moving forward with the deep-sea port construction plan.  
"We have received proposals from many other countries about funding and construction of the deep-sea port. Those will also remain on the table while discussing the issue with China," Khan added.
A senior official of the ministry of shipping (MoS) said China was the first country which expressed interest to fund construction of the deep-sea port at Sonadia in Cox's Bazar.
He said China was trying to increase its influence over the Bay. That's why it has funded at least two ports in the region. China, the world's second largest economy, invested US$ 500 million in the Colombo International Container Terminal last year. In 2012 it also financed $450 million in Sri Lanka's deep-sea port at Hambantota.
The official also said alongside expressing interest several times China had designated three of its world renowned companies -- China Merchants Holdings International Company Ltd, China CAMC Engineering Co Ltd, and China Harbour Engineering Ltd -- to be involved in the port construction.
He said that time the Chinese fund was not taken considering regional geo-political issues. "After that the Prime Minister's Office favoured funding from several sources, instead of engaging a single country or organisation, for construction of the port to maintain a geo-political balance."
The MoS, in the meantime, is preparing a comprehensive report on progresses made so far in port-related activities being instructed by the PMO. The report will incorporate all the proposals Bangladesh received from different parties relating to the deep-sea port construction.
The PMO will take a policy decision about funding and construction of the proposed port soon based on the MoS report.
The MoS in early April made a power point presentation at the PMO reviewing proposals of the UAE-based DP World, and governments of China and the Netherlands.
The presentation highlighted the necessity of the port construction, location of the planned and already constructed deep-sea ports of neighbouring countries, the steps taken so far relating to the deep-sea port construction at Sonadia, and the proposals received until now over funding and construction of the port.
The senior MoS official told the FE that Japanese firm Pacific Consultants International (PCI) conducted a feasibility study for construction of the proposed deep-sea port in 2006.
He said the government planned formation of a consortium to fund construction of the deep-sea port instead of depending on a single funding source.
Apart from China the countries including the Netherlands, Germany, India, Denmark, South Korea, and the UAE also expressed interest to invest in construction of the port.
Officials said Bangladesh's ports became very important for connectivity in the South Asian region and many were interested to invest here for good and quick returns.
The country's two sea ports -- Chittagong and Mongla -- are likely to see a good rise in container handling once neighbouring India is granted the transit and transshipment facility for carrying cargoes to its 'seven sister' states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.
Alongside India, other countries like Nepal and Bhutan are also interested to enjoy the similar facility for facilitating their external trade.
According to the feasibility study report of the PCI, the seaport at the first stage will have five international standard jetties with the capacity to handle a total of 704.01 million tonnes of containers a year. The construction cost was then estimated at Tk 600 billion.