Committees fail to submit reports by deadline

Even eight months after their formation, two committees--one on 'technical evaluation' and the other on 'price negotiations'--- could not submit their relevant reports concerning the proposed capital dredging of main channel of Paira seaport, officials said.
Additional Secretary of the Ministry of Shipping (MoS) Rafiqul Islam is heading the price/loan negotiations committee while Joint Chief (Planning) Enayet Hossain is leading the technical evaluation committee.
The Paira Port wing of the MoS has recently reminded the two committees to submit their reports immediately as works relating to capital and maintenance dredging of the third seaport could not be started for lack of the evaluation reports.
Officials said a Belgium-based company, Jan De Nul, and Paira Port Authority (PPA) are scheduled to form a joint venture company to carry out the capital and maintenance dredging of the main channel of the port.
The Hongkong and Shanghai Banking Corporation (HSBC) is supposed to finance the US$600 million project. The bank has already submitted a financial proposal.
In March this year, the MoS formed the two committees to evaluate the proposals put forward by Jan De Nul and HSBC.
Paira port, a fast-track project of the government, has 19 components of which five major components will be built with FDI (foreign direct investment).
Prime Minister Sheikh Hasina on November 19, 2013 formally inaugurated the Paira port for limited operation before the construction of a full-fledged port.
Under the mid-term plan, the government set a target to operate the port with at least one multipurpose and one bulk terminal by 2018. The full-fledged port with a 16-metre draught channel is targeted to be built by 2023 where minimum 10-km container and other terminals with all other associated facilities will be available, according to port officials.
When contacted over phone on Friday, MoS additional secretary Rafiqul Islam told the FE that a special purpose company has to be formed and sovereign guarantee is needed from the government to get the loan for carrying out the dredging work.
He said as the price negotiation is linked with the formation of the joint venture company, the evaluation was delayed.
"The committee will sit again soon to complete the evaluation," he added.
MoS Joint Chief Enayet Hossain told the FE over phone Friday that the committee had held a meeting so far and he was hopeful of completing the technical evaluation by mid-December.
Paira Port Authority member commodore Saidur Rahman told the FE that the Prime Minister's Office (PMO) gave permission to form the joint venture company few months back. The law ministry has recently vetted the company formation procedure and the deal will be signed by the first week of December.
He said the Paira port is a big project and needs enough time for its construction.
According to a feasibility study, conducted by British consultancy company HR Wallingford, the construction of the full-fledged port may involve a sum of $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 be required for establishing connectivity of the port with Dhaka through waterways and railways, buying equipment and building terminals and jetties.
The study also said some $350 million will be needed for maintenance dredging of the port channel every year.

syful-islam@outlook.com