Dhaka, Amsterdam to discuss Dutch funding for Paira port

Funding for building of the Paira deep-sea port in Patuakhali district will come up for discussion during Prime Minister Sheikh Hasina's visit to Amsterdam on November 3-6, officials said.
Three Dutch companies have expressed their interest to be involved in construction of the port when Bangladesh sought Expression of Interest (EoI).
"We received proposals from some world-renowned Dutch companies which expressed interest to be involved in funding the construction of the Paira port. As the Prime Minister is set to visit the Netherlands, she may discuss the issue with her counterpart," member of the Paira Port Authority (PPA) Saidur Rahman told the FE.
He said BAM International, a subsidiary of Europe's largest companies in construction sector Royal BAM Group and APM Terminals, among others, have expressed interest in investing in construction of  Bangladesh's third seaport.
Mr Rahman said the PPA has sent details about the three Dutch companies to the ministry of shipping (MoS) for next course of action during the high-profile visit.
Asked about the feasibility study of the port project, he said a British consultancy firm has completed it and will submit it to the PPA soon.
However, some officials at the shipping ministry have expressed doubt about the necessity and prospect of the proposed port since the country's prime sea-port Chittagong is raising its capacity. Mongla port's capacity remains unutilised while another deep seaport at Matarbari or Sondia is being planned.
 "The area selected is not suitable for a deep-sea port. Several billions of dollars have to be spent for dredging the area. Some foreign companies have already expressed doubt about its prospect," a senior official said.    
He said connectivity between proposed Paira port and capital Dhaka through waterways will also be difficult since the depth of water is very low. Carrying goods by road will be costlier, he added.
Another official said investment in the port may not be viable considering its location and transportation of volume of goods through it. Other nearest ports with increased capacity and facilities may have the lion's share of goods to be carried by neighbouring countries under transit and transhipment arrangements, he added.  
He said the prospect of the Paira port will be clear to the government once the feasibility study report is submitted by the British consultancy firm. "But an investor will take decision only after conducting feasibility study on its own."
Another official said the Dutch port of Rotterdam had carried out a quick scan on prospect of a deep-sea port at Sonadia and had submitted a report to the government suggesting formation of a company to conduct detailed feasibility and environmental studies.
However, he said, no further development took place since the submission of the report.
Earlier, nine Chinese companies had also submitted proposals expressing their interest to invest in the construction of the proposed port.
The companies included Guizhou No. 2 Electric Power Construction Company, China Harbour Engineering Company Ltd, China Railway Construction Corporation Ltd, Sinohydro Harbour Co Ltd, China Communications Construction Company Ltd, China National Complete Engineering Corporation, and China CAMC Engineering Co Ltd.
Besides, APM Terminals and BAM International have formed a consortium to invest in the port. In a proposal, they said the consortium will provide necessary funds for the Paira seaport.
Another senior MoS official said the Paira port is a priority project of government as it has been listed as one of the fast-track projects to expedite its construction. It is also a pre-poll pledge of the government.
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