Govt inaction delays relocation of leather industries to Savar
Tuesday, 7 October 2008
Doulot Akter Mala
The government's inaction in installing a waste treatment plant has been delaying the relocation of leather industries from the city's Hazaribagh area to the 'leather industrial estate' in Savar.
The authorities have cancelled an international tender in January 2007 due to price escalation of the central effluent treatment plant (CETP). After that the authorities has not yet made any preparations to invite fresh tender for setting up the plant.
The government was scheduled to hand over the industrial estate to the tanners by 2010 as per agreement.
But, the pace at which the project works and tender invitation procedure moving, suggests that it would be hard for the government to hand over the estate complete with all utility facilities and waste treatment plant on schedule.
The Ministry of Industries Monday held a meeting to discuss the matter and evaluate the project work so that the government could complete the processing in time.
In the meeting, the industry ministry has sought recommendations and suggestions from different ministries and stakeholders involved in the project work.
An Industries ministry official said escalation of project cost by almost five times is the main cause of delay in the project work.
"We have to prepare a new development project proposal (DPP) with the escalated cost replacing the one which obtained government's approval recently,"
The complex procedure for inviting fresh tender for CETP is taking too long, he said.
The government had prepared the first project proposal in 2003. According to the proposal, the estimated cost of the three-year project was Tk 1.75 billion that increased to Tk 5.45 billion in the revised proposal in 2007.
As per agreement with the leather industry owners, the government would bear all establishment costs of the industrial estate. After completion of infrastructure the government will hand over the plots to the industry owners.
The industry owners would pay back the establishment cost of CETP and dumping yard in 20 years time, according to a memorandum of understanding (MoU).
In 2003, Bangladesh Small and Cottage Industries Corporation (BSCIC), Bangladesh Finished Leather, Leather Goods and Footwear Exporters' Association (BFLLFEA) and Bangladesh Tanners Association (BTAA) signed a tripartite agreement to implement the project.
The government initiated the move to relocate 195 tanneries of Hazaribagh area to Savar to save the capital and Buriganga river from toxic pollution caused by waste disposed from the tanneries.
The government has completed building necessary infrastructures in the 200-acre land including road construction and utility service.
BSCIC sources said it has received token money worth Tk 75 million for 133 plots, but the industry owners could not shift their industries without CETP.
The government's inaction in installing a waste treatment plant has been delaying the relocation of leather industries from the city's Hazaribagh area to the 'leather industrial estate' in Savar.
The authorities have cancelled an international tender in January 2007 due to price escalation of the central effluent treatment plant (CETP). After that the authorities has not yet made any preparations to invite fresh tender for setting up the plant.
The government was scheduled to hand over the industrial estate to the tanners by 2010 as per agreement.
But, the pace at which the project works and tender invitation procedure moving, suggests that it would be hard for the government to hand over the estate complete with all utility facilities and waste treatment plant on schedule.
The Ministry of Industries Monday held a meeting to discuss the matter and evaluate the project work so that the government could complete the processing in time.
In the meeting, the industry ministry has sought recommendations and suggestions from different ministries and stakeholders involved in the project work.
An Industries ministry official said escalation of project cost by almost five times is the main cause of delay in the project work.
"We have to prepare a new development project proposal (DPP) with the escalated cost replacing the one which obtained government's approval recently,"
The complex procedure for inviting fresh tender for CETP is taking too long, he said.
The government had prepared the first project proposal in 2003. According to the proposal, the estimated cost of the three-year project was Tk 1.75 billion that increased to Tk 5.45 billion in the revised proposal in 2007.
As per agreement with the leather industry owners, the government would bear all establishment costs of the industrial estate. After completion of infrastructure the government will hand over the plots to the industry owners.
The industry owners would pay back the establishment cost of CETP and dumping yard in 20 years time, according to a memorandum of understanding (MoU).
In 2003, Bangladesh Small and Cottage Industries Corporation (BSCIC), Bangladesh Finished Leather, Leather Goods and Footwear Exporters' Association (BFLLFEA) and Bangladesh Tanners Association (BTAA) signed a tripartite agreement to implement the project.
The government initiated the move to relocate 195 tanneries of Hazaribagh area to Savar to save the capital and Buriganga river from toxic pollution caused by waste disposed from the tanneries.
The government has completed building necessary infrastructures in the 200-acre land including road construction and utility service.
BSCIC sources said it has received token money worth Tk 75 million for 133 plots, but the industry owners could not shift their industries without CETP.