Implementation work on API industrial park remains suspended for 9 months

Md Shah Jahan The implementation work on the active pharmaceutical ingredients (API) industrial park project remained suspended for the last 9 months due to delay in approval of the revised project proposal. Officials related to the project told the FE that the construction work had remained halted since the implementation period ended in December last and the revised project is awaiting final approval of the Executive Committee of the National Economic Council (ECNEC). Bangladesh Small and Cottage Industries Corporation (BSCIC) under the Ministry of Industries is implementing the project. BSCIC Chairman Shyam Sunder Sikder told the FE that the unwarranted delay happened as it took time to reach a consensus with the pharmaceuticals industry owners about the cost sharing of the central effluent treatment plant (CETP). "We have signed a memorandum of understanding (MoU) with the Bangladesh Association of Pharmaceutical Industries (BAPI) early this month and the revised project is likely to get approval soon," he added. He said they will resume the work as early as possible after getting the approval of the revised project. About foundation stone laying of the project by Prime Minister Sheikh Hasina in October as informed by Industries Minister Dilip Barua recently, the BSCIC chairman said it is still undecided as the total work of the project has come to a standstill. The government took the initiative to set up the API industrial park in Gazaria upazila of Munshiganj at a cost of Tk 2.58 billion. The project implementation was scheduled for January 2008 to December 2012. Under the project, a total of 42 industries will be set up in the 200-acre park, which will bring about a revolutionary change in the pharmaceuticals sector in the country creating employment opportunities for 25,000 people, according to sources. Project Director (PD) MA Baset told the FE that the project implementation work had started in 2008 with a budget of Tk 2.58 billion and it was supposed to be completed by December last year. But due to land acquisition and other problems it took much time in the early stage. He said they submitted a revised project proposal to the Planning Commission seeking an additional amount of Tk 2.47 billion and 2.5 years time to complete the remaining work. However, the inter-ministerial committee reducing the proposed project cost fixed the total cost at Tk 3.31 billion, he added. Mr Baset said they have completed most of the procedures about the approval of the revised project which is likely to get ECNEC nod early next month. Meanwhile, according to the revised MoU signed by the BSCIC and BAPI early this month, the total cost of Tk 800 million for installation of the CETP will be provided by the pharmaceutical businesses. Under the previous MoU, the BAPI was supposed to pay Tk 250 million for installation of the CETP but the cost of the CETP went up because of the delay in project implementation, sources said. Mr Baset said they have already completed the major portion of the project like land accusation and development. They will develop link road, culvert, sidewall, gate, dumpingyard and install CETP after getting money. According to the revised project, the implementation of the API park will be completed by December, 2015, he added. Sources said the local pharmaceutical companies would maintain the European standards in setting up their factories in the park.