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Tanneries relocation faces further delay

Monday, 28 November 2011


Ismail Hossain The relocation of tannery units from Hazaribagh in the city to suburb Savar has thrown into renewed uncertainty as the relevant project is seeking extension for another three years. "We're still undecided . But extension can be sought for at least three additional years as building of common effluent treatment plant is yet to start," said Mahbubur Rahman, project director of Tannery Estate of Dhaka. He said the extension proposal is being prepared and it would be submitted to the Bangladesh Small and Cottage Industries Corporation (BSCIC) early next month. The government prepared the first project proposal in 2003. The initial estimated cost of the three-year project was Tk 1.75 billion, which later ballooned to Tk 5.45 billion according to the revised project document in 2007. The project named 'Dhaka Tannery Estate Project (DTEP)' would expire in June next year. With the new extension of the project, total project period would stand at 11 years. Over the project's life span, three project directors have so far gone on LPR (leave preparatory to retirement), but the completion of the estate is still in limbo. The present director Mahbubur Rahman also would go on LPR in January next. He said the firm selection for CETP building is still at the evaluation process. After evaluation, the awarding firm will take at least two years to complete the work. There are some miscellaneous work that will take one additional year to complete. Officials said two international firms were primarily selected in April for the work on the establishment of the treatment plant after the tendering for the project was floated. VATECH of India and JLEPCL of China were selected out of 13 local and international firms that took part in the bidding for the construction work. Bangladesh Small and Cottage Industries Corporation, the implementing agency, received the financial offers from selected firms and the technical committee comprising experts from BUET, WASA and DCC is now evaluating it. Tannery owners blamed the bureaucratic tangle for the inordinate delay of the construction work of CETP. Harun Chowdhury, former president of Bangladesh Tanners Association, said they are ready to shift their factories to Savar. Ruling out allegations that they are reluctant to relocate, he said it is the authority that is making delay. "This work shouldn't take much time," he said. Some 197 businessmen secured plots from the 200-acre project, although about 60 per cent of the development work is yet to be completed. It is allegated that tannery owners are not cooperative in paying installments for the plots. Mahbubur Rahman said tanners were reluctant to relocate their factories. But now they are paying installments regularly as they have understood there is no way but to relocate tanneries. The relocation process started nearly 10 years ago following a Hing Court verdict in 2001. The government undertook a project to develop the leather estate at Harinbari in Savar. The estate, however, remains unused and empty.