Techno-feasibility study on deep sea port to resume
Friday, 23 November 2007
Shakhawat Hossain
The caretaker government has decided to resume the techno-feasibility study on the proposed deep sea port (DSP), shelved for the past six months.
The economic affairs committee, chaired by Finance and Planning Adviser Mirza Azizul Islam, in a meeting Thursday cleared the way for the consultancy firm to continue the study. The first phase of the two-part study has already been completed.
"We have decided to allow continuation of the study as abandoning the deal will create problems," said the finance and planning adviser after the meeting.
The government, according to the finance and planning adviser, will have to make full payment to the Japanese firm -- Pacific Consultant International (PCI) -- even if the study remains incomplete.
The Japanese firm that was appointed by the immediate past government for carrying out the study on DSP in the Bay of Bengal in 2005 at a cost of Tk 130 million has already been paid Tk 50 million for completing the first phase of the study.
Considering the long duration of the DSP project, the present government in July last decided to suspend the on-going activities and leave it for the next elected government to implement it, he added.
Two months later, the government, however, decided to examine the economic impacts for suspending the project following requests from the Ministry of Shipping (MoS).
The MoS said that the proposed DSP had the potential to emerge as a booming business avenue in this region. India and Myanmar were encouraged by Bangladesh's concept and they planned to set up DSP's in their own countries.
The Japanese firm engaged in Bangladesh DSP study submitted five reports including one on possible sites under the first phase.
It is due to prepare five more reports on conceptual design, project appraisal and project management model and others services after the final site selection.
A technical committee under the MoS selected the nine-square km Sonadia island in the bay, about seven km off Cox's Bazar, as the final site.
Shipping adviser MA Matin said the mega project will cost Tk 420 billion and it will be implemented in three phases in four decades. About five years will be required to make the DSP operational once the project works begins.
As per the project proposal, Chittagong Port Authority will bear 30 per cent of the total cost. The government intends to raise the rest of fund from the capital market.
The caretaker government has decided to resume the techno-feasibility study on the proposed deep sea port (DSP), shelved for the past six months.
The economic affairs committee, chaired by Finance and Planning Adviser Mirza Azizul Islam, in a meeting Thursday cleared the way for the consultancy firm to continue the study. The first phase of the two-part study has already been completed.
"We have decided to allow continuation of the study as abandoning the deal will create problems," said the finance and planning adviser after the meeting.
The government, according to the finance and planning adviser, will have to make full payment to the Japanese firm -- Pacific Consultant International (PCI) -- even if the study remains incomplete.
The Japanese firm that was appointed by the immediate past government for carrying out the study on DSP in the Bay of Bengal in 2005 at a cost of Tk 130 million has already been paid Tk 50 million for completing the first phase of the study.
Considering the long duration of the DSP project, the present government in July last decided to suspend the on-going activities and leave it for the next elected government to implement it, he added.
Two months later, the government, however, decided to examine the economic impacts for suspending the project following requests from the Ministry of Shipping (MoS).
The MoS said that the proposed DSP had the potential to emerge as a booming business avenue in this region. India and Myanmar were encouraged by Bangladesh's concept and they planned to set up DSP's in their own countries.
The Japanese firm engaged in Bangladesh DSP study submitted five reports including one on possible sites under the first phase.
It is due to prepare five more reports on conceptual design, project appraisal and project management model and others services after the final site selection.
A technical committee under the MoS selected the nine-square km Sonadia island in the bay, about seven km off Cox's Bazar, as the final site.
Shipping adviser MA Matin said the mega project will cost Tk 420 billion and it will be implemented in three phases in four decades. About five years will be required to make the DSP operational once the project works begins.
As per the project proposal, Chittagong Port Authority will bear 30 per cent of the total cost. The government intends to raise the rest of fund from the capital market.