Two ministries at loggerhead over reopening of closed mills
Shakhawat Hossain | Thursday, 24 July 2008
The ministries of finance and industries have taken an opposing stand over reopening of a laid-off state-run chemical factory in Chittagong, officials said Wednesday.
Industries ministry wants resumption of operation of Chittagong Chemical Complex that has remained closed since 2002. But the finance ministry is opposing such proposal, they said.
The industries ministry that also prefers resumption of two other closed state-owned enterprises (SoEs) in Khulna has sought approval of the economic affairs committee to reopen the chemical factory, said a senior industry ministry official.
The economic affairs committee, headed by finance and planning adviser Mirza Azizul Islam, is scheduled to meet today (Thursday) at the planning commission to review the proposals.
The finance ministry is, however, opposing such proposal saying the revival of the laid-off SoEs will be a violation of an agreement between the government and the World Bank (WB).
The government had to close down the loss-making SoEs as per deal with the country's leading donor agency WB in the past, said a finance ministry official.
The officials and employees of the laid-off mills have already been compensated under a project funded by the WB.
The official said reopening of such closed mills by the government will create problems. He did not elaborate.
Chittagong Chemical Complex, which produced chemical caustic soda, hydrochloric acid, chlorine liquid, bleaching powder and hypo chloride, was closed down in December 2002.
It was established in 1965 on some 40.45 acres of land.
The chemical plant is now enlisted by the privatisation commission along with 25 other laid-off SoEs for disinvestment.
The economic affairs committee will also review proposals by food and disaster management and communications ministries.
The food and disaster management ministry has sought to shorten the processing period for food import.
According to the ministry officials, an import deal takes at least 70 days to complete as per existing procurement rules that should be brought down to 25 days.
Without shortening the tender and procurement procedures, the ministry may not be able to import 0.8 million tonnes of food grain planned for the current fiscal, said a ministry official.
The communications ministry proposal relates to advance disbursement of fund for reconstruction and repair works of some bridges in Chittagong region.
Industries ministry wants resumption of operation of Chittagong Chemical Complex that has remained closed since 2002. But the finance ministry is opposing such proposal, they said.
The industries ministry that also prefers resumption of two other closed state-owned enterprises (SoEs) in Khulna has sought approval of the economic affairs committee to reopen the chemical factory, said a senior industry ministry official.
The economic affairs committee, headed by finance and planning adviser Mirza Azizul Islam, is scheduled to meet today (Thursday) at the planning commission to review the proposals.
The finance ministry is, however, opposing such proposal saying the revival of the laid-off SoEs will be a violation of an agreement between the government and the World Bank (WB).
The government had to close down the loss-making SoEs as per deal with the country's leading donor agency WB in the past, said a finance ministry official.
The officials and employees of the laid-off mills have already been compensated under a project funded by the WB.
The official said reopening of such closed mills by the government will create problems. He did not elaborate.
Chittagong Chemical Complex, which produced chemical caustic soda, hydrochloric acid, chlorine liquid, bleaching powder and hypo chloride, was closed down in December 2002.
It was established in 1965 on some 40.45 acres of land.
The chemical plant is now enlisted by the privatisation commission along with 25 other laid-off SoEs for disinvestment.
The economic affairs committee will also review proposals by food and disaster management and communications ministries.
The food and disaster management ministry has sought to shorten the processing period for food import.
According to the ministry officials, an import deal takes at least 70 days to complete as per existing procurement rules that should be brought down to 25 days.
Without shortening the tender and procurement procedures, the ministry may not be able to import 0.8 million tonnes of food grain planned for the current fiscal, said a ministry official.
The communications ministry proposal relates to advance disbursement of fund for reconstruction and repair works of some bridges in Chittagong region.