Relocation of tanneries to Savar begins in April

Tanneries would start to be relocated from the city's Hazaribagh to Savar Tannery Estate in April this year.

In a meeting with the Industries Ministry on Monday, the tanners made the promise to the government to start relocation in April, President of the Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLFEA), Mohammad Abu Taher, told the FE Monday.

Industries Minister Amir Hossain Amu on Monday ordered the contracting firms to start the construction work of Central Effluent Treatment Plant (CETP) at the Savar tannery industrial park within a week.

Officials of the Bangladesh Small & Cottage Industries Corporation (BSCIC), the implementing agency of the estate, said it approved the CETP plan on Monday.

 "If there is any dilly-dally in implementing the order, the responsible persons won't be spared," the minister also told the press on Monday.

According to the BSCIC, around 100 tanneries submitted their design plans of their buildings till Tuesday though 155 tanneries were allotted plots in the estate.

Mr Taher said all the bigger tanneries have submitted their plans. The others would do it very soon.

 "Some 25 companies will be the first to begin constructing factories in Savar," he said.

However, Bangladesh Tannery Association (BTA) President Shahin Ahmed said, "We would let the estate authority know our action plan by March. But that does not mean we would start relocating from April."

 "It may take longer time," he added.

As per the contract, JLEPCL-DCL, the Chinese firm which was awarded the contract to build the CETP, was scheduled to install the plant within 15 months at a cost of Tk 4.77 billion at the under-construction Savar Leather Industrial Park. But the company missed the deadline.

The government appointed the Bureau of Research, Testing and Consultation of the Bangladesh University of Engineering and Technology as a consultant to oversee the construction of the tannery industrial park.

The tanners and the government signed a memorandum of understanding (MoU) in October last to ensure relocation of Hazaribag tanneries to the Savar Tannery Estate.

According to the MoU, the government has decided to provide Tk 2.5 billion as compensation to the tanners for relocation and give Tk 6.63 billion (80 per cent) out of the total project cost.

However, the owners will have to pay the remaining Tk 1.65 billion (20 per cent) in installments.

According to the first MoU signed in 2003, the government was scheduled to bear the cost of setting up of the CETP and pay Tk 2.5 billion as compensation to the tanners for relocation.

But, according to a MoU signed later in 2007 between the two parties, the CETP was due to be constructed by the government. The cost of the CETP was to be paid by the tanners in installments over a period of 15 years.

In the meantime, the cost of the CETP and other expenses have increased manifold. So tanners have been demanding a new agreement.