The Executive Committee of the National Economic Council (Ecnec) on Sunday approved the Bay Terminal Marine Infrastructure Development Project (BTMIDP), involving an estimated cost of Tk 13,525.57 crore, aimed at facilitating the construction of the Bay Terminal in Chattogram.
The approval came from a meeting of Ecnec held at the NEC Conference Room in the city area with Ecnec Chairperson and Chief Adviser Professor Muhammad Yunus in the chair.
The day’s Ecnec meeting approved a total of 16 projects involving an overall estimated cost of Tk 24,247.24 crore.
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Of the total project cost, Tk 3001.34 crore will come from the government of Bangladesh portion, Tk 16,719.73 crore as project loan while Tk 4,526.17 crore from the own fund of the organisation concerned.
Of the approved 16 projects, 13 are new while 3 are revised ones.
Planning Adviser Professor Dr Wahiduddin Mahmud briefed reporters after the meeting.
He said that although the Bay Terminal project had been under discussion for a long time, it has finally received approval, and the necessary work will now commence soon.
The adviser said considering the growing business operations of the next 15 to 20 years and the geopolitical importance, the necessary facilities at the Chattogram Port has to be increased.
The Planning Adviser informed that following separate MoUs signed with the PPP Authority, the Terminal-1 of the Bay Terminal would be constructed by the Enterprise of Singapore while the Terminal-2 will be constructed by the DP World of the UAE.
Out of the total project cost of Tk 13,525.57 crore, the World Bank’s Tk 9,333 crore loan support would help Bangladesh invest in infrastructure critical for developing the Bay Terminal deep seaport, which will significantly improve Bangladesh's global trade competitiveness and reduce import and export costs by increasing port operational efficiency and mobilising private investment.
The Bay Terminal Marine Infrastructure Development Project will construct a 6-km climate-resilient breakwater to protect the harbor from the force of waves, current, and extreme weather. It will also carry out dredging of the port basin, entrance, and access channels.
The new, modern Bay Terminal, to be operated by leading international terminal operators, will accommodate larger size vessels, such as Panamax vessels, and substantially decrease vessel turnaround time.
Ecnec approves 16 projects worth Tk 24,247 crore
Currently, the Chattogram Port, which is the maritime gateway for over 90% of Bangladesh's international trade volume and 98% of its container traffic, can only receive small feeder vessels during limited hours of the day.
Besides, the project will mobilise private investment for the development of container terminals.
The World Bank investment along with the government funding will bolster investor confidence and contribute to mitigating risks associated with the overall Bay Terminal Development.
Besides, the World Bank Group’s private sector arm, the IFC is considering investing in one of the proposed private sector led terminals.
The terminal, to be located in the Anandanagar/Sandwip channel, west of the Chittagong port and close to existing road and rail links to Dhaka, is expected to handle 36 percent of Bangladesh’s container volumes.
Over one million people, half of whom are women, are expected to directly benefit from improved access to sustainable transport services, including shipping companies, business communities, importers, exporters and freight forwarders.
The World Bank’s Board of Executive Directors on June 28, 2024 approved $650 million to help Bangladesh invest in infrastructure critical for developing the Bay Terminal deep seaport, which will significantly improve Bangladesh's global trade competitiveness and reduce import and export costs by increasing port operational efficiency and mobilizing private investment.
In FY 23-24, the World Bank committed a record $3.4 billion in support to Bangladesh, including this project.
The other projects approved in the meeting are: Multi-sector to deal with the Rohingya crisis on an emergency basis (2nd revised) with an additional cost of Tk 394.19 crore, Bangladesh Sustainable Recovery, Emergency Preparedness and Response Project (B-STRONG) with Tk 1,909 crore, Chattogram Metropolitan Sewerage Project (1st Phase) (1st revised) with an additional cost of Tk .01 crore, Livable and Inclusive Cities for All (LICA) Project with Tk 74.60 crore, Chattogram Water Supply Development Project with Tk 3,921.42 crore.
The other projects approved in the meeting are: Project for the Improvement of Equipment for Air Pollution Monitoring with Tk 103.35 crore, Bangladesh Sustainable Recovery, Emergency Preparedness and Response Project (B-STRONG)-Agricultural System Restoration Component with Tk 260.22 crore, Bangladesh Sustainable Recovery, Emergency Preparedness and Response Project (B-STRONG) (BWDB) with around Tk 599.72 crore, Technical Support to Sustainable and Resilient Investment towards Agriculture Sector Transformation Program of Bangladesh with around Tk 53.14 crore, Green Railway Transport Preparatory Technical Assistance with Tk 93.51 crore, Drilling of Two Deep Exploratory Wells at Titas and Bakhrabad Fields with Tk 798 crore, Strengthening of Excavation Capacity of Geological Survey of Bangladesh with Tk 112.78 crore, Strengthening Social Protection for Improved Resilience, Inclusion and Targeting (SSPIRIT) with Tk 904.17 crore, Secondary Education Sector Investment Program (CESIP) (4th Revised) with zero additional cost and Project Preparation Advance (PPA) under Financial Sector Support Project-II (FSSP-II) with Tk 87.10 crore.
In this Ecnec meeting, the project for Drilling of two deep exploratory wells at Titas and Bakhrabad Fields were approved for the 1st time during the interim government's tenure through PPS software.
Besides, the meeting approved the time extension of two projects.
Apart from these, the meeting was about five projects which were approved earlier by the Planning Adviser.