Bulk terminal project discarded from PPP, after spending Tk 11cr

After spending Tk 11 crore, Laldia Bulk Terminal Construction Project of the Chittagong Port Authority has been dropped from the Public-Private Partnership list due to some legal complications on land acquisition.

An official of the Shipping Ministry said they have proposed to discard the project from the PPP list as complications developed while relocating ‘illegal occupants’ in the proposed project area.

More than Tk 11 crore has already been spent on various heads under the terminal construction project in Chattogram, an official said.

The Shipping Ministry proposal to discontinue the project would be placed before the cabinet committee of economic affairs meeting on Thursday.

According to the Shipping ministry proposal: The PPP project titled ‘Construction of Laldia Bulk Terminal’ by the Chittagong Port Authority on about 59.6 acres of land in Laldia Char area on the right bank of Karnaphuli River was aimed at expanding the activities of the Chittagong Port Authority.

The proposal was approved by the Cabinet Committee on Economic Affairs on March 13 of 2013.

A contract was signed with MM Group, a Canadian-based consulting firm, on March 30 of 2015 to provide consultation services to the project. Subsequently, on 19th September in 2017, the firm submitted its final feasibility survey report on the project which the Ministry of Shipping later approved.

The survey revealed that approximately 500 families were living illegally for a long time on about 59.625 acres of land at Laldia Char under the proposed project area. It said the occupants must be rehabilitated or evicted to start the construction works.

“It will not be possible to carry out the work of the project under PPP (if occupants are not relocated). As per the government policy, there is no time to allocate or spend money on the rehabilitation of illegal residents.”

However, several structures, such as a Ready Response Base and 635-meter jetty had already been built to facilitate the project works.

After carrying out several brainstorming sessions, the officials saw the terminal did not have any suitable roads and rail lines for transporting merchandise goods.

They found construction of connecting roads and rail lines would not be possible due to land constraints.

The proposal then concludes: “The overall review shows that at present there are considerable obstacles in the implementation of the terminal construction project in question. In this situation, if the project is implemented, the Chittagong Port Authority is likely to face huge financial losses.”

Therefore, the “Chittagong Port Authority thinks that the project in question will not be profitable to carry out through the PPP initiative.”