PPP project worth $58 million receives CCEA in-principle approval
Published : Wednesday, 3 March, 2021 at 8:23 PM Count : 291
The Cabinet Committee on Economic Affairs on Wednesday gave in-principle approval of the project titled “Equip, Operate and Maintenance of Patenga Container Terminal”to be implemented under the Public Private Partnership (PPP).
The Chattogram port is the largest and busiest port in Bangladesh and plays an important role in the economic growth of the country. The Patenga Container Terminal under construction will increase the efficiency of the port and increase the logistical capacity of the port.
According to a pre-survey by the Ministry of Shipping, the potential investment for the project is $58 million and the annual operating cost is $8 million.
Mohammed Mezbah Uddin Chowdhury, Secretary of the Ministry of Shipping, provided an outline of the project to the meeting and proposed to approve this project in PPP model.
CEO of PPP Authority Sultana Afroz said, “The output of the container terminal would be enhanced with the help of modern technology, equipment and skilled manpower if the project is managed and maintained by a private partner through PPP. At the same time, it will be possible to increase the capacity of Chittagong Port Authority through knowledge sharing and technology transfer.”
The implementation of the project through PPP modality would generate employment in that region and help to alleviate poverty and the project will contribute in economic development of the country, said Sultana.
Many similar PPP projects have been successfully implemented in various countries around the world including Southeast Asia such as China, India, Thailand, Indonesia, Sri Lanka and the Philippines, she continued.
If the project is structured in an attractive way for potential investors, there is a possibility of good competition, which will ensure value for money for the government of Bangladesh. Many foreign investors interested in this project have already approached the PPP Authority, the CEO added.
At present, 7 PPP projects under the Ministry of Shipping are in various stages of implementation.