First PPP airport’s feasibility study in process

The Civil Aviation Authority of Bangladesh (CAAB) has started its process to award feasibility study job to a company for the first airport under public private partnership (PPP), officials said.
In this regard Transaction Advisor appointment process is almost complete which is responsible for feasibility study, preparing for bid document and contract.
The government has decided to build Khan Jahan Ali Airport at Mongla of Bagerhat district under PPP arrangement.
In this regard the government has already reduced the previous budget to Tk2.17 billion from its earlier Tk5.45 billion as the rest of the amount would come from private party investment.
A CAAB official requesting      anonymity said, "So far I know that appointment for a Transaction Advisor is in process but it is not clear whether they have been awarded the job or not."
Syed Afsor H Uddin, Chief Executive Officer (CEO), PPP Office (Prime Minister's Office) said, "We are not directly dealing the airport project but we are in close link with the CAAB and if necessary we will arrange financing companies."
He said it is a gradual process and PPP office would monitor its development and will closely work with civil aviation authority for PPP model of the project.
The PPP Office CEO said as construction deadline has been extended till June 2020, CAAB will get enough time.
The airport will be 25 minutes away from Bagerhat district town and is expected to boost eco-tourism and speed up the activities of Mongla Port, Mongla EPZ and different industries, including that of shrimp.
The budget for 163 hectares' worth of land acquisition was initially set at Tk 430 million, but in the new proposal, an additional 54 hectares will increase the budget to Tk 1.69 billion, an official in the planning commission said.
On May 5, 2015, the Executive Committee of the National Economic Council (ECNEC) approved the airport construction involving Tk 5.44 billion and as of June an amount of Tk 430 million was spent from the budget.
According to local sources, land in the construction area in Sadar and Rampal upazilas of Bagerhat, namely the villages of Faila, Hogoldanga, Gobindapur and Godardanga have already been acquired by the government for building the airport.
The foundation stone for building the airport in the area was laid on January 27, 1996 but since then except land filling no further development took place.
On July 10 this year, State Minister for Finance and Planning MA Mannan said the Khan Jahan Ali Airport project has been transferred to a PPP arrangement with a revised budget of Tk 2.17 billion.