The government yesterday gave the go-ahead to a support project for the construction of key marine infrastructures for the Chattogram port's mega expansion Bay Terminal project.

The Executive Committee of the National Economic Council (Ecnec) at a meeting yesterday approved the "Bay Terminal Marine Infrastructure Development Project" involving Tk 13,525.57 crore.

While addressing a press briefing following the Ecnec meeting, Planning Adviser Wahiduddin Mahmud said the Bay Terminal project was very crucial for the country's ever-growing economy since the country has no deep-sea port.

"The Chattogram port is termed a seaport, but it is actually a river port. The jetties are located on the bank of river Karnaphuli, and ships need to navigate through the narrow river channel," he said.

Considering the country's ever-growing economy, trade and future cargo demand, a deep-sea port facility is necessary in this part of the Bay of Bengal, which is also geographically important, said the adviser.

"A limited port facility has been developed along the sea at Matarbari, which has been built for importing coal only," he said.

"Construction of the Matarbari deep-sea port being developed by Japan is also time-consuming," said Mahmud, who opined that the Payra port seemed to be a failed project.

The proposed Bay Terminal will be developed on the banks of the Bay of Bengal, he said.

There have been talks for a long time about the Bay Terminal, but it has not seen any progress, he said, adding that the project should have been taken much earlier.

He also termed the approved project as a primary project of the Bay Terminal.

The adviser said that under this project, a breakwater would be created in the sea to protect the terminal from waves, while the hinterland connectivity for the port would be developed.

The original Bay Terminal will comprise four terminals, including two container terminals and a multipurpose terminal, Mahmud said.

The government is already in talks with two global port operators -- PSA Singapore and DP World of the UAE -- to develop the two container terminals under the public-private partnership (PPP) model, he said.

As a whole, the Bay Terminal is a mega project, he said, adding that it would take six years to complete this primary project, and it may take more time to construct the terminals.

The government has taken up a project to develop the Mongla port with Chinese loan assistance and is also progressing with the Matarbari Deep Sea Port project, the adviser said.

PROJECT SUMMARY

Of the total cost, Tk 4,192.57 crore would be provided from the CPA's own funds, while the remaining Tk 9,333 crore is expected to come from foreign loans, according to the project documents.

The World Bank has already approved $650 million for the construction of a wave-preventing breakwater and dredging of the access channel, two major components of the project.

In addition to the approved $650 million, the CPA is also expecting another $200 million from the global lender.

An agreement for the $650 million loan is expected to be signed between the Economic Relations Division (ERD) and the World Bank in Washington this week on the sidelines of the "Spring Meeting" of the International Monetary Fund (IMF), said a finance ministry official.