The government has scrapped the coal terminal construction project under the public-private-partnership (PPP) modality at the Patuakhali Payra port considering adverse effects that may stem from the terminal on the environment and climate.
The proposal to delist the project from PPP was approved in the meeting of the cabinet committee on economic affairs on Thursday.
"The government is discouraging the project because of concerns over negative effects on the environment," Finance Minister AHM Mustafa Kamal, who chaired the meeting, told reporters.
"Fresh assessments suggest the project will not be economically profitable in the long run," he added.
According to port authority sources, two units of the proposed 1320MW coal-based power plant are already operational and to supply coal to the plant two terminals have been constructed.
The scrapped terminal was approved back in 2014.
The finance minister also told the media that the cabinet committee on public purchase has approved 13 purchase proposals worth Tk2816 crore.
The approved purchase proposals include land development for the 'Sabrang Tourism Park' in the Teknaf upazila of Cox's Bazar at a cost of Tk181 crore.
In addition, Tk380 crore was approved for capacity building of the Sylhet Osmani International Airport's runway and taxiway, Tk137 crore for the construction of a 10-storey administrative building at the Jahangirnagar University, Tk 102 crore for 6-storey library building construction and Tk119 crore for 3-storey sports complex building.