PPP project worth $58m gets in-principle approval
Economy
The Cabinet Committee on Economic Affairs gave in-principle approval for the Equip, Operate and Maintenance of Patenga Container Terminal project, to be implemented under Public Private Partnership Authority Bangladesh (PPP), on Wednesday.
Chattogram Port is the largest and busiest port in Bangladesh. It plays an important role in the economic growth of the country. The under-construction Patenga Container Terminal will increase the efficiency of the port and increase the logistical capacity of the port, said a press release.
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 and proposed to approve the project in a PPP model.
Secretary and CEO of the PPP Authority Sultana Afroz, said, "The output of the container terminal will 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 the Chittagong Port Authority through knowledge sharing and technology transfer," she continued.
She added that the implementation of the project through the PPP modality will generate employment in that region and help to alleviate poverty and the project will contribute to the economic development of the country.
She further said, many similar PPP projects have been successfully implemented in various countries around the world including: China, India, Thailand, Indonesia, Sri Lanka, and the Philippines.
If the project is structured in an attractive way for potential investors, there is a possibility for good competition, which would ensure value for money for the government of Bangladesh. Many foreign investors interested in this project have already approached the PPP Authority.
At present, seven PPP projects under the Ministry of Shipping are at various stages of implementation, stated the press release.
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