China-aided Mongla seaport dev project gets all-clear

A major project gets finally gets the go-ahead to expand and modernise Mongla seaport of Bangladesh with enhanced container-handling capacity under a plan to upgrade it to a regional shipping hub.

The Mongla Port Authority, under the Ministry of Shipping, will implement the project by December 2028 at a total cost of over Tk 4.07 billion that includes a loan of about Tk 3.56 billion.

The Executive Committee of the National Economic Council (ECNEC) in a meeting held at the NEC auditorium in Dhaka with Chief Adviser of the post-uprising government Dr Muhammad Yunus in the chair gave approval for this one and 12 other projects.

Briefing reporters after the meeting, Planning Adviser Dr Wahiduddin Mahmud emphasised the port's geopolitical significance and said the government is committed to developing Mongla Port into a regional hub by strengthening its container-handling infrastructure.

"This project has been undertaken after thorough review while China would finance most of the project cost," he said about the long-envisaged port project.

In response to a question, he said international trade could be expanded further with Bhutan, Nepal and China with the expansion of container-handling capacity through implementation of this project.

The planning adviser of the interim government also hinted at significant structural changes in the financing management of development budget prioritising foreign resources over domestic funding amid revenue constraints.

He said domestic financing for the Annual Development Programme (APD) reached 60-70 per cent due to change over a decade, and the pattern would be reversed through assessing the sustainability of development and the debt burden.

The day's ECNEC meeting approved a total of 13 development projects in the latest go, including three for extracting mineral resources. Eight are new projects and the remaining five are remake of ongoing projects.

Aggregate cost of these projects includes new investments worth Tk 125.32 billion: Tk 40.97 billion from government exchequer, Tk 11.06 billion from own funds of the implementing agencies and the remaining Tk 73.29 billion from foreign sources.

One approved project titled 'Excavation of 4 Appraisal-cum-Development Wells in Titas and Kamta Fields' will be implemented by Gas Fields Company Limited (BGFCL) at a cost of Tk 12.55 billion. The government will contribute Tk 8.72 billion, while Bapex will provide Tk 3.82 billion. The project will run from January 2025 to September 2027.

Another major energy-sector project is '3-D Seismic Survey Project' in Habiganj, Bakhrabad, and Meghna Fields, with an estimated cost of Tk 4.54 billion. The government will provide Tk 3.12 billion and the implementing agency and Sylhet Gas Fields are to contribute Tk 1.41 billion. It will be completed between January 2025 and June 2027.

Sylhet Gas Field Company will also implement a project titled 'Sylhet-12 Well Drilling Project' by December 2026 with an estimated cost of Tk 2.55 billion.

Prof Wahiduddin emphasises investing in extracting domestic energy and justifies three new projects. "The government has a plan to strengthen the BAPEX," he told reporters at the post-meeting event.

"Our LNG imports and foreign-currency costs are rising, despite the presence of significant natural gas reserves in the country, while BAPEX currently lacks extraction capacity, relying on foreign firms who take up to 90 per cent of the gas-which offers minimal benefits," he said.

Among the other projects given the go-ahead are Chattogram Metropolitan North Kattali Catchment Sanitation Project, Mongla Port Facilities Expansion and Development Project, Improved Seed Production for paddy, wheat, and maize, Modernisation of Bangladesh Agricultural Development Corporation's (BADC) seed production systems, Food Safety Testing Capacity Development Project, Sylhet-12 Well Drilling Project, Ghorashal Fourth Unit Re-powering Project, Power Distribution System Development for Chattogram Zone, Strengthening Migration Management and Reintegration Services, Scenic Primary Schools Development in Dhaka Metropolis and Purbachal, Digital Labs for Educational Institutions.