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China is set to come back for Mongla seaport development as Bangladesh's current interim government may allow Chinese investment in a Tk 40.68-billion project for the upgrade.
The Mongla Port Authority has recently sought approval for the China-funded project, insiders said Friday about resumption of the once-stalled bid.
Earlier, the project was put on hold by the deposed Sheikh Hasina government allegedly on "geopolitical considerations" in September last year.
In 2020, the past government allowed Indian financial support for a separate project on upgrading the Mongla seaport, now gaining prominence with major communications-infrastructure developments done by China in the region.
The Mongla Port Authority (MPA) under the Shipping Ministry has been implementing the Tk 60.15 billion project since 2020 for upgrading the port with part financing of Tk 44.59 billion from Indian loan.
A senior Planning Commission (PC) official said the MPA recently sought approval for Tk 40.68 billion as cost of 'Expansion and Modernization of Mongla Port Facility Project' where China has proposed to provide Tk 35.93 billion (nearly US$335.78 million) in loan.
Meanwhile, the Executive Committee of the National Economic Council (ECNEC), headed by the then prime minister, had sent back the project proposal in September 2023. The ECNEC recommended a further review of the project.
"The MPA has recently sent the project proposal again by recasting the previous one. Now, the Port Authority is seeking approval," said the PC official.
He says since Bangladesh's political spectrum has changed after takeover by the new interim government in August last, the stalled China-funded Mongla Port development project is getting back in gear.
"We are reviewing and scrutinising the project. If we find necessary for the country, will recommend it for ECNEC approval," he adds.
A Shipping Ministry official said the Chinese authority has recently articulated interest in the integrated approach for construction, implementation, maintenance and management of the project.
Shipping Ministry officials has said China Civil Engineering Construction Corporation (CCECC) is the officially designated contractor of China to implement the project.
The MPA signed a memorandum of understanding (MoU) with the CCECC authority on August 24, 2021 and the latter submitted its financial bid and technical proposal on January 28, 2023.
Expansion and Modernisation of Mongla Port Facility project was listed among the 27 development projects that China pledged to fund by signing an umbrella deal back in 2016 during President Xi Jinping's visit to Dhaka.
The project comprises construction of two container jetties with a length of 368 meters each, 87,600-square-meter loaded-container yard, 34,170-square-meter empty-container yard, and 4,260-square-meter hazardous cargo-handling yard.
Moreover, four gantry cranes, seven rubber-tyred gantry cranes, and 33 other pieces of equipment related to jetties will be bought under the project.
The two new jetties will enhance Mongla seaport's container-handling capacity by 394,000 twenty-foot-equivalent units (TEUs) per annum.
Following construction of many mega-infrastructures, particularly in Bangladesh's southern part--especially the Padma Bridge--the Mongla seaport's importance has increased manifold with vistas of opportunities in trade and connectivity opening up.
It has now become nearest seaport to the capital, Dhaka, and recently many international shipping lines have shown interest in plying to the port.
"A good number of garment exporters have also started shipping their goods through the port, as its distance with the capital is 100-kilometre shorter than those from other ports," one MPA official says.
The entire western part of Bangladesh and its adjoining areas are considered hinterland, having a unique opportunity to play vital role in the arena of international and regional trade and economy, Bangladeshi officials told their Chinese counterparts regarding the importance of the project.
In unlocking its potential the Mongla seaport recently registered a record in terms of ship arrivals, cargo handling, and revenue earning.
In 2020, the port saw a turnout of 970 ships--the highest in its 70-year history. It earned a profit of Tk 1.30 billion from the limited-scale port operations.