China-funded Mongla seaport dev project gets going

Close on the heels of Dhaka-Beijing talks for an update on relations, the interim government may approve the much-awaited China-funded Mongla-seaport-development project tomorrow (Wednesday), officials said.

The project was sent back from the Executive Committee of the National Economic Council (ECNEC) in 2020 as the ousted Sheikh Hasina government favoured a similar project proposed to be funded by India, they said Monday.

The Planning Commission (PC) is going to place the stalled project proposal before the ECNEC, expected to convene Wednesday.

Issues involving the Dhaka-Beijing cooperation, apparently are gathering pace following Foreign Affairs Adviser Touhid Hossain's maiden China mission after the August-5th student-mass uprising brought regime change. He came back from China on January 23 after the four-day visit when he had talks with the Chinese foreign minister.

"We are going to place the China-funded Tk40.68-billion project for the Mongla port upgrading as Bangladesh's current interim government is also interested to build good relations with Beijing like with other neighbouring countries," says a senior PC official.

China has assured Bangladesh of providing Tk 35.93 billion or US$335.78 million worth of loan for implementing the proposed port-development project, deemed important as the Mongla is set to become a regional porting hub.

Earlier 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 development done by China in the region connecting the capital, Dhaka.

Currently, the Mongla Port Authority (MPA) under the Ministry of Shipping has been implementing the Tk60.15-billion project since 2020 for upgrading the port with part financing of Tk44.59 billion from Indian loans.

During the visit of the Foreign Adviser, China proposed to Bangladesh government for making investment in Mongla-seaport development, among other areas of cooperation.

Dhaka considered the proposal on a positive approach as it wants more concessional loans and their speedy confirmation from Beijing to upgrade infrastructures as a couple of the assured loans is pending for years, said government officials.

A few years back, Beijing proposed to invest in Bangladesh's second-largest port, Mongla, for the development, a senior Economic Relations Division (ERD) official said.

Earlier, the project was put on hold by the deposed Sheikh Hasina government allegedly on "geopolitical considerations" in September last year, he added.

Another PC official says they had scrutinised the China-funded project proposal more than a month back.

"Now the government high-ups have given the green signal to place the proposal before the next ECNEC meeting for approval. So, we are going to place," the PC official adds.

The MPA more than a month back 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.

"We have scrutinised the project and sent to Planning Adviser Dr Wahiduddin Mahmud for endorsement before placing to the ECNEC more than three weeks ago. Now he has given the green signal for placing before the ECNEC," says another PC official.

The MPA signed a memorandum of understanding (MoU) with China Civil Engineering Construction Corporation (CCECC) on August 24, 2021 and the latter submitted its financial bid and technical proposal on January 28, 2023.

The CCECC will be assigned to build two new container jetties, a loaded container yard, an empty container yard and a hazardous cargo-handling yard.

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.

Construction of two container 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.

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, 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.

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