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The government is all set to upgrade the effluent treatment plant (ETP) as well as the solid waste management (SWM) system at the Savar Tannery Estate involving the private sector.
After a bitter experience of over a decade regarding poor management of the central effluent treatment plant (CETP) by the state-run Bangladesh Small and Cottage Industries Corporation (BSCIC), the government has moved to implement a project styled 'Rectification and Upgradation of CETP and Establishment of SWM at BSCIC Tannery Industrial Estate, Dhaka under PPP Model', according to industries ministry.
The 'BSIC Leather Industrial City Dhaka' (known as Savar Tannery Estate) project was implemented from January 2003 to June 2021 at Tk 10.15 billion at Hemayetpur under Savar.
Unplanned tanneries in various parts of the country, including those at Hazaribagh under Dhaka metropolis, were shifted to Savar estate by 2017.
A Central Effluent Treatment Plant (CETP) with an average capacity of 25,000 cubic litres of effluent per day along with the construction of three effluent pumping stations, one dewatering unit, one lab for ensuring quality of treated effluent, administrative building and ancillary facilities for the management of tannery liquid waste, and one open and two closed dumping yards were constructed for solid waste storage.
After completion of the project, the CEPT is being operated by the Dhaka Tannery Industrial Estate Wastage Treatment Plant Company Ltd from June 2021.
An industries ministry summary sent for the approval from the cabinet committee on economic affairs said due to lack of pre-treatment of liquid waste and the excessive use of water, compounded by design flaws in CETP construction, numerous electromechanical components have sustained damage over time.
With critical equipment nearing the end of its operational lifespan, the efficiency of key units has diminished significantly, rendering it impractical to adequately treat effluents to the required standards.
Consequently, compliance with environmental regulations and achieving certifications such as those from the Leather Working Group (LWG) for environmental standards and European quality control within the leather industry remain unattainable goals.
It is creating obstacles to getting fair prices of domestic leather in the global market, according to the summery.
The tannery industry produces 200 tonnes of by-products on average daily. These include both chromium and non-chromium solid waste, which are accumulated in three dumping yards within the industrial city.
A fraction of this solid waste, such as rawhide cuttings (head, tail, horns), is exported, while shaving dust is repurposed by cement company Lafarge Holcim for eco-friendly cement manufacturing.
Adhering to international standards and achieving compliance has become a significant challenge, necessitating modern management of existing waste.
Officials of industries, commerce, environment, forests and climate change ministries attended the meeting with the principal secretary to the prime minister in the chair on 03 October 2023.
A decision was reached regarding SWM utilising the European technology, according to the meeting synopsis.
The decision was on the development of a business model in collaboration with the PPP Authority (PPPA) to attract international investment for CETP reforms and solid waste management.
Activities were proposed to be executed on a PPP (public-private partnership) basis with the involvement of the private sector.
Following these directives, a meeting took place with the PPP Authority on 02 November 2023. Subsequently, in line with the meeting's decisions, the proposal was forwarded to the PPPA.
A screening meeting was convened at the PPPA office on 09 November 2023 to evaluate the proposal.
Shaheen Ahmed of Bangladesh Tanners Association (BTA) said exporters were not getting fair prices for compliance issues as they were now exporting per-square-foot finished leather at some 30-per cent lower than the global price.
He said proper policy support from the government and a functional CETP could only bring about a massive leap forward for the sector.
With the implementation of the project under the PPP, the government targets to make it a $10-billion export sector by 2030, said Mr Ahmed.
According to the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) and the BTA, the country boasts a robust Tk 170-billion local footwear market, with an annual production of 378-million pairs of shoes.
Export earnings from the sector are more than $1.0 billion annually.