Uncertainty clouds MPA borrowing from CPA

Mongla Port Authority (MPA) bid to buy land to build waste dump for disposing dredging litters looks uncertain for failed attempt at borrowing funds, sources said.

They said the MPA move fizzled out as the Chittagong Port Authority (CPA) declined to lend funds-latest at an arbitration meeting at the shipping ministry.

The MPA had approached the CPA few months back to get Tk 2.0 billion worth of loan and the CPA reportedly had shown interest in lending.

However, the CPA in a meeting Wednesday declined to provide the loan by citing its inability as "a number of development works" of the port authority is going on where it needs to invest a huge sum of money.

The MPA needs the money immediately to buy the land to create a landfill site to dump dredge wastes as heavy silting of the seaport channels forces the port authority to carry out frequent dredging in the channels and near the port jetties.

The Ministry of Shipping convened a meeting Wednesday, in presence of representatives from both port authorities, with a plan to finalise a memorandum of understanding (MoU).

However, the meeting ended in futility as the CPA representative informed the meeting their inability to provide the loan.

Syed Ali Ahsan, a deputy secretary of the MoS, told the FE that though initially there was a consensus on providing loan to the MPA, but now the move seems not going to materialise.

He said the MPA needed money as soon as possible and hence it had proposed the CPA for the loan, as per port act.

"But CPA now seems not interested to provide the loan," he said.

Asked why MPA did not seek loan directly from the government and went to CPA for the money, he said getting loan from public exchequer by taking a project takes huge time so they approached the CPA.

Captain M Asaduzzaman, Member (Harbour & Marine), of the Mongla Port Authority told the FE that the possibility of getting loan from the CPA is very slim.

Due to heavy silting the MPA needs constant dredging of outer and inner bar of the port.

In 2022 the port authority and local people in Dacope Upazila in Khulna were in a standoff over the dumping of sand raised by the dredging of Pasur River.

Local people alleged that the port authority had been dumping dredging wastes on privately owned farmlands which will ultimately destroy the productivity y of land.

Since then, the two sides have been locked in tussles over the use of private farmland for dumping dredge wastes. Thereafter, the MPA had taken move to buy lands to dump sand raised from the river.

[email protected]