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The interim government has decided to expand and modernise Mongla Port, aiming to enhance its container handling capacity and establish it as a regional hub.
The Executive Committee of the National Economic Council (Ecnec) approved a Tk 40.68 billion (Tk 4,068.23 crore) project on Sunday for the port’s expansion and modernisation.
The Mongla Port Authority, under the Ministry of Shipping, will implement the project by December 2028. Of the total cost, Tk 4.75 billion (Tk 475.33 crore) will come from the government, while the remaining Tk 35.92 billion (Tk 3,592.90 crore) will be financed through a loan from China.
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.
He said that this project has been undertaken after thorough review while China would finance most of the project funding.
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 approval came from the 7th meeting of the Ecnec in this fiscal year and the 6th of the interim government held at the NEC Conference Room with Ecnec Chairperson and Chief Adviser Prof Dr Muhammad Yunus in the chair.
Planning Adviser Dr Wahiduddin Mahmud said that the day’s meeting approved a total of 13 projects involving an overall estimated cost of Tk 125.32 billion (Tk 12,532.28 crore).
“Of the total project cost, Tk 40.97 billion (Tk 4,097.23 crore) will come from the government of Bangladesh portion, Tk 73.28 billion (Tk 7,328.95 crore) as loan while the rest of Tk 11.06 billion (Tk 1,106.10 crore) from the concerned organization’s own fund,” he added.
Of the approved 13 projects, nine are new while four are revised projects.
Replying to a question, Dr Mahmud said that they would review the development budget next week in a bid to finalise the Revised Annual Development Programme (RADP).
He said since Bangladesh is graduating from the LDCs, soft-term loans would not be available from the multilateral development partners in the future while there would also be a burden on the state coffee for repaying the principal amount and interests of the foreign loans.
He indicated that the government’s loan burden for implementing the mega projects would also increase in the coming days.
To address the situation, the Planning Adviser recommended increasing overall revenue collection, emphasising that failure to do so would hinder the efficient management of the country’s economy.
In this regard, he said, the government is focusing more on Human Resources development.
Replying to another question, the Planning Adviser said that taking foreign loans is not bad. “But the most important thing is whether it is invested in the right areas ….like investing in infrastructures which would motivate the private sector to woo more investment and establish export-oriented industries.”
The Planning Adviser also informed that the government is putting due emphasis on strengthening further the capacity of BAPEX and the Petrobangla.
The other projects approved in the meeting are: Uttar Kattali Catchment Sanitation in Chattogram Metropolis with Tk 27.97 billion (Tk 2,797.22 crore), Improved seed production and development of rice, wheat and corn, 3rd phase with Tk 4.74 billion (Tk 474.68 crore), Modernization and development (2nd phase) of seed production, processing and distribution management of BADC with Tk 2.92 billion (Tk 292.86 crore), Food Safety Testing Capacity Development with Tk 24.09 billion (Tk 2,409.70 crore), Digging some four evaluation-cum-development wells of Titas and Kamta Fields with Tk 12.55 billion (Tk 1,255 crore), conducting 3-D Seismic Survey at Habiganj, Bakhrabad and Meghna Fields with Tk 4.54 billion (Tk 454.25 crore), Digging Sylhet-12 number well (oil well) with Tk 2.55 billion (Tk 255.25 crore), Ghorashal 4th unit re-powering, 3rd revised, with an additional cost of Tk 960.8 million (Tk 96.08 crore), Development of power distribution system of Chattogram Zone, 2nd phase, 2nd revised with an additional cost of Tk 1.64 billion (Tk 164.15 crore), Strengthened Service Delivery systems for Improved Migration Management and Sustainable Reintegration with Tk 601 million (Tk 60.10 crore), Establishment and infrastructural development of government primary schools at Dhaka metropolis and Purbachal, 1at revised, with an additional cost of Tk 2.13 billion (Tk 213.62 crore), and Establishment of digital labs at educational institutions, 2nd phase, 2nd revised with a reduced cost of Tk 88.6 million (Tk 8.86 crore).