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Tanners at a programme on Thursday said they will not take charge of any ineffective common effluent treatment plant (CETP) constructed with low-quality machinery and proper solid waste dumping arrangement at Savar Tannery Industrial Estate.
Besides, they strongly opposed the annual operating cost of CETP proposed by the government for one year before handing over it to the company. The cost has been fixed at Tk 300 million whereas total cost is Tk 1.05 billion.
They also expressed frustration over overall business of the tanneries due to incompletion of the industrial estate that might worsen the situation during upcoming Eid-ul-Azha.
The business has further been aggravated due to the coronavirus outbreak in China, the sole export market of the tanners.
They made the observations at a dialogue on 'sound operation and maintenance of Dhaka Tannery Industrial Estate Wastage Treatment Plant Company Ltd' at Foodland in the city's Dhanmondi area. Bangladesh Tanners' Association (BTA) and The Asia Foundation jointly organized the dialogue.
Bangladesh Small and Cottage Industries Corporation (BSCIC) chairman Mustaq Hasan was present as the chief guest. Asia Foundation Director Sadat S Shibli moderated the dialogue.
In his opening remarks, BTA chairman Shaheen Ahmed said two meetings under the company had been held. The development project proforma (DPP) revised the cost of CETP two months ago.
The cost came down to Tk 10.17 billion from 10.69 billion with a decrease in the equity of BSCIC instead of reducing 20 per cent loan of the tanners.
The Chinese contractor constructed the CETP with low-quality pump, turbine and other machinery which will have to be replaced, said Mr Shaheen.
The BSCIC also prepared three temporary dumping grounds with no arrangement for solid waste management. BSCIC had already handed over 30,000 sq ft land for solid waste management work to a company which claims to have the capacity of treating 100 tonnes per day. In fact, that company can manage only 2-5 tonnes a day, he added.
Mr Shaheen also said it is impossible to operate the company with such a small fund of Tk 300 million annually as many of the CETP machinery will have to be replaced and the maintenance charge will be high in the first year.
"We along with BSCIC have calculated that the cost will reach over one billion taka. We cannot pay water charge and fee for effluent discharge before two years of operation," he said.
He demanded that the bank loans should be rescheduled and new loan be approved for working capital of the tanners.
He also expressed concern that the project will end in June this year which means the government support will not be there.
Other tannery owners said they have invested their working capital in Tannery Industrial Estate for construction of the infrastructure.
The authorities said the tannery estate is ready for operation. But it is not ready at all. Seeing the poor condition of the tannery estate, the buyers have left them.
If the government does not provide financial assistance in the form of working capital, many of the tanneries will shut down as they will go bankrupt.
They warned that rawhide trading will face further disaster during this upcoming Eid-ul-Azha. If the CETP is not functional by June, the tannery sector will face sharp blow, they added.
They also said Bangladesh University of Engineering and Technology (BUET) has been engaged to oversee the technical aspects of CETP. But they don't have any knowledge. They demanded that BUET should not be involved in the company.
They suggested that Bangladesh Bank and finance ministry representatives be involved in loan approval.
The BSCIC chairman, however, said the sluggishness of the tannery industrial estate has been over and that there has been overwhelming progress in work over the last one year.
Regarding the complaint against BUET, he acknowledged that they have 'zero knowledge' on tannery and that the proposed company should not accept any faulty CETP. The assessment of the CETP is going on, he added.
"This project has already passed 20 years. This duration will not extend further. We have been undertaking scientific dumping project on another 200 acres of land," he said.