Patenga container terminal goes under PPP

The government on Wednesday allowed Patenga container terminal, which is now under construction, to go under a public-private partnership.

To this end, the Cabinet Committee on Economic Affairs gave in-principal approval of the project titled ‘Equip, Operate and Maintenance of Patenga Container Terminal’.

Meanwhile, the Chittagong Port (CPA) Authority has been constructing the terminal with its funds at Tk2,075 crore to increase its container storing capacity.

With the new initiative, the CPA will team up a private partner to maintain the terminal.

Shipping Secretary Mohammed Mezbah Uddin Chowdhury came up with the project in the meeting and proposed to let it go under the PPP model.

“We will get the best output of the project with modern technology, equipment and skilled manpower if a private partner under the PPP model manages it,” said Secretary and Chief Executive Officer of Public-Private Partnership Authority Sultana Afroz.

Many similar PPP projects have been successfully implemented in China, India, Thailand, Indonesia, Sri Lanka, Philippines and many other countries, she added.

“If the project is structured attractively, we can get many high-profile foreign investors here, which will ensure fair utilize of government money,” she said.

Many foreign investors already expressed their keen interest to the authorities, said Sultana, adding that getting such a partner would pave a way to increase knowledge-sharing opportunities of the authorities.

As per the outline of the project, it would largely help the Chattogram port, the largest and busiest seaport in the country, particularly in increasing logistical capacity.

The possible annual operational cost of the terminal might be $8 million annually, the outline said.

Apart from this, the shipping ministry currently has 7 PPP projects in different stages of implementation.