Govt Set to Approve Tk14,909cr Support Project for Bay Terminal in Chattogram
The government is gearing up to greenlight a massive support project worth Tk14,908.83 crore to pave the way for the construction of the Bay Terminal in Chattogram’s Anandabazar area in North Halishahar.
Titled the Bay Terminal Marine Infrastructure Development Project (BTMIDP), the initiative includes the construction of a breakwater, a navigation access channel, internal road networks, connecting roads and railways, and utility infrastructure such as water, gas, and electricity supply. The project also features a service jetty and essential terminal facilities.
According to Planning Commission sources, the proposal is expected to be tabled for approval at the next meeting of the Executive Committee of the National Economic Council (Ecnec) on Sunday.
Although the full project timeline extends to June 2031, work on three Bay Terminals is expected to begin earlier. Two of these terminals are planned under public-private partnership (PPP) agreements. Terminal 1 is being developed in collaboration with Singapore’s Enterprise under a MoU signed in 2018, while Terminal 2 is backed by DP World from the UAE under a 2019 MoU. A third terminal, a multipurpose facility, is being explored with the Abu Dhabi Ports Group following a MoU signed in May last year.
The Chattogram Port Authority (CPA) has stressed that timely implementation of this infrastructure is essential to maintain investor confidence, especially from international partners involved in the PPP components.
So far, the World Bank has committed $650 million for the development of the breakwater and navigation channel under BTMIDP, with an additional $200 million expected to be approved, bringing the total external financing to $850 million.
As per the project breakdown, Tk8,269.85 crore has been allocated for the breakwater, Tk1,979.45 crore for the navigation channel, Tk57.70 crore for navigational aids, and Tk3,434.68 crore for common infrastructure and connectivity.
The government first initiated the Bay Terminal project back in 2013 as part of a broader plan to expand the Chattogram Port. A pre-feasibility study was conducted that year by Germany’s Hamburg Port Consultant. A full feasibility study and master plan followed in 2017, and in 2021, Korean firm Kunhwa was awarded the contract to complete them. The final documents have been submitted to the CPA.
Once operational, the Bay Terminal is expected to significantly enhance Bangladesh’s port capacity, support increased trade and foreign investment, and contribute to the country’s long-term economic development.