The construction work of eight new food silos, which would increase the country’s food storage capacity, is likely to start by next January.
The Directorate General of Food has started the process to appoint a project director and consultants for the project after recently getting approval from Ecnec (Executive Committee of the National Economic Council), a senior official told the Dhaka Tribune.
The World Bank will loan Tk15.84 billion for the silo project, while the government will contribute Tk33.5 million.
“The WB board has already approved the proposal for financing the project,” Director General of Food Ahammad Hossain Khan said, adding, “We will appoint a project director and consultants immediately after signing the loan agreement.”
The signing ceremony is expected to be held today or tomorrow.
The DG also said preparations of structural designs and tender documents would be finalised in the next six months.
“We will then float tenders to appoint contractors for the project. It may take until next January to start the main construction work,” Ahammad said.
The silos will be located in Dhaka, Narayanganj, Madhupur, Ashuganj, Mymensingh, Chittagong, Barisal and Bhairab. Six of the silos will be used for rice storage and two for wheat.
“We will build the new silos using modern technology and steel will be used as an alternative to concrete. That will increase the preservation period and quality,” the DG said.
“The way we preserve food grains now can maintain quality for two years, whereas the modern steel silos will ensure quality for four to five years,” he added.
The silos are scheduled to be built by June 2020. The main construction work of the structures will likely be done within the first half of the next fiscal year, the DG said.
If the project is implemented within the stipulated time, the preservation of around 560,000mt of rice and 40,000mt rice seeds in flood-prone areas would be ensured.
“Now, we have a total storage capacity of 1.8 million metric tons, against an annual production capacity of 38 million metric tons of food grains,” Ahammad said.
The eight new silos would increase the storage capacity by an additional 600,000mt. As a result, the country’s food grain reserves would rise to 2.4 million metric tons, he added.
The country’s grain storage capacity must reach 3.05million metric tons by 2020 to ensure food security for all, according to experts.