The cabinet committee on economic affairs has rejected the Shipping Ministry proposal to complete the remaining construction of Paira seaport under the government funding instead of Public-Private Partnership.
Following the meeting, Finance Minister AMA Muhith said it is not possible for the government to finance the entire construction of Paira seaport project.
Some portion of the seaport will be constructed under the PPP initiative, he added.
“We have decided to construct the Paira seaport with the help of PPP initiative and government funding.”
The Shipping Ministry failed to find any private investor to complete the remaining construction of the seaport, an estimated cost of which is nearly Tk350 crore, according to official sources.
It also described the PPP initiative a complex and time-consuming process.
The ministry said the private firms were only willing to invest in construction of terminals and commercial operation of the port, which the investors think could be economically viable for them.
Besides, the cabinet committee on economic affairs has already given consent to construction of a deep seaport at Sonadia in Cox’s Bazar at a cost of Tk50,000 crore under the government funding arrangement.
The Paira seaport is expected to reduce the pressure on the country’s two seaports, Chittagong and Mongla, besides helping ensure economic and social development of the country’s southern and central areas, said Shipping Minister Shajahan Khan.
The Chittagong Port authority provided interest-free loan worth Tk49.6 crore in November 2013 to the Paira Port authority for land acquisition, development and construction of pontoon and other infrastructure.
On November 19, 2013, Prime Minister Sheikh Hasina formally inaugurated the operation of Paira seaport partially, which is located at Ramnabad of Kalapara upazila in Patuakhali district.