CPA hopes to sign deals with 2 firms by June

Chittagong Port Authority (CPA) is hopeful of signing agreements with two global firms by June next year for the construction of two of three container terminals under a mega Bay Terminal project on the Chattogram port's expansion.

Bay Terminal has been proposed to be set up on an around 6-kilometre stretch from the back of Chattogram Export Processing Zone to Rasmonighat on the Bay of Bengal.

On the ground, it will be comprised of three terminals which will be able to accommodate ships having a draft of up to 12 metres and with lengths of up to 260 metres.

There will be no need for berthing to depend on the high tide.

The CPA will build one multipurpose terminal and the remaining two will be set up by two global firms under a public-private partnership (PPP) model through government-to-government partnerships.

The project's master plan has been prepared by a South Korean joint venture firm and unveiled by Prime Minister Sheikh Hasina last month.

Talking to journalists yesterday, CPA Chairman Rear Admiral Mohammad Sohail said all the parties involved were working in full swing to complete the preparatory works aimed at initiating the construction.

The parties involved including the shipping ministry, CPA, World Bank and international consultant and transaction adviser firms.

The government has already selected two global giants in port operations -- PSA Singapore and DP World of the United Arab Emirates -- to construct and operate two of the terminals, said Sohail.

World Bank will finance the breakwater construction and access channel dredging, which will be conducted by a German joint venture of Sellhorn, WSP, KS and Aqua.

Meanwhile, the joint venture which prepared the master plan comprises South Korean firms Kunhwa Engineering and Consulting Company Ltd and Daeyoung Engineering Company Ltd.

It is also preparing the project's feasibility study alongside detailed designs and other documentations required for the multipurpose terminal which will be built by the CPA.

The CPA chairman hoped to complete these works by March, float tenders by April and commence construction of the multipurpose terminal by July.

Regarding the other two terminals, Sohail said a firm appointed as the transaction adviser was also finalising its work and hopefully it will be possible to sign an agreement with PSA Singapore and DP World by June.

The CPA is exchanging views with the two global operators regarding the designs of the two terminals while the two firms are also preparing to start construction immediately after signing the deal, he said.

All the parties involved are working at the same pace and have taken up plans to commence the whole project simultaneously, he said.

The government last year appointed Ernest N Young as the transaction advisor for the two terminals.

The transaction advisor will take into account the feasibility study, master plan and data from two consultants, said a senior CPA official.

It will prepare a business model and transaction structure report and formulate a draft request for proposal and a draft agreement and then submit it to the CPA, he said.

Based on its reports, the CPA would send a request for proposal to the two selected global operators seeking their offers, he said.

Since all works are ongoing at a fast pace, the final agreement will hopefully be signed within the stipulated period, he added.