Bangladesh: Finance ministry mulls sanctioning Tk 100cr for upgrading major land ports

Dhaka, Dec 14 (The New Age): The finance ministry plans to sanction Tk 100 crore to upgrade 12 major land ports of the country, a lion’s share of which would be spent to enlarge the small areas of the ports to ease the export-import activities.
Above 170 acres of private land are to be purchased out of the proposed fund to make the ports spacious so that goods at the ports are stored safely and goods-laden trucks are parked comfortably, officials said.
The prime objective of the investment is to facilitate export-import activities worth above $2 billion that take place through the ports concerned, mainly to and from India—the largest trading partner of the country, a senior official in the finance ministry said.
He said they were now examining a proposal of shipping ministry in this regard, and exploring funding arrangement from the revenue budget.
‘We have just started work towards providing Tk 100 crore in favour of BLPA after repeated demands made from the authority and endorsed by the shipping ministry subsequently for immediate release of funds to upgrade the land ports,’ a top finance official told New Age.
He, citing previous examples, said the allocations earlier given to BLPA on the similar head, were refunded by the authority in phases, and the proposed fund must follow suit.
Earlier, the BLPA in a letter promised to refund the allocation if extended to them by the finance ministry. The letter also had named the ports to be upgraded through enlarging their areas to erect storage facilities for goods and parking spaces for trucks.
The ports against which funding are being considered are—Bhomra, Hili, Banapole,  Gorbakura, Bilonia, Sonahat, Nakugaon, Ramgar, Tegamukh, Chilahati, Jibannagor and Mujibnagor. The last four ports in the list are proposed, according to the letter of BLPA.
Currently, the country has 18 land ports. The combined trading volume
takes place through the ports is worth about $3.5 billion, according to an estimate of National Board of Revenue.
The finance officials said they would be able to know next week about the exact amount to be sanctioned in favour of BLPA from the allocation of the current budget.
‘The disbursement could be made from current and next fiscals’ budgets,’ an official in the budget wing of the finance division under the finance ministry told New Age.
Officials in the BLPA said export-import activities would be largely benefitted once they can upgrade the infrastructure of the ports through enlarging their premises.
‘Land prices keep on soaring day by day,’ a BLPA official said, reminding that the authority had never been defaulter in repaying the government’s fund borrowed in 2004 and 2005 for the purpose of developing infrastructure.
‘Once the areas of land ports become larger, income of the port authority becomes larger too.’