Sonadia deep-sea port on board

[eastwatch]

Sonadia deep-sea port on board -
bdnews24.com
Sonadia deep-sea port on board
News Desk, bdnews24.com

Published: 2014-06-08 15:04:44.0 BdST Updated: 2014-06-08 15:04:44.0 BdST

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China is all set to win the contract to construct the coveted deep-sea port at Sonadia, a small town 9 sqkm offshore of Cox's Bazar in Chittagong division.

A memorandum of understanding (MOU) to get the project started is slated to be signed during Prime Minister Sheikh Hasina's ongoing visit to China .

India is closely monitoring the development but many in the country that the deep-sea port may help it access its own remote Northeast.

The State-owned China Harbour Engineering Company Ltd (CHEC) is likely to win the contract to construct the port.

A major portion of the project will be financed by the Chinese government.

The project will be executed in three phases -- Phase 1 will cater to the shipping demands till 2020, Phase 2 till 2030, and Phase 3 till 2055. Initially, the CHEC will execute the Phase 1 of the deep-sea port.

The major task of the company will be engineering (including detailed investigation and design), procurement, construction and operation.

The construction of Sonadia deep-sea port was conceived in 2006 to reduce the burden of Chittagong, the country's major port, whose capacity has fallen behind demand.

Given steady economic growth of the country, Chittagong is unable to handle the traffic, so the country needs an alternative seaport.
Bangladesh also need a big new port if it wants to become a major economic hub providing sea access to China's Yunnan Province, India's land-locked seven north-eastern States, Nepal and Bhutan.

Trades from these areas are greatly hampered owing to their distance from the sea and benefit Bangladesh economically.

 

[UKBengali]

BD is in a very good fiscal position to pay back these loans from both Japan and China as the government debt burden has fallen to only 18 per cent of GDP.

 

[eastwatch]

BD is in a very good fiscal position to pay back these loans from both Japan and China as the government debt burden has fallen to only 18 per cent of GDP.

Yes, you are right about fiscal deficit. But, I think, the repayment of loans to China for constructing the Sonadia will be borne mostly by the payment the port authority will be receiving from handling cargoes for BD, China, Indian NE and east coast ports. Port authority will earn a larger amount of money by handling the additional cargoes for these foreign ports and destinations.