India keen to invest in Payra seaport

India has offered to invest in the proposed Payra seaport on a government-to-government basis, in a move to further deepen ties between the two countries.

The proposal was made at the shipping secretary-level meeting between the two countries that was held in New Delhi last month.

The two countries may discuss the modalities mutually, depending on the outcome of the feasibility reports, according to the minutes of the meeting held to finalise the fees for the use of Bangladesh's river and coastal routes and Mongla and Chittagong ports by India.

Bangladesh appointed a British firm, Wallingford, to assess the capital and dredging requirements for development of the approach channel and its maintenance.

The study report may be completed this month, said an official of the shipping ministry. Based on the feasibility report, Bangladesh will decide on the next course of action.

At the meeting, the Indian side said a technical team led by the managing director of the Indian Ports Association has already conducted a preliminary study. If the British firm's study report is shared with them, they would be able to determine the funds required.

A planning ministry official said the government has now been contemplating setting up a large-scale seaport at Payra, instead of a deep seaport at Sonadia.

The Executive Committee of the National Economic Council in October approved a Tk 1,128 crore project to start the Payra seaport on a limited scale.

Full-fledged port activities in Payra will start by 2023, according to Planning Minister AHM Mustafa Kamal.

Alongside India, up to 10 other countries including China and the Netherlands have expressed interest in investing in the Payra seaport.

At the Ecnec meeting in October, the Payra Port Authority said the countries want to invest a total of $15.5 billion in different components of the deep seaport project, according to planning ministry officials.

After considering the idea of building a port in Sonadia off Cox's Bazar for a few years, the government turned to Payra in 2013.

The prime minister inaugurated Payra deep seaport site in 2013 and development work began soon after. The parliament also enacted the Payra Port Authority Act.