The Executive Committee of the National Economic Council on Tuesday approved an industry ministry proposal to double the cost of tannery relocation project to Tk 1,079 crore for adjusting increased cost for delay in its implementation.
The ECNEC, headed by prime minister Sheikh Hasina, in a meeting also approved eight other projects involving Tk 9,811 crore.
The meeting approved the increase in cost for Leather Industry Town at Savar-Keraniganj to Tk 1,078.71 crore from Tk 545.36 crore for expediting the shifting of leather processing units in the capital to the town.
The ministry raised the project cost because of the delay in implementation and for giving about Tk 250 crore in compensation to the tanners for shifting their units from Hazaribagh to the leather town.
The project was initiated in 2003 by the Bangladesh Small and Cottage Industries Corporation to build the leather town with 205 plots, having a modern central effluent treatment plant and dumping yard, on 199.40 acres of land.
Because of the delay in implementation and the tanners’ reluctance to shift their units, the estimated cost of installation of the CETP and other related facilities has now shot up to Tk 638.79 crore from Tk 396.70 crore.
Although initially the finance ministry wanted to give 60 per cent of project cost as loan and 40 per cent as equity, later it decided to give 20 per cent cost as loan and 80 per cent as equity under pressure from the tanners.
It means, the tannery owners now have to repay only 20 per cent of the cost for installation of CETP in 15 years and other related installations instead of 60 per cent, said an industry ministry official.
The cost of the project, which will now be completed in June 2016, also includes Tk 250 crore compensation package for the tannery owners who will shift their leather processing units to the leather town. The government will give the fund as grant.
ECNEC also approved Ashrayan-2 project with view to reducing poverty through providing residential facilities and generating employment for landless distressed people in the country.
Planning Commission official said Ashrayan-2 project had been proposed following the ‘success’ of a project called Ashrayan taken in 1997 and a subsequent project called Abasan implemented between July 2002 and December 2010.
Under the Ashrayan-2 project 36 thousand more landless families would be rehabilitated. Multi-storey buildings would be constructed for landless people along with specially designed houses for the small ethnic groups. Besides, multi-storey buildings would be constructed at the divisional headquarters, city corporations, districts, upazilas and at the municipalities.
Moreover, houseless land owners would be provided with houses on their land. Simultaneously, the beneficiaries would be provided with training and loan facilities for self employment. The construction of multi-storey buildings for the rehabilitation of the families who were affected by land acquisition process in expanding Cox’s Bazar Airport project has also been included in the project.
After the meeting, Planning Division secretary Bhuiyan Shafiqul Islam told journalists that nine development projects involving Tk 10,890 crore had been approved in the ECNEC meeting.
Of the total outlay, Tk 5,658 crore would come from government exchequer and remaining Tk 5,232 crore would be provided as project assistance from the development partners, Shafiqul said.
The other seven projects approved in the meeting are: Procurement of saline water treatment plant project for Tk 189 crore, Establishment of Krishibid Institutions, Bangladesh Complex (2nd revised) project for Tk 103 crore, Chittagong City outer ring road (1st revised) project for Tk 1,414 crore, Karnaphuli water supply project for Tk 4,491 crore, Bheramara-Khulna gas transmission pipe line project for Tk 904 crore, Monohordy-Dhanua and Elenga-East side of Bangabandhu Bridge gas transmission pipe line construction project for Tk 451 crore, and Electrification of 29 BOPs in the border area and solar energy electrification of 168 BOPs of Border Guard Bangladesh project for Tk 55 crore.
ECNEC members including finance minister AMA Muhith, planning minister AK Khandker, agriculture minister Matia Chowdhury, ministers concerned, advisers to the prime minister, members of the Planning Commission, secretaries and officials concerned were present in the meeting.
-With New Age input
