Uncertainty looms over the implementation of the "Customs Modernization and Infrastructural Development" project under the Accelerating Transport and Trade Connectivity in Eastern South Asia (ACCESS) initiative, as the implementing authority has failed to secure a no-objection certificate (NOC) from the Chittagong Port Authority (CPA).
Primarily financed by the World Bank, the project was approved by the Executive Committee of the National Economic Council (ECNEC) in 2023 and later received administrative approval from the Internal Resource Division (IRD) of the Ministry of Finance the same year.
The estimated cost of the project is Tk 1,686.4668 crore, with the World Bank contributing Tk 1,475.4776 crore and the remaining Tk 210.9892 crore being funded by the Government of Bangladesh (GoB), according to the development project proposal (DPP).
The implementing authority has already completed preliminary work for the project, including the building design and appointment of consultancy firms.
According to the DPP, the project's main tasks include constructing a residential building and a modern customs facility in the Chattogram port area, aimed at accelerating international trade through the port.
However, as per the financing firm's conditions, the CPA's NOC is mandatory, but the project director (PD) has yet to receive it from the authority.
Project officials said they have met with both the incumbent and previous chairmen of the port authority several times and sent two formal letters requesting the NOC, which remains the key obstacle to progress. However, they have yet to receive a response.
The port authority is now claiming it will provide the NOC only if the Chattogram Customs House (CCH) pays Tk 13.61 crore in fees for using the port area for its activities from 1961 till now.
CPA Secretary Md Omar Faruque told The Business Post, "We have received letters from the project director. However, there is nothing we can do as it requires a government decision. If the government settles the issue, we have no problem providing the NOC."
Project officials said they had not previously faced such an obligation for constructing facilities in the port area, adding that the CPA had never raised this claim before.
The delay in obtaining the NOC from the Chattogram port authority has created uncertainty around the construction of the two key buildings in the country’s largest seaport, said NBR officials involved in the project.
Furthermore, the prolonged delay is driving up project costs and tarnishing its reputation due to slow progress, officials said.
In response to the situation, project officials held a meeting with NBR Chairman Md Abdur Rahman Khan at his office in Dhaka on Wednesday to discuss ways to expedite project activities by removing obstacles, officials said.
Deputy Project Director (DPD) Md Ruhul Amin told The Business Post, "The unexpected delay in starting the project has caused significant discomfort. It has forced an increase in implementation costs and the burden of loan interest payments will also rise."
The project is also facing challenges due to manpower shortages, inefficiency and a lack of logistical support, the DPD added.
