World Bank approves $650 million aid to Bangladesh for Bay Terminal development
The World Bank's Board of Executive Directors approved 650 million US dollar to aid Bangladesh in developing infrastructure for the Bay Terminal deep seaport.
This substantial investment aims to boost Bangladesh's global trade competitiveness and lower import and export costs by enhancing port efficiency and attracting private investments.
According to a World Bank press release, the Bay Terminal Marine Infrastructure Development Project will include the construction of a 6 km climate-resilient breakwater to protect the harbor from waves, currents, and extreme weather. Additionally, the project will involve dredging the port basin, entrance, and access channels.
The modern Bay Terminal, to be managed by leading international terminal operators, is designed to accommodate larger vessels, such as panamax ships, and significantly reduce vessel turnaround time, potentially saving the economy approximately $1 million daily.
Currently, Chittagong Port, which handles over 90% of Bangladesh's international trade and 98% of its container traffic, can only accommodate small feeder vessels during limited hours.
'Bangladesh's international trade heavily relies on Chittagong Port, which faces significant capacity constraints,' stated Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan. 'The Bay Terminal project will be a game changer. It will enhance Bangladesh's export competitiveness through increased port capacity and reduced transportation costs and time, opening new opportunities to key global markets.'
The project will also attract private investment for the development of container terminals. Combined investment from the World Bank and government funding is expected to bolster investor confidence and help mitigate risks associated with the overall Bay Terminal development.
In FY 23-24, the World Bank committed a record $3.4 billion in support to Bangladesh, including this project. The World Bank has been a key development partner for Bangladesh since its independence, committing around $42.3 billion in grants, interest-free loans, and concessional credits to the country.
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