Infrastructure Investment Facilitation Center DEVELOPMENT OF BANGLABANDHA LAND PORT Banglabandha Benapole Burimari Land Ports On BOT Birol Haluaghat Bibir Bazar Akhaura Tamabil Teknaf Sonamasjid Hili Darsana Bhomra Banglabandha Benapole Burimari Land Ports On BOT Birol Haluaghat Bibir Bazar Akhaura Tamabil Teknaf Sonamasjid Hili Darsana Bhomra Map of Bangladesh Showing the Location of the Land Ports The Land Ports of Bangladesh The government has declared thirteen land customs (LC) stations as “Land Ports.” Mainly three government agencies are involved in the LC stations: (a) Bangladesh Customs under the National Board of Revenue (b) Bangladesh Sthala Bandar Kartripaksha (BSBK) and (c) Bangladesh Rifles (BDR). BSBK has the mandate to provide cargo handling and storage facilities in the land ports to facilitate collection of customs revenues, on the imports from India and Myanmar. The revenues are collected by the Bangladesh Customs. BDR checks unauthorized access of contraband goods and illegal trades through the land ports and adjacent border areas. Currently, BSBK has thirteen land ports as illustrated in the adjacent map. Development of the Land Ports on BOT Basis The Ministry of Shipping and the BSBK decided to develop twelve land ports (excluding Benapole) on Build-Operate-Transfer (BOT) basis through private sector for better and efficient storage and handling of cargoes. By adopting the BOT arrangement, government funds required for making initial investment are saved. After being approved by the ministry, the Private Infrastructure Committee (PICOM) enlisted the project on 20 April 2005. Under the BOT system, BSBK acquires the land and leases it to an investor. The investor is selected through a transparent bidding process, following the Bangladesh Private Sector Infrastructure Guidelines (PSIG), to develop the land port and operate and maintain it for 25 years. In return, the investor will pay an agreed amount of royalty to BSBK. The investor has the right to charge the port users for the services provided for cargo storage and handling. After expiry of the term, the investor will transfer the land port to BSBK including all fixed and movable assets. Agreement signing between Banglabandha Land Port Limited and BSBK Commercial Arrangement • BSBK provides right to the concessionaire to invest, operate and maintain the land port for a period of 25 years. • The investor shall: - develop, construct, operate and maintain the port - collect handling and storage charges approved by the government - pay to BSBK a fixed and variable royalty for the right to do business. • At the end of the BOT term, the investor shall transfer the land port to BSBK free of cost. The Banglabandha Land Port Banglabandha land port is located in about 10 acres of acquired land at the north-western tip of Bangladesh in Tetulia union under Panchagar district on the Bangladesh-India highway. The place is of international character and used for Nepal transit traffic passing through a small corridor of India. It is about 22 meter away from the Bangladesh-Indian borderline. Motorable road is available from Panchagar to Banglabandha land port and the distance is about 6o km to reach the port site. At present, different types of goods such as fertilizer, jute, medical equipment, plastic material, readymade garments, electrical goods, textile, computer and parts, machinery, army goods, chemicals, tea, pulses, rice, onion, apple, marble slab, live animals and miscellaneous are exported and imported through this port. The Concessionaire Banglabandha Land Port Limited After winning the tender, the sponsor established the Banglabandha Land Port Limited as a special purpose vehicle to fulfill the obligations and duties under the agreements. Accordingly, BSBK awarded the project to the sponsor and signed concession agreement on 9 October 2005 and the land lease agreement was signed on 25 February 2006. Construction under the agreement has already started from October 2006. Commercial operation is expected by November 2007.