Infrastructure Investment Facilitation Center DEVELOPMENT OF BANGLABANDHA LAND PORT

Banglabandha

Benapole

Burimari

Land PortsOn BOT

Birol

Haluaghat

Bibir Bazar

Akhaura

Tamabil

Teknaf

Sonamasjid

Hili

Darsana

Bhomra

Banglabandha

Benapole

Burimari

Land PortsOn BOT

Birol

Haluaghat

Bibir Bazar

Akhaura

Tamabil

Teknaf

Sonamasjid

Hili

Darsana

Bhomra

Map of Bangladesh Showing the Location of the Land Ports

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 landat the north-western tip of Bangladesh in Tetulia union underPanchagar district on the Bangladesh-India highway. The place is ofinternational character and used for Nepal transit traffic passingthrough a small corridor of India. It is about 22 meter away from theBangladesh-Indian borderline. Motorable road is available fromPanchagar to Banglabandha land port and the distance is about 6okm to reach the port site. At present, different types of goods such as fertilizer, jute, medicalequipment, plastic material, readymade garments, electrical goods,textile, computer and parts, machinery, army goods, chemicals, tea,pulses, rice, onion, apple, marble slab, live animals andmiscellaneous are exported and imported through this port.

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.

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.

Agreement signing between Banglabandha Land

Port Limited and BSBK

Infrastructure Investment Facilitation Center

I N T E R

N A

L R O

A D

8000 SFT

TO PANCHAGARH

TIOLET

EXIT

TIOLET

EMPTY TRUCK PARKING16000 SFT

3200 SFTADMINISTRATIVE

BUILDING

E NTRY

20000 SFTCUSTOM

5000 SFTGODOWN

OPEN STACK YARD

I N T E R N A L R O A D

NBRIDGEWEIGH

TRANSIT SHED

OPEN SPACE WARE HOUSE

WARE HOUSE10000 SFT 10000 SFT

TOWERWATCH

I N T E R N A L R O A D

PORT INSTALLATIONS :

PORT SECURITY WALL :

BOUNDARY WALL :

LE GEND

YARDTRANSHIPMENT

3000 SFT

BA

RR

AC

K

373' -0"

230 '-0"

EMPTY TRUCK PARKING

80'

40'

145'-0"

856'-0"

80'

518'-0"519'-0"

2X1400 SFT

INTERNAL ROADS :

BUILDIN G2500 SFT

D ORMITORY

TOILET

TRUCK

4000 SFTPARKING

FOR FUTURE OPEN STACK YARD

( FOR FUTURE DEVELOPMENT )

OPEN SPACE

(FOR FUTURE OPEN SPACE

FUTURE OPEN SPACE FOR

DEVELOPMENT

FOR FUTURE DEVELOPMENT

76'-0"

INSTALLATIONS :BUILT BY BSBK

305'

237'

140'

70'-0

"

186'

175 ' 147 '

5000 SFT ( FOR FUTURE DEVELOPMENT )

DEVELOPMENT )

TOWERWATCH

20'

20'

20'

155 '

168'

DEVELOPMENT

Workshop for development of Land Ports on BOT

IIFC’s Role as a Consultant

BSBK signed a Development Services Agreement (DSA) with IIFC on 18 November 2003 for assisting in inviting private sector for development of land ports at ten LC stations on BOT basis.

Under the DSA, IIFC conducted feasibility study of the port and prepared tender documents. Tender document consists of Invitation for Tenders, Concession Agreement and Land Lease Agreement.

In addition to above activities, IIFC held investment promotion meetings, short listed potential investors and participated in pre-bid conference, negotiation of project agreements and direct agreement.

Agreement signing between IIFC and BSBK

Facilities in the Port • Storage space • Trans-shipment facilities • Modern handling equipment • Space for government regulatory offices like customs,

immigration • Utilities like telephones, electricity and water supply • Office space for banks, post-office, fire brigade office

Layout Plan The layout plan was prepared considering the traffic projections for 15 years. The site is separated into two separate security zones. Zone one is operational area which includes warehouse, trans-shipment yard etc. The other zone comprises administrative and residential area.

20' 72'Layout Plan of Banglabandha Land Port

Cost of Project Tk. 6 Crores

Infrastructure Investment Facilitation Center IDB Bhaban, 6th Floor, Agargaon, Sher-e-Bangla Nagar, Dhaka 1207, Bangladesh

Tel: 88 02 812 4270, 913 3455, 913 3577; Fax: 88 02 8124266; Email: iifc@agni.com www.iifc.net

N A T I O N A L H I G H W A Y TO INDIA

852'-0"

December 2006