Bay Terminal Marine Infrastructure Development Project

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The Bay Terminal is designed to accommodate larger vessels and improve cargo handling efficiency in Bangladesh maritime ports. It is a significant step towards modernizing the country's maritime port infrastructure and improving its connectivity to international markets. The Bay Terminal is expected to be developed in two phases. Phase one (2024-2031) involves IDA financing for the construction of the breakwater, capital dredging of the entrance channel and port basin, and installation of navigation aids. Associated facilities in Phase one is the Multi-Purpose Terminal (MPT), Container Terminal 1 (CT 1), and the hinterland connections, which includes land reclamation as part of the land development. Potential International Terminal Operators (ITOs) have been identified for the development and financing of the MPT and CT 1 in Phase one. The Government of Bangladesh will reclaim the lands and develop the connecting transportation infrastructure (an approximately 700-meter railway connector and two 500-meter road connectors) to link Bay Terminal to the existing transport network. In Phase two (expected after IDA Project closure), Container Terminal 2 (CT 2) will be constructed when the throughput of CT 1 has reached a pre-agreed threshold that ensures its financial viability. More specifically, the Bay Terminal Marine Infrastructure Development Project (the Project), supported by IDA, will finance three components: (i) Component 1: Support Port Marine Civil Infrastructure, Equipment, and Navigation System Development; (ii) Component 2: Support Port Efficiency Improvements and Capacity Development; and (iii) Component 3: Contingency Emergency Response (CERC) (will provide support for an immediate response to an eligible crisis or emergency, as needed). The Government of Bangladesh (GoB) will finance land costs, relocation, landfilling, and road/rail connectivity. CPA will be the implementing agency for the Project and oversee all public sector financed activities of the Bay Terminal. CPA will also sign long-term concession agreements with the International Terminal Operator for the financing, development, and operation of CT 1. CPA will be responsible for Phase one (Project and Associated Facilities) environmental and social (E&S) risk management. As an integral component of the preparation of the Project, the Environmental Impact Assessment (EIA) prepared as part of the previous Feasibility Study in 2017 has been updated as Environmental and Social Impact Assessment (ESIA) by CPA . This ESIA and related ESMPs, together with an agreed timebound Environmental and Social Commitment Plan (ESCP) will ensure compliance with the ESF and guide the completion of the remaining E&S instruments in Phase one. The Bank will ensure that CPA’s concession agreements with ITOs in Phase one include appropriate clauses to guarantee design, construction, operation, monitoring, and reporting compliance with the World Bank’s Environmental and Social Framework (ESF) requirements.