Bangladesh: The modernisation of the only state-owned cement producer in the country, Chhatak Cement, remains unfinished 11 years after the project began, according to the Daily Times of Bangladesh. The government is now reportedly seeking another 1.5 year extension.
The project was launched in 2016, and its cost has more than doubled from US$54m to US$115m. Production has been suspended for more than six years due to shortages of limestone and gas, yet the company has been forced to borrow money to pay its employees every month. The factory has around 200 employees, with a monthly salary bill of US$89,000–US$97,000, according to project authorities.
Project director and plant manager Abdur Rahman, said that production cannot resume before June 2027. Any further delay would mean continued borrowing to pay employees.
An estimated US$6.9m-US$7.6m has reportedly already been spent on salaries over the past 6.5 years while the plant has remained idle. Employees have been assigned essential duties, including the security and maintenance of plant facilities and machinery, as well as ensuring water and electricity supplies. A ‘significant number’ of employees have been working in shifts, particularly to maintain the plant’s security.
The project was approved by the Executive Committee of the National Economic Council in March 2016, with completion scheduled for December 2019. The deadline was extended three times, eventually to June 2026, and is now proposed to be extended by another one and a half years. Physical progress stands at 92%, while financial progress is 77%. A section of the limestone transport ropeway in India has not been built, while the required gas pipeline in Bangladesh is also yet to be installed. The ropeway is about 17km long, with 11km in Bangladesh and 6km in India. Work on the Bangladesh section is under way, but construction of the Indian section has yet to begin.
