birol land port

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Infrastructure Investment Facilitation Center DEVELOPMENT OF BIROL 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 Commercial Arrangement BSBK provides right to the concessionaire to invest, operate and maintain the land port for a term of 25 years. The investor shall: - collect handling and storage charges (at the rates existing at Benapole) - 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. 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 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) arrangement through private sector for better and efficient storage and handling of cargo. By adopting the BOT arrangement, government funds required for making initial investment are saved. The project received approval from the Private Infrastructure Committee (PICOM) 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 process, following the Bangladesh Private Sector Infrastructure Guidelines, 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 return the land port to BSBK. The Birol Land Port Birol land port is situated in Birol upazila of Dinajpur district, in the mouza of Char Shankar. Total 10 acres of land have been acquired for the development of the port. It is situated adjacent to the main railway line, but the railway track does not pass through the port area. The land acquired for port site is about 200 meter away from the Bangladesh-Indian borderline and is not very far from the upazila headquarters. Currently, the port handles a reasonable quantity and varieties of consumer goods imported from India through land route. The major imported items are stone chips, fertilizer, rice, wheat, sugar, different food items and various fruits. IIFC’s Role as a Consultant BSBK signed a Development Services Agreement with IIFC on 18 November 2003 for assisting in inviting private sector for development of land ports at ten LC stations on BOT basis. A feasibility study was conducted by IIFC. Later on, draft Invitation for Tenders (IFT) including major terms and conditions, layout plan, minimum functional requirements were prepared. After finalizing the IFT, Concession Agreement and Land Lease Agreement were also prepared by IIFC. While preparing all these documents, feedback as well as comments were received from BSBK and stakeholders incorporated as appropriate. The Concessionaire Birol Land Port Limited After winning the tender floated for the Birol land port, the sponsor investors established the Birol Land Port Limited as a special purpose vehicle. Accordingly, BSBK awarded the project to the company and signed both concession agreement and the land lease agreement on 22 October 2006. Construction under the agreement is expected to start by July 2007. Full commercial operation is expected by October 2008.

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Page 1: Birol Land Port

Infrastructure Investment Facilitation Center DEVELOPMENT OF BIROL 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

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 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) arrangement through private sector for better and efficient storage and handling of cargo. By adopting the BOT arrangement, government funds required for making initial investment are saved. The project received approval from the Private Infrastructure Committee (PICOM) 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 process, following the Bangladesh Private Sector Infrastructure Guidelines, 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 return the land port to BSBK.

The Birol Land Port Birol land port is situated in Birol upazila of Dinajpur district, in the mouza of Char Shankar. Total 10 acres of land have been acquired for the development of the port. It is situated adjacent to the main railway line, but the railway track does not pass through the port area. The land acquired for port site is about 200 meter away from the Bangladesh-Indian borderline and is not very far from the upazila headquarters. Currently, the port handles a reasonable quantity and varieties of consumer goods imported from India through land route. The major imported items are stone chips, fertilizer, rice, wheat, sugar, different food items and various fruits.

The Concessionaire Birol Land Port Limited After winning the tender floated for the Birol land port, the sponsor investors established the Birol Land Port Limited as a special purpose vehicle. Accordingly, BSBK awarded the project to the company and signed both concession agreement and the land lease agreement on 22 October 2006. Construction under the agreement is expected to start by July 2007. Full commercial operation is expected by October 2008.

IIFC’s Role as a Consultant BSBK signed a Development Services Agreement with IIFCon 18 November 2003 for assisting in inviting private sectorfor development of land ports at ten LC stations on BOTbasis. A feasibility study was conducted by IIFC. Later on, draftInvitation for Tenders (IFT) including major terms andconditions, layout plan, minimum functional requirementswere prepared. After finalizing the IFT, ConcessionAgreement and Land Lease Agreement were also preparedby IIFC. While preparing all these documents, feedback aswell as comments were received from BSBK andstakeholders incorporated as appropriate.

Commercial Arrangement • BSBK provides right to the concessionaire to invest,

operate and maintain the land port for a term of 25years.

• The investor shall: - collect handling and storage charges (at the rates

existing at Benapole) - 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.

Page 2: Birol Land Port

Infrastructure Investment Facilitation Center

A

Fac• S• T• M• S

im• U• O

greement signing between IIFC and BSBK

Workshop for development of Land Ports on BOT

Zero Point

PROJECT

INDIA GATE

PAKURA/BIROLBANGLADESH

BOP CAMP

PAKURA POINT

TO BIROL/ DINAJPUR

INDIA BANGLADESH

Zero Point

ilities at the Port torage space ransshipment facilities odern handling equipments

pace for government regulatory offices like customs, migration

tilities like telephones, electricity, and water supply ffice 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.

Cost of Project Tk. 4 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: [email protected] www.iifc.net

Railway Substation

WarehouseFuture Dev.65'x70'

Empty Truck Parking

Dormitory30'x 80'

Barrack100' x 35'

Entry/Exit

Custom Godown 62'x 80'

Guest House

40'x 60'

Proposed

Staff Build.40' x 120'

Future Development326'x 70'

BIROL LAND PORT, DINAJPUR

BANGLADESH STHALA BANDAR KARTRIPAKSHA

CLIENT

PORT OPERATOR

BIROL LAND PORT LIMITED

TITLE

LAY-OUT PLAN

PROJECT AREA SCALE TO FIT

SCALE

OUTSIDE PROJECT AREA NOT TO SCALE

BSBK ACQUIRED 10 ACRES

PRIVATE LAND TO BE ACQUIRED BY BSBK (774'x150')LAND OF BANGLADESH RAILWAY TO BE LEASED OUT TO BSBK(1400'x100')TOTAL PROJECT AREA

TO BE DEVELOPED BY GOVERNMENT AGENCIES

INDIA GATE

Open Stack Yard605' x 118'

1400'

774'

150'

100'

816'

716'

626'

RAILWAY INFRASTRUCTURE

Way-Br

idge

Transhipment Yard100' x 55'

Future Development

Admin Building6200 Sft

Ware House80'x 100'

Warehouse for Future Dev160' x 80'

Ware House80'x 100'

Empty Truck Parking300'x 70'T

oil

et

Loaded Truck Parking Area100' x 75'

Future Development

Future Development

Future Development

Warehouse100' x 70'

Warehouse100' x 70'

Warehouse100' x 70'

Transit Shed100' x 70'

Transit Shed100' x 70'

Transit Shed Future 70'x70'

Transit Shed100' x 70'

Layout Plan of Birol Land Port

December 2006