2 new textile mills to be developed in Dhaka, Gazipur under PPP
Denim fabric production process. Photo Courtesy: Daiwa Trading
Bangladesh government has taken up an initiative to develop two textile mills in Dhaka’s Demra and Gazipur’s Tongi under the public private partnership (PPP) programme.
The cabinet committee concerned on economic affairs headed by Finance Minister AMA Muhith approved the overhauling of two public sector jute mills – Ahmed Bawani Jute Mills and Kaderia Jute Mills – into textile mills during a meeting on December 5, 2018.
READ MORE: Inside Bangladesh’s new textile law
Nasima Begum, additional secretary to the cabinet division, briefed reporters and said it was initially a proposal of the Ministry of Textiles and Jute, what was approved.
The committee has given its final approval to the PPP contract document, she said; adding that the private sector operator will run the mills under design-build-operate-maintenance and transfer method for a period of 30 years.
READ MORE: Textile science key to apparel future
Bawani Jute Mill at Demra has been awarded to consortium of Tanzia Fashions Ltd, who will pay contract fees of Tk 2.5 crore annually. After 30 years of operation, they will hand it over to the government.
Kaderia Jute Mills at Tongi has been given to consortium of Orion Ltd. They will also operate the mill for 30 years and will give the government contract fees of Tk 5.20 crore annually.
For Regular Industry Insights