The government is preparing to invest another Tk 46.62 billion in maintenance dredging and procurement of dredgers for the Rabnabad channel of Payra Port, raising further concerns over the long-term viability of the southern seaport and the prudence of continued public investment.

According to officials, the Ministry of Shipping has proposed a project titled ‘Maintenance Dredging of Rabnabad Channel of Payra Port and Procurement of Hopper Dredger’. The project includes Tk 31.74 billion for dredging over the next two years and Tk 14 billion for the procurement of two trailing suction hopper dredgers.

The initiative aims to maintain a 10.5-metre draft along the 75-kilometre channel to facilitate navigation for Panamax-class vessels.

The Planning Commission’s Physical Infrastructure Division reviewed the proposal at a Project Evaluation Committee (PEC) meeting on Wednesday and agreed to forward it to the Executive Committee of the National Economic Council (ECNEC) for final approval, subject to incorporation of specific recommendations. One key requirement is a detailed financial assessment of the port’s operational costs, projected revenues, and the economic returns from the proposed dredging.

Two additional development proposals for the Payra Port—Tk 1.61 billion for digitisation and Tk 4.9 billion for staff housing—are also set for PEC review this month. Combined, the total planned investment in Payra Port for the next three years stands at Tk 53.12 billion, all to be financed through government funds.

Since its inception in 2013, Payra Port has consumed significant public resources, including Tk 72.89 billion spent between November 2020 and December 2023 on capital and emergency maintenance dredging. However, persistent navigability issues remain due to the port’s distance from the Bay of Bengal estuary and continuous siltation.

Critics argue that the current proposal continues flawed planning and inadequate risk assessments. Earlier this year, interim government Planning Adviser Prof Wahiduddin Mahmud labelled Payra Port a “poison for the economy,” citing its high maintenance costs and limited economic utility. He questioned its classification as a full-fledged seaport, describing it instead as a wharf serving small vessels.

Nonetheless, Mahmud acknowledged its potential strategic value as a backup facility in case of disruption at the Chattogram or Mongla ports due to natural disasters or geopolitical tensions.

Broader economic pressures further strain the project’s justification. Bangladesh is grappling with fiscal tightening, stagnant revenue collection, and declining foreign aid inflows. Budget analysts warn that prioritising nearly Tk 50 billion for dredging amid underfunding in healthcare, education, and climate adaptation reflects a misalignment of development priorities.

Professor Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), pointed to past inefficiencies in public investments and stressed the need for a cost-effective approach to managing Payra Port going forward. “Now that significant investments have already been made, abandoning the port would mean wasting public funds. However, any future spending must focus on maximum utilisation and minimum losses,” he said.