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TA 7979-BAN Strategic Master Plan for Chittagong Port: Final Report

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TA 7979-BAN Strategic Master Plan for Chittagong Port: Final Report Technical Assistance Consultant’s Report Project Number: 45078 September 2015 People’s Republic of Bangladesh: Strategic Master Plan for Chittagong Port (Financed by the Japan Fund for Poverty Reduction) Prepared by: HPC Hamburg Port Consulting GmbH KS Consultants Limited, Dhaka, Bangladesh Sellhorn Ingenieurgesellschaft mbH, Hamburg, Germany For: Ministry of Shipping Chittagong Port Authority This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. Asian Development Bank Chittagong Port Authority STRATEGIC MASTERPLAN FOR CHITTAGONG PORT Final Report, Part 3 HPC Hamburg Port Consulting GmbH Sellhorn Ingenieurgesellschaft mbH Container Terminal Altenwerder Am Ballinkai 1 Teilfeld 5 21129 Hamburg 20459 Hamburg Germany Germany Phone: +49-40-74008-205 Phone: +49-40-361201-0 Fax: +49-40-74008-133 Fax: +49-40-361201-28 E-Mail: [email protected] E-Mail: [email protected] Internet: http://www.hpc-hamburg.de Internet: http://www.sellhorn-hamburg.de KS Consultants Limited House # B/173 (2nd Floor) Road # 23, DOHS Mohakhali Dhaka - 1206 Bangladesh Phone: +88-02-8872512 Fax: +88-02-8812304 E-Mail: [email protected] Copyright © by HPC September 2015 Strategic Master Plan for Chittagong Port – Final Report, Part 3 i TABLE OF CONTENTS Page EXECUTIVE SUMMARY 1 1. INTRODUCTION 11 1.1 Background 11 2. HINTERLAND CAPACITY ESTIMATIONS AND ANCILLARY FACILITIES 15 2.1 Background 15 2.2 Proposed Concept 16 2.3 Rail Capacity 18 2.4 Inland Waterways Capacity 20 2.5 Road Transport Capacity 21 2.6 Summary of Findings 26 3. ENVIRONMENTAL ASSESSMENT OF PROPOSED DEVELOPMENT PROJECTS 31 3.1 Introduction 31 3.1.1 Objectives 31 3.1.2 Methodology 32 3.2 Strategy for Chittagong Port Master Plan 34 3.2.1 Key Issues 34 3.2.2 Vision and Mission 35 3.2.3 Port Development Alternatives 35 3.2.4 Other Alternatives 39 3.2.5 Potential Development of the Bulk and Cargo Terminals 41 3.3 Legal and Regulatory Framework 43 3.3.1 Environmental Requirements for Port Development Project 49 3.3.2 Environmental and Social Requirements of the ADB 51 3.3.3 Standards, Guidelines, and Good Industry Practice 51 3.4 Baseline and Situation Analysis 52 3.4.1 Introduction 52 3.4.2 Overview of the Study Area 53 3.4.3 Environmental Status in the Port Master Plan area 56 3.5 Identification of Impacts of Port Development Alternatives 74 3.5.1 Potential Impacts of Port Developments: Preconstruction 75 3.5.2 Potential Impacts of Port Developments: Construction 76 HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants ii Strategic Master Plan for Chittagong Port – Final Report, Part 3 3.5.3 Potential Impacts of Port Developments: Operation 78 3.6 Plan and Strategies 82 3.6.1 Environmental Management Plan 82 3.6.2 Impact Avoidance, Mitigation and Offsetting 83 3.6.3 Institutional Capacity Assessment 84 3.6.4 Environmental Monitoring Plan 86 3.6.5 Climate Change Adaptation 87 3.6.6 Occupational, Health, Safety 88 3.6.7 Public Consultation/Participation 89 3.6.8 Conclusions and Follow Up 94 4. SOCIAL ASSESSMENT AND SOCIAL MANAGEMENT FRAMEWORK 96 4.1 Background 96 4.2 Project Objective and Scope 96 4.3 Project location 97 4.4 Profile of Population 98 4.5 Consultation and Participation 107 4.6 Social Management Framework: 112 4.7 Social Management Principles 112 4.8 GoB Legal Framework 115 4.9 ADB Safeguard Policy Statement (SPS) 2009 117 4.10 Gap Analysis between GoB Law and ADB SPS 118 4.11 Safeguard Measures to Bridge the Gaps between ADB SPS 2009 and Gob Law in this Project 119 4.12 Social Impact Assessment 120 4.13 Resettlement Planning 120 4.14 Eligibility and Entitlements 121 4.15 Compensation Payment Procedure 133 4.16 Eligibility and Cut-Off Date 134 4.17 Best Practice Measures 134 4.18 Grievance Redress Mechanism 135 4.19 Grievances Redress Committees 136 4.20 Monitoring and Evaluation 138 4.21 Reporting 139 HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants Strategic Master Plan for Chittagong Port – Final Report, Part 3 iii 4.22 Conclusion and Recommendation 140 5. ECONOMIC ASSESSMENT OF THE CHITTAGONG PORT MASTER PLAN 142 5.1 Background 142 5.2 Economic Scan of the Master Plan 143 5.3 Scope and Approach of Economic Analysis 146 5.3.1 Approach and Methodology 146 5.4 Market Potential and Projected Container and General Cargo Handling 149 5.5 Adjustment of Estimate Financial Costs to Economic Cost 150 5.6 Economic Evaluation 151 5.6.1 Savings in Vessel Waiting Time 152 5.6.2 Savings in Vessel Service Time 153 5.6.3 Savings from Vessel Sizes at BCT 153 5.6.4 Results of the Economic Evaluations 154 5.7 Distribution of Master Plan Benefits to the Society 154 6. OVERVIEW OF POSSIBLE ORGANISATIONAL CHANGES AT CPA 156 6.1 Organisation of Chittagong Port Authority 156 6.1.1 Introduction 156 6.1.2 Current Organisation of Chittagong Port Authority 156 6.2 Identified Problems of Organisation of Chittagong Port Authority 160 6.3 Recommended Institutional Improvements 163 6.4 Introduction to Port Models 166 6.4.1 Public Service Port Model 167 6.5 Current Situation at Chittagong Port 172 6.6 Concessions as PPP Setups for the Port Sector 172 HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants iv Strategic Master Plan for Chittagong Port – Final Report, Part 3 TABLE OF FIGURES Page Figure 1: CGPY and Railway Connectivity 19 Figure 2: Proposed Conceptual Layout of Rail Off-Dock Container Terminal at CGPY 20 Figure 3: Map Showing Different Urban Road Connectivity with CGPY 22 Figure 4: Map Showing Dhaka – Chittagong Highway 26 Figure 5: Projected Container & Container to Dhaka 28 Figure 6: Capacity of Road, Rail and Waterways 29 Figure 7: Projected Capacity of available Transport Modes 30 Figure 8: Karnaphuli Container Terminal 1- General Layout 38 Figure 9: Enhancement CCT Terminal –General Layout 38 Figure 10: Multipurpose Terminal Layout- 38 Figure 11: Possible Location of Bay Container Terminal 40 Figure 12: Areas of Possible Bay Container Terminal 41 Figure 13: Location of a potential Laldia Terminal 42 Figure 14: Location Laldia Area 42 Figure 15: Steps to be followed for Environmental Clearance Certificate for Red Category Project 50 Figure 16: Monthly and Annual Humidity (%) in Chittagong (2002-2011) 57 Figure 17: Monthly Average dry bulb temperature in (0C) in Chittagong (2002- 2011) 58 Figure 18: Monthly and Annual maximum temperature in (0C) in Chittagong (2002-2011) 58 Figure 19: Monthly and Annual minimum temperature in (0C) in Chittagong (2002-2011) 59 Figure 20: Monthly and Annual total rainfall in (mm) in Chittagong (2002- 2011) 59 Figure 21: Sky view of the Karnaphuli River and vicinity of Chittagong Urban area with different land use pattern 62 Figure 22: General Information CPA Land use 63 Figure 23: Important waterways of Karnaphuli River and Chittagong Coastal Environment 66 HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants Strategic Master Plan for Chittagong Port – Final Report, Part 3 v Figure 24: Shore-based pollution sources of the Karnaphuli River and the Bay of Bengal, based on Landsat TM satellite image 70 Figure 25: Organizational framework for the proposed EMMC of CPA 87 Figure 26: Gender distribution of HHHs 100 Figure 27: Religious distribution 101 Figure 28: HH size distribution 101 Figure 29: Education level of population (7+) 103 Figure 30: Financial capability of the population 105 Figure 31: Chittagong Port Authority (CPA) – Organigram 159 Figure 32: Important Aspects Influencing a Port’s Competitiveness 164 Figure 33: Summary of Port Models 167 HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants vi Strategic Master Plan for Chittagong Port – Final Report, Part 3 LIST OF TABLES Page Table 1: Reporting 13 Table 2: Planned Dhaka – Chittagong Road Capacity 26 Table 3: Summary of Government Legislation applicable to the Project 43 Table 4: Relevant Major Policies 45 Table 5: Relevant International treaties, conventions and protocols signed by Bangladesh 47 Table 6: Variation of Climate Parameters in Chittagong for a period of 20 years (1988-2008) 60 Table 7: Yearly Highest and Lowest Water Level for Karnaphuli River 65 Table 8: Design High Flood Levels at different Locations of Karnaphuli River 65 Table 9: Common and Occasionally found fishes in the Karnaphuli River 73 Table 10: Proposed Port Development Project Activities and Its Impacts- Construction Stage 80 Table 11: Proposed Port Development Project Activities and Its Impacts- Operation Stage 81 Table 12: Population and HH size (Lal diar char) 99 Table 13: Population and HH size (Bay terminal) 100 Table 14: Occupation of population (11+) 102 Table 15: Marital status of site population (15+) 102 Table 16: Incidence of child marriage 103 Table 17: Disabled population 103 Table 18: Duration of residence 104 Table 19: Expenditure Trend of the HHs 105 Table 20: Medical services 106 Table 21: Gender balance 106 Table 22: Decision making role of women 106 Table 23: Consultation Meeting outcomes 109 Table 24: FGD responses 111 Table 25: Eligibility and Entitlement Matrix 122 HPC Hamburg Port Consulting, Sellhorn Engineering, KS Consultants Strategic Master Plan for Chittagong Port – Final Report, Part 3 vii Table 26: Estimated Annual TEU (‘000) at BCT and KCT1 149 Table 27: Estimated Containers Ships at BCT and KCT1 149 Table 28: Estimated Annual Ship Arrivals at MPT 150 Table 29: MPT,
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