DHAKA: Chittagong Port Authority (CPA) signed a memorandum of understanding with Payra Port Authority (PPA) on Thursday to set up the Payra Seaport at Rabnabad channel in Patuakhali district.

Under the MoU, the CPA will provide taka 50-crore to construct the country’s third seaport.

Member of CPA (Engineering) Captain Julfikar Aziz and member of PPA (Harbor and Marine) Captain M Saidur Rahman signed the memorandum for the respective side at the meeting room of the secretariat of Shipping Ministry on Thursday.

Shipping Minister Shahjahan Khan along with Secretary of the Ministry Syed Manjurul Islam and other officials were present there.

According to the contract, CPA will provide financial, technical and other facilities to set up the new seaport.

Shahjahan Khan said that the Chittagong Port Authority will provide a total of almost Tk 50-crore without any interest to set up the third seaport.

He further said that it will help in handling import-export trade of the country. As such its importance in the national economy is paramount, he added.

The Chittagong Port is the principal seaport of Bangladesh handling about 92% of import-export trade of the country. But experts fearing to have traffic jam in port in near future.

The loan will be refunded by PPA in 20 installments by 2020.

The first two ports of the country Chittagong port and Mongla port were established in 127 and 64 years ago respectively.

Earlier on November 13, 2013, premier Sheikh Hasina inaugurated the much-awaited seaport in Itbaria area at Tiakhali union under Kolapara upazila.

BDST: 1515 HRS, MAY 15, 2014