HC clears way for deal with foreign operator for New Mooring terminal

The High Court on Thursday dismissed a rule issued on a writ petition challenging the legality of Chittagong Port Authority’s (CPA) process of signing an agreement with a foreign company to operate the New Mooring Container Terminal (NCT) at Chittagong Port.

Justice Zafar Ahmed passed the order after hearing arguments from all sides, effectively removing any legal barrier to the CPA proceeding with the agreement to hand over NCT operations to a foreign operator.

Additional Attorney General Anik R. Haque said the writ petitioners later applied to the Chamber Judge seeking a stay of the High Court verdict.

However, the Chamber Judge issued a “no order,” thereby upholding the High Court’s decision.

Barrister Zamir Uddin Sircar, Advocate Ahsanul Karim and Barrister Mahbub Uddin Khokon represented the petitioners.

The case stemmed from a dissenting verdict delivered by High Court on December 4 last year regarding the legality of the CPA’s move to sign a contract with a foreign operator for the NCT.

In that verdict, a bench led by Senior Justice Fatema Najib declared the ongoing process ultra vires, citing violations of the Public-Private Partnership (PPP) Act, 2015, and the Governance and Transparency Committee (GTC) guidelines of 2017.

However, Justice Fatema Anwar dissented and discharged the rule, rejecting the writ petition.

As per procedure, the dissenting judgment was referred to the then Chief Justice, who later assigned the matter to a single bench headed by Justice Zafar Ahmed for final disposal.

Following hearings, Justice Zafar Ahmed dismissed the rule on Thursday, paving the way for the CPA to proceed with the agreement.

Earlier, on February 17, 2019, the CPA signed a memorandum of understanding with UAE-based DP World under the PPP framework to operate the New Mooring Container Terminal.

The writ petition was filed by Mirza Walid Hossain, president of Bangladesh Jubo Arthanitibid Forum, seeking a directive to ensure a fair and competitive bidding process.

The petition cited media reports questioning why the terminal; already equipped with full infrastructure, was being handed over to a foreign company without open tender.

The High Court initially issued a rule on July 30 last year, asking why the contract-signing process should not be declared ultra vires under the PPP Act and related guidelines, and why a competitive public tender should not be ensured.

The New Mooring Container Terminal, one of the largest terminals at Chittagong Port, was constructed in 2007.

The port authority invested Tk 2,712 crore in phases for its construction and equipment. The terminal currently handles the bulk of import and export containers passing through Chattogram Port.