Bangladesh has granted in-principle approval for a privately financed $1 billion shipbuilding and repair complex at Matarbari deepsea port.

The Ministry of Shipping has forwarded the unsolicited proposal for the Matarbari Green Dockyard and Shipbuilding Facility to the Public-Private Partnership Authority for technical and financial appraisal.

Australia-based AIS Marine Investments has been identified as the proposed financier. China Harbour Engineering Company is expected to participate as the technical partner. The proposal does not specify a construction schedule or concession period.

The project would be developed on about 200 acres owned by the Chattogram Port Authority. Under the proposed landlord model, the authority would continue to own the land and fixed assets. Infrastructure built by the private investor would transfer to the state when the concession expires.

A 600 m by 95 m drydock is included in the plan. It would be designed to handle large commercial vessels serving Matarbari, other ports in Bangladesh and routes across the Bay of Bengal.

The complex would provide shipbuilding, scheduled docking and emergency repair services. Its proposed capacity would reduce the need to send larger vessels to yards in Singapore, the United Arab Emirates or China for docking and repair work.

Bangladesh’s Ministry of Industries issued a no-objection certificate after an interministerial meeting earlier this year. According to the government, the development would proceed without exposing the state to debt.

The project is expected to generate between 1,200 and 1,300 direct jobs and about 2,600 indirect positions if it receives the remaining approvals.