The High Court has delivered a split verdict on the rule questioning the legality of the ongoing process to sign an agreement with a foreign company for operating the New Mooring Container Terminal (NCT) at Chattogram Port. The senior judge of the bench, Justice Fatema Najib, declared the contract process illegal, while the junior judge, Justice Fatema Anwar, upheld it as legal.
The two-judge bench delivered the split verdict on Thursday (4 December), expressing differing opinions. As per procedure, the matter will now be sent to the Chief Justice’s office, after which the Chief Justice will form another High Court bench to dispose of the rule.
Earlier this year, Mirza Walid Hossain, president of the Bangladesh Young Economists Forum, filed a writ petition challenging the legality of handing over the NCT’s operations to a foreign entity. After the primary hearing, the High Court issued a rule on 30 July.
The rule asked why the ongoing agreement process between the Chattogram Port Authority and a foreign company for operating the NCT should not be declared beyond legal authority for allegedly violating the PPP Act and policies by not considering local operators.
The court also questioned why it should not order the authorities to ensure a fair and competitive public bidding process, as required by relevant laws and policies, before assigning responsibility for operating the NCT to any operator.
The shipping secretary, the chairman of the Chattogram Port Authority, the CEO of the PPP Authority, and other respondents were asked to respond within four weeks.
Following this, the petitioner submitted a supplementary application seeking a status quo on the agreement process between the Port Authority and UAE-based DP World.
Built in 2007 at a cost of Tk 2,712 crore, the New Mooring Terminal handles most of the import and export containers at Chattogram Port. It was previously operated by Saif Powertec, whose contract expired on 6 July. Chittagong Dry Dock Limited, a Bangladesh Navy institution, later took over operations.
On 17 February 2019, the PPP Authority signed a memorandum of understanding with DP World under a public-private partnership framework. As the Port Authority advanced the agreement process with the foreign firm, Mirza Walid Hossain filed the writ petition questioning its legality.