The government of Bangladesh has no intention of cancelling or renegotiating the concession agreement for the Laldia Container Terminal project with Denmark, Shipping Minister Shaikh Rabiul Alam confirmed today in parliament. The minister assured that the agreement, signed under a government-to-government (G2G) public-private partnership (PPP) arrangement, was executed transparently and in accordance with all applicable laws and procurement guidelines.
Transparent and Legally Sound Agreement
Minister Alam emphasized that the deal was signed transparently, following due government procedures. The agreement covers a total period of 33 years, including three years for construction and 30 years for operation, with an additional 15-year extension. It was signed under the provisions of the Public Private Partnership (PPP) Act, 2015, the Policy for Implementing PPP Projects through Government to Government (G2G) Partnership, 2017, and the Procurement Guidelines for PPP Projects, 2018.
Significance of the Project
The Laldia Container Terminal project is expected to significantly enhance the handling capacity of Chattogram Port, create employment opportunities, and facilitate technology transfer. Denmark-based APM Terminals, a subsidiary of the Maersk Group, will invest US$550 million in the project. The terminal will be constructed on vacant land within Chattogram Port.
Government to Government Partnership
The project is part of a broader memorandum of understanding signed between Bangladesh and Denmark on June 30, 2021, to promote environment-friendly and sustainable infrastructure development through public-private partnerships. APM Terminals submitted an expression of interest on May 21, 2023, to construct the terminal on the right bank of the Karnaphuli River at Laldia Char.
Approvals and Due Diligence
The project received policy approval from the Cabinet Committee on Economic Affairs (CCEA) on November 29, 2023. It was subsequently presented at the first Bangladesh Denmark PPP Joint Platform meeting on January 3, 2024, where the Danish government confirmed APM Terminals as the implementing partner. The International Finance Corporation (IFC) was appointed as the transaction adviser on June 10, 2024.
Final Agreement and Implementation
After completing all due diligence and negotiations with the preferred bidder, the final concession agreement was submitted to the Ministry of Shipping on November 10, 2025, for clearances and legal vetting. The agreement was approved by the Advisory Committee on Economic Affairs (ACEA) on November 12, 2025, and received the approval of the Chief Adviser on November 16, 2025. The Letter of Award (LoA) was issued to APMT BV on November 17, 2025, and the concession agreement between the Chittagong Port Authority and APMT BV was signed on the same day.
