Cox’s Bazar Development Authority has submitted a proposal to construct a 15-storey commercial building, featuring four basement levels, at the Kalatali-Labani junction in Cox's Bazar.
The ambitious project aims to introduce a modern commercial hub to the area, incorporating a shopping complex, a three-star hotel, and an entertainment centre.
The building is set to offer a variety of amenities targeted at tourists, including a cineplex and a food court, all within the hotel complex, which is planned on land leased specifically for development purposes.
According to the project proposal, submitted to the Ministry of Housing and Public Works, the initiative is expected to require an estimated Tk184.76 crore and is intended to be financed through commercial loans from banks.
An additional Tk18 crore is being requested within the proposal for loan management expenses.
The project evaluation recently came under scrutiny at a Divisional Project Evaluation Committee (DPEC) meeting, convened by the Ministry of Housing and Public Works.
The committee questioned the alignment of the hotel’s construction with the terms of the land lease and raised concerns over the Tk18 crore allocation for debt management, suggesting this portion be omitted from the budget.
Initially, the project timeline spanned from early this year through June 2027, with an estimated total cost of Tk202.67 crore, funded internally by the implementing agency.
Following DPEC’s review, however, the project plan has been revised to commence in July 2024, with a completion target of December 2027, bringing the overall budget to Tk184.76 crore.
Representatives of Cox’s Bazar Development Authority informed the meeting that they hold a lease from the Public Works Department on land located across from Ocean Paradise Hotel on Kalatali-Labani Mor road.
The project will feature hotel suites along with modern retail spaces, promising to significantly boost the authority’s revenue generation capacity and further establish it as a self-sustaining, autonomous organisation.
When questioned about the lease’s original purpose, the Authority’s chairman clarified that, as a newly-formed institution, the lease had been obtained to support its organisational development.
The Ministry has recommended that the project proposal include explicit details on the management structure for the planned commercial facility.
Cox’s Bazar Development Authority is seeking to fund the project through bank loans, with a Tk18 crore allocation for debt management costs included in the project’s total budget.
However, a ministry representative advised that loan management expenses should not be covered within the project budget, as the Cox’s Bazar Development Authority should assume responsibility for these costs independently.
A joint secretary echoed this sentiment, noting that managing loan interest directly within the project’s financial framework would be inappropriate, and advised against incorporating debt-related costs in the project budget.
