Bangladesh’s only state-owned cement plant, Chhatak Cement Factory, has been idle for over six years after halting production, despite BDT14,180m (US$115.2m) already spent on its modernisation project.
Launched in 2016 with an initial budget of BDT6670m, the project has faced repeated delays due to shortages of limestone and gas, with completion now pushed to June 2027, according to a recent report by a local media outlet.
The factory, the first and oldest cement plant in Bangladesh, is located on the bank of the Surma River in Chhatak Upazila of Sylhet, in northeastern Bangladesh.
Although physical progress is reported at 92 per cent and financial progress at 77.46 per cent, the factory cannot operate until two critical components are completed: a 17km cross-border limestone ropeway and a 42km gas pipeline. The Indian section of the ropeway has yet to begin, while survey work for the pipeline is underway.
The Implementation Monitoring and Evaluation Division (IMED) has criticised the project's mismanagement, warning of annual losses of BDT2250m and urging the exploration of alternative limestone sources. IMED has also recommended an investigation into why the Bangladesh section of the ropeway remains unfinished despite more than a decade of work.
In contrast, private producer LafargeHolcim Bangladesh Ltd continues to operate profitably in the same region, benefiting from its own leased mine in Meghalaya. Bangladesh has an agreement to import limestone until 2033, and discussions are ongoing regarding the acquisition of a stake in an Indian limestone company. A committee is also assessing the feasibility of sourcing limestone from Sylhet through a joint venture with a local firm.
Despite assurances from project authorities, IMED has raised concerns over whether the latest extended deadline will be met, citing weaknesses in project management and delays in unrelated works. Rising global equipment prices could further inflate costs, adding to the government’s financial burden.
Notably, Project Director, Md Abdur Rahman, who is also the factory's managing director, said production cannot resume before June 2027. Any further delay would mean continued borrowing to pay employees. Chinese contractor Nanjing C-Hope Cement Engineering Group Co Ltd is working on the factory modernisation. But the Indian government did not allow the Chinese company to construct the Indian section, stalling the project, according to factory sources. Later, the Bangladesh government and the main contractor agreed that the Indian company Komorrah Limestone Mining Co Ltd would build the Indian section as a subcontractor.
