Govt plans new CETP at Savar Tannery Estate
The government has announced plans to construct a world-class Central Effluent Treatment Plant (CETP) at the Savar Tannery Estate alongside rehabilitating the existing facility, aiming to address long-standing environmental compliance challenges facing the leather industry.
Commerce Minister Khandakar Abdul Muktadir disclosed the initiative during a policy dialogue titled “Advancing Bangladesh’s Leather Sector: Challenges, Opportunities and Reform” in Dhaka.
He stated that a world-class institution will be selected through a transparent tender process to construct the new CETP, with relevant leather industry associations involved throughout.
Highlighting operational inefficiencies, the minister noted that the environmental cost of a non-functional CETP outweighs its business benefits.
While the current CETP was designed for a capacity of 25,000 cubic meters, its effective operational capacity has dropped to around 14,000-15,000 cubic meters.
Effluent pressure escalates significantly during Eid-ul-Azha due to the surge in rawhides, making a new facility essential alongside the overhaul of the existing unit.
The government has received separate rehabilitation proposals for the existing plant from an Italian company and a Chinese state-owned enterprise, which will undergo comparative evaluation.
Muktadir pointed out that rehabilitating the existing facility could cost nearly double the expense of constructing a new plant.
Moving forward, all tannery operators will be required to maintain full environmental compliance and secure certification from the Leather Working Group (LWG).
Emphasizing domestic value addition, the minister urged tanners to process rawhides into leather and finished goods locally rather than exporting unprocessed materials.
Acknowledging that the initial relocation of tanneries from Hazaribagh to Savar was necessary but poorly executed, Muktadir outlined exit strategies for struggling business owners.
The government is considering a “graceful exit” mechanism for investors who have lost financial capacity or interest after years of investment, which would subsequently clear space for new investors to revive the sector.
