Bangladesh Army Top Loan Defaulter Shipyard Building LCTs For Five Years

[Isa Khan]

Western Marine Shipyard (WMS) is still building two landing craft tanks (LCTs) for more than five years. Bangladesh Army signed a contract with the shipyard for two LCTs on 21 June 2017. Keel laying ceremony for these vessels was held on 25 September 2017. These vessels were supposed to be delivered within next 22 months after signing the contract but the shipyard failed to do that. The shipyard signed a consultancy service agreement with SeaBeach77 Limited for the LCTs on 27 June, 2021.

The consultancy firm seems unreliable cause looks like this is it's first real project. The shipyard was once an emerging industry but now it has become one of top 20 loan defaulters in 2023. It got sued by multiple banks and company for defaulting on loans and missing delivery deadline. It's not clear why Bangladesh Army did not cancel the order and still allowing WMS to build these vessels as the cost of constructing them certainly increased. The possibility of corruption in this project also comes to mind. It seems the construction didn't make much progress after December, 2022.

Each vessel having a length of 68 meters will carry eight combat tanks including 40 officers and 200 troops. These Ships will be made under the supervision of International Ship Builders Classification Society BUREAU VERITAS-France.

LCT NEWCON Western Marine - Bangladesh Army Riverine Engineering Battalion

www.globalsecurity.org

Landing Craft Tank – Western Marine Shipyard Ltd.

www.wms.com.bd

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www.ekusheypatrika.com

Latest picture.

 

[Isa Khan]

Western Marine Shipyard Limited, listed on the capital market, has been put on auction as the export-oriented ship builder could not pay back money to its lender Dhaka Bank Limited.

In the auction notice published on 8 September, the bank invited interested buyers to submit tenders to buy the land by 5 October 2023.

According to the auction notice, Western Marine took three loans from Chattogram Agrabad branch of Dhaka Bank in 2012. Its mother company Western Marine Services Limited mortgaged its office space and a cruise ship as collateral for the loans.

As of 29 August 2023, Western Marine owed the Dhaka Bank around Tk94 crore including interests.

Western Marine Shipyard put on auction

As of 29 August 2023, Western Marine owed the Dhaka Bank around Tk94 crore including interests.

www.tbsnews.net

 

[Isa Khan]

Looks like construction of the second vessel's bow and bow ramp made some progress. First one should have made more progress than the 2nd one.

Old photo for comparison.