Cox's Bazar Investment Project
The Cox's Bazar Investment Project is tied to a 3.0-acre khas land project under the Bangladesh Administrative Service Association (BASA). Because BASA lacked sufficient funds for the long-term settlement, the society invested BDT 3.25 crore under an MoU signed on 16 June 2016. Under the MoU, the society is to receive the principal back along with 40% of the project profit. BDT 1.00 crore has been recovered so far, while BDT 2.25 crore and the profit share remain outstanding. The site is currently rented to WFP for five years at BDT 3.00 lakh per month.
Overview
A memorandum of understanding was signed on 16.06.2016 between the society and the Bangladesh Administrative Service Association (BASA). Under the memorandum, the society invested BDT 3,25,00,000.00 and is entitled to the return of its principal together with 40% of the project profit.
Following a return request dated 31.05.2023, BDT 1,00,00,000.00 of the principal was returned on 30.07.2023 without any profit. The remaining principal of BDT 2,25,00,000.00 and the society’s 40% share of the project profit remain outstanding and require continued recovery efforts under the memorandum.
Key Facts
Milestones
- •MOU signed on 16.06.2016.
- •Return request sent on 31.05.2023.
- •Partial principal repayment of BDT 1,00,00,000.00 received on 30.07.2023.
- •The investment file also records discussion of possible new housing projects through separate land-lease applications in Keraniganj and Baunia during 2024 and 2025.
- •BASA received 3.0 acres of khas land in Cox’s Bazar under long-term settlement.
- •The society invested in the project because BASA lacked sufficient funds.
- •An MoU was established, giving the society the right to receive its principal amount back.
- •The MoU also gives the society the right to receive 40% of project profit.
- •The project site has been rented to World Food Programme (WFP)
Open Items
- •Send or follow up the demand for the remaining principal together with profit.
- •Keep this item out of visual promotional sections unless the business goal is to present the society's investment portfolio, not only development projects.
- •Remaining principal of BDT 2,25,00,000.00 needs to be recovered
- •The society should regularly collect its share of rent/profit.
- •The society’s 40% profit share under the MoU needs regular monitoring and collection
- •WFP rent collection should be tracked throughout the 5-year rental term.
Status Note
BDT 1.00 crore of the BDT 3.25 crore investment has been recovered. BDT 2.25 crore and the society's 40% profit entitlement remain outstanding, while the WFP rent and related income require regular collection and follow-up.