Posted on February 4, 2021
A DredgeWire exclusive
DredgeWire reached out to Western Engineering, the dynamic Bangladesh dredging market leader to hear how and why they entered the dredging space. DredgeWire’s conversation with Munazzeel Riasat, the CEO of the IBC Power/Western Engineering consortium resulted in this insightful narrative.
Bangladesh is ranked 7th in the Global Climate Risk Index 2020 as one of the most vulnerable countries in the world to climate change, having the largest delta region and floodplain in the world with the deltas of three trans-boundary rivers: the Ganges, the Brahmaputra, and the Meghna. Together they make up 80% of the country, support life, livelihoods and the nation’s economy. Rising sea levels from climate change pose a grave threat to this region manifesting itself in flooding, river bank erosion, land subsidence, and siltation. These impacts have in turn led to biodiversity losses, reduction of wetlands, greater salinity and negative impacts on agriculture and food resources.
In view of the immediate and long-term challenges presented by climate change the Government of Bangladesh developed the Bangladesh Delta Plan 2100 (BDP 2100.) The plan’s ambitious mission is to ensure long term water and food security, economic growth and environmental sustainability while reducing vulnerability to natural disasters and building resilience to climate change and other delta challenges through robust, adaptive and integrated strategies, and equitable water governance.
Priority areas the plan identified are flood protection, river erosion control, river management including river training and navigability, urban and rural water supply and waste management, and urban flood control and drainage. The BDP 2100 investment plan for the successful implementation of these highly capital-intensive development goals called for a total capital investment cost of US$37 billion.
28 Million M3 Dredged
Against this backdrop, the government has encouraged the participation of the private sector to support these priorities; many have responded with a massive investment in dredging equipment and industry capabilities, unique on a global scale. Bashir Ahmed, the Managing Director of Western Engineering, a well-recognized name in the Bangladeshi civil engineering sector, has been one of the visionary pioneers of this new expansion. Recognizing both the need and opportunity for significant private sector action, he answered the call of the hour and set out to assemble the largest fleet of privately-owned dredgers in Bangladesh.
In partnership with Dr HBM Iqbal, an accomplished entrepreneur, and Chairman of Premier Group, and Premier Bank, Bashir Ahmed formed IBC Power Limited with the expectation that the synergies that would result from the venture would provide a suitable platform from which the company could become the leader in dredging market in Bangladesh. Since its formation in 2017, the company has grown from strength to strength making significant contributions in contracts for river management including dredging, river management, and works to maintain navigability undertaken by the government. So far the consortium’s 6 major projects have accounted for a total of 28 million cubic meters dredged.
$100 Million Investment
The IBC-Western Engineering consortium together has invested about $100 million to achieve their dominant market position.
With an impressive fleet of 33 cutter suction dredgers, supporting vessels and equipment all procured from trusted names in the industry such as Ellicott, IHC and Damen, the combined annual dredging capacity of the IBC Power-Western Engineering consortium exceeds 25 million cubic meters, earning it the distinction of being the largest privately-owned dredging fleet in Bangladesh.
Bangladesh Dredging Contractors Started
Bashir Ahmed helped found a local association of dredging contractors and is now its Co-Chair. The Bangladesh Dredging Contractors Association now has 38 members with a combined fleet of about 150 dredgers.
400 Person Workforce
Perhaps even more impressive than investing so much capital on plant, the company has developed the human capital to run it, starting almost from scratch. It now employs over 400 people with diverse educational backgrounds and disciplines. CEO Munazzeel Riasat ACCA, CIA has maintained a steadfast commitment to creating a culture of technical & technological innovation, always aspiring to a high degree of proficiency and environmental sustainability. His goal is a workforce capable of meeting the multifaceted challenges the company’s growth presents. He expects his team to deliver on the company’s ambition of being recognized as a premier name in the dredging sector in Bangladesh and the international arena. At present, despite the disruptions to the global economy and challenges of an uncertain investment climate brought on by the COVID19 pandemic in 2020, the IBC Power-Western Engineering consortium is engaged in 11 river management, training and navigability projects with a requirement to dredge over 36 million cubic meters in the next 2 years, and is making a significant contribution to the development of Bangladesh.
All in all, a very impressive accomplishment especially in such a relatively short period of time.
