Overhaul CETP management to boost leather sector compliance: economist

Bangladesh's leather industry may struggle to meet rising global compliance requirements unless the management of its Central Effluent Treatment Plant (CETP) is handed over to a competent professional operator, according to a leading economist.

The call emerged during a webinar today on the future of the country's leather sector, where participants argued that years of operational failures at the Savar Tannery Industrial Estate have exposed the limitations of the current management structure.

Hossain Zillur Rahman, executive chairman of the Power and Participation Research Centre (PPRC), said the industry's long-delayed transition from Hazaribagh to Savar remains incomplete, largely because key environmental infrastructure has failed to function as intended.

"The relocation was never meant to be just a physical shift of factories," he said.

"The supporting systems, particularly waste treatment facilities, also needed to function effectively."

At the centre of the debate is the CETP, considered essential for ensuring environmental compliance and maintaining access to international markets that are increasingly sensitive to sustainability standards.
Rahman questioned whether the existing oversight arrangement can deliver the efficiency and accountability required by a modern export-oriented industry.

He proposed a model in which government ownership of the facility is retained while day-to-day operations are entrusted to a professional operator selected through a transparent process.

"There are many examples where assets remain under government ownership but are managed independently by specialised operators," he said, citing internationally managed hotels as an illustration.

Rahman added that these standards are no longer optional for Bangladesh, regardless of its least developed country status.

"If Bangladesh wants to participate in global markets, compliance requirements must be met regardless of preferential trade benefits," he said.