Overhauling waste plant mgmt key to B'desh leather compliance

The failure of key environmental infrastructure at the Savar Tannery Industrial Estate is threatening to choke off the supply of compliant raw materials for the global leather and footwear supply chain, prompting urgent calls for an overhaul of the country's waste management systems. According to media report, a leading economist has warned that Bangladesh’s leather industry will continue to struggle to meet increasingly stringent international sustainability requirements unless the management of its central effluent treatment plant (CETP) is immediately transferred to a competent, professional operator.

Speaking at an industry webinar focused on the future of the leather sector, Hossain Zillur Rahman, executive chairman of the Power and Participation Research Centre, stated that the industry's long-delayed transition from Hazaribagh to Savar remains incomplete primarily because critical environmental infrastructure has failed to function as intended. He noted that the relocation was never meant to be a simple physical shift of manufacturing units, but required the supporting waste treatment facilities to operate effectively to secure the high-grade, compliant material international buyer demand.

At the heart of the crisis is the persistent operational failure of the Savar CETP, a facility considered absolutely vital for processing tannery waste and maintaining access to overseas markets that are highly sensitive to environmental standards. Rahman questioned whether the existing oversight arrangement possesses the capacity to deliver the efficiency and accountability required by a modern, export-oriented sector. To bridge this operational gap, he proposed a restructured model wherein the government retains asset ownership of the treatment facility but entrusts day-to-day operations to an independent, specialised operator selected through a transparent process.

Drawing a parallel to internationally managed hotels, Rahman argued that separating state ownership from professional operational management is a proven method to raise industrial standards. He emphasised that such environmental benchmarks are no longer optional for sourcing destinations, noting that if a manufacturing hub wishes to participate in global supply chains, compliance requirements must be met regardless of least developed country status or preferential trade benefits.