The 'notice to proceed' was issued to the Larsen following signing of a turnkey contract yesterday under which a Lafarge plant will be set up to manufacture 1.2 million tons of cement annually.

Lafarge Surma Cement will be the lone integrated dry processing cement plant in Bangladesh, company officials said during a press conference on Thursday.

The officials said the cross border project has its own quarry in Meghalaya, India from which limestone and shale would be transported to the cement plant at Chhatak in Bangladesh.

The transportation would be made through a 17-kilometre conveyor belt.

On July 25, Lafarge had issued clearance to ECC Division of Larsen & Turbo Ltd to start construction of the conveyor and crusher at quarry.

Speaking at the press conference, Lafarge Surma Cement Managing Director Yong Ngai Chan said both the contractors have completed the advance engineering designs and are set for quick progress in construction activities. The cement plant is scheduled to commence production by 2005.

The MD said over the last few years massive site development activities involving huge sand filling to raise the cement plant site above the highest flood level were carried out and that the site is now ready for construction.

"The phase 1 of the quarry development activities started in March 2003 and is expected to be completed in September 2003," the MD said.

He said survey and soil investigation works through out the 17-kilometre track acquired for the construction of the long belt conveyor have also been completed.

The MD said a long-term gas supply agreement was signed with Jalalabad Gas and Transmission Company on January 19, 2003 for supply of natural gas to the project.