Posted on August 29, 2016
The Planning Commission (PC) has sent back a mega Tk 32 billion project for dredging of the Chittagong-Dhaka-Ashuganj river channel due to absence of a feasibility study and higher project cost, officials said Wednesday.
Besides, the implementing agency Bangladesh Inland Water Transport Authority (BIWTA) had not consulted the PC for recasting the project proposal despite a direction by the Project Evaluation Committee (PEC) of the Commission, they said.
“We have sent back the project proposal of the BIWTA as it has not accommodated the decisions of the PEC,” said a senior PC official.
The BIWTA has undertaken the ‘Bangladesh regional inland river transport proejct-1’ project with expected financial support of the World Bank (WB) to ensure navigability of the Chittagong-Dhaka-Ashuganj waterways in a bid to ensure smooth regional transportation.
The World Bank has assured nearly US$360 million loan for the river dredging project.
This water channel is very important for ensuring transit and transshipment of the neighbouring country and establishing regional cooperation, said a Ministry of Shipping (MoS) official.
“The BIWTA sent us a Tk 30.98 billion project named ‘Bangladesh regional inland river-transport project-1’. We placed it before the PEC. But the PEC had asked the BIWTA to rationalise the cost after consultation with the PC due to proposed higher cost,” said another official.
“But the BIWTA did not consult us. Rather, it sent us a recast project proposal enhancing its preliminary proposed cost to Tk 32 billion,” he told the FE, requesting anonymity.
According to the PC, the BIWTA proposed Tk 3.75 billion cost only for consultancy services. This cost is 12.10 per cent of the total project cost.
Besides, the BIWTA proposed higher funds for per unit dredging compared to other ongoing or completed projects in Bangladesh, it said.
A senior PC official said, the dredging cost for this project has been proposed at Tk 348.7 million per 100,000 cubic metre. However, dredging cost for each of the two other similar projects was nearly Tk 15.7 million per 100,000 cubic metre.”
“Due to such higher project cost, the PEC directed the BIWTA and its line ministry MoS to conduct a detailed feasibility study and then rationalise the project cost after consulting the PC. But the project implementing agency has not done it,” the official said.
Meanwhile, an Economic Relations Division (ERD) official said, since the ‘Bangladesh regional inland river-transport project-1’ has not been approved by the government, it could not proceed for finalising the assured loan of the WB.
Source: FE Financial Express
