Posted on October 28, 2024
The project, originally approved in September 2018, aims to bolster the authority’s dredging capacity and improve navigability on Bangladesh’s waterways
The project, originally approved in September 2018, aims to bolster the authority’s dredging capacity and improve navigability on Bangladesh’s waterways.
However, a combination of rising foreign exchange rates, global economic turmoil, the COVID-19 pandemic, and supply chain disruptions have hindered progress and only 35% of the project’s overall work has been completed till date, according to project sources.
The sources explained that when the project was approved, the exchange rate of foreign currency was Tk83.75 to US$1. However, due to the current increase in the exchange rate and the global economic downturn, the cost of goods and services has slightly risen, increasing the project’s expenses. Moreover, the COVID-19 pandemic caused delays in the supply chain, and due to the foreign exchange crisis, there were delays in opening letters of credit (LCs). As a result of these difficulties, the project’s duration was extended once.
The project aims to procure 161 water vessels, including 35 dredgers, construct three dredger bases, and establish a training institute in Narayanganj. This is being implemented by BIWTA under the Ministry of Shipping.
Project progress reports indicate that 40 vessels and 29 other types of equipment have been acquired under the project so far. Construction of 12 dredgers and 27 auxiliary vessels is currently underway. Of the dredgers, 11 are being built locally, and one will be imported. Additionally, the construction of four dredgers, five tugboats, and four crane boats is expected to be completed by March 2025.
Dredgers are assembled in Bangladesh, though all the equipment is sourced from abroad, primarily from the United States and European countries. These nations provide the designs and equipment, and contracts are jointly arranged for assembly in Bangladesh.
The project’s initial approved budget was Tk4,489 crore. However, after a revision, the budget was increased by Tk26.48 crore, bringing the total cost to Tk4,515 crore.
Initially, the project was set to be implemented from October 2018 to June 2023, but due to various complications, the timeline was extended by two years to June 2025.
However, even by that deadline, the work is unlikely to be completed. Therefore, the project may see another extension, though the exact duration is yet to be determined.
Dredgers being purchased despite lack of manpower
The project, funded by the government, was undertaken to increase BIWTA’s dredging capacity by 32.67 million cubic metres with the acquisition of 161 water vessels, including 35 dredgers, to improve and maintain navigability, according to project officials.
Research reveals that BIWTA currently operates 45 dredgers, tugboats, and associated vessels. While 1,261 personnel are required to manage these, there are only 601 staff. The remaining workforce of about 660 has not been approved by the Ministry of Public Administration. Consequently, many dredgers and support vessels lack personnel to guard or operate them. As a result, there is no workforce to operate the new dredgers either.
This raises the question of why dredgers are being purchased in the first place.
When asked about the recruitment of manpower to operate the new vessels, the project authorities said, “The necessary personnel to operate the vessels and equipment procured under this project will soon be processed for approval.”
