Loading...
The Financial Express

Limping BIWTA project faces 73pc cost escalation

Maritime navigation scheme overruns three year tenure, needs a decade to finish


| Updated: July 09, 2022 17:47:59


Limping BIWTA project faces 73pc cost escalation

A maritime safety and navigation development project has long overrun its three-year tenure, resulting in a 73-per cent hike in its implementation cost.

The project will now need around a decade to finish.

Sources say Bangladesh Inland Water Transport Authority (BIWTA) has been unable to complete the three-year project in eight and a half years.

The water-transport authority now seeks another two years, with further cost hike, to complete the project, they add.

The state-run regulator of waterway transportation has sought revision of the project for the third time from the Planning Commission (PC).

With a Korean loan, the BIWTA took up the 'Establishment of global maritime distress and safety system & integrated maritime navigation system project' in January 2014 with an estimated cost of Tk 4.56 billion.

A senior government official said, "The project cost has been proposed to increase to Tk 7.87 billion from the original estimation of Tk 4.56 billion."

Project insiders say the BIWTA has incorporated some new elements into the ongoing project, which escalated its cost.

"It's an obvious violation of government development rules," says the PC official.

First, the BIWTA got approval for the Tk 4.56 billion project for execution between January 2014 and December 2016. The government revised the project first time when it was extended up to June 2019. In a second revision thereafter, the government increased its cost to Tk 6.87 billion by extending the execution time up to June 2022.

Now the BIWAT has sought two more years to June 2024 and a 72.57-per cent higher cost to Tk 7.87 billion in its proposed third re-jig.

BIWTA officials say they started the project work in 2018 following a delay in appointing contractors and consultants and the acquisition of land.

"Actually, some problems relating to consultancy and project work by the contractor had hampered the overall progress," a senior Shipping Ministry official says.

Besides, the Covid impact and adverse weather like a cyclone in the island areas had impeded the project works, he adds in showing the drawbacks.

The BIWTA is working on offshore islands like Saint Martin's Island, Nijhum Deep, Char Kukrimukri, Dublar char, Dhal char to establish maritime safety and navigation system.

According to the BIWTA sources, it needs fresh amounts of Tk 147.5 million for consultancy, Tk 119.8 million for boundary works and piling, Tk 333.2 million for civil works, and Tk 117 million for steel towers for radio communications.

A senior PC official says it is unfortunate that when the government is very cautious in project spending, then the BIWTA's massive delay and higher cost would not provide the country with the expected output and economic returns.

"If a small project needs over 10 years to complete, how Bangladesh's quality development is possible," he wonders.

"We are very much serious about the quality of public expenditure at this moment. We are scrutinizing BIWTA's revision proposal. If we find a mismatch, we will not approve the project," the PC official said.

[email protected]

Share if you like

Filter By Topic