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The Financial Express

Planning Commission refuses to seal project

Cites superfluous costing


| Updated: April 23, 2022 13:51:12


Planning Commission refuses to seal project

A donor-funded project on flood-shelter construction fails to get through for what planners say improper selection of executing agency and unusual overhead cost on some components, insiders say.

The project-evaluation committee (PEC) of the Planning Commission has sent back the World Bank-funded project after finding a slew of ancillary components and costs inclusive of cars and training at home and abroad.

Sources said the PEC in a recent meeting reviewed the proposed Tk 43.54-billion-cost project and sent it back to the Local Government Division (LGD), also questioning this agency's jurisdiction.

The LGED recently sought approval for the project titled 'Resilient infrastructure for adaptation and vulnerability reduction project (RIVER)' from the Planning Commission.

"We have sent back the project due mainly to the improper authority for implementing the project. The LGED shall not construct the flood shelters when disaster and relief ministry is there," says a senior PC official.

"Besides, the LGED proposed cost of some components which is unnecessary and higher, too," he says, requesting anonymity.

He pointed out that the department kept aside a huge amount of money for training at home and abroad, vehicle purchases, consultancy services, workshop and seminars, allowances, car rent, fuel procurement and so.

According to the project proposal, the LGED will construct 500 flood shelters for flood-affected people, some bridges and culverts, and roads and install solar lights in affected areas.

"However, since the disaster and relief ministry is the dedicated government authority looking after flood management, the shelters and related infrastructure should be built by the disaster ministry and its allied agency," the PC official said.

He notes that LGED is already overburdened with different projects across the country. "Yet another fresh project to the department would be a further pressure."

Project-insiders said the LGED kept aside a handsome amount of money for training at home and abroad, vehicle purchases, consultancy services, workshops and seminars, car rent and fuel.

The LGED has proposed 83 per cent of total Tk43.54 billion for flood shelters, bridges, culverts, growth-centre construction under the project, and the remaining nearly 13 per cent of the funds for the consultancy, training, salary, car purchase etc.

The department proposed Tk 217 million for training of the civil servants and beneficiaries.

It kept aside Tk 47.40 million for purchasing two buses, two microbuses and 120 motorbikes, Tk 22.5 million for repair of vehicles, Tk 57.40 million for hiring cars, Tk 4.10 million for vehicle registration, and Tk41.70 million for fuel and oil purchases.

The LGED earmarked Tk 2.26 billion or 5.19 per cent of the total Tk 43.54- billion cost of the project for hiring consultancy services.

Out of the consultancy cost, Tk 1.44 billion is for design and supervision consultants, Tk 299.3 million for individual consultants, Tk 229.6 million for monitoring and evaluation consultants, Tk286.20 million for future feasibility study and Tk 4.0 million for internal audit consultants.

Another PC official said the PEC meeting reviewed all the components of the projects and their costs.

"The meeting asked the authority to assign the disaster and relief ministry to the project works and recast the development project proposal for getting approval in future," he added.

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