Improper feasibility study, unrealistic development project proposals (DPP) and target, bureaucratic tangles and corruption by concerned people are making all major development projects costly and time consuming in Bangladesh, experts said.
Giving this observation separately while talking to The New Nation on Tuesday, they said, unscrupulous (local and foreign) contractors in league with equally unscrupulous officials, driven by unlimited greed for squandering public money, tamper the whole process beginning from the inception of idea, feasibility study and site selection to project planning and implementation. The experts, however, pleaded not to disclose their identity.
The experts alleged that these unscrupulous people feed false information to consultants (foreign or local) during the feasibility study to ensure improper report and preparation of faulty DPP with an unrealistic target. They pass information about selected site to the profiteers’ syndicate, who immediately jump to buy or leasing land in the site area and set up temporary or semi-permanent structure to squeeze higher compensation money during the land acquisition. They also encourage original landowners to move the court of law seeking stay order on these projects to amass more money and pass time.
The bureaucratic tangles, they said, consume at least one year to complete the invitation of tender or re-tender process and funds allocation. The evaluation of the quoted proposals, including the cost of the project, submitted by the foreign or local contractors or implementing agencies while giving work order take another six-month to one-year. The project implementation or development work start with land acquisition by the government, which takes much longer time due to legal complexities and claims settlement.
Meanwhile, the project implementing agencies or contractors plead for increasing the volume of money or funds or reevaluation of the DPP, citing price inflation, which is common in case of most of the major projects. The unscrupulous people then resorted to dilly dally tactics in the construction works so that more time extension could be made and more public money swindled, the experts observed.
As a result, the cost and target schedule of completion of the projects like the Dhaka-Chittagong Highway Four-Lane, Dhaka-Mymensingh Highway Four Lane, Dhaka-Chittagong Double Rail Line and establishing Lather Industrial City at Savar, increased and extended time and again.
Official sources said the costs has increased thrice and targeted time-schedule of construction of Dhaka-Chittagong Four-lane Highway, life line of the national economy, was extended by revising the DPP.
The time schedule for completion of Dhaka-Chittagong Four-Lane Highway was extended twice while construction costs increased thrice so far. As a result, the original project cost, which was estimated at Taka 19545.9 million when it was incepted. It had increased to Taka 23821.7 million during the feasibility study in 2006. The cost has now stands at Taka 31902.9 million after twice increase.
Meanwhile, a proposal for third revision of the DPP with further increase of the cost has recently been moved to the Ministry of Planning for securing the ECNEC approval. It was, however, could not be ascertained as to how much volume of money will be increased this time. The project was scheduled to complete this December but the time limit has already been extended for December next year.
The construction of Improving Dhaka-Mymensingh Highway to four-lane project started in 2010, it is scheduled to be completed in June, 2015. The progress of this project during the last four years is only 48 per cent. The contractor and project officials said they could not be able to complete 52 per cent construction work by the next June, so that time should be extended.
The Taka 18151.2 million project is scheduled two developed 88 kilometers of road to four lane from Joydevpur Crossing to Mymensingh Medical College. In 2010, the project cost was estimated at Taka 9020 million. It was increased to Taka 9921 million one year after in 2011. The project cost further increased by 8230 million in July 2013 and thereby the cost now stands at Taka 18151.2 million, which should be increased further by revising the DPP again, concerned officials and contractor said.
The Dhaka-Chittagong Double Rail Line project was incepted in 2006 to turn Dhaka-Chittagong railway corridor faster and developed, whereby of the total 320.79 kilometers rail line 203.12 kilometers was to made double line. Of the total, 117.69 kilometers was double line from earlier.
The work of the project implementation started on November 2 in 2011 with an estimated cost of Taka 20367.5 million of which the Asian Development Bank (ADB) is financing 1404.72 million while Bangladesh government funding Taka 6320.4 million. The completion of the project was scheduled for December this year. But, the time limit was extended to June next year. So, far 82 per cent progress of work was made. The construction contractors have already piloted a proposal to increase the cost and extend time limit further, citing price inflation and other complexity.
The contractors claimed that in November 2011 the price inflation was 10 per cent and it is increased to 30 per cent now. So, a new (project) proposal was being taken to make 203.12 kilometers double rail line with increase cost and extended time limit.
The ECNEC approved the establishment of Lather Industrial City at Savar in on August 16, 2003 with a target to complete the project in 2010 at a cost of Taka 5453.6 million. The completion target-schedule, for the first time, was extended up to 2012. Then the time schedule was again extended by the ECNEC on August 16, 2013 and the cost increased to Taka 10787.1 million.
Bangladesh Small Industries Corporation (BSIC) was implementing the project, which could not be completed during the last 15 years due to failure of the agency to set up a Central Effluent Treatment Plant (CETP).
Knowledgeable sources said cost of the project would increase further and CETP setting up time limit of the Lather Industrial City is going to be extended further.
