Utility services for Purbachal under PPP

block
UNB, Dhaka :
As Dhaka Water Supply Authority (Dwasa) has refused to undertake the works for developing the water supply and sewerage system in Purbachal New Town, Rajdhani Unnayan Kartripakkha (Rajuk) has finalised a plan to implement the components under a public-private partnership (PPP) project.
The Cabinet Economic Affairs’ Committee on Wednesday approved a proposal of the Housing and Public Works Ministry in principal in this regard. Sources said Rajuk has initiated the move against the backdrop of (Dwasa’s) refusal to undertake the works citing reasons that the new town is ‘located beyond its command area’. Following the approval of the Cabinet committee, Rajuk has decided to float a tender to invite a suitable private sponsor in this connection.
Rajuk has estimated that the project for developing the water supply and sewerage system will require about Tk 2,720.90 crore, according to sources. The government will provide 30 percent of the required fund as viability gap funding (VGF) and the remaining fund will be arranged by the private sponsor of the
project which will be paid off by Rajuk in 20-25 years. Meanwhile, the government has allocated a fund of Tk 130.98 crore for the supply of water to Purbachal.
But, no fund has so far been allocated for developing the sewerage system there. In such a situation, Rajuk had to move for implementing the water supply and sewerage project under the PPP, according to a document of the Hosing and Public Works Ministry.
The project will include the construction of a water treatment plant (WTP), Sewerage Treatment Plant (STP), installation of 62.92 km water supply line, installation of 30 deep water pump, construction of 8 overhead tanks, solid waste management and disposal system and 39.15 km sewerage pipe installation and 659.31 km storm sewerage line.
The project, titled ‘Installation of Water Supply, Sewerage, Drainage System and Solid Waste Management at Purbachal New Town’ will be implemented in four years and the private sponsor of the project will maintain and operate the project for 10 years and hand it over to Rajuk. Rajuk will collect revenue from the residents of Purbachal by itself or through any third-party company. Officials said the Purbachal New Town project is being implemented by Rajuk as the largest housing project in an area of 6,150 acres of land in the eastern part of capital Dhaka. The area is located in between the Shitalakkha and Balu rivers of which 4,500 acres were acquired from Rupganj upazila under Narayanganj district, 1,500 acres from Kaliganj upazila of Gazipur district, and 1,500 acres from Khilkhet area in Dhaka. Among to 27,008 plots being constructed in the area, 25,016 are residential plots, 1,033 commercial, 423 institutional, 473 administrative while, 63 diplomatic plots. Of them, 12,000 plots have already been handed over to the allotted persons and institutions.
block