Tk 8,286cr rise in Padma bridge cost okayed

ECNEC clears third revision in the cost of the mega project, and 9 other projects involving Tk 33,185.30 crore

The Executive Committee of the National Economic Council (ECNEC) yesterday approved the third revision of the Padma Multipurpose Bridge (PMB) project, at an increased cost of Tk. 8,286.19 crore, which has raised the overall project cost to Tk. 28,793.39 crore.
The approval came at the ECNEC meeting, with its chairperson and Prime Minister Sheikh Hasina in the chair, held at the NEC conference room at Sher-e-Bangla Nagar in the city.
Briefing reporters after the meeting, planning minister AHM Mustafa Kamal said that “a total of 10 projects was approved today, with a total outlay of Tk. 33,185.30 crore”. He added, "Of the total project cost, Tk. 30,292.54 crore will come from the government exchequer, Tk. 22.32 crore from the organisations’ own funds, and Tk. 2,870.44 crore from project assistance."
State minister for finance and planning MA Mannan was present at the briefing.
About the hike in the project cost for the PMB project, Mustafa Kamal said some new components have been incorporated in the revised project, while a 1.3-km area at the Mawa end has been added as river training works, apart from the addition of some selected bridge-end facilities and related additional works.
Asserting that the PMB project is a “dream project” for the government, he noted that once the project is implemented with a 6.15-km bridge at the Mawa-Janzira point, it would further boost the growth of the country's gross domestic product (GDP).
The planning minister said the construction of the main bridge would be completed by December 2018, while the remainder—a few works—would be completed by 2020. He was hopeful that both road and rail transport would be possible by 2018 through this multipurpose bridge.
He added that according to the latest second revision, the cost of the main bridge construction would rise to Tk. 12,133.39 crore from the first revision of Tk. 8,361.06 crore, cost of river training works would rise to Tk. 9,400 crore from the Tk. 4,387.71 crore of the first revision, related additional works—including road widening, ferry ghat shifting and ferry approach road to Mawa and Janzira—would total Tk. 408.16 crore, resettlement cost would rise to Tk. 1,515 crore from Tk. 1,423.47 crore in the first revision, and the land acquisition cost would rise to Tk. 1,298.73 crore from Tk. 1,086.08 crore of the first revision.
He added that the project cost witnessed the highest hike of around Tk. 5,000 crore in river training works.
Apart from the construction of the main bridge, Tk. 1,097.39 crore has been allotted for the Jazira approach road and selected bridge-end facilities under the second revision, Tk. 193.40 crore for the Mawa approach road and selected bridge-end facilities, and Tk. 208.71 crore for Service Area 2.
The authorities earlier indicated that the World Bank’s allegations of corruption in the project have led to delays in implementation, thereby escalating the project cost.
When the initial project was approved on August 20, 2007, the cost for the project was estimated at Tk. 10,161.75 crore.
However, it did not include the cost of railway lines on the bridge. After the first revision in January 2011, the estimated cost stood at Tk. 20,507.20 crore, which included rail tracks on the bridge.
The project is running four years behind schedule, after the WB withdrew its USD 1.2-billion loan in 2012 over allegations of corruption conspiracies involving top government officials and a Canadian consultancy firm. The government then moved to build the bridge with its own funds.
The project was initially scheduled to be completed by this year. However, it is now expected to be completed by 2018.
Regarding the additional allocation, the Bridges Division pointed out several reasons, including the higher cost of construction materials and consultancy services, increase in the land price and amount of land, and recruitment of more personnel for implementing the project in due time.

Tk 8,286cr rise in Padma bridge cost okayed

ECNEC clears third revision in the cost of the mega project, and 9 other projects involving Tk 33,185.30 crore

The Executive Committee of the National Economic Council (ECNEC) yesterday approved the third revision of the Padma Multipurpose Bridge (PMB) project, at an increased cost of Tk. 8,286.19 crore, which has raised the overall project cost to Tk. 28,793.39 crore. The approval came at the ECNEC meeting, with its chairperson and Prime Minister Sheikh Hasina in the chair, held at the NEC conference room at Sher-e-Bangla Nagar in the city. Briefing reporters after the meeting, planning minister AHM Mustafa Kamal said that a total of 10 projects was approved today, with a total outlay of Tk. 33,185.30 crore. He added, Of the total project cost, Tk. 30,292.54 crore will come from the government exchequer, Tk. 22.32 crore from the organisations own funds, and Tk. 2,870.44 crore from project assistance. State minister for finance and planning MA Mannan was present at the briefing. About the hike in the project cost for the PMB project, Mustafa Kamal said some new components have been incorporated in the revised project, while a 1.3-km area at the Mawa end has been added as river training works, apart from the addition of some selected bridge-end facilities and related additional works. Asserting that the PMB project is a dream project for the government, he noted that once the project is implemented with a 6.15-km bridge at the Mawa-Janzira point, it would further boost the growth of the countrys gross domestic product (GDP). The planning minister said the construction of the main bridge would be completed by December 2018, while the remaindera few workswould be completed by 2020. He was hopeful that both road and rail transport would be possible by 2018 through this multipurpose bridge. He added that according to the latest second revision, the cost of the main bridge construction would rise to Tk. 12,133.39 crore from the first revision of Tk. 8,361.06 crore, cost of river training works would rise to Tk. 9,400 crore from the Tk. 4,387.71 crore of the first revision, related additional worksincluding road widening, ferry ghat shifting and ferry approach road to Mawa and Janzirawould total Tk. 408.16 crore, resettlement cost would rise to Tk. 1,515 crore from Tk. 1,423.47 crore in the first revision, and the land acquisition cost would rise to Tk. 1,298.73 crore from Tk. 1,086.08 crore of the first revision. He added that the project cost witnessed the highest hike of around Tk. 5,000 crore in river training works. Apart from the construction of the main bridge, Tk. 1,097.39 crore has been allotted for the Jazira approach road and selected bridge-end facilities under the second revision, Tk. 193.40 crore for the Mawa approach road and selected bridge-end facilities, and Tk. 208.71 crore for Service Area 2. The authorities earlier indicated that the World Banks allegations of corruption in the project have led to delays in implementation, thereby escalating the project cost. When the initial project was approved on August 20, 2007, the cost for the project was estimated at Tk. 10,161.75 crore. However, it did not include the cost of railway lines on the bridge. After the first revision in January 2011, the estimated cost stood at Tk. 20,507.20 crore, which included rail tracks on the bridge. The project is running four years behind schedule, after the WB withdrew its USD 1.2-billion loan in 2012 over allegations of corruption conspiracies involving top government officials and a Canadian consultancy firm. The government then moved to build the bridge with its own funds. The project was initially scheduled to be completed by this year. However, it is now expected to be completed by 2018. Regarding the additional allocation, the Bridges Division pointed out several reasons, including the higher cost of construction materials and consultancy services, increase in the land price and amount of land, and recruitment of more personnel for implementing the project in due time.