Delay causes rise in cost by Tk 812cr

CTG WATER PROJECT

The estimated cost of the Water Supply Improvement and Sanitation (WSIS) project under the Chittagong Water Supply and Sewerage Authority (Ctg WASA) has been increased by Tk 812.37 crore, 73.33 per cent higher than original cost, due to the delay in its implementation, a source at the Planning Commission has said.

The revised project was approved by the Executive Committee of National Economic Council recently increasing additional Tk 812.37 crore compared to original estimate.   
The estimated project cost currently stands at Tk 1,890.83 crore while the earlier estimate was Tk. 1,078.46 crore. The Chittagong WASA has demanded an additional Tk. 812.37 crore, citing an increase in the costs of transmission and supply.
The project was undertaken in 2011 but the implementing agency failed to implement on due time. 
Former adviser to the caretaker government Dr Mirza Azizul Islam told the Independent it is not unique example for utilization of public fund.
It is happening in Bangladesh due to the lack of efficiency of the project implementing entities and misuse of funds, he said adding “There is question of quality of work and competency of the project director.” 
The former adviser said the ministries are interested to undertake projects, but they have no intention to monitor the project implementation work. For this reason it is happening regularly. 
He also stressed the need for taking into consideration the efficiency of project director during their appointment to ensure proper utilisation of public money. 
The project was undertaken to increase access to safe water, improve sanitation, support the establishment of long-term water supply, and develop sanitation and drainage infrastructure and an operational management program in Chittagong.
The World Bank had provided a support of Tk. 972 crore for the project. But it withdrew funds of USD 8.5 million (around Tk. 68 crore) following the delay in implementation.
According to the detailed project plan (DPP), the project was scheduled to be completed by December 2015. But the local government ministry urged the Planning Commission to extend its duration to December 2016 without increasing the cost.
The implementing agency also negotiated with the World Bank to continue its support through the Economic Relations Division (ERD). Finally, the ERD was able to convince the bank to increase its funds to complete certain components of the project. The World Bank agreed to increase its support to Tk. 1,492.91 crore from Tk. 972 crore.
According to the project summary, it will support the construction of water treatment plants in the Chittagong WASA development plan that are currently not financed or were earmarked for financing by other financiers.
Some of the costs relate to compensation for land, registration and transfer costs, compensation for affected structures and other fixed assets, compensation for temporary loss of business or income, and the like.
The implementing agency claimed that the Chittagong WASA would be able to supply 9 crore litres of drinking water every day after the project is implemented.

Delay causes rise in cost by Tk 812cr

CTG WATER PROJECT

The estimated cost of the Water Supply Improvement and Sanitation (WSIS) project under the Chittagong Water Supply and Sewerage Authority (Ctg WASA) has been increased by Tk 812.37 crore, 73.33 per cent higher than original cost, due to the delay in its implementation, a source at the Planning Commission has said. The revised project was approved by the Executive Committee of National Economic Council recently increasing additional Tk 812.37 crore compared to original estimate. The estimated project cost currently stands at Tk 1,890.83 crore while the earlier estimate was Tk. 1,078.46 crore. The Chittagong WASA has demanded an additional Tk. 812.37 crore, citing an increase in the costs of transmission and supply. The project was undertaken in 2011 but the implementing agency failed to implement on due time. Former adviser to the caretaker government Dr Mirza Azizul Islam told the Independent it is not unique example for utilization of public fund. It is happening in Bangladesh due to the lack of efficiency of the project implementing entities and misuse of funds, he said adding There is question of quality of work and competency of the project director. The former adviser said the ministries are interested to undertake projects, but they have no intention to monitor the project implementation work. For this reason it is happening regularly. He also stressed the need for taking into consideration the efficiency of project director during their appointment to ensure proper utilisation of public money. The project was undertaken to increase access to safe water, improve sanitation, support the establishment of long-term water supply, and develop sanitation and drainage infrastructure and an operational management program in Chittagong. The World Bank had provided a support of Tk. 972 crore for the project. But it withdrew funds of USD 8.5 million (around Tk. 68 crore) following the delay in implementation. According to the detailed project plan (DPP), the project was scheduled to be completed by December 2015. But the local government ministry urged the Planning Commission to extend its duration to December 2016 without increasing the cost. The implementing agency also negotiated with the World Bank to continue its support through the Economic Relations Division (ERD). Finally, the ERD was able to convince the bank to increase its funds to complete certain components of the project. The World Bank agreed to increase its support to Tk. 1,492.91 crore from Tk. 972 crore. According to the project summary, it will support the construction of water treatment plants in the Chittagong WASA development plan that are currently not financed or were earmarked for financing by other financiers. Some of the costs relate to compensation for land, registration and transfer costs, compensation for affected structures and other fixed assets, compensation for temporary loss of business or income, and the like. The implementing agency claimed that the Chittagong WASA would be able to supply 9 crore litres of drinking water every day after the project is implemented.