Padma bridge cost goes up Tk 8,286cr due to delays

Revised estimate awaits ECNEC nod

The cost of building the Padma Multipurpose Bridge (PMB) is going to increase by Tk 8,286.35 crore or about 40 per cent due to delays in implementation.
According to the Revised Details Project Develop-ment Plan (RDPP) the cost of the Padma bridge project will reach Tk 28,793.38 crore, which is Tk 8,286.35 crore higher compared to the second revised cost estimate for the project.
The authorities concer-ned indicated that the World Bank’s corruption allegations in the project have caused delays in implementation, thus increasing the project cost.
When the initial project was approved on 20 August 2007, the cost for the project was estimated at Tk 10,161 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 crore, which included rail tracks on the bridge.
In last May, the Bridges Division sent the latest estimate to the Planning Commission, to be placed before the Executive Committee of the National Economic Council (ECNEC) for approval.
According to the revised DPP, the duration of the project is also to be increased by four years from the original scheduled of completion.
The project is running four years behind the schedule after the WB withdrew its $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 fund.
Initially, the project was scheduled to complete by this year. But it is now expected to be completed by 2019.
Planning commission sources said the RDPP is likely to be placed in the next ECNEC meeting to be held on July 28.
For the additional allocation, the Bridges Division pointed out several reasons including the increased cost of construction materials and consultancy services, and recruitment of more personnel in implementing the project in due time.

Padma bridge cost goes up Tk 8,286cr due to delays

Revised estimate awaits ECNEC nod

The cost of building the Padma Multipurpose Bridge (PMB) is going to increase by Tk 8,286.35 crore or about 40 per cent due to delays in implementation. According to the Revised Details Project Develop-ment Plan (RDPP) the cost of the Padma bridge project will reach Tk 28,793.38 crore, which is Tk 8,286.35 crore higher compared to the second revised cost estimate for the project. The authorities concer-ned indicated that the World Banks corruption allegations in the project have caused delays in implementation, thus increasing the project cost. When the initial project was approved on 20 August 2007, the cost for the project was estimated at Tk 10,161 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 crore, which included rail tracks on the bridge. In last May, the Bridges Division sent the latest estimate to the Planning Commission, to be placed before the Executive Committee of the National Economic Council (ECNEC) for approval. According to the revised DPP, the duration of the project is also to be increased by four years from the original scheduled of completion. The project is running four years behind the schedule after the WB withdrew its $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 fund. Initially, the project was scheduled to complete by this year. But it is now expected to be completed by 2019. Planning commission sources said the RDPP is likely to be placed in the next ECNEC meeting to be held on July 28. For the additional allocation, the Bridges Division pointed out several reasons including the increased cost of construction materials and consultancy services, and recruitment of more personnel in implementing the project in due time.