The average cost of construction of highways in Bangladesh, compared to that of many developed and developing countries, is unusually high, said a Bangla financial contemporary in its lead story Tuesday.
Millions of commuters in Bangladesh, using the highways every day, may not be aware of this fact. But they do know that the longevity of the highways, no matter how cost-intensive they are, is short since the quality of their construction work, in most cases, remains highly unsatisfactory.
Variation in the cost of construction of any object is nothing unusual. Such variation is dependent on a number of factors. But when the difference in cost is too high, there are reasons to be suspicious. The difference in the cost of construction of highways in Bangladesh and that of neighbouring India, where factors influencing the cost are almost identical, appears too big.
A few facts would help one to have a better idea about the difference. In Europe, the average cost of construction of one kilometre (km) four-lane highway is estimated at Tk 280 million ($3.5 million) and in the case of conversion of a two-lane highway of the same length into a four-lane one, the cost is Tk 200 million (20 crore).
A recent report on the road infrastructure development in low and middle-income countries has estimated the cost of construction of one km of a new four-lane highway at Tk 110 million.
The Bangla daily on the basis of an evaluation report on India's 12th five-year plan (2010-15) said the construction cost of one km of a four-lane highway, including the cost involved in the acquisition of land, is around Tk 90 million to Tk 100 million. Without land acquisition the cost would come down to half.
In contrast, the estimated cost of a km highway of the four-lane Rangpur-Hatikumrul highway project is about Tk 527 million. The cost in the case of the ongoing Dhaka-Sylhet four-lane highway project is Tk 560 million.
The Dhaka-Mawa four-lane highway project is going to set a record as far as the construction cost is concerned. Its per km construction cost has been estimated at Tk 950 million. The Asian Development Bank (ADB) is bankrolling both the projects.
The Dhaka-Chittagong and Dhaka-Mymensingh four-lane highway projects, despite repeated hike in their costs, have proved to be less- expensive. The cost of construction of one km under both the projects is now estimated at around Tk 200 million. Even this cost might appear too high if it is compared with the costs of some major highways constructed about a decade back.
There would obviously be a hike because of the increase in the cost of construction materials, labour and land prices. But a 15- or 20-fold hike is phenomenal.
Moreover, the hike in construction costs is found not in commensurate with the quality of the roads and highways, in most cases. Potholes develop in the newly built roads and highways after a few months. Some of the roads become unfit for plying of vehicles, particularly during the rainy season.
The pitiable state of the country's major highways had hit headlines in recent years. Some of these highways are now being widened and converted into four-lane ones. Yet the people are not confident that the problems with these highways would be over.
They have reasons to be sceptical. The popular perception is that less than 50 per cent of the resources allocated by the government to public sector projects, including the roads and highway projects, is used properly and the rest is either wasted or misappropriated at various stages by unscrupulous section of officials and other influential people.
The roads and highways projects that require land acquisition are offering a great opportunity to dishonest officials and politically influential people at the grassroots to misappropriate funds.
The rehabilitation of the people affected by land acquisition is yet another easy source of financial wrongdoing. Structures are built overnight on the land to be acquired by the government for a project and some people are accommodated there with a view to laying a claim on the compensation funds. This has become a regular feature in most project areas, particularly those involving the construction of highways and large bridges. The government does not appear to be bothered by such happenings.
The government's development administration is facing the twin problems of capacity constraints with regard to project implementation and misuse of scarce resources. Overcoming these two problems would help the government to a great extent in using a substantial volume of stuck-up project assistance and taking up many more important projects for implementation.
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