The fate of the Chittagong City Outer Ring Road (CCORR) project hangs in balance following a row between the planning commission (PC) and the housing ministry over disbursement of Tk 2.50 billion allocated for acquisition of land, officials said.
However, the Japan international cooperation agency (JICA), which had earlier expressed its dissatisfaction over slow implementation of the project, might withdraw its support if the present stalemate lingers on further, sources close to the project told the FE.
According to them, the authorities are yet to be certain about the inclusion of the CCORR project in the draft Revised Annual Development Programme (RADP) for the current fiscal year, which is to be placed before the cabinet shortly.
In the original budget for fiscal year 2013-14, Tk 4.24 billion was proposed for the CCORR project, especially for land acquisition and structure compensation.
Officials of the housing ministry and the Chittagong development authority (CDA), the implementing agency of the project, are hopeful about inclusion of the CCORR project in the RADP as the authorities has assured them of incorporating the project on availability of additional fund from the government.
Sources said the housing minister has got an assurance from the planning minister to get the block allocation specially reserved for this project in the RADP. But if it does not happen this fiscal year, execution of the project will be delayed further. This will further irritate the JICA and tarnish the image of the government for not being able to utilise development funds, sources feared.
The CDA got the CCORR project approved at the ECNEC meeting on March 29 of 2011 with an execution time between January 2011 and December 2014. Primarily the government and the JICA were supposed to spend an estimated Tk 8.56 billion for the project where the latter's share was Tk 6.81 billion. The JICA was supposed to spend the fund for appointing a consultant, rehabilitation of the affected people through non-government organisation (NGO), pavement and carpeting of the two lanes of the main road, construction of the two feeder roads and bridge/culvert and earth filling.
Later the project cost increased to Tk 14.96 billion as two feeder roads were included and land area increased. The government's share went up to Tk 6.98 billion in the first revised development project proforma (DPP) and the Chittagong Port Authority (CPA) was also included to share Tk 824 million. The implementation time was extended until June 2017 on August 13 of 2013. As per the agreement with the JICA, the government will bear the cost of land acquisition, structure compensation and rehabilitation of the affected people on the present coastal town protection dam.
After negotiation with the JICA, the CDA has been allowed to perform its tasks part by part because of the fund crunch of the government. In FY 2013-14, the CDA has to acquire 72.128 acres of land out of total 90.38 acres. For land acquisition and structure compensation, it needs Tk 4.00 billion. The total expenditure on land acquisition, rehabilitation and structure compensation is Tk 5.73 billion.
Although the demanded allocation of Tk 4.00 billion in the ADP was quite within the ceiling of the mid-term budgetary framework (MTBF), the allocation for land acquisition and structure compensation was less in the main DPP. For this reason, the government allocated Tk 1.50 billion for the project in FY 2013-14. It kept a block allocation of Tk 3.72 billion for the housing ministry including Tk 2.50 billion specially reserved for the project keeping in mind the approval of the revised DPP by the ECNEC. Although the ECNEC has approved the revised DPP, the PC has not yet allocated the reserved fund despite a request by the housing ministry on January 26 of 2014. At last, the housing minister sent a demi official (DO) letter to the planning minister on February 25 this year. The letter asked for expediting allocation of Tk 2.50 billion from the reserved fund of Tk 3.72 billion for the project considering its importance.
The total allotment of fund for the project is Tk 1.90 billion in FY 2013-14. Of the amount, the government's share is Tk 1.50 billion and the JICA's Tk 400 million. The housing ministry got only Tk 1.50 billion against the required Tk 4.00 billion government fund in the same fiscal. The rest Tk 2.44 billion is required for payment to the DC's office for land acquisition and structure compensation purpose. The remaining Tk 65 million was sought for salary and other ancillary expenditures. But the planning minister dismissed the necessity of the fund prior to land acquisition. He wrote a note saying the fund would be allocated only after land acquisition.
Contacted by the FE for his comment on the issue, CDA Chairman Abdus Salam said there is no more standoff over fund disbursement. The CDA will get the fund soon and start land acquisition process, he added.
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