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RHD to save Tk 15b on a mega-project

Set to be completed before time for the first time


Munima Sultana | April 07, 2019 00:00:00


For the first time in its history, the Roads and Highways Department (RHD) is set to finish a mega project before time, cutting back on a hefty budget.

Sources said a militant attack on Holey Artisan Bakery in upscale Gulshan district in July 2016 kept on hold the Tk 84.86-billion project for months.

The project -- construction of Kanchpur, Meghna and Gumti second bridges and rehabilitation of existing bridges -- later added on Tk 1.5 billion for security purposes.

But much to the credit of the implementer the stage is set to save Tk 15 billion of the project cost, according to insiders.

The RHD project had a shadow cast over it by the culture of completing such major projects three to four years later than the originally scheduled timeline.

For example, it took 12 long years to do Dhaka-Chattogram four-lane work, that too at double the estimated cost.

"This is certainly a milestone in the RHD culture of overrunning project costs and time schedules," said Prof M Shamsul Hoque who teaches at Bangladesh University of Engineering and Technology (Buet).

Also a transport expert, he said such a shining example will certainly encourage foreign investors to participate in development projects .

The RHD appointed OSJI Joint Venture Company (Japan Obayashi Corporation, Shimizu Corporation, JFE Engineering Corporation and IHI Infrastructure Systems Company Ltd) to implement the project.

A Tk 59.66-billion contract with the builder was signed on January 04, 2016 to do the job in four years by January 03, 2020.

The bridges were supposed to be built by 2018 and rehabilitation work done by 2019.

But the terror attack on July 01, 2016, had impelled many Japanese engineers and technicians to leave the country. However, they later joined following assurances of foolproof security.

Officials said there had been almost no work on the building site for three months. Another three months were taken up to raise additional security wall, watchtower, CCTV system, alarm, archway and control room.

According to official records, physical work on the three bridges was recorded at 85 per cent and financial progress at 54.49 per cent by March 26.

The Japanese firm has also successfully done its scheduled work of 92 per cent by the time.

The project office assessed that Tk 15 billion would have been saved from the total project cost .

Of the bridges, the RHD opened second Kanchpur bridge to traffic on March 13. The two other bridges are set to be inaugurated by May.

Project director Abu Saleh Md Nuruzzaman said as the Japanese firm could not work for six months for the 2016 terror attack, the time for building the bridges was extended until June this year.

But he said rehabilitation work has simultaneously been carried out for the past few months under the revised working plan to complete it in time.

Mr Nuruzzaman said the Japanese company has managed time by working in two shifts and using extra equipment and technology.

Upon completion of the entire project work, Kanchpur, Meghna and Gumti bridges will have eight lanes.

Sources said the RHD has yet to complete Lebukhali Bridge, also known as Payra bridge, even after a lapse of nine years since 2009.

The project cost may have increased by 70 per cent and the time-span till 2020.

Dhaka-Mawa four lane project is another example of procrastination by taking on a further project to complete the incomplete work.

According to experts, the RHD has a bad record of overrunning time and cost of projects due mainly to tender-related complications, faulty feasibility studies and designs with resettlement plan.

They said changes in design and unavailability of building materials often hamper work.

A senior engineer, however, denied the allegations, rather hinting at discriminatory policies between government-funded projects and donor-aided ones.

A government project does not allow price escalation in tender documents, but a foreign-aided scheme gets scope to select a contractor through a uncompetitive tender, he argued.

Dr Hoque also agreed on the point that a tender document must have incentive clauses as well as punishment clauses to encourage contractors to implement projects on time and penalise for procrastination as the case maybe.

"Incentive will certainly make the entire system dynamic and help reduce public sufferings," he told the FE.

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