The government is set to revise a project for setting up a railway track under the Indian line of credit (LoC) with 30 per cent cost hike before starting its implementation in last two years from its stipulated schedule, officials said Monday.
Officials said the Bangladesh Railway (BR) has sought revision of the setting up of 3rd and 4th duel-gauge double-track line between Dhaka and Tongi section and doubling duel-gauge Tongi and Joydevpur section at a cost of Tk11.07 billion.
Planning Commission officials said they would place the revision proposal of the BR before the Executive Committee of the National Economic Council meeting today (Tuesday) in Dhaka.
The state-owned BR undertook the 48.80 kilometres (45km main line and 3.8km loop line) railway track upgradation project at a cost of Tk 8.49 billion in 2012 under the Indian US$800 million line of credit (LoC).
The cost of the Tk 8.49 billion railway track setting up project has been raised to Tk 11.07 billion, a 30.43 per cent hike, Railway officials said.
A senior BR official said the cost of the project has been increased by 30 per cent due to higher bidding price by the Indian contractor and escalated price of the materials.
The project cost is not only rising but also its implementation will be delayed for one and half years more, he said.
The BR has sought one and half years more time up to December 2016 from the earlier deadline of June 2015 for executing the project, the officials added.
Railway officials said out of the proposed Tk 11.07 billion cost, the government would provide Tk 9.03 billion fund from the Indian $800 million LoC and the rest amount of the inflated cost would be given from the national exchequer.
A senior BR official said: "They had cancelled the first tender due to the higher bidding price than their official estimation. In the subsequent tender, the Indian contractor again submitted higher bid price."
"Since we have no option inviting tender outside India, we can't find out competitive bidders for the construction of the railway track from the global market. So, we are forced to accept the bids with inflated price," he said.
The Railway official said since Dhaka-Tongi-Joydevpur is the busiest corridor of the BR, the railway track upgradation would ensure smooth railway communications of the country.
Currently, Dhaka-Tongi line has had duel-gauge double track and the Tongi-Joydevpur line has duel-gauge single track.
A total of 84 trains ply on the Dhaka-Tongi railway line everyday which creates heavy rush on the existing double track line.
The BR has undertaken the highest 13 projects under the Indian $800 million LoC for upgrading its infrastructure and service facilities.
New Delhi signed a $1.0 billion credit deal with Dhaka in August 2010 to support Bangladesh's development works especially transport development between the two countries.
India last year announced $200 million of the billion dollar credit as grant. Bangladesh has decided to use the grant for constructing the $2.9 billion Padma Bridge.
© 2024 - All Rights with The Financial Express
