The Planning Commission has cut short consultancy and costs of some components at the proposed Japan-backed Chattogram-Cox's Bazar highway improvement project due to bloated price estimations.
At a recent project-evaluation committee (PEC) meeting, officials said on Saturday, the commission slashed nearly Tk 26 billion from the estimated expenditure of Tk 121.36 billion for 23.5-km road upgradation.
According to insiders, the Roads and Highways Department (RHD) recently took up the project where Tk 5.16 billion was proposed for widening each kilometre.
"We've reviewed the project at the last evaluation-committee meeting seriously. The highway improvement cost is higher than that of other kindred projects in Bangladesh," said a senior PC official.
"We've asked the RHD to slash the overall costs as per recommendation made at the PEC meeting," he added.
The commission cut Tk 10 billion from price adjustment components, nearly Tk 1.60 billion from consultancy part and another Tk 10 billion from different other components, the official said.
According to the development project proposal (DPP), the RHD kept aside Tk 5.5 billion for consultancy, Tk 25 billion for price adjustment and higher funds for foreign and local training, honorarium and vehicle procurement.
Earlier, the state-run road developer sought approval of the project for widening a portion of 23.5-km road at Tk 121.36 billion from the Planning Commission.
The Japan International Cooperation agency (JICA) has already confirmed funds to the tune of Tk 88.72 billion for the road construction work, they said.
The road under review will be widened to four lanes with an expansionary provision of six lanes from Chattogram to Cox's Bazar via Patiya, Dohazari, Keranihat, Lohagara and Chakaria.
Under the project, five key intersections from Chattogram to Cox's Bazar highway will also be improved for easing traffic congestion.
The road needs to be widened predicting heavy traffic movement in the future following the development of Matarbari deep-sea port in Cox's Bazar.
The port will come into operation in full swing from 2026.
When asked about the bloated cost of the road-widening project, an RHD official said a JICA feasibility study recommended the possible project expenditure.
The cost is estimated based on the Japan-standard road construction schemes, which seemed to be higher, the official told the FE requesting anonymity.
Another PC official said the proposed road-widening cost is higher than other four-lane projects supported by different development partners, including the World Bank and the Asian Development Bank.
The 132-km Chattogram-Cox's Bazar highway would be a significant corridor in the near future due to the Matarbari seaport at Moheshkhali under Cox's Bazar.
After widening the proposed 23.5km road, the remaining part of the highway is planned for expansion under the public-private partnership (PPP) model.
Under the ODA loan package, the JICA this March confirmed some $380 million worth of loan (phase-I) for the Chattogram-Cox's Bazar road improvement project.
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