The Bangladesh Inland Water Transport Authority (BIWTA) has proposed a second revision to its Tk 13.197 billion project to procure 43 ships and allied vessels and build two slipways.
The project's initial four-year timeframe -- ending in June 2022 -- has already been extended once, as the state-run water transport authority failed to complete procurement or construct the slipways within the original timeframe.
Officials say changing the design of 20 ships midway through the project has increased costs by 40 per cent and pushed the completion deadline back by an additional three and a half years.
The delays and design changes have led to a proposed budget increase of Tk 5.22 billion -- bringing the total project cost to Tk 18.40 billion.
The project tenure is also proposed to be extended to December 2025, making it a total of seven and a half years instead of the initial four.The BIWTA launched the project in July 2018 to procure the vessels and build the slipways at Tk 13.197 billion.
According to a shipping ministry official, the BIWTA had completed 85 per cent of the project by 2023.
Now the revision is required due mainly to design changes for 20 ships and rising global ship prices, the official added.
He said acquiring the ships would enhance the BIWTA's fleet and improve services for passengers and freight forwarders.
In the first revision, the Executive Committee of the National Economic Council (ECNEC) previously approved a one-year extension for the project. However, the BIWTA couldn't meet the extended deadline, leading to a further extension to December 2025.
In the second revision proposal, the BIWTA seeks an additional 39.62 per cent in funding and a one-year extension to December 2025. A senior official from the Planning Commission said the proposal is under review.
"We will recommend for approval if the extension is found rational and necessary for the interest of the nation," said the official.
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