The Civil Aviation Authority of Bangladesh (Caab) has requested permission from the central bank to pay outstanding dues for its six ongoing projects in foreign currencies.
In a letter to the Ministry of Civil Aviation and Tourism, Caab says it needs to settle a total of $86.72 million and €26.31 million with contractors and consulting firms, as per existing agreements.
Payment of bills to contractors and consulting firms engaged through international tender in foreign currency is mandatory for smooth project implementation, according to the letter.
It further notes that while the projects have provisions for foreign currency expenditure, approval from the central bank is necessary for payments to contractors and consultants.
This request comes in the wake of the central bank's earlier caution regarding foreign currency expenditure due to the evolving global economic situation. This advice has reportedly slowed project progress.
Speaking on condition of anonymity, a senior official at the Ministry of Civil Aviation and Tourism confirmed receipt of the letter.
The official acknowledged the ongoing dollar shortage and said efforts are underway to secure Bangladesh Bank's approval for the required funds.
According to Caab's letter, the Cox's Bazar Airport Development (Phase 1) project nears completion with progress at 99.97 per cent and financial progress at 88.15 per cent. Scheduled for completion in June 2024, the project has an outstanding bill of $1.16 million as of January 2024.
Meanwhile, the Cox's Bazar Airport Runway Extension project stands at 79.62 per cent completion and 63.68 per cent financial progress. This project, set to be finished by FY 2024-2025, has an outstanding bill of $52.01 million as of January 2024, with an additional $19.9 million required for payments in FY 2024-2025.
The progress of the CNS ATM System including the Radar Installation project for the Hazrat Shahjalal International Airport (HSIA) has reached 62 per cent and its financial progress reached 55 per cent. The project is scheduled to be completed by FY 2024-2025, however, its outstanding bill till January 2024 is €17 million. The project also needs € 9.31 million to pay its bill in the FY 2024-2025.
Progress of the Shah Amanat International Airport Extension project (design phase) has reached 20 per cent and its financial progress reached 15 per cent. The project is scheduled to be completed by FY 2024-2025, however, till January last its outstanding bills stand at $0.68 million and it needs $1.15 million in the FY 2024-2025 to pay bills.
Progress of the project of Capacity Boosting of the Runway and Taxiway for the Shah Amanat International Airport has reached 85 per cent and its financial progress reached 60 per cent. This project is also scheduled to be completed by FY 2024-2025, however, its outstanding bill till January last is $7.55 million and it needs $3.69 million to pay the bill for FY 2024-2025.
Progress of the Consulting Services (design phase) of the Osmani International Airport Extension (Phase-1) reached 25 per cent and its financial progress reached only 10 per cent. The project is scheduled to be completed by FY 2024-2025. But its outstanding bill till January this year is $0.48 million and it needs $85500 in the FY 2024-2025.
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