Early tendering for MRT faces fund problem

Munima Sultana | Published: January 14, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

Government's plan to start tender process for the metro rail ahead of a fresh schedule faces problem in managing funds as it requires amending the loan agreement with the project's Japanese financier.
Sources said the work schedule was being advanced as the government wants to open a part of the mass-transport system by 2019-the last year of the present coalition regime.Â Â Â Â Â Â Â Â Â Â Â
They said tendering for the Dhaka Mass Rapid Transit Development (DMRTD) project was initially planned to start in November but deferred until January as the authorities failed to mange funds for construction purpose as the JICA loan was released only for three consultancy works.
Officials said as per the loan agreement signed between the Economic Relations Division (ERD) of the Bangladesh Government and Japan International Cooperation Agency (JICA) in February 2013, the $116.32-million funds could only be spent for carrying out detailed design, institutional development, and resettlement and environment study purposes.
The consultancy part of the project is set to complete in 2016 to get into the procurement stage.
As tendering is a part of the construction phase, officials said, any fund transfer from the first phase funded by JICA presupposes amendment to the loan agreement.
However, after revising the schedule, the project office has taken steps to start the pre- qualification process by inviting companies for the purchase of rolling stock and depot equipment this month.
Earlier, it had planned to invite tender for depot-land development work by fixing total eight contract packages.
The total DMRTD project cost is 2.7 billion US dollars, a major part of which will come from the Japanese agency while the rest from the government exchequer.Â Â Â Â Â
According to the development project proposal (DPP), the government has to bear the cost of land acquisition, utility shifting and rehabilitation part of the total project cost worth $2.7 billion. And the JICA funds totaling $2.1 billion was supposed to be spent for the consultancy and construction purposes, including procurement and construction supervision work till 2024.
Sources said the funds for the tender process would be needed to release mobilization money to the companies to be selected within seven to eight months if pre-qualification process starts in January.
To come out of the dilemma, sources said, Road Transport and Highway Division sent a letter to the ERD end of December with the request to revise the agreement. An official said the move had been taken in consultation with JICA's Dhaka office.
He said the general consultant has already prepared the document for the rolling stock pre-qualification bid which is under process to get concurrence from the JICA.
Asked about the reason for deferring the start of tender for the depot-land development, another senior official said the consultant recommended more study on the quality of the depot land and so more time is needed than anticipated.
Commenting on the issue, Project Director Mohammad Mofazzel Hossain said maintaining the timetable is the main challenge for the MRT project, but he hastened to add that it was now in good shape to carry the tender process.
He said the PQ for the rolling stock and depot equipment has been planned to open first as it would take a long time to manufacture and supply.
The MRT coaches would need more than two years to be prepared. The company will first supply a set of trains for trial purpose and then the rest of the coaches on getting clearance.
As planned, 24 sets of trains having six coaches each (total 144) would roll on the metro rail. The trains on whistle-stop will pick passengers from 16 stations along the 20- kilometre MRT route.
Trains on MRT line-6 will start from Uttara and end at Motijheel in 36 minutes, enabling over 30,000 passengers to cross the corridor per hour.
Project-office sources said PQ for the depot-land development under contract package (CP) 1 will be opened in February followed by 50-megawatt Electrical and Mechanical System (CP-7). Under the latter, two substations will be set up along the MRT line, between starting and ending points, and there will be built seven other small stations.
A consortium led by Japanese company Nippon Koei Co Ltd started work on the DMRTD project for detailed design in February 2014 as the general consultant after the signing of contract in November 2013.
smunima@yahoo.com