Construction cost of the Payra Sea-Port terminal and associated facilities has increased significantly due to delay in project implementation, currency depreciation, and pandemic-induced disruptions.
The total project cost is now expected to rise by approximately Tk14.46 billion, officials confirmed.
During the Covid-19 pandemic, when global trade was facing uncertainty, the Ministry of Shipping signed agreements with several Chinese companies to construct the Payra Sea Port terminal, even amid lockdown restrictions.
However, work was disrupted due to the pandemic, leading contractor companies to demand over Tk8.0 billion in compensation.
Additionally, the significant depreciation of the taka over recent years has further escalated cost.
The Ministry of Shipping has submitted a second revision proposal to the Planning Commission, revising the project cost to Tk54.28 billion, up from the original approval of Tk39.82 billion.
The project, initially planned for completion in 2021, includes a 650-metre-long terminal, a 325,000-square-metre back-up yard, a 6.35-kilometre six-lane road, and a five-kilometre transmission line.
Recent reviews indicate that the contractor is now seeking an additional Tk1.45 billion for jetty construction, with currency depreciation contributing an extra Tk1.61 billion.
The total increase in the jetty construction cost alone now stands at Tk3.06 billion.
Pandemic-related delays have led contractors to demand an extra Tk8.57 billion, while exchange rate fluctuations have contributed an additional Tk4.64 billion in costs.
Due to extended construction timelines, the consulting company has requested Tk307.98 million more.
The cost of yard construction has increased by Tk1.97 billion due to price adjustments and exchange rate fluctuations.
The construction of Andharmanik Bridge will now require an additional Tk2.04 billion, including Tk1.2 billion due to currency depreciation.
Delays in equipment procurement have resulted in an extra Tk4.68 billion in costs, with a further Tk 578.74 million added due to the depreciation of the taka.
With the revised proposal now under Planning Commission review, concerns are growing over the increasing financial burden of the delayed project.
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