Around 0.4 million smart pre-payment meters imported under Dhaka Power Distribution Company's (DPDC) long-delayed smart-metering project are lying idle in warehouses, raising concerns about possible technical deterioration and inefficient use of public funds.
Nearly eight years after the project was approved in 2018 with an initial estimated cost of Tk 6.58 billion and a scheduled completion deadline of June 2021, installation of the targeted 0.85 million meters remains far from complete due to persistent technical and operational challenges, sources said.
"Although 0.65 million meters have been imported, only about 0.25 million have been installed, leaving the rest unused for an extended period," a senior Planning Commission official said.
Despite the project tenure being extended to December last year and the revised cost rising to Tk 8.34 billion, physical progress stands at just 72 per cent, while nearly 70 per cent of the allocated funds have already been spent.
The Power Division has recently sought a further one-year extension until December 2026 without any additional cost.
The Planning Commission approved the extension but recommended submitting a revised proposal to ensure the project is completed within the extended timeframe, even if some works remain unfinished.
Commission officials, however, warned that completing the remaining works within the new timeline appears unlikely.
They cautioned that failure to deploy the stored meters promptly could render a large portion of the equipment non-functional, putting public investment at risk.
DPDC officials said the project has faced persistent setbacks since its inception. Signing the first turnkey contract alone took nearly two years due to tender cancellation and re-tendering.
The Covid-19 pandemic later disrupted global supply chains for electronic components, delaying the production and delivery of meters and networking equipment.
Progress stalled again when the Meter Data Management (MDM) billing system was found to be insufficiently optimised, halting new installations for nearly five months, according to the proposal.
In several cases, installed meters failed to operate in pre-payment mode, resulting in bill arrears and forcing a temporary suspension of further installations, it added.
Contractors also faced difficulties in securing rooftop and pole locations for RF network equipment across public and private premises, alongside resistance from some consumers.
Political unrest in July 2024 further slowed on-site work, the proposal noted.
Foreign-exchange shortages added to the pressure, as delayed dollar payments through the banking system slowed the settlement of contractor bills, affecting equipment supply and installation schedules.
More than 200,000 RF network interface cards (NICs) are still pending import, preventing installation of the remaining meters, according to the proposal.
Officials said the extension is necessary to complete installation of the remaining meters and import the outstanding RF NICs.
Without additional time, the unused stock of meters could remain uninstalled and risk technical failure due to prolonged storage.
DPDC officials also said the signing of two package contracts had already pushed up project expenditure by Tk 132.7 million due to higher unit rates.
With the recent surge in the exchange rate, the additional cost has now escalated to Tk 184.6 million.
The latest project revision assumed a dollar-to-taka exchange rate of Tk 110.
However, with the rate climbing to Tk 122.50, the resulting increase in foreign-exchange costs is expected to place an additional financial burden on the project, raising fresh concerns over the efficient utilisation of public funds, they said.
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