90pc metro rail fund risks remaining unused

The metro rail project now finds it difficult to spend over 90 per cent of its budget allocated in the current fiscal year 2016-17 due to delay in signing contracts with companies on field-level construction and procurement work.
Sources said the delay in signing contracts followed extension of the deadline to submit documents on various components of work on the Tk 220 billion mass rapid transit (MRT) line-6.
According to the Dhaka Mass Rapid Transit Development Project (DMRTDP), Tk 2.22 billion was allocated initially for the MRT line-6 project in the current fiscal year. But the project office revised downward the budget to Tk 1.18 billion later due to its inability to spend half the allocation by December.
However, sources said, the DMTCL spent slightly over 6.0 per cent of the project's budget.
The DMRTDP is now negotiating pre-contract deals on packages 2, 3, 4 and 8 with others remaining behind the schedule.
"It would be hard to complete procedures of contract signing even after completion of pre-contract negotiation," said a senior official of the project as there are several formalities remaining to be completed after the negotiation.
However, Project Director Mozammel Hossain expressed optimism over signing of three to four contracts before the end of the current fiscal year. He said the project office could then spend significant portion of the allotted money.
Sources said the delay in completing the tender process occurred as almost all pre-qualified companies sought extension of time to submit their respective packages.
According to the development, contract package (CP)-2, CP 3-4 and CP-8 are in pre-contract negotiation stages and it would take more than two months to complete necessary formalities to sign contracts.
After contract signing, the project office could spend its fund for the mobilisation purpose as the contractor will have to develop infrastructure, construct half the 20-kilometre elevated metro line from Uttara to Agargaon and procure train sets respectively.
Only the CP1 is now at the implementation stage that will see depot land development and the remaining three CPs are at the evaluation stage.
The government initiated the MRT-6 development project in 2013 after signing a contract with the Japan International Cooperation Agency to fund 60 per cent of the cost.
    smunima@yahoo.com