BR seeks one-third on less important work

Amid government austerity measures, the Bangladesh Railway (BR) has proposed spending Tk 38.46 billion on secondary and less important work, representing one-third of the total Tk 115.66 billion for the Kalurghat Bridge construction project in Chattogram, according to insiders.
They said the state-owned BR has outlined Tk 38.46 billion spending on consultancy, car and vehicle purchases, honorariums, furniture, rent, allowances, stationery, travel expenses, car fuel and land acquisition.
The consultant for detailed design, mathematical modelling, tendering and construction supervision will need to be appointed from South Korea, as Seoul will be financing the project, officials involved with the scheme told The Financial Express.
The Korea Economic Development Co-operation Fund (EDCF) has assured of providing Tk 71.28 billion in loan funding for the proposed Tk 115.66 billion Kalurghat Bridge construction project.
Of the total project cost, BR plans to spend Tk 73.50 billion for the construction of the bridge with a railway track over the Karnaphuli river, which is the key work of the project, according to sources.
BR also plans to build approach roads on both sides of the bridge at a cost of Tk 7.97 billion, another essential component of the scheme, said officials.
BR recently sought approval for the 'Construction of a Railway-cum-Road Bridge over the Karnaphuli River at Kalurghat Project' from the Planning Commission, with a deadline of December 2030.
The Kalurghat bridge is currently the only way to connect the beach city Cox's Bazar with the commercial city Chittagong by rail. The bridge -- built over 100 years ago -- is now in a dilapidated state.
According to the project proposal, BR has earmarked Tk 3.42 billion for consultancy, Tk 25.51 billion for land acquisition, Tk 7.12 billion for loan management expenses, Tk 7.27 billion for price contingencies, Tk 103.97 billion for physical contingencies and Tk 17 million for luxury car purchases.
The proposal includes the purchase of a car at Tk 10 million and a double-cabin pickup truck for Tk 7 million, which a Planning Commission official said contradicts the government's current austerity measures.
Besides, BR has planned to spend Tk 3.62 billion for eight types of allowances and a special benefit for its project staff, which appears to be an ambitious expenditure, the official told the FE.
BR has also proposed spending Tk 5.40 billion on employee salaries. It has further kept aside Tk 2.61 billion for outsourced manpower.
A state-owned agency also earmarked Tk 1 million for honorariums for the project implementation unit (PIU), tender evaluation committee (TEC) and project steering committee (PSC), and Tk 2 million for renting motor vehicles, which, another Planning Commission official said could be avoided during this austerity period.
The official questioned the allocation proposals of Tk 6 million for purchasing fuel and lubricant, and Tk 2 million for registering and licensing their vehicles.
Requesting anonymity, the official added that allocating Tk 7.12 billion for loan management expenses seems like an ambitious proposal, as the railway will implement the project within the grace period of the foreign loan.
Earlier, the Korean Export-Import Bank (EXIM) conducted a feasibility study for the construction of the Kalurghat Bridge in 2016. The study was updated in 2022.
According to the project proposal, BR will construct a 700-metre bridge, a 6.2-kilometre viaduct and a 4.5-kilometre embankment at Kalurghat in Chittagong.
According to the proposal, BR will acquire 141.04 acres of land at Tk 25.51 billion and spend another Tk 1 billion for compensation to those affected.
A Planning Commission member said they are scrutinising the proposal.
"Costs that are irrational and less important will be asked to be cut or reduced. Since Bangladesh has been struggling with a fund shortage over the past few years, the Planning Commission is cautious in approving new projects," the member told the FE.
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