BRTC asked to get tightfisted, trim cost

A Tk 12.53-billion project has been undertaken to procure 100 electric vehicles from India with much of the borrowed money allocated for avoidable expenses other than the import cost, insiders said.
Only 36.30 per cent of the funds will go for import of the double-decker buses for Dhaka city commuter service while the rest meant for works deemed less important in the current context of dearth and government austerity stance, they said.
As planned in the project drawn by Bangladesh Road Transport Corporation (BRTC), the remaining funds will be used for setting up eight charging stations and some other less-relevant works, said some civil servants.
The state-run transport corporation will borrow the lion's share of the money from the Indian Line of Credit (LoC) for procuring the buses, they said.
"Some Tk 4.53 billion, or 36.30 per cent of the total Tk 12.53 billion worth of estimated cost, will be spent for procuring 100 buses while remaining funds for eight charging stations and for some less-relevant works," a senior government official told the FE, wishing not to be quoted by name.
According to the BRTC proposal, it will also spend nearly Tk4.81 million, 4.0 per cent of the Tk 12.53- billion project cost, for some less-relevant works, including foreign and local training, consultancy services, and for honorarium.
Besides, it will procure spare parts at Tk 6.82 million for the proposed 100 EV buses. The cost of the spare parts is 5.54 per cent of the total project cost.
Some Tk 6.82 billion or 54.41 per cent of the total estimated cost will go for setting up eight charging stations across Dhaka city for the electricity-run vehicles.
The BRTC has recently taken up the 'Procurement of electric double-decker AC buses project' to buy the 100 electric vehicles from India under the LoC financing aiming to operate the latter-day commuter transport in the capital city.
The Ministry of Road Transport and Bridges (MoRT&B) has sought approval for the BRTC's project from the Planning Commission.
Meanwhile, the Planning Commission has asked BRTC to restructure the project by cutting costs in some unnecessary and less-important components.
Another senior government official says each of the buses will cost Tk 45.475 million and the charging stations Tk852.125 million.
"The unit cost of the EV double-decker buses as well as of the charging stations seems to be higher. If each of charging stations costs Tk852.12 million, how the BRTC will make the project viable?" he questioned.
Besides, he adds, when the government is practising austerity in spending amid financial crunch, the huge money for foreign and local training is "absolutely unnecessary".
The BRTC has proposed spending Tk 513.6 million, 4.10 per cent of the total project cost, for setting up eight sheds for the charging stations, which is "very much ambitious", a person involved with the project told the FE.
For keeping the spare parts secure, the BRTC will construct eight warehouses at the depots at a cost of Tk 68.5 million which the official also terms inflated and ambitious.
The road-transport corporation has proposed to procure the 100 EV double-deckers by June 2025 to serve people in the capital city -- where most commuter buses look outworn.
Those outmoded vehicles are blamed for air and noise pollution through spewing black smoke and hoarse honking of horns, besides causing tailbacks.
When asked, a PC official said, "We are scrutinizing the project before the approval as there are some mismatches in the development-project proposal. We have asked the BRTC to restructure the project."

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