Consultancy cost soars to Tk 14.37b after 2nd revision

Spending on consultancy services for the 172-kilometre Padma rail link project would now stand at Tk 14.37 billion, more than 32 per cent higher than the cost estimated after the first revision, insiders said on Tuesday.
The cost of the rail link between Dhaka and Jashore via Padma Bridge is Tk 83.53 million per kilometre, they said.
State-owned Bangladesh Railway has recently enhanced the consultancy cost at the second revision from its earlier estimation (1st revision) of Tk 9.41 billion.

Development analysts say an expenditure of Tk 14.37 billion for the job is really very ambitious.
The ousted Sheikh Hasina government in January 2016 took up the Padam rail-link project at a cost of Tk 349.88 billion which was supposed to be completed by June 2022.
However, the failure to implement the project timely has forced the government to increase the budget to Tk 390.13 billion.
With the costly Chinese buyers' credit, the last Sheikh Hasina government undertook the project arguing that it would boost the economy of the country's southwestern region.
But the BR failed to implement the project within the stipulated six and a half years tenure between January 2016 and June 2022, forcing the then government to endorse the first revision with a cost escalation to Tk 392.47 billion and time extension to June 2024.
The state-owned railway failed again this time.
The interim government has recently been forced to revise the project for the 2nd time, cutting the overall cost to Tk 390.13 billion but extending the deadline by one more year to June 2025.
When asked, a senior Planning Commission (PC) official said: "We had strictly scrutinised the enhanced consultancy cost of the project before endorsing the second revision. We are forced to approve it."
Since the project is almost completed and the consultants provided their services, the BR is bound to pay the bills, he added. "So, we did not have options but to approve the revision proposal."
This is unfortunate that the failure of the implementing agency ultimately puts a burden on the general people, said the Commission official.
The BR is spending Tk 12.42 billion worth of funds on design and supervision consultancy services and Tk 1.94 billion on resettlement consultancy services.
A senior official at the Ministry of Railway (MoR) alleged that some dishonest powerful people of the past Sheikh Hasina government benefited from the bloated Padma Bridge railway link project.
Nexus and collusion had grappled with Bangladesh's second expensive Padma railway link project, insiders said.
Railway Secretary Abdul Baki told the FE that they had strictly reviewed the 2nd revision proposal and reduced the project cost by some Tk 6.81 billion.
"We are reviewing the project further for streamlining the cost and its implementations. Some Tk 25 billion from the Padma railway link project is likely to be slashed further," he added.
Chinese company CREC and 12 of its subsidiaries are engaged in the construction of the Padma railway link project.
The CREC contracted CRRC Tangshan, a rolling stock manufacturer in China, to supply 100 broad-gauge passenger carriages, along with their spare parts and related services.
China Major Bridge Engineering, a subsidiary of CREC, was contracted for the construction of the Padma multipurpose bridge.
AECOM, a professional and engineering services company based in the US, provided the design of the Padma Bridge.
Ringtech, a construction contractor based in Bangladesh, was subcontracted by CREC to complete the project's remaining bridges, culverts and underpasses.
The Corps of Engineers of the Bangladesh Army was appointed as the construction supervision consultant for the project in January 2017.
Professional services firm SMEC and its wholly-owned subsidiary ACE Consultants, a consulting services provider, were contracted by the Corps of Engineers of Bangladesh Army to provide construction supervision consultancy services for the Padma Bridge rail link project in July 2017.
DORP worked as an implementing NGO for resettlement activities under the supervision of the Construction Supervision Consultant, Corps of Engineers, and the Bangladesh Army.
Strategi Consulting provided construction supervision services for the project, including property acquisition, resettlement plans, clearing rights, utility relocation, contractor review, technical support and safety assurance.
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