Cost of Dhk-M'singh Highway four-lane project rises by 85pc

Munima Sultana Cost of the Dhaka-Mymensingh Highway Four-Lane Project has escalated by 85 per cent over its initially estimated one, following increased costs in construction components of its all four package areas. The suspension of works under package 1 (from Joydevpur to Rajendrapur) and package 2 (from Rajendrapur to Maona) for two years is one of the main contributory factors for such cost escalation, according to sources. Meanwhile, expenditure of package 3 (from Maona to Raimoni) and package 4 (from Raimoni to Mymensingh) also increased simultaneously, they added. Under the revised development project proposal (RDPP), the aggregate cost for package 3 and package 4 has been fixed at Tk 8.18 billion, showing an increase of Tk 5.09 billion. The cost for the suspended two packages has been set at Tk 8.14 billion, with a hike of Tk 4.87 billion. The Executive Committee of National Economic Council (ECNEC) approved the RDPP at enhanced cost early this month. Earlier, the project's cost was Tk 9.92 billion, of which the cost for packages 1 and 2 was Tk 3.27 billion, and that of packages 3 and 4, Tk 3.31 billion. The officials said the Special Works Organisation (SWO) of the Bangladesh Army, responsible for the work of packages 1 and 2, proposed the Tk 4.87 billion-hike after re-assessing the cost, based on the present market rate. On the other hand, the joint venture (JV) firms, responsible to work for packages 3 and 4 under the Roads and Highways Department (RHD), got an increased allocation of fund, sized at an aggregate amount of Tk 5.09 billion. But the lead Chinese firms of the JV remained absent in the field since the project's work began two years back. The officials said cost of the part of the project, assigned to the private firms, was rescheduled, based on the cost under the tender that was called in 2011. When asked about the matter relating to the latest cost escalation, director of the project Hafizur Rahman said the RHD has proposed the hike in project cost on logical grounds, considering the increased prices of all construction materials. The cost of the Army-led part, he said, has also increased, as five years have passed since the project was initiated. However, cost of the two groups of packages varies due to their respective nature and volume of work. The PD told the FE that the SPO is responsible for 30 km work, while the RHD for about 57 km. About the two Chinese firms whose involvement in works, relating to package 3 and 4 of the project, is not visible now, he said the RHD has contacts, with the firms, and directed them to be present during important meetings about the project. The RHD took the 87-km national highway expansion work in 2008. But its tender processing work ended in 2010, leading to its awarding to three joint-venture contractors. But the work of package 1 and package 2 was halted due to legal complications, after a contractor filed a case against the government, alleging 'forgery' in the tender process. The ministry of communications recently awarded the work to the Army, after receiving clearance from the Cabinet Committee on Public Purchase early this year. The Chinese companies -- the Major Bridge Engineering Company (MBEC) and the Metallurgical Construction Company of China (MCCC) -- have been 'absent' almost from the beginning of the project in 2011, though they were awarded the work as the lead partners. Both the MBEC and the MCCC reportedly authorised their respective local partner-companies to do their works. The Chinese firms left the country after allegedly taking some amounts of money as commission from them, soon after the work order was given.