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Five years on, Mongla yet to bring ships, tugboats

FHM HUMAYAN KABIR | Sunday, 14 July 2024



The Mongla Port Authority has failed to procure three ships and two boats in five years, thus waiting to dissipate a cost overrun of Tk 1.69 billion.
The authorities have recently sought a revision of the project seeking one more year's time and 22.07-per cent higher funds from coffers, officials said on Saturday.
Even then, they failed to appoint a consultant in the stipulated time of the project from 2019 to 2020.
In December 2019, the Tk 7.67-billion project styled 'Procurement of supporting water vessels for Mongla port' got the government's stamp of approval.
The implementation time was scheduled for June 2022.
The project was undertaken to procure two tugboats and three ships for supervising and handling seagoing vessels at Mongla port and secure coasts.
According to insiders, the port authorities' delay in appointing a consultant as the key reason behind this protracted procurement.
As the Mongla authorities failed to embark on the project in time, shipping ministry extended the deadline for two more years up to June 2024.
This time, they have sought to balloon the cost by 22.07 per cent to Tk 9.36 billion from its actual cost of Tk 7.67 billion.
Currently, the review proposal is under consideration of the Planning Commission (PC).
When asked, a senior official of the ministry cited initial delays, re-tending in some procurement packages, dollar crunch, Russia-Ukraine war, Covid impact and the mother vessel-maker's failure to supply machinery and tools as other reasons.


The official said the port authorities inked an agreement to procure a mother vessel in June 2022, the month of the first deadline of the project execution.
As the dollar's exchange rate has escalated, the authorities need more funds to pay foreign contractors, according to him.
The port authorities went for re-bidding to hire a consultant, procure mother vessel, survey and reserve vessels, thereby delaying project implementation.
"It took one year and a half to appoint a consultant. The consultant was appointed for drawing and designing the boats and ships," said a port official.
"The consultant was also supposed to prepare a tender document for procuring the supporting vessels for Mongla port," he added.
According to the official, they have already selected contractors and signed deals with them to procure the tugboats and ships, adding that the vessels will reach Bangladesh within 6-7 months.
"… The project was due for completion by June 2024. But the Mongla Port Authority has recently sought a revision of time and a cost overrun," said a PC official.
"We are scrutinising the project. If found justified, we will consider for a revision."
The project demands more funds and extra time to do the water-vessel procurement work only for the authorities' failure to execute it in time, a PC member told the FE.
Had the implementing agency completed the work even after extending time for the first time, the state could have saved the addition Tk 1.69 billion, he said seeking anonymity.
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