Four-lane Dhaka-Ctg highway project cost up
Wednesday, 30 December 2009
Munima Sultana
The cost of the four-lane Dhaka-Chittagong highway project has been refixed at Tk 23.82 billion (2,382 crore), up by 43 per cent from the amount earlier proposed by the bid winners, who will build the country's most important transport corridor, officials said Tuesday.
The Roads and Highways Department (RHD) revised the project proposal raising the figure from the earlier amount of Tk 21.68 billion to accommodate the extra cost for changing the design of the 200km artery from Daudkandi to Chittagong. The lowest bidders quoted the total project cost at Tk 16.55 billion.
The Executive Committee of National Economic Council (ECNEC) approved the revised project proposal Tuesday after the Planning Commission had sent it to its secretariat following necessary scrutiny.
Officials said the meeting chaired by Prime Minister Sheikh Hasina approved the project along with six others considering the growing pressure of traffic on the highway between two important economic hubs of the country.
"The meeting approved the Tk 23.82 billion project without any reservation," said an official adding that the entire cost would be borne by the government from its own fund.
The authorities expedited the bidding process after declaring the four-lane Dhaka-Chittagong highway project one of top priorities in view of the increasing foreign trade through the Chittagong Port.
The port now handles more than 95 per cent of the country's US$ 37 billion foreign trade, most of which involves transportation through the highway.
When asked about the increase in project cost, when the lowest bidders quoted Tk 16.55 billion for implementing the project, he attributed the 43 per cent hike in the revised budget to the project's other costs including salary of the project officials, purchase of necessary equipment and maintenance.
Officials said the project cost also increased due to last-minute change in the design. The RHD, which initially proposed the drainage system in the middle of the highway, changed the design keeping drains on both sides of the road for the safety reason.
Three bidders won 10 packages of the highway project. The signing of agreement between the bid winners and the government would take place in the first week of January.
The Chinese company Sinohydro Corporation Ltd won seven packages of the project making the lowest offer of Tk 11.51 billion, which is Tk 1.14 billion less than the second lowest bidder. Reza Construction Ltd was awarded the work of two packages while the joint venture between Taher Brothers Ltd and Al-Amin Construction Ltd bagged the last one, the officials added.
The plan to expand the highway into four lanes were initiated in 2004, when the country first clocked six per cent economic growth due to booming garment exports and remittance. But the bidding for the project was cancelled twice, in 2006 and 2008, following allegations of unfair competition among the local companies.
The cost of the four-lane Dhaka-Chittagong highway project has been refixed at Tk 23.82 billion (2,382 crore), up by 43 per cent from the amount earlier proposed by the bid winners, who will build the country's most important transport corridor, officials said Tuesday.
The Roads and Highways Department (RHD) revised the project proposal raising the figure from the earlier amount of Tk 21.68 billion to accommodate the extra cost for changing the design of the 200km artery from Daudkandi to Chittagong. The lowest bidders quoted the total project cost at Tk 16.55 billion.
The Executive Committee of National Economic Council (ECNEC) approved the revised project proposal Tuesday after the Planning Commission had sent it to its secretariat following necessary scrutiny.
Officials said the meeting chaired by Prime Minister Sheikh Hasina approved the project along with six others considering the growing pressure of traffic on the highway between two important economic hubs of the country.
"The meeting approved the Tk 23.82 billion project without any reservation," said an official adding that the entire cost would be borne by the government from its own fund.
The authorities expedited the bidding process after declaring the four-lane Dhaka-Chittagong highway project one of top priorities in view of the increasing foreign trade through the Chittagong Port.
The port now handles more than 95 per cent of the country's US$ 37 billion foreign trade, most of which involves transportation through the highway.
When asked about the increase in project cost, when the lowest bidders quoted Tk 16.55 billion for implementing the project, he attributed the 43 per cent hike in the revised budget to the project's other costs including salary of the project officials, purchase of necessary equipment and maintenance.
Officials said the project cost also increased due to last-minute change in the design. The RHD, which initially proposed the drainage system in the middle of the highway, changed the design keeping drains on both sides of the road for the safety reason.
Three bidders won 10 packages of the highway project. The signing of agreement between the bid winners and the government would take place in the first week of January.
The Chinese company Sinohydro Corporation Ltd won seven packages of the project making the lowest offer of Tk 11.51 billion, which is Tk 1.14 billion less than the second lowest bidder. Reza Construction Ltd was awarded the work of two packages while the joint venture between Taher Brothers Ltd and Al-Amin Construction Ltd bagged the last one, the officials added.
The plan to expand the highway into four lanes were initiated in 2004, when the country first clocked six per cent economic growth due to booming garment exports and remittance. But the bidding for the project was cancelled twice, in 2006 and 2008, following allegations of unfair competition among the local companies.