Govt okays revised rail projects with bloated cost

The government has revised the Indian credit-supported Khulna-Mongla railway project with a 121 per cent increase in its cost to Tk 38.01 billion.
The project approved by the Ecnec in December, 2010 had an estimated cost of Tk 17.21 billion. It was scheduled to be completed by December 2013.
But due to the delay in the execution and addition of new elements the cost of the project has gone up.
Presided over by Prime Minister Sheikh Hasina, Tuesday's meeting of the Executive Committee of the National Economic Council (Ecnec) held the Planning Commission approved the revision of the Khulna-Mongla railway project.
Planning Minister AHM Mustafa Kamal said the Ecnec also approved eight other projects involving a total cost of Tk 20.67 billion.
Mr Mustafa Kamal said the cost of the railway project has gone up because of incorporation of some new elements, including a 717-metre rail- bridge construction on Rupsha River and extension of the total railway track by 12 kms more.
An increase in land-acquisition cost also added up to the latest amount of project cost.
The minister said, "Some Tk 22 billion will be required alone for setting up the 65- kilometre railway line from Khulna to Mongla and building the bridge on the Ruphsa River in Khulna."
Besides, around Tk 10 billion would be required to acquire 678 acres of land for the project.
Meanwhile, the time of constructing the Khulna-Mongla railway line under the Indian US$800 million line of credit (LoC)-supported project will also be extended by another three and a half years to June 2018.
Earlier, the Planning Commission in 2013 extended the project-execution timeline by one year to December 2014, without increasing the cost, following request from Bangladesh Railways.
It is alleged that the BR had taken up the project without proper feasibility study in 2010, which is now affecting its implementation, project-insiders said.
An Indian consulting firm after conducting a study has changed its design. "Based on the study report, we have revised the project," said one of the sources.
The Ecnec also approved the revision of another Indian-aided rail project, Kulaura-Shahbajpur railway-rehabilitation project. It costs Tk 6.87 billion.
The project was revised Tuesday through extending the cost by 476 per cent from its original estimation of Tk 1.18 billion.
The ECNEC-approved other projects are: Infrastructure development and beautification of Barisal City Corporation at Tk 612 million, Jamalpur bypass road and its related works at Tk 563.5 million, strengthening women's ability for productive new opportunities at Tk 8.53 billion, construction of cores of military police centre and training school at Savar cantonment at Tk 885.6 million, regional duck-breeding farms with hatchery facilities project (3rd phase) at Tk 2.17 billion, Meghna left riverbank protection at Maniknagar under Nabinagar upazila at Tk 364.9 million, and the setting up of powdered milk farm at Baghabari in Sirajganj at Tk 748 million.
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