Govt to count 45pc cost overrun for delayed start of PMB construction

The cost of building the Padma multipurpose bridge is going to shoot up by nearly 45 per cent from the estimated amount of Tk 205 billion mainly for forced delays in start of the project works.
As long as over three years have been lost in dilemmas in connection with a corruption allegation raised by the World Bank at the very planning stage.
Sources said an increase of around Tk 80 billion has been estimated for the hike in contract pricing of some components, including construction of the 6.15-kilometre-long two-tier rail-cum-road bridge and 14-km river-training works as well as carrying out some emergency works.  
The Padma Multipurpose Bridge (PMB) project office, which has already started revision of the DPP five years after the first DDP was approved, now wants to add up more works during the project recast, they added.
Though the project is yet to get the final figure of the cost, an official, preferring not to be named, said: "The cost may be plus-minus 3.5 billion in US dollar."
The PMB project cost was estimated US $ 2.97 billion in the first DPP endorsed in 2010, which the BBA later adjusted with dollar rate to Tk 205.07 billion (Tk 20,507 crore) at the time of resuming the procurement process in 2013.
The first DPP cost was calculated on the basis of the dollar rate at Tk 69. In the revision, the project office assessed the dollar rate around Tk 78.4.
Among the five-component works of the steel-truss-composite bridge, around Tk  63.46 billion was increased for quoting higher prices than the estimated cost by the lowest two Chinese bidders for the project's two main component works.
China Major Bridge Engineering Company won the 6.15-kilometre main bridge-construction work against Tk 121.33 billion (Tk 12,133.39 crore).
Its compatriot Sino Hydro Corporation was awarded river-training work at Tk 87.07 billion (Tk 8,707.81 crore).
The estimated cost of the two components were Tk 91.72 billion (Tk 9,172 crore) and Tk 53.62 billion (Tk 5362.68 crore) respectively.
Besides, contract price of the construction-supervision consultancy (CSC) has been doubled for dividing the work into two parts.
Bangladesh Army got the work on deposition at the rate of Tk 1.33 billion (Tk 133.49 crore) to supervise the three-component works - construction of two approach roads and service-area development.  
Korea Express Corporation and Associates, a Korean joint venture, won the main bridge and river-training-supervision work for Tk 3.83 billion (Tk 383.15 crore).
Besides, Bangladesh Bridge Authority (BBA), the implementing agency of the highly sophisticated bridge project, will add Tk 5.5 billion spent for carrying emergency river-protection work and shifting Mawa ghat. These two works were beyond the original design in DPP.
This amount was necessary to be spent to keep the bridge design safe and movement of river traffic smooth as river erosion has taken serious turn during the two years due to delays in starting main river-training work, sources added.
All these costs were linked with the delays caused by raising allegation of corruption in the tender process by the World Bank in 2011, which eventually had halted the procurement process till 2013.
The government resumed the process under its own funds, rejecting the development partners' contribution. The World Bank and three other development partners had a commitment for $ 2.35 billion.
After the funding arrangement was changed, this will be the first revision of the project cost by the BBA.
Sources said the project office has now estimated additional Tk 3.5 billion (Tk 350 crore) to include in the revised DPP for doing permanent river-protection work of 1,300 metres done during the last two years.
Besides, the BBA is considering acquiring about 50 hectares of more land to construct pillars for the electric tower some 1.0km downstream the main bridge.
In the original DPP, Tk 3.20 billion was fixed for acquiring land of total 918 hectares. This figure, however, went up to 1,124 hectares following BBA's decision to acquire entire land below the main bridge to avoid any future conflict.
According to the design, the Padma multipurpose bridge will be 6.15 kms in length and 21.10 metres in width with a four-lane road on the top and a broad-gauge rail lane below. It will have 150 spans with four-km approach road at Mawa and 12km on the other side across the mighty river.
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