Power system network project hits snags

A major project worth Tk 205 billion for expansion and strengthening of power-system network turns a lame duck as Dhaka's electricity company cites roadblocks like land-acquisition delays and road digging.
Dhaka Power Distribution Company Ltd (DPDC) recently came up with a string of arguments when Economic Relations Division (ERD) showed reluctance to its request for further extending the project tenure by two years -up to December 2026--in an apparent stalemate in the works.
The DPDC is implementing the Chinese-funded megaproject to raise distribution capacity of its network in the high-demand capital city and surroundings.
Tabian Electric Apparatus (TBEA) Co. Ltd, a Chinese government-selected contractor, got the contract of the biggest-ever distribution project in the DPDC's mandated area in Dhaka, which also includes some more projects bundled in.
Defending its plea for the extension by two years, DPDC said, "The Loan Agreement for the Project came into effectiveness on November 25, 2019, and as per the Notice of Commencement issued by DPDC, the Project commenced on January 27, 2020, and shall be completed within sixty (60) months to January 26, 2025."
However, the company added, the project "suffered serious delays because of the COVID-19 pandemic, which just occurred in the subsequent month of project commencement date and further delayed due to the land acquisition and road cutting permission".
It says in its letter that land acquisition is "always a challenge in Bangladesh for all projects, especially in Dhaka city, since procedures to acquire land is very much time- consuming and all legal formalities must be maintained due to the complexity of the right of property".
So, DPDC could not start the procedure for more than one year due to government-declared strict lockdown policy.
About the problems of delay in 'road cutting' it said, "The road-cutting permission for underground cable-laying works in Dhaka city is more complicated since there are different stakeholders involved to grant the permission, like DNCC, DSCC, RHD etc with different procedures to be followed."
After commencement in January 2020, the cable-route survey, design work and material supply by TBEA were deeply influenced by the Covid-19. So, in 2020 and 2021, there was only some preparation work, but "no physical cable-laying progress".
Though DPDC, EPC contractor and relevant authorities of Bangladesh tried their level best to accelerate the progress, necessary extension of time for completion of the project to Dec 31, 2026 is required, it argued.
About the complications caused by the Covid pandemic the officials said due to the Covid-19 almost at the commencement date of the project, all mobilization works were suspended.
"There was no land acquisition, no design work and no road-cutting permission for more than one and a half years, nothing happened in the year of 2020 and 2021. The EPC contractor had submitted all reports on COVID-19 impact to the project for the purpose of Extension of Time for Completion as per EPC Contract. Finally, the consultant of the project, JV Hifab oy & ECBL, reviewed all reports and recommended approval for time extension for 485 days.
The direct time loss due to COVID-19 pandemic is 485 days, and after that land acquisition, design work and road-cutting permission application work just started, DPDC said.
"Due to land-acquisition and design-work delay, site-construction work was delayed accordingly. DPDC requested TBEA to take necessary actions to catch up the time schedule, as per time schedule of the contract."
It was also pledged that DPDC and TBEA would take all necessary actions to complete work under contract scope within the timeframe after extension.
According to the TEBA, the contractor for the project, the project got delayed by 22 months due to delay in land acquisition only.
"Land acquisition is an important prerequisite for the contractor to carry out the preliminary works of the project," it says.
As a result of the obstruction to the land- acquisition work, the subsequent design, deployment of resources such as personnel, equipment and materials required for the contractor, and construction works had not been able to proceed as planned, thus affecting progress of the entire project and causing delays in the construction period.
Under the scheme, a total of 40 substations will be set up in the city while overhead cables of Hatirjheel Lake and Dhanmondi residential area will be laid underground in next five years.
The DPDC operates mainly in central, west and old parts of Dhaka city and also most of Narayanganj city.
Once the project implemented, the capacity of 132kV level will go up to 5330MVA and 33kV level to 4680MVA, officials of the DPDC mentioned.

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