Saudi donor's SIDR-fund limps for yrs
Saturday, 10 July 2010
FE Report
Site selection and bidding complexities have threatened to derail a US$130 million project intended to build hundreds of school-cum-cyclone shelters in the country's SIDR-battered southwestern region, according to persons familiar with the situation.
The Fael Khair project by the Islamic Development Bank (IDB) was undertaken in 2008, but the persons said the implementing agency has not yet been able to construct a single cyclone shelter in the coastal region.
The project's entire amount was donated by an anonymous Saudi donor who appropriated the money through the Jeddah-based agency. The money was supposed to rebuild the tattered lives of the people of SIDR-affected areas.
According to the project proposal, $110 million was set aside for the construction of around 600 school-cum-cyclone shelters in 13 SIDR affected coastal areas while the rest for microfinance and farm support for the cyclone victims.
IDB started working with the project in May 2008 and it also signed an agreement with consultants for providing consultancy services in four zones in which the SIDR affected areas were divided.
Persons said the consulting firms were responsible for completing the site survey, soil test, designing and tendering within 26 weeks after the project launch.
Still, they said, IDB has not been able to finalise the sites, detail designs and tender documents for zone one.
They added that the consultants are yet to obtain the approval for conducting soil test in zone two and no work is in progress in zone three or four.
A source close to the project warned it will be difficult for the implementing agency to build even half the planned shelters, due to the delay as well as wrong cost estimation.
According to the authorities, the original plan was to construct 600 schools-cum-cyclone shelter at an average cost of $0.18 million.
If followed the current design, the source said the cost of building a single shelter will average $0.36 million. That means the authorities can build at best 350 shelters-fewer than originally planned.
Officials also predict that if IDB failed to start the construction by the end of this year, this would spiral up the cost by another 20 per cent.
A key government agency responsible for the registration of the project also played the similar game as did by the multilateral Islamic lender.
Sources said the government is yet to finalise the registration of the Fael Khair Waqf, which was to make way for a Mutawalis Committee to supervise the US$ 20 million agricultural input segment.
Religious affairs secretary, in a recent meeting, asked the Waqf Administration Office (WAO) to finalise the registration of the Fael Khair Waqf.
Authorities say although it is a prerequisite for a Waqf in Bangladesh to pay five per cent of its annual income to the WAO, the government has recently waived taxes for the Fayel Khayer programme, thus clearing the way for its registration.
Site selection and bidding complexities have threatened to derail a US$130 million project intended to build hundreds of school-cum-cyclone shelters in the country's SIDR-battered southwestern region, according to persons familiar with the situation.
The Fael Khair project by the Islamic Development Bank (IDB) was undertaken in 2008, but the persons said the implementing agency has not yet been able to construct a single cyclone shelter in the coastal region.
The project's entire amount was donated by an anonymous Saudi donor who appropriated the money through the Jeddah-based agency. The money was supposed to rebuild the tattered lives of the people of SIDR-affected areas.
According to the project proposal, $110 million was set aside for the construction of around 600 school-cum-cyclone shelters in 13 SIDR affected coastal areas while the rest for microfinance and farm support for the cyclone victims.
IDB started working with the project in May 2008 and it also signed an agreement with consultants for providing consultancy services in four zones in which the SIDR affected areas were divided.
Persons said the consulting firms were responsible for completing the site survey, soil test, designing and tendering within 26 weeks after the project launch.
Still, they said, IDB has not been able to finalise the sites, detail designs and tender documents for zone one.
They added that the consultants are yet to obtain the approval for conducting soil test in zone two and no work is in progress in zone three or four.
A source close to the project warned it will be difficult for the implementing agency to build even half the planned shelters, due to the delay as well as wrong cost estimation.
According to the authorities, the original plan was to construct 600 schools-cum-cyclone shelter at an average cost of $0.18 million.
If followed the current design, the source said the cost of building a single shelter will average $0.36 million. That means the authorities can build at best 350 shelters-fewer than originally planned.
Officials also predict that if IDB failed to start the construction by the end of this year, this would spiral up the cost by another 20 per cent.
A key government agency responsible for the registration of the project also played the similar game as did by the multilateral Islamic lender.
Sources said the government is yet to finalise the registration of the Fael Khair Waqf, which was to make way for a Mutawalis Committee to supervise the US$ 20 million agricultural input segment.
Religious affairs secretary, in a recent meeting, asked the Waqf Administration Office (WAO) to finalise the registration of the Fael Khair Waqf.
Authorities say although it is a prerequisite for a Waqf in Bangladesh to pay five per cent of its annual income to the WAO, the government has recently waived taxes for the Fayel Khayer programme, thus clearing the way for its registration.