The cost of the Karnaphuli river tunnel project has gone up by Tk 16 billion (1,600 crore) though the construction work is yet to start and it may increase further once the design is prepared, officials have said.
The Bridge Division in the development project proposal (DPP) on the tunnel had estimated the construction cost at Tk 56 billion.
But in a recent meeting of the project evaluation committee (PEC) of the Planning Commission (PC), officials of the Bridge Division have claimed that Tk 72.07 billion will be needed for its completion.
They said the DPP was prepared two years back based on a feasibility study report. The DPP did not include in the estimation nearly Tk 10 billion customs duty and VAT (value added tax) and acquisition of additional 18.20 hectares of land for construction site, camp and jetty.
Besides, the inflationary pressure is also contributing to the rise in the project cost, they have added.
Bridge Division Joint Secretary Alim Uddin Ahmed told the FE that the project cost might increase further, once the design of the project is prepared.
"Cost of project increases by 8 per cent every year because of inflation. A start-up delay will further raise the cost," he said.
He said a consultant would be appointed soon for drawing and designing the multi-lane road tunnel in the Karnaphuli connecting two parts of Chittagong city.
"The actual cost can be fixed on completion of the tunnel design," Mr Ahmed added. He mentioned that construction cost of the Padma Bridge increased by Tk 80 billion against the estimation made in the DPP.
The Chinese government has agreed to finance the project and designated the China Communication Construction Company Ltd (CCCC) to build the 3.4-kilometre tunnel under a government-to-government arrangement. The Chinese assurance of funding the project came during Bangladesh Prime Minister Sheikh Hasina's Beijing visit in June last year.
Sources said in the DPP the Bridge Division showed Tk 14.60 billion of the government of Bangladesh as grant. But it had no approval from the finance ministry to convert the government money into grant.
The PEC meeting termed keeping Tk 4.28 billion for the purpose advisory service for the project excessive. The meeting was told that the amount of money kept as advisory fee for Padma Multipurpose Bridge was less than it.
The meeting asked the Bridge Division to fix the allocation based on recommendations of the standing committee on non-concessional loan and approval of the cabinet committee on economic affairs (CCEA).
It also asked for omitting the amount of Tk 50 million kept in the DPP as unforeseen or other expenditure.
The PEC meeting also cited Tk 12.20 billion kept as 'interest during construction' as excessive. It asked the Bridge Division to set the cost logically and take approval from the CCEA.
It also asked the Bridge Division to take approval from the Department of Environment after carrying out the environmental impact assessment of the project.
The committee sent back the DPP asking the Bridge Division to resubmit it after necessary corrections.
The tunnel, first of its kind in Bangladesh, would cut the road distance between Chittagong and Cox's Bazar, apart from easing the rush of traffic on the Dhaka-Chittagong Highway.
   syful-islam@outlook.com
Karnaphuli tunnel project cost goes up by Tk 16b
Syful Islam | Published: April 13, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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