Bheramara-Khulna Gas Pipeline
Implementation delay pushes project cost up by Tk 218cr
The estimated costs of a government project for installation of gas transmission line from Bheramara to Khulna has increased to Tk 903.52 crore from the original size of Tk 685.29 crore due to failure in implementing the development works in time.
The implementing agency of the project, Gas Transmission Company Limited, a sister concern of Petrobangla, has failed to complete the project in due time as it made delay in procuring materials for the project, Planning Commission sources said.
Now, the GTCL has to count more money to buy the materials from the international markets at higher prices, the sources said.
The GTCL has revised the project for the second time and started re-tendering process to buy goods from the international markets, the sources said.
The revised project was approved by the Executive Committee of the National Economic Council, the government’s highest policy making body headed
by the prime minister, on Tuesday. The Planning Commission sources said the development project proposal of the project was prepared first in 2006 when the prices of construction materials in the international markets and labour cost were lower.
But, under the revised proposal the project is going to be completed by June 2014 as the GTCL has to go through the re-tendering process to buy important materials for the pipeline project.
The estimated costs of the revised project have also exceeded the approved DPP limit due to higher loan interest and foreign currency exchange rates.
The staff salary has increased by 231.33 per cent beyond the original DPP while expenditures for goods and machinery by 76 per cent, office and residential building construction by 42.68 per cent, extending of supervisory control and data acquisition system by 137 per cent and interest rate during the project works by 91.53 per cent.
The revised project also included to construct a city gate station in Khulna, three border stations having cost of Tk 25.50 crore in Jessore, Jhinaidhah and Kushtia, which were not included in the original DPP.
Initially, the implementation time of the project was set at July 2007-June 2010. But, on June 5, 2010, the government extended the project completion time to June 2012 without increasing the costs. Later, the implementation time was extended for another six months to December 2012 due to non-completion of crossings on six rivers and some other important infrastructures under the project, the commission sources said.
The project assistance from the development partners and the resources from the government exchequer have also increased by Tk 149.33 crore and Tk 67.27 crore respectively to the project for the delay in implementation.
Of the total project costs of Tk 903.81 crore, the project assistance has now stood at Tk 475.27 crore (which was Tk 325.94 crore in the original estimate) and the government’s funding has stood at Tk 426.62 crore (which was Tk 359.35 crore in the original estimate).
-With New Age input
