The Bangladesh Inland Water Transport Authority (BIWTA) has reported significant cost and time overruns in its project to procure 35 ships and ancillary works, costing the public exchequer an additional Tk 5.19 billion.
Initially set at Tk 13.19 billion with a completion timeline of four years, the project now demands an increased budget of Tk 18.37 billion and an extended timeline until December 2025.
Government sources revealed on Thursday that the project, initially scheduled to be completed by June 2022, has been delayed due to various complications.
Despite the substantial additional spending, the project remains unfinished, necessitating further revisions.
The project, titled ‘Procurement of 35 Commercial Ships and Eight Supportive Water Vessels, and Building Two Slipways’, was launched in 2018 to enhance BIWTA’s passenger and commercial fleets.
However, issues such as an absence of feasibility studies and inaccurate cost estimations have led to the current situation.
The devaluation of the taka against the USD and changes in the work plan for the slipways have further complicated the project. Despite most of the work being near completion, additional funds and time are needed to finalize the remaining tasks.
The government has already revised the project once, extending the completion deadline to June 2023 and adjusting the budget slightly. However, the BIWTA has failed to meet this extended deadline, prompting the need for a second revision.
The Planning Commission has expressed frustration over the continuous delays, noting that typical construction projects involving roads and bridges often face delays due to land acquisition and other complexities. Still, the protracted timeline for ship procurement is particularly concerning.
A Planning Commission member highlighted the broader implications of these delays, noting that the extended timeline and increased costs have not only burdened the public exchequer but also deprived the public of the services that were expected from the new ships.
The Executive Committee of the National Economic Council (ECNEC) originally approved the project in 2018, setting a budget of Tk 13.19 billion and a completion date of June 2022. However, the failure to meet this deadline led to the first revision, which extended the project timeline to June 2023.
The most recent request from the BIWTA seeks to push the deadline further to December 2025, with an increased budget of Tk 18.37 billion.
Government officials have warned the BIWTA against seeking further extensions or revisions, emphasizing the need to complete the project within the newly set parameters.