Three days before stepping down, the ousted Awami League government approved a 62.47 per cent cost increase for the construction of the internal container and bulk terminal at Khanpur in Narayanganj.
As a result, the project cost rose from Tk 392 crore to Tk 636.90 crore.
Although the project’s implementation timeline was set for 2020 to June 2023, no progress has been made. The deadline has now been extended to June 2027, sources from the Ministry of Planning revealed.
Dr Mohammad Emdad Ullah Mian, member (secretary) of the Physical Infrastructure Division of the Planning Commission, explained that a conceptual design was prepared when the main development project proposal (DPP) was initially approved. The costs for constructing the port jetty and related civil works were based on that design.
However, the project’s cost increased after the design was updated following decisions by the project steering committee, the port’s master plan and a feasibility study to meet international standards.
The project, titled "Construction of Internal Container and Bulk Terminal in Khanpur, Narayanganj," was initially approved at an Executive Committee of the National Economic Council (ECNEC) meeting on December 24, 2019, to boost cargo transport via waterways.
Although the project duration was later extended to June 2025 without increasing the budget, the Awami League government, just days before stepping down amid a mass uprising led by students and the public, extended both the timeline and cost.
Planning ministry sources said that while the original approved DPP allocated Tk 45.60 crore for the construction of the reinforced cement concrete (RCC) multipurpose jetty, the proposed revised DPP suggested an increase to Tk 134.30 crore for the same.
The revised DPP explained that the increased costs are due to designing the RCC multipurpose jetty to carry containers with a live load capacity of 5 tonnes per square metre, compared to the previous 2 tonnes, in line with international and regional standards. Additionally, soil tests revealed that the ground at the construction site is soft, leading to higher foundation costs.
According to sources, while the original DPP had estimated Tk 14 crore for constructing three godowns, the revised DPP (RDPP) proposed Tk 45.07 crore for building two godowns at a new location. Furthermore, the budget for riverbank and side slope protection raised from Tk 9 crore to Tk 70.75 crore.
Sources also indicate that the project’s godowns were initially planned for the Khanpur area of Narayanganj. However, as per the decisions made in the first and second meetings of the project steering committee (PSC), the godowns and related infrastructure have been relocated to Aricha and Kanchpur, contributing to the increased costs.
The height of the godowns was designed at 12.10 metres according to consultant standards, further driving up the costs. Additionally, the riverbank slope protection design was upgraded to vertical protection with piles, adding to the expenditure.
The Roads and Highways Department was requested to construct a flyover connecting the main road to the container terminal. Steps are expected to be taken and progress reports on this matter are to be included in the DPP.
When the project was approved, ECNEC stipulated that it should be funded through a government loan (GoB loan) instead of a GoB grant, with a possible one per cent service charge. The Finance Division will negotiate loan repayment terms and other conditions and the DPP must be restructured accordingly.
Sources revealed that although the Finance Division approved the revised DPP's funding, no approval was sought for the increased costs.
