Training, consultancy costs under scanner

The Finance Ministry has sought Tk 1,862.70 crore for a project titled, “Customs Modernisation and Infrastructure Development Project.” Of the amount, Tk 215.27 crore will be spent for consultancy purposes and Tk 20.84 crore for training officials abroad.

But no feasibility study on the project has been conducted yet, a senior official of the Planning Ministry told The Business Post.

The Finance Ministry’s Internal Resources Division (IRD) has already sent the project proposal to the Planning Commission for approval from the Executive Committee of the National Economic Council.

However, the official said seeking anonymity, the commission’s Project Evaluation Committee (PEC) has raised questions regarding the training aboard and consultancy costs.

The PEC has asked the Finance Ministry to share the rationale behind foreign training and its high costs for this project. It also wants to know whether there is an actual need for this training, said the official.

Apart from these costs, Tk 15.41 crore has been sought for domestic training. PEC has also questioned and asked to be informed about the reason behind this.

PEC also feels that the project’s consultancy cost — Tk 215.27 crore — is excessive. In general, in a project funded by foreign lenders, 10 per cent of the total loan is kept for consultancy purposes. However, the IRD proposal sets aside about 15 per cent for this purpose, the official added.

Of the total cost of the project, Tk 400 crore will come from the government exchequer and Tk 1,461.99 crore from the World Bank. But the PEC has reduced the project cost by Tk 81.83 crore.

Now the total estimated cost is Tk 1,780.86 crore, of which Tk 398.36 crore will come from the state coffer and Tk 1,382.49 crore from the global lender.

Reached for comment, Md Abdur Rauf, the joint chief (Pamstec Wing) at the Planning Commission’s Socio-Economic Infrastructure Division, told The Business Post, “We have raised questions about the costs of foreign training, consultancy and building construction and sought answers.

“We are waiting for their [Finance Ministry] response. No abnormal expenditure will be allowed in any segment of the project.”

The National Board of Revenue is supposed to implement the project in Dhaka, Chattogram and Khulna by June 2027, said the project proposal.

According to the proposal, the project aims to modernise and develop the infrastructure of the customs at the country’s ports to make it more commercially cost-efficient, inclusive, sustainable and resilient.