Delay and cost escalation of projects have turned chronic
Do the project directors ever have an acceptable explanation?
Despite the prime minister's concern regarding delay in the implementation of important projects in the country, and her suggestion for timely execution, it has almost become a certainty that no project in Bangladesh will be completed within the given time. On top of that, the project cost will have gone higher than the one estimated initially. Relevant documents show that the cost of five such projects escalated to Tk 6,550 crore from Tk 3,105 crore, and the Planning Commission approved the escalated cost and also the extension of the deadline in a recent meeting.
If we look at the history of only one project, we will be able to grasp the gravity of the situation. The excavation of a canal from Bahaddarhat Baripara to Karnaphuli River, supposed to ease the sufferings of Chattogram city residents from waterlogging, was taken up eight years back at the cost of Tk 327 crore. The Chattogram City Corporation (CCC), the implementing authority, had stated that the project would end by 2017. But, as the corporation failed to implement it in time, the deadline was extended till June 2021, and the cost was raised to Tk 1,256 crore.
However, once again, the implementing authority could not finish the work within the stipulated time and applied for another extension, this time till June 2024, raising the cost to Tk 1,363 crore. Reportedly, the Executive Committee of the National Economic Council (Ecnec) approved both the raised cost and the deadline extension. The CCC has completed bigger projects than this in the past, so it is mystifying why an experienced body with a large team of qualified engineers needed to extend the deadline of this project again and again. And more confounding is the rise of the project cost from Tk 327 crore to a whopping Tk 1,363 crore in only eight years.
Since the planning minister has identified human failures and individual corruption regarding project delays, one would be curious to know what action he has taken to put those individuals on trial. He has cited price hike of construction materials in domestic and global markets as one of the reasons behind the rise in the project cost, but it needs to be said that had the project been completed within the deadline of 2017, cost escalation would not be an issue at all. The CCC should be asked to explain on what basis they had submitted the first proposal, and why they could not deliver in time.
We believe if such practice of cost escalation is encouraged and deadlines extended without valid reasons, we will continue to see similar cases in the future, giving leeway to rampant corruption and mismanagement of public funds.