RHD moves to use unspent fund for added components

The Roads and Highways Department (RHD) has taken a move to use for added components an amount of money saved from a big project under which three bridges have been constructed.

The saved amount of money will be used for construction of an intersection at Madanpur and also pedestrian and bus bays under the new components proposed to be added to the project.

The RHD has already revised the development project proposal (DPP) to this end.

Sources said the revised DPP (RDPP) proposed reducing the project cost by Tk 14.59 billion which would be spent on the new components in addition to Tk 2.5 billion to be available for the purpose from the contract value of the project.

According to the RDPP, the project cost has been proposed at Tk 70.27 billion, down from Tk 84.86 billion in the original DPP.

Officials said as the government allowed a private economic zone at Madanpur in Narayanganj, the fresh initiative would help provide better facilities in the area in future when the volume of traffic will rise.

They said an amount of Tk 2.5 billion would be available for the new components from the contract value of the project, as a handsome amount of money is likely to be saved from it as well.

"We are actually spending the money from the contract, not from the project's estimated cost," said Project Director Abu Saleh Md Nuruzzaman.

He, however, said total savings from the contract value were yet to be assessed as it is not part of the DPP.

The project-construction of Kanchpur, Meghna and Gumti second bridges and rehabilitation of the existing bridges-has set an example in the history of RHD by saving both time and money, when it has become a culture of overrunning project costs and time schedules.

The JICA-funded project saved around six months despite the loss of an equal number of months following the terror attack on the Holey Artisan Bakery in Dhaka in 2016.

OSJI Joint Venture Company (Japan Obayashi Corporation, Shimizu Corporation, JFE Engineering Corporation and IHI Infrastructure Systems Company Ltd) stopped implementing the project following the terror attack.

They resumed their work after the RHD had ensured foolproof security for the Japanese consultants and officials, spending Tk 1.5 billion.

The company got the work against its bid of Tk 59.66 billion. The contract was signed on January 04, 2016. The project was scheduled to be completed by January 03, 2020.

The bridges were supposed to be built by 2018 and rehabilitation work done by 2019.

The RHD opened the 2nd Kanchpur Bridge to traffic on March 13 and is set to inaugurate the two other bridges by May.

Officials said the rehabilitation work had been carried out simultaneously to meet the target.

Sources said the RHD spent Tk 1.5 billion on developing security walls and other facilities. It also provided foolproof security which was not included in the original DPP.

Additional work proposed in the RDPP would be completed within the defect liability period, they added.