PM directs project cost adjustment amid rising prices
During the meeting, fifteen projects costing a total of Tk18,010.12 crore were approved.
Prime Minister Sheikh Hasina has asked the authorities concerned to revise the cost of development projects in accordance with the increase in the price of construction materials, including rod and cement.
It reflects the demands of contractors, who have been calling for price adjustments as development projects have been affected by the rising prices of construction materials.
The premier issued the instruction at the meeting of the Executive Commission of the National Economic Council (Ecnec) in Dhaka on Tuesday.
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Planning Minister MA Mannan shared this information with journalists during a press briefing on the outcome of the meeting.
He said that the escalating prices of various construction materials, such as rod, cement, and stones, have become a matter of concern for the implementation of development projects.
"The matter was discussed in the Ecnec meeting for obvious reasons," the planning minister added.
Further elaborating on the matter, he explained that the overall costs, which are initially estimated in project proposals, tend to change during the implementation phase.
"For this reason, the prime minister has ordered the revision of the costs of development projects to keep pace with the overall increase in construction costs," he added.
MA Mannan stated that the sharp appreciation of the dollar has resulted in a cost escalation in development projects.
"In this situation, the prime minister has directed the Finance Division, the Planning Commission, and others concerned to adjust the cost of the development projects in accordance with the increase in the value of the dollar," he continued.
Sheikh Hasina also directed the relevant authorities to take steps to get all tax-related cases disposed of by the High Court and recover the stuck funds.
The premier ordered the authorities to exercise caution when undertaking projects such as the construction of cross dams in coastal areas or islands, ensuring that they do not negatively impact other nearby areas.
The planning minister said that Sheikh Hasina issued this order while approving the construction project of a cross dam on the border of Chattogram and Noakhali.
She directed coordination among relevant agencies to prevent area-based duplication in development projects. She emphasised the need to ensure that there is no overlap between different development projects, as such overlapping leads to a waste of government funds.
The Ecnec meeting approved a total of 15 projects involving Tk18,010 crore.
During the meeting, the pilot project of "My Village My Town" was approved. Under this project, the Local Government Engineering Department will construct infrastructure to provide modern facilities in 15 villages.
The Ecnec meeting also approved a project worth Tk70.58 crore for the Design and Construction Quality Enhancement for Resilience of Private Buildings. The Rajdhani Unnayan Kartripakkha (Rajuk) will be responsible for implementing this project.
In the press briefing, Planning Division Secretary Satyajit Karmaker said that, as part of the project, modern equipment will be procured. This will enable easy determination of the quality of the rod used in the construction of a building.
Notable projects approved by Ecnec include the establishment of Sylhet Medical College and the second phase of the Bangabandhu Sheikh Mujib Film City.
