Skyhigh Tk256cr/km highway construction cost estimate raises eyebrows
Planning Commission questions the rationale behind the unusually high budget for the Ctg-Cox’s Bazar Highway four-lane project
Tk256 crore per kilometre. This is the cost that the Roads and Highways Department (RHD) has proposed for widening the Chattogram-Cox's Bazar Highway into a four-lane road, which is around three times higher than the allocation for similar ongoing projects.
This amount covers only the construction expenses for upgrading the 23.52km highway, excluding the costs of flyovers, bridges, land acquisition, and contingency work. When factoring in all these components, the cost per kilometre would reach nearly Tk526 crore.
The Tk12,136.54 crore project raised eyebrows at the Planning Commission's meeting last week which questioned the rationale behind the per kilometre cost being so high compared with Tk85.79 crore for Bhanga-Jashore-Benapole, Tk82 crore for Dhaka-Sylhet, and Tk94.31 crore Elenga-Hatikumrul-Rangpur Highway four-lane projects – all under the same department.
Explaining the high cost for the highway upgradation, RHD officials told TBS that Jica, the Japanese government's international cooperating agency, conducted the feasibility study for the project.
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The project proposal was formulated based on the study report and the cost was estimated as per Japan's standards which may have resulted in higher costs, they added.
"A meeting was held at the Planning Commission last week [1 August] to discuss the project's expenses. During the meeting, it was suggested that the project's costs be re-evaluated," said Md Zakir Hossain, additional secretary to the planning subdivision of the Road Transport and Highways Department.
Syed Moinul Hasan, chief engineer of the Roads and Highways Department, said the time has not yet come to provide any definite information about the expenses of the project.
"It is being discussed with the Planning Commission, and once the discussions are concluded, the project's expenses or cost per kilometre will be finalised."
Zakir Hossain said, "The detailed design of the project has not been completed yet. After the completion of the detailed design, the Roads and Highways Department will re-evaluate the project's expenses. Nonetheless, there is no doubt about the significance of the project."
Asked if they had properly scrutinised the proposal before sending it to the Planning Commission, he said, "Since these are technical matters for which we are not experts, we forwarded them to the Planning Commission for evaluation."
As per the RHD proposal, the project cost has been estimated at Tk12,136.54 crore with Japan providing a loan of Tk8,872.36 crore.
The project aims to acquire 80.749 hectares of land and has earmarked Tk1,819 crore for land acquisition and resettlement. Additionally, Tk4,281.97 crore has been proposed to be used for the construction of a flyover and 13 bridges.
The project – taken up to establish sustainable connectivity with the under-construction Matarbari Port in Cox's Bazar – also includes the construction of four-lane outer roads in Patiya, Dohazari, Lohagara, and Chakaria, and a flyover in Keranihat.
RHD officials said the government is building the Matarbari deep-sea port in Maheshkhali of Cox's Bazar to ease the pressure on the Chattogram seaport. Implementation of several other projects of different ministries is also going on.
A connecting road from Matarbari to the national highway N1 (from Dhaka through Chattogram to Cox's Bazar) at Chakaria in Cox's Bazar is currently under implementation.
However, the N1 section between Cox's Bazar and Chattogram is still a two-lane road with curves and major market areas at multiple locations, leading to huge traffic jams. The frequency of accidents in the section is quite high, the officials said.
"Developing the road between Chattogram to Cox's Bazar will take a long time to implement. Considering the opening of the Matarbari port, some immediate intervention will be needed. Improving the major five bottleneck sections will be that intervention, which will ease the multiple areas of traffic congestion," one of the officials stated.
Planning Commission's objections
Planning Commission officials told TBS that some unnecessary components have been included in the proposed project. Additionally, some extra expenditures have been proposed in certain areas.
For example, an expenditure of Tk494.36 crore has been proposed for consultant fees, which is very high for this kind of project.
Comparatively, for the construction of the Bangabandhu Tunnel under the River Karnaphuli – a much more technically complex project – consultant fees have been estimated at Tk300 crore, the officials explained.
Besides, Tk112 crore has been allocated for security services. Some "unnecessary" expenses have also been proposed for building constructions (Tk21 crore) and vehicle purchases (Tk1.35 crore).
A total expenditure of Tk8.75 crore has been proposed for outsourcing hiring. Moreover, Tk2 crore has been proposed for overseas training for the employees.
Another worry – fund delay
According to officials from the Economic Relations Division (ERD), the loan agreement with Jica for the project was signed on 29 March this year. Jica will provide $429 million in the first phase and its disbursal is supposed to start this year.
However, there are concerns that if the project approval process is delayed, it may also result in a delay in the fund release process, they added.
