Tk 261.81 crore could not be spent on power development project
Graphics: Agamir Somoy
Due to various complications, funds cannot be spent on the power distribution system development activities in different areas of Dhaka. As a result, an allocation of Tk 261 crore 81 lakh is being dropped from the project titled “Development of Power Distribution System in Areas Under DPDC.” Finance and Planning Minister Amir Khosru Mahmud Chowdhury has already approved the second revision proposal of the project. However, the matter will be placed before the next meeting of the Executive Committee of the National Economic Council, or ECNEC, for information. Prime Minister and ECNEC Chairman Tarique Rahman will preside over the meeting.
The Planning Commission has taken preparations to place the matter before ECNEC, according to relevant sources.
Planning Secretary S M Shakil Akhter told Agamir Somoy, “The planning minister has the authority to approve minor revision proposals. However, as per the rules, we will inform ECNEC. This is always done.”
In response to a question, he said, “The funds cannot be spent due to complications in the project.”
Sources said the project area under DPDC covers Shyamoli, Sher e Bangla Nagar, Tejgaon Industrial Area, and the area from Rampura Bridge to the Balu River in the northern part of the capital. It also covers the Buriganga River in the south and east, and the area from Gabtoli Bus Terminal to the Turag River and Buriganga River in the west, as well as Narayanganj city.
The total cost of implementing the project was initially estimated at Tk 1,957 crore 34 lakh. Following the first revision, the cost was estimated at Tk 1,954 crore 80 lakh. Later, through a special revision, the cost was increased to Tk 2,232 crore 46 lakh.
Now, through the second revision, the project cost is being reduced by Tk 261 crore 80 lakh, bringing the total estimated cost to Tk 1,970 crore 62 lakh.
Meanwhile, the approved implementation period of the project was from January 2019 to June 2022, or three and a half years. The deadline was later extended several times until June 2026. The project has already been completed, according to reports. However, the second revision proposal of the project was approved after the deadline had expired, on July 1.
According to the Ministry of Power, Energy and Mineral Resources, the objective of the project was to improve the socioeconomic conditions of different zones by developing and rehabilitating the power distribution system throughout the area under DPDC.
The project also aimed to develop the power distribution system, increase capacity, ensure quality and uninterrupted power supply, and provide commercial services in the two districts under DPDC, namely Dhaka and Narayanganj, as well as areas under Dhaka North City Corporation, Dhaka South City Corporation and Narayanganj City Corporation.
In addition, the project was undertaken to ensure the quality of the power distribution system, meet the growing demand for electricity and improve the overall power distribution system. The project is being implemented by Dhaka Power Distribution Company Limited, or DPDC.
DPDC sources said the quantity of materials supplied under the project has decreased. As a result, spending on electrical equipment and CD VAT has also decreased.
In addition, the implementation of the project was hampered by local resistance to the installation of electrical lines, complications in obtaining shutdowns for renovation work, and failure to obtain or delays in obtaining road cutting permits from the Dhaka South City Corporation, Dhaka North City Corporation, Roads and Highways Department, Local Government Engineering Department and other relevant authorities for installing underground lines.
The installation of transformer steel poles was also found to be impractical in narrow lanes. Delays in the supply of materials due to the global instability caused by COVID 19 and the Russia Ukraine war also hindered implementation of the project.
As a result, considering the actual situation, it is not possible to use the scope of some major materials. Therefore, the quantity of materials has been reduced.
According to recommendations made at an earlier meeting of the Project Steering Committee, 2,000 SPC poles, 297 transformer steel poles, 519 kilometers of GUG insulated conductor, 793 kilometers of Marlin conductor, 1,446 kilometers of Wasp conductor, 81 kilometers of 300 square millimeter copper cable and 49 kilometers of 120 square millimeter aerial bundled cable have been reduced.
As the quantity of these materials has been reduced through de scoping, spending on electrical equipment and CD VAT has also decreased.
More reasons why the funds could not be spent
Reduced spending on lines and wires
The materials under the project have been de scoped. Therefore, spending on lines and wires has decreased against those materials.
Reduced spending on related civil works for road cutting
Due to failure to obtain road cutting permits from city corporations, the Roads and Highways Department and other relevant authorities, as well as the reduction in the quantity of underground cables following the de scoping of materials, spending on related civil works for road cutting has decreased.
Reduced spending in various sectors
Due to government restrictions on vehicle purchases at different times, six motorcycles under the project have not yet been purchased. As a result, spending under the motor vehicle purchase sector has decreased.
In addition, since the office of a previously completed project was used as the office of the current project, no expenditure was made on furniture, office equipment, computers and accessories.
As a result, spending has decreased in various sectors, including Tk 1 crore for office building rent, Tk 42 lakh for postal services, Tk 5.40 lakh for telephone services, Tk 6.50 lakh for internet, fax and telex services, Tk 6 lakh for registration fees, Tk 68,000 for water, Tk 65 lakh for petrol, oil and lubricants, and Tk 4 lakh for bank charges.
