The cost of fast-track Matarbari power project is going to increase by about Tk 15,870 crore according to planning commission sources. It will increase in seven sectors. Eight years have passed since the project was first approved.
Its physical implementation progress is 44.50 percent and financial progress reported at 47.76 percent. The sectors to see cost increase are: channel digging, jetty building, land development and civil activities of power plants.
Cost for power plant construction, consultancy, VAT-IT and import duty, rehabilitation and compensation, rural electrification and township development are also on the rise. The first revised project proposal may be presented at the meeting of the Executive Committee of the National Economic Council (ECNEC) on Tuesday (today).
The sources said, the main approved cost of the Matarbari power project is Tk 35,984 crore. Of this, Tk 4,926.65 crore is government funded and the remaining Tk 26,939 crore is to come as loans of Japan International Cooperation Agency (JICA). This is in addition to Tk 2,118.76 crore to be provided by the implementing agency.
Now under the first revised project the total cost of the project has been proposed to increase by Tk 15,87.41 crore to a total of Tk 51,754.06 crore. This is 44.10 percent more than the original cost. The power department has cited 6 reasons for the increase in the project cost.
Moreover the implementation period has been proposed to run up to December 2026 which was originally scheduled from July 2014 to June 2023. Coal Power Generation Company Bangladesh Limited is implementing it.
Now the proposed expenditure has increased by Tk 1,401.27 crore and stands at Tk 18,373.60 crore. The cost of security is rising due to the militant attack on the Holy Artisan Bakery in Gulshan.
The cost of consulting services is increasing. Additional expenditure in this sector is increasing by Tk 328.61 crore. VAT-IT, import duty in the sector has increased from Tk 3,020 crore to Tk 2,166 crore and now stands at Tk 5,186 crore.
Tk 100 crore was allocated for rehabilitation and compensation activities. Now it is increasing to Tk 316.57 crore. The allocation for rural electrification and township development was Tk 71.25 crore. It will now increaseby Tk 36 crore 44 lakh. Security arrangement will take additional cost in the light of the Holy Artisan attack in Gulshan in 2016.
Sharifa Khan, member of the Planning Commission's said it has recommended to approving te revised project proposal to ensure the continuity of implementation of the project. In implementing this, Japan is paying a loan at very low interest rate. Since they have agreed to increase the term and costs, there is no problem in revised project proposal.
