Why modernisation cost rises by nearly 100cr to Tk 620cr

A project launched to transform the Sufia Kamal National Public Library into a modern, technology-driven national knowledge centre has missed its original deadline, while both its cost and implementation period continue to rise.

Approved in 2021 at an estimated cost of Tk 524.25 crore, the project was originally scheduled for completion in 2024. A revised proposal now seeks to raise the cost to around Tk 620.88 crore and extend the deadline to December 2027.

The proposed increase amounts to roughly Tk 96.63 crore over the original estimate. The prolonged construction has also forced the authorities to operate the library from temporary premises, adding to the government's recurring expenditure.

Tk 2.5 million a month to store books: Since April 2022, the library's operations have been shifted from its old Shahbagh premises to temporary facilities in the Institution of Engineers, Bangladesh (IEB) building in Ramna.

Around 350,000 books have had to be relocated because of the reconstruction. Reports citing Department of Public Libraries officials say the authorities are spending around Tk 2.5 million a month on book storage, office space and related expenses. The expenditure on storage over the past four years has reportedly reached around Tk 11 crore.

The longer construction takes, the longer the government will have to bear these additional costs.Experts in public-sector project management say such temporary rental and relocation costs should be incorporated into project risk assessments from the outset. Otherwise, delays can substantially increase the actual cost of a project beyond its approved construction budget.

Why has the cost risen from Tk 524 crore to Tk 620 crore? Officials have attributed the increase largely to design changes, revised estimates and additional technical requirements.

Design complications have also contributed to delays. A proposed connecting bridge between the two main buildings was initially designed with a height of 60 metres but has subsequently been proposed at 40 metres because of technical and environmental constraints. This raises a fundamental question: How thoroughly were the design, technical feasibility and construction risks assessed before the project was approved?

Development project specialists say design modifications are not unusual in large projects. However, repeated changes that lead to substantial increases in both cost and implementation time warrant a detailed review of the original feasibility assessment and risk management.

The project's procurement plan has also raised questions. According to figures cited in project documents, 20 VIP sofa sets have been budgeted at around Tk 33.75 lakh in total, while individual regular sofa sets have been estimated at around Tk 86,871.

Thirty ‘five-in-one’ computer tables have reportedly been budgeted at Tk 47,543 each. Various chairs, tables, racks and cabinets have also been allocated significant amounts under the project.

A high project estimate, however, does not by itself establish wrongdoing. Product specifications, materials, dimensions, design and supply arrangements can all affect prices.

But procurement experts say significant differences between estimated prices and prevailing market rates should be backed by clear market surveys, technical specifications and documented justification.

Another concern is the timing of equipment procurement. The project's electro-mechanical work remains considerably behind the overall construction progress, while the project includes expensive equipment such as lifts, escalators, air-conditioning systems, generators, solar power facilities and sound systems.

According to project documents, around Tk 3.89 crore has been allocated for six lifts, Tk 1.5 crore for two escalators and approximately Tk 39 crore for a 3,000-ton air-conditioning system.

Project management specialists warn that procurement schedules must be closely coordinated with construction progress. Otherwise, expensive equipment may remain unused in storage, creating risks involving warranty periods, maintenance, damage and depreciation.