Dhaka WASA network project cost rises by Tk 61.70 crore

The Cabinet Committee on Government Purchase on Wednesday approved a proposal to increase the cost of a construction package under Dhaka WASA’s water supply network improvement project by Tk 61.70 crore.

The committee approved the proposal at a meeting held at the Secretariat, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.

The Local Government Division placed the variation proposal for the package titled “Rehabilitation of Distribution Network for NRW Reduction, including Procurement of Plant and Construction of DTW Pump Station with O&M Support” under the Dhaka Water Supply Network Improvement Project. Dhaka WASA is implementing the project.

Following approval by the Cabinet Committee on Government Purchase on November 8, 2018, a contract worth Tk 220.50 crore was signed with Chinese company China First Metallurgical Group Company Ltd.

The additional cost became necessary after the scope of work increased during implementation. With a variation of Tk 61.70 crore, the revised contract value has been fixed at Tk 282.19 crore.

The revised contract value is around 27.98 per cent higher than the original contract price.

Project officials said rapid urbanisation in the work areas had led to an expansion of the project’s scope. As a result, the length of the pipeline was increased by 20 kilometres, while the number of service connections and fittings of various sizes rose by 13,971.

The costs also increased due to higher road-cutting charges, income tax and advance income tax, price adjustment, and road carpeting in Border Guard Bangladesh areas.

The revised project proposal was approved by the Executive Committee of the National Economic Council on November 9, 2023.

The project period has been set from April 1, 2016, to December 31, 2026. It is being financed by government funds and a loan from the Asian Development Bank.

NRW stands for non-revenue water, while DTW means deep tubewell pump.

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