The Dhaka-Chittagong four-lane upgrade project cost is expected to increase by Tk 1,335 crore (Tk 13.35 billion), a 62 per cent rise compared to the original estimate.
The estimated cost for the four-lane was Tk 2,165 crore, which is going to be bumped up to Tk 3,500 crore.
Despite the cost increase, the construction of the four-lane project is not expected to finish by the project deadline.
The project deadline, which has been extended twice, is scheduled to end in December this year, but only 70 per cent of the construction was completed by June, 2015.
According to the project assessment report, of the 192-kilometre highway, only 142 kilometres have been asphalted to date.
Fifty kilometres of the pavement remain incomplete. Of the fifty kilometres, twenty kilometres are yet to be asphalted, and 30 kilometres remain at a very primary stage.
The incomplete parts of the pavement are in Comilla and Feni districts.
Under the four-lane project plan, authorities also appointed contractors in February 2012 to build seven bridges and three flyovers along the highway. The bridges and flyovers were scheduled to be completed in two consecutive years. But only 79 per cent was completed by this June.
According to the roads and highways department, the project authorities have prepared an amended proposal including the additional cost. The proposal will be sent to the road transportation and bridge division very soon.
In accordance with Public Procurement Rules (PPR), only 50 per cent of the contract can be paid out in advance once contractors have been appointed.
Roads and fighways department sources said most of the additional expenditure is for contractors’ duty. With the increase in price of construction materials, contractor duties shoot up, the sources added.
So contractor duties have been increased with extension of the project timeline.
The original highway pavement has already cracked due to prolonged construction work and lack of maintenance on the Dhaka-Chittagong four-lane highway.
The roads and highways authorities maintain the existing roads with the help of contractors appointed for the four-lane project. As per agreement, the existing highway would be kept running, with the construction of the four-lane highway.
But the Chinese company, Sinohydro, have refused to meet this agreement clause. Later, the entire maintenance contract was handed over to two Bangladeshi companies - Reza Construction, and Taher Brothers Limited.
Asked about the deadline extension, project director Ibne Alam Hasan said they are trying to finish the construction by December.
He said price increases in construction materials and additional work have increased the total cost. He did not comment on the extension of the project deadline.
Asked about the violation of the PPR, the project director said increased expenditure due to an increase in prices of raw materials is not exactly a budget cost overrun. It is not a violation of the PPR, he claimed.