Padma bridge project cost increased further by Tk 1,117 crore

The cost of Padma bridge project has been increased further by Tk 1,117.97 crore.

The Cabinet Committee on Government Purchase in a meeting approved a proposal of the bridges division in this regard on Thursday. Finance minister AHM Mustafa Kamal presided over the meeting held virtually.

“With the increase, the construction cost of the main bridge will go up to Tk 13,658.99 crore which will be paid to the Chinese contractor, China Railway Major Bridge Engineering Ltd,” said Mahmudul Hossain, additional secretary of the Cabinet Division, while briefing reporter about the outcome of the meeting.

According to the sources, the total cost of the Padma Multipurpose Bridge project was set at Tk 30,193 crore is scheduled to be completed in June 2023. But recently, the Executive Committee of the National Economic Council (ECNEC) has approved the escalated cost which will go up to Tk 32,605 crore and extend the timeframe of the project till June 2024.

The bridge was officially inaugurated by Prime Minister Sheikh Hasina on 25 June 2022 and opened for traffic movement from the next day. The government recently increased the value added tax on the payment of contractors from 10.5 per cent to 15 per cent.

Bangladesh Bridges Authority under the Road Transport and Bridges ministry implemented the project for construction of the 6.15-kilometre road-rail bridge between Mawa point in Munshiganj and Janjira point in Shariatpur, setting up direct communication between the capital, Dhaka and 21 south-western districts.

As per the original plan, the estimated cost for the project was 10,161.75 crore with 30 June 2015, as the date of completion.

Following the first revision, the project cost increased to Tk 20,507 crore and the deadline was extended till 31 December 2015, and after the second revision, the project cost increased to Tk 28,793 crore and the deadline was extended till 31 December 2018.

With special approval for land acquisition, the project cost increased to Tk 30,193 crore.

The project deadline was first extended until 31 December 2019, then again until 31 December 2021, and finally until 30 June 2023, all without increasing the project cost.

Prime minister Sheikh Hasina laid the foundation stone of the project in July 2001.