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Kuwait Procurement News Notice - 10926


Procurement News Notice

PNN 10926
Work Detail Five years after launching a bridge construction project, Roads and Highways Department (RHD) has now proposed an increase in its cost by over 200 per cent. The proposal for the hike in the project cost has been made due to a faulty feasibility study and design of Lebukhali Bridge over the River Payra, sources said. They said the initial cost of the project taken up in 2012 on Barisal-Patuakhali highway to establish a direct link with the southern region was Tk 4.13 billion. RHD has now proposed increasing the cost to Tk 12.78 billion. Sources said the department has taken steps to revise the project cost and extend the deadline for completion of the project as the cost of the lowest bidder was much higher than the projects estimated cost. Public Procurement Rule allows 10 per cent above or below the estimated cost mentioned in the development project proposal (DPP). Besides, they said, RHD plans to acquire more land and deeper foundation as they find its earlier design faulty. Officials said the initial cost of Lebukhali Bridge, also known as Payra Bridge, was assessed by a joint venture Bangladesh-Indian consultancy firm, but it was later found faulty when different works were being carried out. For this reason, they said, the department appointed a new consultant in 2015, floated tender the same year and awarded the work to a Chinese company in April 2016. The company, Longjian Road and Bridge, proposed Tk 10.22 billion for civil work and it was selected as the lowest bidder, they added. It is learnt that joint venture BCL-STUP conducted the first study and design. Later, RHD appointed ICT-Kunhwa-Narco as a design and construction supervision consultant. The department has already given work order to the contractor after getting approval from the cabinet committee last year. RHD has recently submitted the revised DPP to the Ministry of Road Transport and Bridges for sending it to the Planning Commission for approval. The first deadline set for completion of the project expired in 2016. According to the revision, RHD will now acquire 21.95 acres of land worth Tk 155.2 million. It has also proposed a 700-metre river protection work at a cost of Tk 1.8 billion against Tk 260 million earlier. The deadline for completion of the project has been extended to 2021 with the two-year defects liability period. Sources said the cost for foundation work of the bridge has been shown at Tk 4.33 billion in the fresh study which is more than the projects cost mentioned in the first DPP. The cost for consultancy services for design and supervision, NGO services for resettlement plan implementation, hiring charge, security services etc have also been proposed. Project Director Khan Mohammad Kamrul Ahsan, however, said the cost of Lebukhali Bridge project is now realistic, comparing to the cost of 980-metre Karnaphuli Bridge. He said both the bridges have been designed with extra-dosed cable stayed and deep foundation, but the cost of one of the projects was estimated at Tk 5.9 billion while the cost of 1.47-kilometre bridge construction was estimated only at Tk 4.13 billion. Construction of the four-lane 1.47-km bridge known as the project titled construction of Payra Bridge (Lebukhali Bridge) over the River Payra on Barisal-Patuakhali Road has been planned with 600-metre approach road. The bridge will establish transport link between Payra port and Dhaka through Mawa, Bhanga, Barisal, Patuakhali and Kuakata. RHD signed an agreement with Kuwait Fund for Arab Economic Development (KFAED) on March 13, 2012 for funding the project, but signed the second loan agreement on October 29, 2016 due to an increase in the project cost. The KFAED will provide Tk 3.83 billion. Besides, OPEC Fund for International Development has also assured of providing US$ 30 million for the project.
Country Kuwait , Western Asia
Industry Construction
Entry Date 29 Apr 2017
Source http://www.thefinancialexpress-bd.com/2017/04/23/67879/RHD-proposes-over-200pc-rise-in-Lebukhali-bridge-project-cost

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