TDS Desk:

The execution period of 43.33 per cent of the procurement tenders under five major Bangladesh Railway projects has been extended by 211-1,598 days due to the failure to complete work within the time frame.

A post-procurement review by the Bangladesh Public Procurement Authority (BPPA) found that no contractor faced liquidated damages despite receiving up to 12 extensions in some cases.

Analysing 30 tenders worth Tk 90.22 billion, the BPPA under the Implementation Monitoring and Evaluation Division (IMED) of the planning ministry found widespread violations of the Public Procurement Rules (PPR).

Tender evaluations in 19 contracts exceeded the legally permitted time frames, while essential documents – such as proof of advertisement publication, formation orders for cost estimation committees, and procedural checklists – were often missing, the BPPA report revealed.

Bangladesh Railway also failed to update its annual procurement plan quarterly and did not carry out the mandatory internal post-procurement reviews, it added.

The report, prepared with a third-party consultant, has been submitted to the Ministry of Railways, Bangladesh Railway, and other relevant government agencies with recommendations to enforce strict time frames and impose liquidated damages for unjustified delays, while curbing repeated and undocumented deadline extensions.

The review also called for regularly updating the annual procurement plan, full adoption of electronic government procurement (e-GP) across contracts, and stronger oversight through proper documentation and mandatory internal post-procurement reviews.

It also urged to widen tender participation, simplify pre-qualification criteria, and limit the misuse of direct procurement and requests for quotation (RFQs).

“It is expected that Bangladesh Railway will act on these recommendations to address deficiencies, ensure greater compliance with the PPR, and ultimately achieve transparency, efficiency, and value for money in the use of public funds,” the report said.

Transparency International Bangladesh Executive Director Dr Iftekharuzzaman said he was not surprised by the BPPA findings.

Certain officials overseeing project formulation and implementation, and contractors had extended deadlines and inflated project costs, siphoning public funds.

As a result, the per-kilometre cost of infrastructure in Bangladesh surged several times higher than in neighbouring South Asian countries and, in some cases, double that in Europe, he said.

“The extra burden falls on taxpayers and project users,” he said, adding that violators must be held accountable for flouting rules and misusing public money.

The report said under the WD-1 package of the third and fourth dual-gauge lines on the Dhaka-Tongi route and the dual-gauge double line on the Dhaka-Joydebpur route, three firms submitted tenders for constructing railway tracks, embankments, bridges, culverts, station buildings, platforms, sheds, and level crossings, but only two were deemed responsive.

The contract – awarded to Indian firm AFCONS-KPTL JV at Tk 13.94 billion, 3.29 per cent above the official estimate – was signed in late 2017 with a 36-month deadline of June 2021.

However, the contractor has completed just 58 per cent of the work to date.

Despite four extensions totalling 1,598 days, no liquidated damages have been imposed on the contractor.

Railway officials now acknowledge that even the revised deadline of next June is unlikely to be met, highlighting persistent delays and weak enforcement of contractual obligations in one of the country’s largest ongoing railway projects.

The SD-1 package of the same project has seen its deadline extended by 1,386 days. Originally approved in 2012, the project envisaged adding two new tracks alongside the existing Dhaka-Tongi line and one alongside the Tongi-Joydebpur route, with completion scheduled for June 2015.

However, due to multiple complications and delays, the deadline has now been pushed to June 2027. The extended deadline has also driven up costs sharply, from the initial estimate of Tk 8.49 billion to nearly Tk 33.43 billion – a fourfold increase.

The deadline for the first lot of the WD-1 package of the Dohazari-Cox’s Bazar single-line dual-gauge railway project, a Tk 26.88 billion contract covering construction from Dohazari to Chakaria via Ramu, has been extended 12 times.

Signed in 2017 with a 2021 completion target, the works – handled by CT Joint Venture comprising China Railway Group Limited (CREC) and Toma Construction & Co Ltd – have so far achieved only 90 per cent progress, though December 2024 was set as the last deadline with an extension of 1,284 days.

The second lot of the same package has seen its deadline extended by 1,314 days through nine separate revisions.

The project, approved by the Executive Committee of the National Economic Council (ECNEC) in July 2010 with an initial estimate of Tk 18.52 billion and a December 2013 deadline, has seen its tenure extended to December this year.

The project’s revised cost at one stage soared to Tk 180.34 billion – nearly 10 times the original estimate.

Following the deduction of certain components, the cost has now stood at Tk 113.36 billion.