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The planning ministry says growth initiatives price about Tk2.37 lakh crore are ongoing within the nation
Infographic: TBS
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Infographic: TBS
The Roads and Highways Division had floated tenders for 3 initiatives seven months in the past, however no contractor had bid for these.
The division has not issued any new tender since then, stated an official on situation of anonymity.
Contractors have stated they determined not to participate in public tenders because the three-year-old value schedule of the federal government doesn’t cowl the current hikes in building materials prices.
Costs of building gadgets had been on the rise for the reason that outbreak of Covid-19 pandemic and the Russia-Ukraine battle is inflicting additional hikes, creating compelling causes for contractors to ask for updating the federal government’s charges of building supplies.
Pradeep Kumar, organising secretary of the Contractors Affiliation of Roads and Highways Division, stated, “We did not get a brand new fee schedule regardless of a number of rounds of discuss with the authorities. So we’ve determined to not take part in any new tender since December final yr.”
AKM Monir Hossain Pathan, chief engineer of the Roads and Highways Division, stated, “Now we have talked to the ministry a number of occasions concerning the fee schedule. The federal government will decide quickly.”
“No round for brand new tender is being issued for any mission at current. We’re discussing with contractors on the way to hold the continuing initiatives working. We are attempting our greatest to assist them. Nevertheless, some tenders have been issued for some small initiatives at district and divisional stage,” he added.
The scenario is sort of the identical for different departments of the federal government that implement a majority of growth works all around the nation. The variety of new tenders issued by totally different departments and businesses of the federal government has decreased within the final seven months or extra, folks involved stated.
Slowing of presidency initiatives means lack of work for building employees throughout this tough time of hovering costs. At the very least 15 lakh labourers in highway and bridge constructions are left with out work, contractors’ affiliation leaders estimated.
Economist Dr Khondaker Golam Moazzem stated if growth initiatives hold getting interrupted, 35 lakh building employees and one other 20 lakh labourers who depend upon the initiatives can be in hassle.
Referring to Covid-caused earnings minimize of the employees and rising commodity costs, he stated, “If the mission websites shut down, they finally will turn into jobless.”
He steered the federal government determine methods to proceed the infrastructural initiatives in addition to enhance the residing normal of the employees.
Mezbaur Rahman Ratan, normal secretary of the Bangladesh Contractors Affiliation, instructed The Enterprise Normal, “The costs of building supplies have shot up however the authorities has not elevated the expenditure of ongoing initiatives. Consequently, the contractors are in a troublesome scenario.”
Mainuddin Monem, managing director of Abdul Monem Restricted, one of many largest industrial conglomerates in Bangladesh, stated, “Building work is being hampered as a result of rising uncooked materials costs. The federal government ought to coordinate the costs by taking instant motion.”
Officers of the contractors’ affiliation stated at present the contractors usually are not enthusiastic about collaborating in any new tender as they’re fighting ongoing initiatives.
In keeping with the Roads and Highways Division, 232 native and overseas contractors are at present engaged on totally different highway building initiatives price Tk22,829 crore below the division.
The division is at present implementing a mission titled Growing Elenga-Hatikamrul-Rangpur Street to a 4-lane freeway authorised by the Govt Committee of the Nationwide Financial Council (Ecnec) at a price of Tk16,000 crore. The mission is meant to be accomplished in 2024. Presently, building work price Tk6,000 crore is ongoing within the mission.
Waliur Rahman, mission director of the Street mission, stated, “It’s nonetheless unsure whether or not the uncooked materials value hike would hamper the mission work. Nevertheless, if the battle between Russia and Ukraine extends, it could have an effect on the mission.”
He stated, “Each mission has an allocation for value contingency contemplating the rise within the value of uncooked supplies. In some initiatives, the federal government additionally allocates more money primarily based on the value index of the Bangladesh Bureau of Statistics. Nevertheless, if the additional quantity is larger than the DPP [Development Project Proposal] allocation, the implementation of the mission can be in hassle.”
Affect of Russia-Ukraine battle
On the finish of final yr, the value of gentle metal rod was Tk80,000 per tonne, which has elevated to Tk87,000 per tonne after the Russia-Ukraine battle began on 24 February.
In keeping with rod producers, the value of the development materials elevated within the native market as a result of ongoing battle as many of the uncooked supplies used to come back from Ukraine.
The costs of cement have risen 18% prior to now two weeks. Presently, a bag of cement is being offered available in the market at Tk 420-485 which was Tk 385-415 on the finish of final yr.
The costs of imported stone have elevated to Tk4,000 per tonne from Tk3,000, bitumen Tk9,800 per drum from Tk6,500, brick Tk10,000 per 1,000-piece from Tk6,000-7,000.
Manwar Hossain, president of the Bangladesh Auto Re-Rolling and Metal Mills Affiliation, stated, “The price of importing scrap, the principle uncooked materials for rod, was earlier $435 per tonne that has risen to $500 per tonne after the beginning of the Russia-Ukraine battle.
The scenario has made it troublesome and expensive to carry these uncooked supplies by sea.”
Variety of new tenders dropped
Building initiatives price Tk19,000 crore are at present working below the Public Works Division which were carried out by 1,000 members of the Bangladesh Public Works Contractors Affiliation.
Babul Akhtar Babla, normal secretary of the organisation, stated that they aren’t collaborating in any new tender just like the contractors of different sectors.
“Over the previous two weeks, costs of assorted building supplies have shot up by greater than 20%, which has pressured some 60 initiatives to be halted,” he stated.
Mohammad Shahid Ullah, secretary of the Public Works Division, stated, “It’s not that issuing new tenders is totally stopped.
The outdated initiatives are working as there is no such thing as a new fee schedule. Notification for brand new initiatives can be given very quickly.”
Some 143 initiatives price Tk30,000 crore are underway below the Native Authorities Engineering Division (LGED) together with 70 building initiatives.
Sheikh Kauser Ahmed, joint secretary of LGED’s Dhaka Metropolitan Contractors Affiliation, stated, “The costs of uncooked supplies have gone up. The wage of employees has additionally elevated by 30%-40%. Contractors are in excessive misery.”
Md Abdur Rashid Khan, chief engineer, LGED, stated, “Issuing new tenders has not been stopped as a result of enhance in market value of building supplies. Nevertheless, contractors haven’t participated in some tenders.”
In keeping with the Ministry of Planning, growth initiatives price about Tk2.37 lakh crore are underway within the nation, of which 80% is building associated initiatives price Tk1.90 lakh crore.
In keeping with folks involved, the departments and businesses implementing the initiatives are additionally going through the impression of the worldwide scenario as only a few new tenders have been issued by them.
Nevertheless, no progress has been achieved to formulate a brand new fee schedule thus far to handle the problem.
Pradip Ranjan Chakraborty, secretary of the Planning Division, instructed The Enterprise Normal, “The federal government is working to organize a unified fee schedule for all ministries and departments. As soon as prepared, it should cease totally different firms charging totally different costs for a similar sort of labor.”
“The brand new fee schedule can be formulated contemplating rising costs of commodities and uncooked supplies. Nevertheless, no remaining resolution has been made but,” he added.
Folks involved stated that the speed schedule is meant to be up to date yearly however the authorities has not made any adjustments since its formulation in 2019.
Economist Ahsan H Mansur stated, “The federal government doesn’t appear to have any correct regulatory authority in monitoring the development materials market. Even when it exists, it isn’t useful. For this, monitoring must be intensified.”
“The Indian authorities has taken robust motion on this regard and engaged itself in importing uncooked supplies. It has been subsiding for a sure time period. However Bangladesh couldn’t do this,” he added.
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