Finance Minister AHM Mustafa Kamal has said the construction cost of Bangabandhu Sheikh Mujib Railway Bridge is likely to go up by about Tk3,216 crore.
The minister said the Cabinet Committee on Public Purchase (CCPP) has given conditional approval to award the contract to a Japanese firm, reports UNB.
The committee approved the Japanese firm’s tender proposal with condition that the project with increased cost has to be approved again by the Executive Committee of the National Economic Council (Ecnec), said Finance Minister AHM Mustafa Kamal while briefing reporters about the outcomes of the CCPP at the Cabinet Division on Thursday.
According to official document, Japanese firm OTJ JV, Shinagawa Intercity, Japan quoted a cost of Tk12,950.06 crore for the construction works, divided into two packages, while the project was approved by Ecnec at an estimated cost of Tk9,734.07 crore on December 6, 2016.
The cost quoted by the Japanese contractor is excluding customs duty and value added tax (VAT).
“The project’s project profile, DPP (development project proforma) and revised DPP have to be approved by the ministry concerned and then the increased cost must be approved by the Ecnec,” said Mustafa Kamal.
Three contractors bid for the project in two packages—Eastern part of civil works and western part of civil works. The OTJ JV, Shinagawa Intercity, Japan, came out to be the lowest bidder, the project document revealed.
The tender evaluation committee of the Railway Ministry, after evaluation of bids and negotiation with the bidders, recommended the lowest bidder’s offer for placing to the Cabinet body.