DWASA's costly project under scrutiny

Despite the government's ongoing austerity measures, Dhaka WASA (DWASA) has proposed undertaking a sumptuous project, as 329.69 million alone is required to hire consultants to build its training centre, insiders reveal on Saturday.

Funded through loans from local and foreign sources, the DWASA has also included some unnecessary expenditure, including purchase of luxury jeeps and automobiles, foreign tours for its officials, high operational costs for office and expensive research equipment, they said. It has also set aside millions of takas for renting cars and purchasing fuels in addition to their proposal to buy 15 cars and motorbikes.

Analysts argue that construction of a training and research academy taking out foreign loans would place a financial burden on the country's economy. They question why the government will go for taking up such unproductive projects through loans.

The DWASA has recently initiated the Tk 7.89 billion project. Out of the total expenditure, Tk 5.71 billion will be borrowed from Korea, Tk 1.58 billion from government (GoB fund) while the DWASA will provide Tk 600 million from its own exchequer.

Officials involved with the project process disclosed that alongside the huge consultancy cost, the Dhaka water supply authority intends to purchase five jeeps and cars, and 10 motorcycles for its training centre.

In its proposal to build the training and research academy, the authority has also included some unnecessary components. Despite the involvement of local and foreign consultants in setting up the training institute, the DWASA has planned overseas tours for its officials to gather knowledge about building training institute, insiders said.

The DWASA has recently sent the development project proposal (DPP) to the Planning Commission to get the nod. However, the Commission, too, has expressed its reservations about the lavish expenditures. It has raised question about the absence of detailed rates and expenditure for the dormitory, training academy building, number of floors, spaces and research equipment.

According to the DPP, the DWASA proposed Tk 14 million for office operation and Tk 8.5 million for demolishing an existing building on the proposed site for training and research institute.

They also plan to spend thousands of dollars from the project funds on importing equipment, foreign tours and hiring overseas consultants. It has allocated Tk 1.37 billion solely for import duty, value added tax and other taxes.

According to the finance ministry's preliminary approval letter, the DWASA is supposed to fund 40 per cent of the GoB allocation from its own resources, which is not reflected at the DPP, the Planning Commission has detected. The Commission in its review meeting asked the WASA for cutting unnecessary expenditure, including costs related to building design and its floor plans, detailed construction rates and other equipment.

A senior official of the Commission said: "When the government is struggling with a debt burden and a shortage of internal and external resources, this type of luxurious and ambitious projects should not be welcomed." "We're scrutinising the project. If we find it viable and necessary, we will approve it," said another official.

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