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The government has finally appointed a Chinese contractor for operation and maintenance (O&M) of the Karnaphuli Tunnel, revising a provision that 35 per cent of the five-year contract value of about Tk 9.84 billion will be paid in foreign currencies.
The Bangladesh Bridge Authority (BBA) signed a contract with China Communication Construction Company Ltd (CCCC) on Wednesday last, sources said.
They said the Cabinet Committee on Government Purchase (CCGP) earlier in August approved the CCCC proposal for such a provision, which was finalised through negotiations with the BBA.
The reason for using foreign currency in the O&M work has not been mentioned in this regard.
The CCCC, however, stated that the foreign currency is required for importing items like health monitoring system, surveillance, inspection tools and equipment, salaries for foreign staff, etc.
The feasibility study conducted in 2013 showed that the operational cost will be about US$ 3.9 million per year, with a replacement cost of $1.9 million every five years.
Considering an inflation rate of 6.4 per cent per year, the study showed that the BBA would likely spend over Tk 400 million per year for operating the country's first underground river tunnel.
The BBA took the Karnaphuli tunnel project at a cost of Tk 84.46 billion after the feasibility study and selected the CCCC for construction of the project. The same company had also conducted the study.
The BBA issued the notification of award to the Chinese company on September 09 after getting the approval from the CCGP. The revised proposal was also approved by the CCGP at the end of November.
Officials said the contract price for the work remained the same at Tk 9.84 billion after fresh negotiation.
However, it is found that though the BBA has cut the budget on all headings in the CCCC proposal during the negotiation, it increased nearly 2.5 times the budget proposed by the Chinese company for the inauguration function of the tunnel.
The CCCC proposes a budget for the provisional item mainly for the inauguration function of the tunnel Tk 138 million which the negotiation committee increased to Tk 350 million.
An official attached with the negotiation said a high budget has been kept as the actual budget for the inaugural function is yet to be known.
The BBA earlier spent quite a handsome amount on a function to celebrate the civil work of one tube of the Karnaphuli tunnel which is named after Bangabandhu Sheikh Mujibur Rahman Tunnel on November 26.
Nearly 3000 guests joined the celebration organised at the Patenga side of the 9.13 km tunnel.
Project officials said that still various electrical, mechanical works, etc. remained pending.