Dredger procurement project: BIWTA cuts components after tenure ends

After the end of the project's tenure, the Bangladesh Inland Water Transport Authority (BIWTA) has decided to cut the procurement of some dredgers, a key component of the scheme, as execution drags on for seven years, insiders said on Saturday.

Since the project expired in June last, the state-run water-transport authority has managed a special extension for two more years and has now sought a second revision, scrapping the scope of some key works, they said.

According to officials, the BIWTA sought the revision of the project titled "Procurement of 35 Dredgers and Auxiliary Watercraft with Related Equipment and Necessary Infrastructure".

It wants to procure only 12 dredgers instead of 35.

The project's main purpose was to make an 8,000-km riverine route of 100 rivers across the country navigable for water transport, which would be affected because of the revision of components after seven years, analysts said.

For the Tk 44.89 billion project undertaken in 2018, the BIWTA has already got one revision and deadline extensions on two occasions.

Upon the request from the shipping ministry on behalf of BIWTA, the Planning Commission firstly gave a special extension for two years up to June 2025 from the original deadline of June 2023.

Then it managed the first revision, slightly increasing the cost to Tk 45.15 billion.

Under the first revision, the BIWTA pledged to complete the project by June 2025, with the procurement of all 35 dredgers and the related other works, said a senior Planning Commission official.

"But the BIWTA failed again to finish it. We are forced to allow another extension on special consideration to complete the project and all its works by June 2027," he said, requesting anonymity.

Interestingly, the BIWTA has not succeeded for the third time and is now seeking a second revision by reducing the scope of works, which were the main purpose of the project aimed at making the public investment economically viable, he also said.

The Planning Commission expressed reservations about the reduction in the main components of the project and their necessary works at the Project Evaluation Committee (PEC) meeting last week, he added.

It asked the BIWTA to form a committee to review the revised Development Project Proposal (DPP) and recast it, keeping the main purpose intact, said the official.

Another Planning Commission official said although the scope of works has been reduced significantly in the proposed second revision, consultancy costs are still in line with the DPP.

The BIWTA has kept aside four types of consultants in the revised DPP like the original ones, with the cost estimated at Tk 502.198 million.

Interestingly, it has included a fresh Tk 600 million cost to purchase fuel and lubricants in the proposed second revision.

If the key works of the project are cut, the main purpose of the development would be affected and the investment of the public fund would be wasted, said a senior Planning Commission official.

Despite the significant reduction in the scope of works, the ministry recently sent a proposal to the commission, lowering the overall cost by only Tk 13.19 billion, or 29.2 per cent, setting the revised outlay at Tk 31.91 billion.

The cost decline remains modest due to price escalation in key equipment and the addition of several new components, reveals the second revision proposal, BIWTA officials said.

The PEC meeting last week also sought justifications for the inclusion of several new components at the final stage, including fire-fighting speedboats, vessel repair and maintenance, fuel and lubricants, and high-speed or coastal cabin cruisers.

According to the BIWTA, the project achieved only 41.77 per cent physical progress and 29.7 per cent financial progress till April 2025 in seven years.

Its officials said the existing 45 dredgers and 298 support vessels are already difficult to operate due to acute manpower shortages.

"Expanding the fleet without ensuring skilled operators and maintenance funds would only lead to idle assets," a BIWTA official told The Financial Express.

He added that the shipping authority faces shortages in repair and maintenance allocations, fuel supply, and vessel registration approvals, which have collectively slowed implementation.

Under the revised plan, the number of dredgers will be reduced to 12 - two 28-inch cutter suction dredgers, eight 24-inch dredgers, one 1,000-cubic-metre trailing suction hopper dredger, and one 15-cubic-metre grab dredger - instead of the originally planned 35.

Out of the 161 support vessels earlier proposed, 133 will be retained.

The cost of the main dredging machinery, however, will rise by around Tk 962 million, or 5.94 per cent, owing to higher foreign exchange rates and updated technical specifications.

Documents show that several components, such as amphibian-type dredgers, oil-cleaning vessels, and river-cleaning workboats, have been dropped, while new items - including MS pipes and floaters, firefighting speedboats, spare parts, vessel repair facilities, and high-speed coastal cabin cruisers - have been added.

According to the project documents, the BIWTA's proposal to expand its dredging fleet was found inconsistent with its human resource and financial capacity.

The agency sought approval for 1,901 new posts but received clearance for only 677, limiting its ability to operate new vessels effectively.

The proposal also noted that global supply chain disruptions, inflation, and foreign exchange volatility had increased the cost of imported machinery and delayed deliveries.

The PEC also questioned the inclusion of new components at the late stage and asked the ministry to justify the necessity and cost of items, such as MS pipes, spare parts, and high-speed boats.