Single point mooring: Project cost goes up for 3rd time

The original cost of the project was Tk 4,935.97 crore, but the third revision yesterday took the cost to Tk 7,124.62 crore

The government yesterday revised the budget for the Installation of Single Point Mooring (SPM) with the Double Line Project for the third time, increasing it by more than 8.5 per cent.

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The cost of the project increased by 44 per cent from the original budget due to delays in securing loans, additional work for shifting the already installed underwater pipeline to a deeper position than what it was in the original design, increase of foreign currency rate, and other reasons. 

The original cost of the project was Tk 4,935.97 crore while in the first revision, it was raised to Tk 5,426.27 crore. In the second revision, the cost increased to Tk 6,568.27 crore.

The third revision yesterday took the cost to Tk 7,124.62 crore. 

The third revision of the project was approved at a meeting of the Ecnec yesterday. Prime Minister Sheikh Hasina chaired the meeting through video conferencing from Gono Bhaban.

The new deadline is now set at June 30, 2023, which was earlier set at June 30, 2022 after the second revision of the tenure.

The SPM will be able to unload 120,000 tonnes of crude oil from tankers in 48 hours and 70,000 tonnes of diesel in 28 hours.

The project aims to ensure the unloading of imported crude oil and finished products with ease, safely, at a low cost and within a short time, reducing system losses and cost experienced in the existing lighterage operation of the imported crude oil and finished products, according to project documents.

Under the project, three oil depots for crude oil and three storage tank farms for diesel will be set up at Moheshkhali to ensure energy security of the country by enhancing its capacity to stock and store petroleum oil.

The project will establish a SPM and Pipeline End Manifold, set up a total of 220 kilometres of offshore and onshore pipelines, tanks and farms at Moheshkhali as well as carry out land acquisition and offer compensation.

The project was originally undertaken in 2012 while the original deadline was December 2018. But so far, only 57.99 per cent of the estimated budget has been spent till October last year.

Eastern Refinery Ltd (ERL) is the implementing agency of the project on behalf of Bangladesh Petroleum Corporation (BPC) with financing from Exim Bank of China.

In a press briefing after the meeting, Planning Commission Member AKM Fazlul Hoque said although the project started in 2015, it got delayed initially as it took 18 months to get the loan agreement signed.

Explaining about the cost enhancement, Hoque said at the first pipelines were laid at 1.5 metre depth under the water level.

Later, on request from the Bangladesh Navy and Coal Power Generation Bangladesh Limited, which is constructing a coal-run power plant at the area, the pipelines were shifted and laid 6 to 8 metre deeper positions under the sea.

However, Hoque went on to say the BPC would bear the additional cost and it is not related with the Chinese loan.

The Ecnec meeting also okayed the third revision of the project of establishing 100 technical schools and colleges at 100 upazilas, raising its cost to Tk 2,520.40 crore from the original budget of Tk 924 crore.

The project that started in January 2014 was originally planned to be complete by June 2016 while the new deadline is December 2024.

A total of 11 projects were approved yesterday involving a total of Tk 5,825.74 crore.

Briefing reporters after the meeting, Planning Minister MA Mannan said the prime minister in the meeting gave direction not to go for constructing new roads, rather she emphasised on taking maintenance projects of the existing roads.

"In the meeting, she (the prime minister) said that a lot of roads have been built and our target now should be maintaining these roads. She asked to protect, repair, strengthen, upgrade and widen these roads. That was her main message," he added.