Originally posted in The Daily Star on 11 April 2023
BCIC warehouse project to seek more time, fund
Officials cite difficulties in land acquisition, rising construction costs for delay
A project of the Bangladesh Chemical Industries Corporation (BCIC) to build 34 buffer warehouses has once again failed to meet its deadline and become costlier due to slow implementation.
The Tk 1,983 crore project, which aims to facilitate adequate fertiliser supply across the country, has not seen any significant progress following its previous four-year completion schedule, according to planning ministry documents.
As such, the project will today be placed before the Executive Committee of the National Economic Council for its first revision.
If approved, the project cost will spike by Tk 365 crore to Tk 2,348 crore while its completion deadline will be set for June 2025.
Seeking anonymity, a BCIC official said only 29 per cent of the project implementation work has been completed so far with financial progress of 19 per cent.
Project implementation has been delayed as the proposed land to be used for the warehouses are near railways, rivers and roads while there have been difficulties in obtaining environmental clearance as well.
So, delays in land acquisition and price hikes of construction materials were cited in response to the planning commission’s inquiry for reasons behind the slow implementation.
The project was undertaken to increase the productivity of agriculture and thereby improve food security while keeping prices within peoples’ purchasing power.
Once implemented, the project would facilitate the safe storage of fertilisers at these warehouses, making it possible to meet the needs of farmers during transitional periods.
Although the project is very essential for the country’s food security, it has not seen any significant progress for its inept design, said an official of the planning commission.
Speaking on condition of anonymity, the official said land acquisition is ongoing for at least 10 of the warehouses while two cases have been filed in this regard.
Although land acquisition is a big challenge, there is also a lack of urgency of the implementing agency.
“The country will suffer during a crisis if we fail to implement the project on time as fertilisers could be damaged by bad weather,” the official added.
Contacted, Project Director Amin Sarker said land acquisition is almost in the final stages.
“That was the biggest challenge for us. If this project is implemented, fertiliser will reach marginal farmers quickly,” he added.
Dr Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue, said the progress the project has made so far is disappointing.
“It is not acceptable that long delays in land acquisition are being excused. As per the new land acquisition policy of the government, the work was supposed to be completed sooner,” he added.
Moazzem went on to say that due to the difficulties in land acquisition, it cannot be confirmed that the project will be completed even after the extended deadline.
“In this case, the project may be more expensive. Therefore, the ability of the project implementing agency is in question,” he added.
Moazzem then suggested the government could implement the project in two phases.
The first would be to complete work in areas where land has been acquired while the rest would be done in the second phase, he said.