Installation of modern traffic signal system in the capital may be delayed once again apparently due to the incompetence of the officials concerned.

Work on a computerised traffic signal system was supposed to start this month. But sources said that while it could be possible to have electronic signals before the turn of the year, the first installation of the phase by phase task might not begin before September despite the recent announcement of the Dhaka City Corporation (DCC) that it would be able to install equipment by May.

"DCC's announcement is not practical as its officials were not aware of the terms and conditions on payment of taxes and VAT in the tender document," said an official of Dhaka Urban Transport Project (DUTP).

The government took the initiative to install the modern signal system under the DUTP at a cost of Tk 14 crore as the existing signal lights of Dhaka went out of order a few years ago.

However, the project cost has increased by Tk 16.19 million allegedly due to ignorance of a section of DCC officials who thought that the supplier would pay the taxes.

ATS, an Australian firm that was awarded the supply and installation contract, refused to pay the taxes and instead, asked the DCC to finish its work.

It is also threatened to put the equipment on auction unless the DCC had them released from the port.

Later, at a recent DCC meeting, chaired by its Chief Executive Officer Habibur Rahman, it was decided that the corporation would pay the Tk 16.19 million by March this year.

The meeting blamed officials concerned for not clearly spelling out the terms and conditions on payment of taxes and VAT in the tender document. As a result, a huge sum of public money had to be spent. It also demanded punishment to the officials responsible for preparing the faulty tender document.

However, the project director, Abdul Qaiyum,

recently told newspersons that the government did not incur any loss by paying the additional money in tax and VAT.

"The project is being implemented as per rules which have no ambiguity," he claimed. The new high tech signalling system would be set up in the city's 59 traffic points in phases. Initially, Gulshan-1 and 2, Matsya Bhaban and Shahbagh intersections would come under it.

"Traffic movement in the city will be automatically guided from a central control room through the sophisticated signalling module," Qaiyum said.

It was learnt that a group of expert engineers will look after the maintenance of the system for three years and will provide necessary training for the DCC engineers.

When contacted the chief executive officer of DCC was unable to give a specific timeframe for installation.

"We will be able to install the equipment and have them up and running within the period mentioned in the

project that was approved by the World Bank," said Rahman. But when asked to mention the 'period' he said that he needed to check the papers.