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Overpriced water project gets Ecnec nod

STAFF CORRESPONDENT
The Executive Committee of the National Economic Council (Ecnec) has approved a controversial water management development project without approving any specific budget for it as the Ecnec found the proposed cost 'overestimated'.
The Water Development Board (WDB) has been pushing this project since last year and on Sunday it
tabled a proposal outlining a cost of Tk 1,059 crore.
The Ecnec at a meeting chaired by Prime Minister Khaleda Zia instantly slashed about Tk 180 crore from the proposed amount. But it okayed the project asking the WDB to revise the cost and separately seek approval of Alternative Chairman of Ecnec Finance Minister M Saifur Rahman.
After Sunday's meeting, Saifur told journalists, " Ecnec approved the project despite some flaws, including excessive consultancy fees and vehicles needed for the project, which will be rectified later."
The project aimed at developing irrigation system in the country to raise agricultural output will continue unitl 2011-12.
Last year, The Daily Star carried a report that this project, outlining a cost of Tk 954 crore, unduly focussed on comfort of officials and hiring consultants and out-ofproportion equipment.
The original project sought 62 photocopiers, 510 personal computers, 123 air conditioners, 102 slide projectors, 102 fax machines, 416 motor vehicles while it was designed to employ 508 officials and staff.
After the report, the project underwent revisions and the cost was slashed to Tk 879 crore from the original Tk 954 crore.
But a new component for flood rehabilitation schemes was included in the project, which required a block allocation of Tk 181 crore. Of this, Tk 120 crore will be funded by the World Bank (WB) and the rest by the government.
The Ecnec now slashed allocation for this component to Tk 120 crore with the entire funds to come from the WB. The funds cannot be used as block allocation, the Ecnec decided.
Sunday's meeting also slashed the proposed cost for hiring consultants for the project to Tk 40 crore from Tk 98 crore.
It also rejected proposals seeking Tk 18 crore for construction of a building for the project and Tk 10 crore for a study under it.
The WDB also sought Tk 20 crore for motor vehicles, Tk 32 crore for training and Tk 10 crore for various equipment. Two thirds of these costs have been slashed, meeting sources said.
On the allocation of Tk 60 crore for agriculture assistance service, Ecnec asked the water board to discuss the matter with the Agriculture Ministry and decide how the funds will be utilised.
The WB will provide Tk 618 crore, the Netherlands Tk 125 crore and the government the rest amount for the project.