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BSMSN Project: An exemplary cost-efficient government initiative

4 0
05.07.2024

Traditionally, government projects in Bangladesh often exceed their estimated costs due to time extensions, unforeseen complications, and unnecessary expenditures. However, the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) project stands out as a rare exception. The project, executed between May 2017 and June 2019, managed to save BDT 1 billion from the revised estimate, a remarkable achievement considering the usual trend.

The Implementation Monitoring and Evaluation Division (IMED) of the Ministry of Planning has highlighted the gas pipeline construction and distribution project at BSMSN as an exemplary case. This project, overseen by the Karnaphuli Gas Distribution Company, was completed at a cost of BDT 3.598 billion, significantly lower than the initial estimate of BDT 4.693 billion.

The initial approved cost for the project was BDT 3.671 billion. A subsequent revision, which included additional costs for “river crossing by Horizontal Directional Drilling,” raised the estimate by approximately BDT 400 million, bringing it to BDT 4.693 billion. Despite this, the actual implementation cost was significantly lower, reflecting efficient management and execution.

Several factors contributed to the cost savings observed in the BSMSN project. One of the primary reasons was the provision of........

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