A month extension in project duration raises cost by 0.95 percentage points
A one-month extension in duration leads to a 0.95 percentage-point increase in costs during the implementation of development projects, according to a study of the Bangladesh Institute of Development Studies (BIDS).
The research think-tank studied 361 projects, which were implemented by the Roads & Highway Department from 2012-13 to 2021-22 and audited by the Implementation Monitoring Evaluation Division (IMED).
The study found that the projects saw a 26 per cent increase in cost on average, while 96 per cent of projects saw time overrun, said Jayed Bin Sattar, a research associate of the BIDS, while making a presentation on the study at the BIDS Research Almanac 2023 at the Lakeshore Hotel in Dhaka today.
"Development projects in Bangladesh have a tendency to go through multiple phases of revisions resulting in time escalation and cost escalation," he said.
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