Single point mooring project’s cost goes up for 2nd time

The government today revised the budget for the Single Point Mooring (SPM) with Double Line project for the second time, increasing it by 21 percent.

The cost of the project overran by 33 per cent from the original budget thanks to delays in securing loans, the appreciation of the dollar against the taka and a threefold rise in the price of land.

The original cost of the project was Tk 4,935.96 crore. In the first revision, it was raised to Tk 5,426.25 crore. The second revision took it to Tk 6,568.26 crore.

The new deadline is now June 30, 2022, which was set at December 2019 after the first revision of the tenure.

The SPM will have an annual unloading capacity of 9 million tonnes. It will be able to unload 120,000 tonnes of crude oil in 48 hours and 70,000 tonnes of diesel in 28 hours.

The main objectives of the project are to ensure the unloading of imported crude oil and finished products with ease, safely, at a low cost and within a short time, reducing system losses in the import of crude and finished products through lighterage operations, according to project documents.

It will also maintain a balance between the growing demand of energy and its supply, and enhance the petroleum oil retention capacity through the setting up of a diesel and crude oil storage tank farm at Moheshkhali and increasing energy supply security.

The project will establish an SPM and Pipe Line End Manifold, set up 220 km pipelines, a tank farm and a pumping station at Moheshkhali, a supervisory control and data acquisition system, as well as carry out land acquisition and offer compensation, expertise services, and put in place fire-fighting systems and related facilities.

The progress of the project was not satisfactory in the last four years. So, its implementing entity proposed for a revision of the project.

Eastern Refinery Ltd (ERL) is the implementing agency of the project on behalf of Bangladesh Petroleum Corporation (BPC) with financing from the Exim Bank of China.

The project was originally undertaken in 2012. After a prolonged official process, the government awarded the contract to Chinese company China Petroleum Pipeline Bureau (CPP).

The BPC signed a contract with the CPP on December 7, 2016. The original project was approved by the Executive Committee of the National Economic Council (Ecnec) for implementation between November 2015 and December 2017.

The second revision of the project was approved at a virtual meeting of the Ecnec yesterday. Prime Minister Sheikh Hasina chaired the event through video conferencing from Gono Bhaban.

Briefing reporters virtually after the meeting, Planning Minister MA Mannan said the meeting approved nine projects, including new and revised ones, involving Tk 2,744.44 crore.

Of the total, the government will provide Tk 1,353.70 crore, Tk 950 crore will come from project aid and the rest will come from the implementing agency.

The meeting also okayed the second revision of the construction of the 1,490-metre PC Girder Bridge on Panchpir Bazar-Chilmari Upazila headquarter road at Sundarganj upazila under Gaibandha district.

The cost of the project has been increased to Tk 885.70 crore from original cost of Tk 630 crore. The premier expressed her resentment over the delay in implementation, meeting sources said.

According to the new schedule, the project will be completed by June 30, 2023. It was taken in 2013.

The other approved projects include Ghorashal Third Unit Repowering Project (second revised), rehabilitation of three projects at Dhamoirhat, Patnitala, and Mohadevpur upazila of Naogaon district and protection of bank, including dredging of the Atrai river.