Government projects often exceed estimated costs due to time extensions and unnecessary expenditures. However, an Implementation Monitoring and Evaluation Division (IMED) assessment highlighted the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) gas pipeline project as an exception, with implementation costs Tk 100 crore below estimates. Karnaphuli Gas Distribution Company executed the project from May 2017 to June 2019 at Tk 305.98 crore, against an estimated Tk 406.93 crore. Initially approved at Tk 367.10 crore, the estimate was revised due to additional expenses, including river crossing by Horizontal Directional Drilling. Cost savings were achieved through free land provision by the Bangladesh Economic Zones Authority (Beza) and reduced scope of work for river crossings and cathodic protection systems. The absence of detailed feasibility studies by independent firms also contributed to lower costs. The project established a gas distribution pipeline to Mirsarai industrial area, enabling gas connections for three industrial customers. The IMED report noted that procurement package costs were higher than market rates, necessitating repeated tenders.
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