Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 1047 Sun. May 13, 2007  
   
Front Page


16-Town Power Distribution Project
PDB spends Tk 271cr without approval


Power Development Board (PDB) spent an excess of Tk 271 crore in a power distribution project without approval of the authorities while a severe power crisis persists in the country.

An investigation report by the Planning Ministry's Implementation, Monitoring and Evaluation Department (IMED) cited pressure from lawmakers and high officials in the past for the 'excess spending' on the 16-town power distribution project (second phase).

The amount originally approved for the project was Tk 225 crore but the PDB spent Tk 496 crore on it. Of the Tk 271 crore excess spending, the PDB is yet to pay Tk 169 crore outstanding bills to contractors, the report said.

In May 2005, the PDB placed a revised project at a meeting of the Executive Committee of National Economic Council (Ecnec) seeking approval of the Tk 271 crore additional expenditure.

But the Ecnec did not approve it and formed a committee under the IMED to investigate the unusually high additional costs for the project.

The committee visited seven of the 16 towns and submitted its report at last week's National Economic Council meeting.

Under the project, the PDB was to build 749 km of new power lines but ended up building 2,371 km.

While the PDB was to repair 742 km of old power lines with the approved funds, it repaired 2,911 km, according to the report.

There were other irregularities also in implementing the project.

The inquiry team found that additional Tk 2.8 crore was spent to buy vehicles for the project. Allocation for this was Tk 1.35 crore but the PDB spent 3.43 crore.

"The project authorities did not seek approval for buying additional vehicles for the project," the report said.

At least three jeeps were bought without approval in the name of the project but those were used by the Prime Minister's Office, Power Division and the PDB chairman in gross violation of project guidelines.

The project started in FY98 and FY99 with an allocation of Tk 70 crore for two years.

In FY 2000-2001, the PDB spent Tk 55 crore instead of allocated Tk 30 crore and in FY 2001-2002, it spent Tk 103 crore while allocation was Tk 60 crore. It spent Tk 83 crore in FY 2002-2003 while only Tk 27 crore was allocated, and Tk 147 crore was spent instead of allocated Tk 73 crore in FY 2003-2004.

Neither the PDB nor the project director informed the power division, planning commission or the IMED about the additional spending, the enquiry report said.

Even the PDB's internal reports published during the period did not object to the extra spending and largely ignored the big gap between the approved funds and the amount spent, the report mentioned.