A government project to expand electricity access in the three Chattogram Hill Tracts (CHT) districts has come under scrutiny over higher-than-usual cost estimates, with the Planning Commission seeking a review of several components of the Tk2,951.87 crore scheme.
The project aims to extend the power distribution network in Rangamati, Khagrachhari and Bandarban of Chattogram Hill Tracts (CHT) region, bringing nearly 88,600 additional households under the national grid.
However, a review by the commission found that proposed costs for power line construction and consultancy services were significantly higher than similar ongoing and completed projects. According to project documents, construction costs for electricity lines are around 50 per cent higher in some cases and more than 80 per cent higher in others compared with comparable projects.
The concerns were raised at a Project Evaluation Committee (PEC) meeting on 1 July, where the commission questioned the justification for the higher estimates and asked the Bangladesh Power Development Board (BPDB), the implementing agency, to reassess several cost components.
The project, titled “Extension of Power Distribution System Network in Three Hilly Districts”, will be financed mainly through a Tk2,135 crore loan from the Asian Development Bank (ADB). The government will provide Tk445.78 crore, while BPDB will contribute Tk371.09 crore. Scheduled to begin in July, the five-year project is expected to be completed by June 2031.
Line costs under scrutiny
The largest gap was found in the proposed cost of 33kV power lines. The project has estimated the cost at Tk64.8 lakh per kilometre, while the same work under the ongoing Hatia, Nijhum Dwip and Kutubdia electrification project costs Tk43.4 lakh per kilometre.
The proposed cost is also higher than a previous electrification project in the hill districts, where the cost was Tk38.98 lakh per kilometre. For 11kV lines, the estimated cost is Tk38 lakh per kilometre, compared with Tk29.5 lakh in ongoing projects and Tk21 lakh in completed projects.
The proposed cost of 11/0.4kV lines stands at Tk48.1 lakh per kilometre, while 0.4kV lines have been estimated at Tk22 lakh per kilometre — both higher than comparable projects.
The commission also raised concerns over Tk16.26 crore allocated for consultants and Tk7.34 crore proposed for renting one jeep and three double-cabin pickup vehicles. It suggested reviewing the procurement plan, where similar activities have been divided into multiple packages.
The commission also advised BPDB to set a realistic project timeline, warning that delays in foreign-funded projects increase costs due to exchange rate fluctuations, interest during construction and rising material prices.
88,000 families to get electricity
BPDB said the project is essential as a large part of the CHT remains outside reliable national grid coverage due to difficult terrain and scattered settlements.
According to the proposal, BPDB currently has around 192,000 customers in the three districts. The new project will provide connections to 88,586 households — 44,920 in Khagrachhari, 25,966 in Rangamati and 17,700 in Bandarban. With an average household size of four people, around 3.54 lakh residents are expected to benefit directly.
Mohammad Ashraful Islam, joint chief of the Industry and Energy Division of the Planning Commission, told TIMES of Bangladesh, “Some costs have been proposed at a higher level compared with similar projects. In the PEC meeting, we asked them to review the matter again. They will reassess the costs and check whether they are consistent with market prices.”
BPDB member Md A Bashid said, “The project has not yet been finalised. It will be reviewed again.” Regarding consultancy expenses, he said ADB funding required compliance with certain conditions on consultant appointments. “To receive ADB loans, their conditions must be followed,” he added.
