Govt revises Coast Guard project to fix logistics gaps

Under the latest revision, the cost of the project titled  ‘Establishment of Logistics and Fleet Maintenance Facilities for Bangladesh Coast Guard (2nd Revised)’ increased to Tk 757.62 crore, a jump of Tk 173.21 crore or 29.64 percent over the previously revised allocation.

The coast guard’s responsibilities include combating piracy and illegal trafficking, safeguarding fisheries along with oil, gas and forest resources, and preventing environmental pollution in Bangladesh’s waters and coastal regions.

It also works to maintain security and law and order by supporting seaport safety while carrying out relief and rescue operations in coastal areas during natural disasters.

The project, which aims to develop Coast Guard’s own fleet maintenance capacity and central logistics support system, has already undergone one revision.

The Executive Committee of the National Economic Council (ECNEC) initially approved the project in June 2016 at an estimated cost of Tk 448.47 crore with a target completion date of June 2021, according to a project document obtained by UNB.

The first revision, approved in January 2022, raised the cost to Tk 584.40 crore and extended the implementation period to June 2023.

Later, the tenure was extended twice more without cost escalation to June, 2024 and then June, 2026. Now, the second revision proposes both a cost hike and time extension until June 2026.

Planning Commission officials said the cost hike and time extension were necessary due various factors, including damages to river protection embankments that required design changes, delays in land acquisition, slow release of funds, and disruption of procurement activities during the Covid-19 pandemic.

The surge in the dollar exchange rate also created difficulties in opening letters of credit (LCs), delaying machinery imports.

Besides, repeated attempts to procure some goods and equipment packages failed to attract eligible bidders within the approved estimates, forcing re-tendering and cost adjustments.

Another reason cited was the project’s specialised nature. Different types of works were grouped under the same procurement packages, creating complexities in bidding and execution.

When the civil works estimates were updated based on the 2022 (revised 2023) schedule of rates, prices of many items exceeded the previously approved estimates, further necessitating cost revision.

Under the revised plan, the project will cover land development, construction of 13 non-residential buildings, procurement of vehicles, pontoons, electrical and firefighting equipment, machinery, computers, office furniture and other infrastructure.

The largest share, Tk 289.89 crore, has been earmarked for machinery and equipment, followed by Tk 189.65 crore for other buildings and infrastructure and Tk 169.10 crore for non-residential facilities.

The facilities are being built on 29.73 acres of Coast Guard-owned land in Gajaria upazila of Munshiganj along the Meghna River.

The area was chosen as it provides river access and adequate space for dockyard and support facilities.

Due to limited land availability in Dhaka for expansion, the Munshiganj site has been identified as the hub for new support units, administrative buildings, warehouses, training facilities and maintenance workshops.

As of January 2025, the project has achieved 76.98 percent financial progress (Tk 410.2 crore spent) and 70.19 percent physical progress.

The government’s long-term Vision 2030 for Coast Guard envisions significant expansion of manpower and operational responsibilities.

According to the 8th Five-Year Plan, the government also prioritises strengthening maritime surveillance capacity by procuring ships, vessels, and advanced technologies.

Officials said this project is fully aligned with those targets.

The Planning Commission recommended approval of the revised proposal stating that once completed, the project will significantly enhance Coast Guard’s own fleet maintenance capabilities.

It will also establish centralised warehousing for machinery, equipment, and accessories, thereby improving operational efficiency and readiness to respond to maritime challenges, reports UNB.