Domestic Maritime Transport Project

Although the project cost estimate was made in 2002, procurement for the civil works was during 2008-2009. Due to price escalation, the bid prices received were much higher than originally estimated. Eventually, the implementing agency reduced the project scope so as to fit the project costs within the original cost allocation. In the future, it would be beneficial to shorten the time between detailed design and procurement and to use advance procurement to minimize start-up delays. Price escalation should also be factored into the project cost estimate.