Vaccine plant cost rises Tk385cr before shifting from Gopalganj to Munshiganj
Significant cuts have been made under consultancy services
Amid the decision to shift the country's first vaccine plant from Gopalganj to Munshiganj, the project cost has risen by Tk385 crore (12.77%).
The Essential Drugs Company Limited, in its revised proposal for the "Establishment of Essential Biotech and Research Center at Munshiganj" project, has set the cost at Tk3,400 crore.
The first revised Development Project Proposal (DPP) of the project outlines significant financial adjustments across multiple components, citing currency depreciation, extended shipment timelines, and enhanced technical requirements as the primary justifications.
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The project, approved by the National Economic Council on 31 October 2023, was originally estimated at Tk3,015 crore, according to sources at the Planning Commission and the Directorate General of Health Services.
Under the revised proposal, the Asian Development Bank's (ADB) loan contribution rises by Tk267.5 crore to Tk3,037.5 crore.
To address clinical trial expenses, the project has proposed an additional project loan of Tk1.76 crore, driven mainly by the depreciation of the local currency against the US dollar.
Under bank and insurance charges, an extra Tk2 crore government allocation has been proposed to offset increased costs arising from extended shipment schedules for foreign goods.
Meanwhile, the allocation for raw materials and spare parts has been reduced, with Tk17.25 crore project loan excluded, as all essential inputs required for machine trial runs are already covered under the design-build turnkey package.
The proposed vaccine plant will be established adjacent to Essential Drugs Company Limited's new pharmaceutical plant, allowing both facilities to share technical support services
The training component has seen major revisions. Initially, the DPP allocated Tk10.37 crore project loan for 11 programmes (5 local and 6 foreign). In the revised plan, an additional Tk1.41 crore is proposed to cover exchange rate fluctuations.
Beyond this, an extra Tk7.71 crore has been sought to expand the scope, including two more local trainings (Tk52.85 lakh) and four additional foreign trainings (Tk7.18 crore). Altogether, the training allocation now stands at Tk19.50 crore.
Significant cuts have been made under consultancy services. While the original provision was Tk17.96 crore, allocations of Tk60 crore for turnkey consultancy and Tk10 crore for TOR development consultancy have been excluded. Furthermore, Tk1.80 crore has been reduced from the Senior Procurement Expert recruitment package.
Meanwhile, nearly two years after project approval, implementation has yet to begin. As a result, the project tenure has been extended – from January 2024 to December 2032.
The project was initially approved for implementation in Gopalganj, but later a decision was made to relocate it to the BSCIC Industrial Park in Sirajdikhan upazila of Munshiganj.
Work on the country's only vaccine plant project, the "Essential Biotech and Research Center," began in Gopalganj in 2020. Last year, 6.85 acres of land was acquired in the district next to Essential Drugs' third production centre.
However, following the July-August mass movement and the fall of the Awami League government, the interim administration abandoned the plan to establish the plant in Gopalganj.
In May, Professor Dr Sayedur Rahman, special assistant (health) to the chief adviser, told The Business Standard that Gopalganj is geographically isolated in terms of scientific research and engagement.
"Everyone knows why Gopalganj was chosen at the beginning. But in reality, the skilled manpower required for vaccine research is concentrated mainly in and around Dhaka," he said.
Why the shift
The Essential Biotech and Research Center project is being relocated to Sirajdikhan upazila of Munshiganj mainly because it is only 22 kilometers from Dhaka, offering greater accessibility and operational efficiency, according to officials.
According to the revised proposal, the new site offers convenient connectivity with government agencies, regulatory bodies, and research institutes headquartered in the capital. Project officials said the relocation will also ease access for foreign consultants, turnkey solution providers, scientists, and technology transfer experts.
Proximity to Hazrat Shahjalal International Airport is another key factor, as it will help facilitate the timely import of raw materials and export of vaccines and therapeutic drugs, ensuring the integrity of the cold chain supply.
The proposed vaccine plant will be established adjacent to Essential Drugs Company Limited's new pharmaceutical plant, allowing both facilities to share technical support services.
