ASHUGANJ FERTILIZER PLANT

PROJ PURPOSE IS TO INCREASE BANGLADESH'S AGR YIELD BY INCREASING FERTILIZER PRODUCTN. INADEQUATE FUNDING & MAJOR PROJ DELAYS OCCURRED DUE TO POOR COST ESTIMATES FROM FOSTER WHEELER (FWL) & GOVT OF BANGLADESH (GOB) OFFICIALS, US INFLATN, AND RISING LOCAL COSTS. ALSO,WORKING RELATNS BETWEEN FWL (CONTRACTOR) & AFCC (GOB ORGANIZATN RESPONSIBLE FOR CONSTRUCTN OPERATNS)HAVE BEEN STRAINED. WILLIAM BROTHERS(WBS),THE FIRM ASSISTING AFCC, INDICATES SERIOUS FINANCIAL PROBS COULD OCCUR IF SUPPLEMENTARY DONOR FINANCING IS NOT AVAILABLE WITHIN 2 MOS. OTHER PROJ PROBS HAVE RESULTED DUE TO POOR WEATHER & LACK OF PERSONNEL. SOIL FOUNDATN WORK & GROUND UTILITY INSTALLATN WAS NOT POSSIBLE DURING 3 MOS MONSOON SEASON DUE TO EXTREMELY HEAVY RAINS/FLOODING. THE FRENCHUGANJ & GHORASAL PLANTS,WHICH WERE TO SUPPLY AFP WITH PERSONNEL, HAVE BEEN UNABLE TO DO SO SINCE THEY HAVE LOST STAFF TO THE MIDDLE EAST. FWL HAS LITTLE INCENTIVE TO MAINTAIN HIGHLY QUALIFIED PERSONNEL SINCE THEIR FIXED FEE IS ALREADY 99.8% DISBURSED. LIKEWISE,AFCC'S LOW PAY SCALE IS INADEQUATE TO MAINTAIN QUALIFIED PERSONNEL AFTER AFP CONSTRUCTN. DESPITE MAJOR PROBLEMS,CONSTRUCTN SUB-CONTRACTS & ALL PERFORMANCE TESTS SHOULD BE COMPLETED ON SCHEDULE. ALSO,FWL IS PREPARING A REVISED CRITICAL PATH METHOD (CPM). EVALUATOR CONCLUDES PROJ SUCCESS WILL BE IMPROVED IF: 1)WBS CONTINUES TO MONITOR FWL PROJ COST ESTIMATES; 2)LOCAL HELP RECEIVE SKILLS TRNG & SUFFICIENT PAY INCENTIVES (RATE NEEDS TO BE ESTABLISHED) TO REMAIN ON THE JOB; 3)SUFFICIENT GAS IS IDENTIFIED & OBTAINED WHHICH IS SUITABLE FOR UREA PRODUCTION; 4)SITE RELATIONSHIPS ARE MONITORED MORE CLOSELY; 5)WBS REVIEWS AND UPDATES THE CRP,SCHEDULES,AND BAR CHARTS; 6)AID MONITORS RELATED ACTIVITIES; 7)AFCC OBTAINS MGMT ASSISTANCE IN IDENTIFYING PLANT OPERATION/MAINTENANCE; 8)BANKS ATTEMPT TO IDENTIFY AND MEET THE FINANCIAL REQUIRMTS OF DONORS; 9)PROJECT COMPLETION DATE IS EXTENDED TO 9/80; 10)WBS AND FWL ESTABLISH BETTER WORKING RELATIONS; AND 11)FUNDS ARE EXPEDITIOUSLY PROVIDED ON A PRO-RATED BASIS.