QUESTION:
Project components are a) rehabilitation of 7 airports- USD 22.5 million, (b) strengthening capacity at the Ministry of Civil Aviation - USD 1.0 million, (c) Post-construction operations assistance for the airports - USD 0.4 million and Project Management - USD 4.0 million . Contingencies are USD 2.5 and IDC 2.1 million. Total project costs are USD 32.1 million. The civil works for each airport was estimated at USD 4.4 million, USD 3.8 million, USD 2.6 million, USD 2.7 million, USD 2.6 million, USD 2.4 million and USD 2.7 million. The airport estimated at USD 3.8 million received a bid of USD 6.9 million. To accommodate this cost increase ADB agreed to drop from the project the airport estimated at USD 2.4. a) Is dropping of rehabilitation of one airport out of 7 airports to accommodate the cost of another airport considered a change in project scope per Para 6 of PAI 5.04 ? b) The cost increase of the selected airport was 80%. (Project cost estimate USD 3.8, actual bid 6.9). Is this cost change considered an excess of 15% of total project cost as per Para 7 of PAI 5.04 ?
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