Big projects without bidding is not acceptable

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ACCORDING to media report government has taken a major project aimed at facilitating state-run Bangladesh Petroleum Corporation to transport 4.5 million tonnes of crude oil and 1.5 million tonnes of diesel a year through two pipelines directly from mother vessels in deep sea to its onshore storage. The project was included in Annual Development programme of the government in 2012-13 fiscal year. It is known that in December 2015, the government approved in principle the unsolicited proposal from a state-owned Chinese company for the installation of single point mooring with double pipeline under the Speedy Supply of Power and Energy (Special Provisions) Act 2010. Under this approval in principle, the Energy Division along with Petroleum Corporation and the Chinese Corporation finalised the cost of the project at $ 550 million through negotiations, on July 12, 2016. It has been known from concerned source that the project includes constructing a floating jetty in the deep sea near Moheshkhali Island, a tank firm, power plant and pump at the island and installation of two 220km submarine pipelines from the jetty to storages at Anwara in Chittagong.
There is no doubt that the project, once implemented will enhance the speed of working capacity of BPC and will reduce its procuring cost. At the same time it will help at least to reduce spillage and pilferage of oil. But the process adopted to implement the project is not acceptable. Media report disclosed, the energy and Mineral Resources Division will send a team of its officials to Angola and Abu Dhabi where the Chinese firm has installed similar pipelines to evaluate the capabilities of the contractor appointed for the implementation of the project and the cost of similar job. The foreign trip might not be needed if the contractors were appointed and the project was implemented through competitive bidding. According to sources the team would prepare a report after examining single point moorings installed by China Petroleum Pipeline Engineering Corporation in Angola and Abu Dhabi. The report will also include a comparative study on the cost of those projects. The Energy Division will send the report to the Cabinet Committee on government purchase with the proposed contract with the Chinese Corporation for approval. It is a lengthy process. So, the government had not save time by awarding the contract without bidding. Rather it may pave the way for corruption and escalation of project cost. We deplore the process as it lacks transparency.
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