Anisul Islam Noor :
The future of the Matarbari mega project appears uncertain as the two Japanese firms have sought more time to submit bids for the coal-fired power plant on ground of security
According to sources at the Coal Power Generation Company Bangladesh Limited (CPGCBL), the implementing agency, July 24 were set as the deadline for submission of the final bid “Request for Proposal”.
The two Japanese firms Marubeni Corporation and Sumitomo Corporation which were primarily selected as qualified bidders for the project, were asked to submit their RfPs as per the schedule.
But the killing of seven Japanese citizens in a terrorist attack at Gulshan’s Holey Artisan Bakery on July 01 acted as a big blow to the project, as the Japanese firms became unwilling to stay and work in Bangladesh after the incident.
They initially urged the CPGCBL to suspend the bidding process until the security situation improved to a “satisfactory level.”
But the CPGCBL disagreed with the Japanese firms’ request and initially extended the deadline for RfP submission by one month till August 24. But later the RfP submission date had to be extended again, by another two months until October 24, according to the sources.
“We extended the time in consultation with the Japanese bidders and undertook sufficient measures to remove their concerns over security,” Abul Quasem, managing director of the CPGCBL said.
He said that his company has already taken extensive measures to ensure security for the foreigners at the project site by deploying over one hundred security personnel comprising police, ansar and armed police.
“Currently 40 foreign nationals are working there and some of them are Japanese as well,” Abul Quasem said, adding that despite that the two Japanese firms are asking for more time to submit their bids.
Official sources said that the firms Marubeni Corporation and Sumitomo Corporation, the two primarily selected firms as qualified bidders, were for the third time granted three more months time till October 24 for submission of bids within the given time.
They were for the first time extended time till July 24 and again till August 24. But the firms again pressed for more time which has made the future of the project uncertain.
He said the Japanese firms were given assurances that all the necessary facilities will be provided for the foreign personnel within the project site, so that they do not need to venture out while living there.
“If they need to go out, they will get security as well,” the CPGCBL managing director added.
Another CPGCBL official said that the Japanese workers’ families are more concerned than the firms about the security situation in Bangladesh.
“Actually, the Japanese firms are convinced about the security arrangements, but families of their officials and workers, who would work in the project , are not fully convinced to send them to Bangladesh,” he said.
The Bangladesh government undertook the costly power project at Matarbari, in Moheshkhali island off the coast of Cox’s Bazaar with the Japan International Cooperation Agency or JICA’s $3.7 billion loan support.
It is to be implemented in line with the Japan’s South Asian strategic plan titled “Bay of Bengal Industrial Growth Belt (BIG-B)”, revealed by Japanese Prime Minister Shinzo Abe during a trip to Dhaka in 2014.
JICA is providing the loan at an annual interest rate of 0.1 per cent over 30 years, with an initial ten-year grace period.
The government is keen to prioritise implementation of the Matarbari project, targeting a start date in January 2017, before going into operation in 2023.
The CPGCBL managing director said the inordinate delay by the Japanese firms may affect the overall project schedule. “But with extra effort, it would be possible to cover the loss of time.”
The future of the Matarbari mega project appears uncertain as the two Japanese firms have sought more time to submit bids for the coal-fired power plant on ground of security
According to sources at the Coal Power Generation Company Bangladesh Limited (CPGCBL), the implementing agency, July 24 were set as the deadline for submission of the final bid “Request for Proposal”.
The two Japanese firms Marubeni Corporation and Sumitomo Corporation which were primarily selected as qualified bidders for the project, were asked to submit their RfPs as per the schedule.
But the killing of seven Japanese citizens in a terrorist attack at Gulshan’s Holey Artisan Bakery on July 01 acted as a big blow to the project, as the Japanese firms became unwilling to stay and work in Bangladesh after the incident.
They initially urged the CPGCBL to suspend the bidding process until the security situation improved to a “satisfactory level.”
But the CPGCBL disagreed with the Japanese firms’ request and initially extended the deadline for RfP submission by one month till August 24. But later the RfP submission date had to be extended again, by another two months until October 24, according to the sources.
“We extended the time in consultation with the Japanese bidders and undertook sufficient measures to remove their concerns over security,” Abul Quasem, managing director of the CPGCBL said.
He said that his company has already taken extensive measures to ensure security for the foreigners at the project site by deploying over one hundred security personnel comprising police, ansar and armed police.
“Currently 40 foreign nationals are working there and some of them are Japanese as well,” Abul Quasem said, adding that despite that the two Japanese firms are asking for more time to submit their bids.
Official sources said that the firms Marubeni Corporation and Sumitomo Corporation, the two primarily selected firms as qualified bidders, were for the third time granted three more months time till October 24 for submission of bids within the given time.
They were for the first time extended time till July 24 and again till August 24. But the firms again pressed for more time which has made the future of the project uncertain.
He said the Japanese firms were given assurances that all the necessary facilities will be provided for the foreign personnel within the project site, so that they do not need to venture out while living there.
“If they need to go out, they will get security as well,” the CPGCBL managing director added.
Another CPGCBL official said that the Japanese workers’ families are more concerned than the firms about the security situation in Bangladesh.
“Actually, the Japanese firms are convinced about the security arrangements, but families of their officials and workers, who would work in the project , are not fully convinced to send them to Bangladesh,” he said.
The Bangladesh government undertook the costly power project at Matarbari, in Moheshkhali island off the coast of Cox’s Bazaar with the Japan International Cooperation Agency or JICA’s $3.7 billion loan support.
It is to be implemented in line with the Japan’s South Asian strategic plan titled “Bay of Bengal Industrial Growth Belt (BIG-B)”, revealed by Japanese Prime Minister Shinzo Abe during a trip to Dhaka in 2014.
JICA is providing the loan at an annual interest rate of 0.1 per cent over 30 years, with an initial ten-year grace period.
The government is keen to prioritise implementation of the Matarbari project, targeting a start date in January 2017, before going into operation in 2023.
The CPGCBL managing director said the inordinate delay by the Japanese firms may affect the overall project schedule. “But with extra effort, it would be possible to cover the loss of time.”
