UNB, Dhaka :
Despite a three-month extension granted by the authorities, two previously aspiring Japanese firms have grown reluctant to place bids for the Matarbari coal-fired power plant project on grounds of security, delaying the implementation of what is a top-priority project for the government.
According to sources at the Coal Power Generation Company Bangladesh Limited (CPGCBL), the implementing agency, July 24 had been set as the deadline for submission of the final bid “Request for Proposal”. Accordingly, 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 7 Japanese citizens in a terrorist attack at Gulshan’s Holey Artisan Bakery on July 1 has acted as a big blow for 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 huge measures to remove their concerns over security,” Abul Quasem, managing director of the CPGCBL told UNB.
He, however, said 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,” Quasem said, adding that despite that the two Japanese firms are asking for more time to submit their bids.
“But we’re confident that the security situation will be much more improved before the deadline for RfP submission.” 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 don’t need to venture out while living there.
“If they need to go out, they will get security as well,” the CPGCBL managing director added.
Official sources said, Marubeni and Sumitomo themselves are convinced by the security arrangement. But some of their partners and sub-contracting firms are not “fully satisfied”.
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 percent 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.”
Despite a three-month extension granted by the authorities, two previously aspiring Japanese firms have grown reluctant to place bids for the Matarbari coal-fired power plant project on grounds of security, delaying the implementation of what is a top-priority project for the government.
According to sources at the Coal Power Generation Company Bangladesh Limited (CPGCBL), the implementing agency, July 24 had been set as the deadline for submission of the final bid “Request for Proposal”. Accordingly, 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 7 Japanese citizens in a terrorist attack at Gulshan’s Holey Artisan Bakery on July 1 has acted as a big blow for 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 huge measures to remove their concerns over security,” Abul Quasem, managing director of the CPGCBL told UNB.
He, however, said 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,” Quasem said, adding that despite that the two Japanese firms are asking for more time to submit their bids.
“But we’re confident that the security situation will be much more improved before the deadline for RfP submission.” 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 don’t need to venture out while living there.
“If they need to go out, they will get security as well,” the CPGCBL managing director added.
Official sources said, Marubeni and Sumitomo themselves are convinced by the security arrangement. But some of their partners and sub-contracting firms are not “fully satisfied”.
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 percent 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.”
