A gang close to former state minister for power, energy and mineral resources, Nasrul Hamid (Bipu), had absolute monopoly of prepaid meter business during Awami League. Two power distribution companies of the government are now active to extend work to supply 1.5 million more prepaid meters to that same gang. The requirements to submit the tender was set in a way to favour the companies close to the former state minister.
Power division sources said a tender was floated in last July to procure 800,000 prepaid meters for Northern Electricity Supply Company PLC (NESCO) to distribute in 16 districts of Rajshahi and Rangpur division
Almost simultaneously, West Zone Power Distribution Company Limited (WZPDCL), which supplies power in 21 districts of Dhaka, Khulna and Barishal divisions, floated a package of tenders for 700,000 meters and systems. Tenders of procurement of 139,000 meters under one package are already under review and tender process is ongoing for 51,000 more meters is ongoing under a different package. Hexing, Inhemeter, Shenzhen Star, Wasion and Holley meter companies submitted tenders for one of the packages.
Sources said four out of these companies are related to Nasrul Hamid’s close associates. As per the tender requirements of Package-1, suppliers must have certificates of completion of two similar projects in the last five years. The interested companies have to have experience of setting up at least 50,000 Pre-paid Meter Line Communication (PLC).
Sources said it was an international tender. It has been alleged that the word ‘smart prepaid’ was added to the tender as a ruse to block the participation of big international companies from the bidding. As a result, those who supplied meters to WZPDCL in the past will be at an advantageous position in the tender.
Shamsul Alam, the recent past executive director of WZPDCL, said that five contractors participated in this tender.
“We wanted new companies to take part in the tender. If there were any problems in the previous tenders, there are options to cancel these,” he said.
A review of those who supplied meters in the past reveals that a handful of companies would get the contracts in turn. Shenzhen Star and Wasion are one of those companies. Country representatives of these companies are known to be close with Nasrul Hamid.
According to NESCO, a tender was floated last July for procurement of 800,000 prepaid meters financed by Asian Development Bank (ADB). The requirement was that suppliers must have certificates of completion of three similar projects in the last seven years or show experience of supplying at least 300,000 meters in at least one project. Also, a rejection clause was added for those who fail to integrate with the existing system of NESCO.
Sources said due to noncooperation of NESCO and two companies--Shenzhen Star and Wasion—that supplied the existing system, no other companies could complete the integration. Thus, companies except for Shenzhen Star and Wasion were made technically incompetent to win the bid.
There are allegations that the tender has been floated in a way that ensures Shenzhen Star and Wasion win the bid to supply 800,000 meters as like as they were awarded contracts during Awami League era.
NESCO’s managing director Zakiul Islam told Prothom Alo that seven companies took part in the bidding. Evaluation of the tenders is yet to begin. As questions arose over the matter, the process is currently withheld. The tenders are currently awaiting the decision of the power ministry to begin the verification process.
Zakiul said he is not in favour of setting up prepaid meters through NESCO as it creates controversy. He thinks there should be an open competition to avert the criticism.
NESCO bought 1.45 million meters through seven tenders under two projects during the Awami League regime. Of these, China's Shenzhen Star won work worth Tk 5.5 billion in four tenders and Wasion won work worth Tk 4.5 billion in three.
It has been learnt that the local representative (agent) of Shenzhen Star in Bangladesh was the late Mohammad Shujat Islam, the elder brother of Nasrul Hamid's wife. After his death during the Coronavirus pandemic, his close relative Mahbub Rahman took over this responsibility. Wasion had two tenders with Techno Electrical and one with SQ Trading. These two companies belong to the SQ Group, which is owned by former Awami League MP Abu Zafar Md Shafiuddin alias Shamim. SQ is the local representative of Wasion.
Now, in the changed situation, there is a demand to break the monopoly of the gang close to Nasrul Hamid.
Fouzul Kabir Khan, interim government’s adviser to the power, energy and mineral resources, also said that the current government wants to ensure that everyone, not just the selected contractors, participates in the tender.
He told Prothom Alo that if there are any special conditions in the tender to give work to a specific company, it will be canceled. The current government's policy is to call for tenders in a way that is open to everyone.