The DPDC project can be revamped
A strange propensity has emerged in our country of taking concessional loans from China and implementing projects under those loans through direct deals (in the name of G2G), with contractors selected by China. This particular project ['Project for Expansion and Strengthening of Power System Network in DPDC Area'] is one such example. Taking loans from China means fixing the contractors from beforehand. That is why a hard bargain can't be driven. The negotiations are just a lot of eyewash.
This selection is a process to give the contract to a particular company by a direct deal in the name of G2G. That means, the Chinese quote Tk 50 billion (Tk 5000 crore) for a Tk 10 billion (Tk 100 crore) project. Then there are negotiations and the contract is signed for Tk 30 billion (Tk 3000 crore), that is, Tk 20 billion (Tk 2000 crore) higher. This creates an unjustified pressure of interest on the country. Corruption spreads. It seems that the Chinese firm has used G2G as a means to quote a cost much higher than the actual expenditure. It remains a mystery why the government didn't take the BRTC BUET assessment into cognizance.
The appointment of contractors is done with the approval of the cabinet committee for economic affairs. It is like preparing an imaginary daughter's wedding before the daughter is even born. That means even before the project is drawn up, approved, allocations passed, credit approved and signed, that is, before the project is even born, the contractor must be selected. But this should be done only after implementation of the project begins.
When the president of China visited Bangladesh in 2016, a total of 27 MOUs were signed, all G2G. The finance minister at the time, Abul Mal Abdul Muhith forced China to select five contractors, not just one, so that at least there would be some competition among the five. But the two countries are not following that and are selecting a single company as contractor in the name of G2G. Both technical and financial negotiations are falling flat.
In my opinion, taking up projects under Chinese credit means increasing the pressure of loans on us and expanding the net of corruption. This is reflected in the over Tk 200 billion (Tk 20,000 crore) 'Project for Expansion and Strengthening of Power System Network in DPDC Area'. At this time of dollar crisis, the unnecessary and exorbitant part of the expenditure can be dropped and the project can be revamped. Before that, an investigation can be made by a high-level committee into the overall aspects of the project.
* Faruque Hossain is former Director General, Central Procurement Technical Unit (CPTU)