Dhaka WASA (Water Supply and Sewerage Authority) has undertaken a project for the long-term development of the water supply system in Dhaka Metropolitan area at a cost of Taka 164.09 crore, which is 15.71 percent less than the estimated cost of Taka 194.06 crore.
German contractor, Ludwig Pfeiffer Hoch-und Tiefbau GmbH & Co will implement the project as the lowest bidder.
A procurement proposal of the Local Government Division (LGD) in this regard will be presented to the Cabinet Committee on Public Procurement (CCPP) Wednesday for approval, sources said.
According to LGD, Dhaka WASA is implementing 'Dhaka Water Supply Network Improvement Project' to rehabilitate water supply management in Dhaka city, increase supply, strengthen, reduce system loss, strengthen operating and monitoring system, water quality testing and monitoring system.
This project also includes initiatives to strengthen the institutional, administrative and management structure of Dhaka WASA and its financial and management system will be developed.
According to the proposal, the project was approved at the meeting of the Executive Committee of the National Economic Council (ECNEC) held on May 24, 2016.
The loan agreement was signed between the Government of Bangladesh and the Asian Development Bank (ADB) on 16 July of the same year. In this context, administrative approval was later given by the local government division. Following this, on 16 October 2016, a subsidiary loan agreement was signed between the Finance Division and Dhaka WASA.
Under a package of the project, a total of Taka 182.15 crore was allocated for the rehabilitation, extension and strengthening of 192 km water lines.
On February 22, 2019, ADB disregarded the bidding documents prepared in accordance with the procurement guidelines of the Asian Development Bank (ADB) as per the terms of the loan agreement.
In view of this, tenders were invited from various platforms. 6 companies Bangladesh, China and Germany participated in the tender.
Later, the evaluation committee considered the financial proposal of the German contractor, Ludwig Pfeiffer Hoch- und Tiefbau GmbH & Co, as responsive and recommended it in their favour.
The company expressed interest in implementing the project at 15.61 percent less than the estimated rate.
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