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The interim government has identified irregularities in a project initiated by the ousted Awami League government to construct 34 buffer warehouses to facilitate fertiliser storage and distribution.
As a result, the Advisory Committee on Government Procurement has moved to cancel construction work on two sites under Lot-02 of the project’s first package, valued at Tk 119.50 crore.
The decision follows concerns over the project’s management and execution, which was designed to enhance the country's storage and distribution infrastructure.
The government is expected to make a final decision on Wednesday, in a meeting of the Advisory Committee on Government Procurement, to cancel the tender for two fertiliser warehouse construction sites, sources in the Ministry of Industries said. The project is being implemented by the Bangladesh Chemical Industries Corporation (BCIC).
The tender was originally floated under the open tender method (OTM) to build two sites with storage capacities of 10,000 tonnes in Netrokona and 25,000 tonnes in Mymensingh. The estimated cost for the project was set at Tk Tk 124,41,97,490.
However, during the tenure of the ousted Awami League government, NDE-AC (JV) from Banani, Dhaka, submitted a bid that was 3.954 per cent lower than the initial estimate, and the company was subsequently selected.
The interim government, upon reviewing the process, has decided to cancel the tender, arguing that since only one company participated, the tender process was not competitive. The government believes it is necessary to void the tender to ensure fair competition.
Sources within the Ministry of Industries have indicated that the tender evaluation committee had previously deemed NDE-AC (JV) technically and financially responsive for Lot-02 of the Construction-01 package, following a thorough review of supporting documents such as Tender Security, General Experience, Specific Experience, Average Annual Construction Turnover, Liquid Assets, Tender Capacity, Income Tax Certificate, and ISO Certification.
At the time, the committee unanimously accepted NDE-AC (JV)’s bid of Tk 119.50 crore and recommended the company for approval by the relevant authority, with an order to be issued thereafter.
Senior Secretary of the Ministry of Industries, Zakia Sultana, said that the procurement and construction contract proposal was processed in full compliance with the prevailing laws and regulations.
“The proposal does not violate any legal provisions, and there were no deviations from established rules. The submitted documents were found to be fully consistent, and the information reflected in the summary was clear,” she said.
“However, concerns have been raised about the lack of competition, as only one company submitted a bid, which may indicate a lack of competitive bidding,” she added.
In accordance with Rule 33(b) of the Public Procurement Rules (PPR) 2008, tenders may be cancelled if there is a lack of competition. Furthermore, under Rules 11(2) and 36(3) of PPR-2008, any decision regarding cancellation must be approved by the Advisory Committee on Government Procurement.
As a result, the tender for the construction of buffer warehouses in Netrokona and Mymensingh under Lot-02 of the first package of the BCIC’s project, titled “Construction of 34 Nos Buffer Godown at Different Places of The Country for Facilitating Reservation & Distribution of Fertiliser (1st Revised),” has been submitted to the Advisory Committee on Government Procurement.
The committee is expected to approve the cancellation of the tender, as recommended by the tender evaluation committee, and initiate a re-tendering process in compliance with PPR-2008.
