Limited tendering for projects funded by China

The cabinet committee on economic affairs has sent back the proposals to select bidders of three China-financed projects through the direct method.

Previously, for projects financed with Chinese soft loans, its government would select the company. But on Bangladesh's request, the Chinese government agreed to appoint bidders through the limited tendering method, under which only Chinese companies can participate.

Subsequently, the committee sought modifications to the proposals to reflect the changed modus operandi in China-financed projects, said an official of the Cabinet Division. The three projects must now be implemented under the limited tendering method.

One of the projects is the pre-payment metering project for Bangladesh Power Development Board's distribution zones. The proposed company for implementing the project is China North Industries Corporation.

Another proposal was for replacement of overloaded distribution transformer for providing reliable electricity under the Rural Electrification programme.

Non-binding preliminary agreements have been signed with several Chinese companies for implementing the project.

The Power Division also proposed to implement the Gazaria 350-megawatt coal-fired thermal power plant through a Chinese joint venture company -- Power Construction Corporation of China and Hubei Hongyuan Power Engineering. 

Also at yesterday's meeting, the cabinet committee approved a roadmap for the tea sector involving Tk 976 crore.

The move is expected to boost production, create 30,000 additional permanent jobs and improve the workers' standards of living.

The plan has been prepared by the commerce ministry.

Of the sum, Tk 834 crore will be mobilised as loans and the remainder will be grants. The roadmap will be implemented from 2016 to 2030.

Funds may come from the government's own coffers, according to the proposal.

In such a scenario, loans can be given from Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank at bank rates or subsidised interest rate.

Funds may also come from development partners such as the European Commission, the DFID, the Japan International Cooperation Agency, the United Nations Development Programme, the Asian Development Bank and the World Bank.

Alternatively, funds can be raised both from the government and development partners, according to the plan.