Finger now pointed at main donor WB
The $2.9 billion Padma Multipurpose Bridge project is being delayed due to intervention and excessive bureaucracy of the World Bank in last nine months, government officials and documents say.
The government cancelled the first pre-qualification bidding last year after objection from the World Bank, the project's lead financier, on grounds of a change in the design. The loan-signing between the WB and the government will be done today.
The bank is now pressing to reconsider the rejected bids of a disqualified bidder, China Railway Construction Corporation (CRCC), according to documents.
A technical evaluation committee headed by Prof Jamilur Reza Choudhury and the project's design consultant Maunsell AECOM rejected CRCC for not having sufficient experience, and also for violating a tender clause.
The WB's suggestion came four months after the government sought its clearance of evaluation of five pre-qualified bidders for the project on January 8.
In a letter on April 12, Task Team Leader of WB Masood Ahmed asked Bangladesh Bridge Authority (BBA) to verify again the documents of CRCC and judge its eligibility.
The WB's request contradicts clause 4.5 of the tender document it itself had approved earlier. As per the section, if a mother company and his subsidiary apply or participate in a bid then both will be disqualified.
CRCC is the parent company of China Railway 15 Bureau Group Corporation, which also participated in the Padma Bridge bidding and got disqualified. Both failed to meet all the criteria of the tender.
“The Applicant C [CRCC] is the parent company of Applicant F [China Railway 15 Bureau Group Corporation] which violates ITA 4.5 as amended by Section-ll pre-qualification Data Sheet. Also, the information provided on request of clarification do not show an evidence of extensive use of large driven raking steel tube piles. The proposed equipment appears quite inadequate and revealed no work experience to undertake this type of work,” technical evaluation committee says in its evaluation on CRCC.
Prof Jamilur said, “Being the lead financier of the project, the World Bank may sometimes impose its opinions but we will remain transparent and do everything to protect the country's interests.”
Bridge Division Secretary Md Mosharraf Hossain Bhuiyan, who is overseeing implementation of the project, told The Daily Star last week, “Following the World Bank suggestion, we have asked CRCC to provide additional documents to prove its eligibility.
“We will again verify the documents and if we are convinced we will consider it as a responsive firm.”
Bridge division sources said CRCC sent the additional documents which are now being evaluated by the consultant. The technical evaluation committee will also see the submission and send opinions to the WB.
“The two rounds of evaluation qualified the same group of companies. In between, we lost nine months. If there were no such delay, by now the project would have reached contract-signing stage,” said a senior official of the communications ministry speaking on condition of anonymity.
The qualified companies are Samsung C&T Corporation of Korea, China Major Bridge Engineering Co Ltd, Daelim-Bam-VCI (a joint venture entity of Korea), Vinci-HCC (a joint venture of France and India) and China Communication Construction Company Ltd.
The WB is providing $1,200 million, Asian Development Bank $615 million, Japan International Cooperation Agency (Jica) $400 million and Islamic Development Bank $140 million for construction of the bridge.
The WB has also committed to giving another $300 million while the government will provide the rest of the fund.
The 6.15km bridge over the Padma, together with 3.68km of land-based approach viaducts on both sides of the river, will connect the country's 19 south-western districts with the capital. It will reduce distances to Dhaka by about 100km.
The bridge will have road traffic on the upper level and rail on the lower level. The main bridge structure would have a dual carriageway, and have also provisions for future installation of a broad gauge rail-line as well as other facilities including gas, and telecommunication lines.
According to official documents, the first pre-qualification bid was floated in April, 2010, upon approval of the government and financiers. It had both concrete bored piles and steel raking piles options. Five of the 11 companies' bids qualified and the evaluation report was sent to the WB on July 18, 2010, for concurrence.
The WB had queries about Hyundai Engineering and Construction which also bid for the project but was disqualified. The WB then insisted the government accept more documents from the firm for further evaluation. But the government did not entertain it.
Meantime, the design consultant finalised the design keeping the option of steel raking piles. The WB pressed the government to go for fresh pre-qualification bidding on this ground and also giving scope to new firms.
The consultant and the government, however, insisted the change will not affect the first pre-qualification process, and requested the WB to give concurrence to the pre-qualified firms.
The government called re-invitation for pre-qualification on October 11, 2010. This time 10 firms, including two new ones, submitted documents. Three firms who participated in the first bidding did not bid.
During evaluation, the technical evaluation committee and consultant found the same five firms qualified again.
“Both the second pre-qualification and the ongoing re-evaluation of CRCC were not necessary. It only delayed the project and increased construction cost,” said a bridge division official.
Officials concerned said construction work of the Padma Bridge will begin at the end of this year if the WB gives concurrence without further delay and other formalities are completed timely. At least three years is needed to complete the bridge which means the Awami League government's dream to open it within its tenure will not materialise.
Asked about the WB's role and the delay, Communications Minister Syeed Abul Hossain said, “Everything is being done in coordination with the government, consultant and the financiers.”
WB'S RESPONSE
WB country director Ellen Goldstein in response to The Daily Star queries on the project said, “The Padma Bridge is a large and highly complex investment which is expected to have exceptional economic and social development benefits for Bangladesh. With respect to the construction of the main bridge, pre-qualification of firms is still proceeding, and the WB is not in a position to comment on specific cases or firms.”
“An earlier round of pre-qualification was launched before the detailed design of the bridge was completed. The detailed design work led to a significant change in the engineering of the bridge. This meant that the pre-qualification process needed to be re-launched with modified criteria in order to identify bidders with the best qualifications to construct the bridge according to the final, more complex design. This re-launched round is ongoing and nearing completion,” she said.
“The World Bank and co-financiers have worked with the government to put in place measures to enhance the transparency of procurement processes and strengthen governance of this mega-project,” added Ellen.
LOAN SIGNING
The loan signing ceremony between the government and the WB will be held on a ferry on the Padma today.
Ellen Goldstein and Economic Relations Division Secretary Mosharraf Hossain Bhuiyan will sign the loan agreement.
WB Managing Director Ngozi Okonjo-Iweala, senior ministers, advisers to the prime minister, secretaries and other government and WB officials will attend the function.
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