PDB, AES continue to quarrel

The crisis regarding the Meghnaghat Power Plant site continues to remain unresolved even after two weeks of the expiry of the deadline for 'handing over of the site by the Power Development Board (PDB)' to the US company, AES.

Sources said that while PDB claimed the 100-hectare site for the power plant to be ready for being handed over, AES says that the site was not developed 'as per the contractual terms' and it was 'unsafe' for setting up the plant.

AES also said that as per its own project site testing data, if it installed heavy machinery there, it could result in fault in the alignment of the power plant and ultimately the plant could be 'destabilised'.

While the disagreements between PDB and AES have reached a dead end, there had been no negotiation to resolve them. Sources said that AES has asked PDB to resolve the problems by holding negotiations. but PDB had reduced activities for resolving the crisis by writing appropriate letters.

"Mutual distrust between PDB and AES has surfaced like never before," said a competent source, "PDB believes that AES is not taking over the land deliberately, as it has no fund to start its work. On the other hand, AES believes that PDB was trying to forcibly hand over the poorly-prepared land to favour the land-site developer."

PDB has asked AES to provide it with land testing data, to substantiate its complaints. But AES declined to provide its land testing data unless "PDB agreed to a face to face negotiation", sources added.

Meghnaghat power plant is the country's biggest power project which has already all ready been delayed by than two years due to the government's inexperience with private power schemes as well as the land site developer's inefficiency.

The Tk 141 crore site development project was awarded to a Chinese company after two rounds of bidding in late '98. The Chinese company- CWHEC- was supposed to deliver the land firstly in July and then in September. However, after repeated failures, PDB gave a final deadline for the land- project on November 15 with an one month's notice to AES for the site-testing.

However, PDB had asked the AES to test the project site on December 3 (instead of October 15). The testing deadline expired on January 2. However, CWHEC did not complete their testing and give their report on their work within the deadline.

Sources said that PDB's consultant had okayed the works of CWHEC. But AES's consultant - Haskoning B.V of the Netherlands had raised serious objections about the project site.

Haskoning observed that CWHEC used "horizontal wick drainage technology" to compact the project site that was reclaimed from the Meghna river. The Chinese firm was supposed to use a much superior technology called "vibro-floatation piling". As a result, the site was not compact enough to support-equipment which weigh hundreds of tonnes.

It also observed that while dredging, CWHEC might not have been properly drained out completely the soft layer of the soil.

On these grounds AES has asked PDB either to take remedial measures by itself or allow AES to take remedial measures while PDB pays the costs. PDB, in reply, said that the project consultant was satisfied with the works. Therefore, no remedial measure was necessary.

Meanwhile, PDB has decided to penalise CWHEC for its' delay at the rate of Tk. 14 lakh per day from November 15. However, in a rejoinder sent by CWHEC to The Daily Star last month, the Chinese company blamed 'congestion at the Chittagong port, political instability and untimely payments by PDB' for the delay.

The Meghnaghat Project was scheduled to be completed by 2001. It now seems that even if all goes well, it would not be completed before 2003.