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Toyo Engineering to take responsibility

Tk 250 cr loss in Ghorasal plant blast: Proble body

By Staff Correspondent
The total loss due to the June 19 explosion at the Ohorasai Urea Fertilizer Factory will be Taka 250 crore.
The Toyo Engineering Corporation of Japan is to take the responsibility for the accident since it took place when Toyo was putting the factory under a trial operation. Industries Minister Shamsu I Islam Khan said Friday.
The Minister toldnews conference that the Ohorasai Urea Fertilizer Factory ((GFF) had been turned into a losing concern by subjecting it to an upgradation project opposed by the Planning Commission and the National Economic Council.
Making public a report of a high-powered three-member inquiry committee on the accident at a news conference, he said that those who had done this by disregarding administrative procedures deserved exemplary punishment
The explosion took place when production in the factory was about to be resumed following the completion of the Taka 360 crore revamping project which, experts claim, was not needed at least before 1995.
The accident occurred as a carbon dioxide stripper’ gave in to gas pressure, leaving II dead and 27 others injured. Loss in terms of equipment production, and compensation for the deaths was estimated at Taka 25 crore.
A new production process called Advanced Cost and Energy Saving' (ACES) which was to be installed under the project has been postponed for the time being.
The Toyo Engineering Corporation of Japan which was Installing the new process has agreed to put the factory back in Ite old production process within four months and Install the new process by manufacturing a new stripper in another 16 to eighteen months.
The inquiry committee headed by Prof Iqbal Mahmud of the Department of Chemical Engineering. University of Engineering and Technology, found that the Toyo Engineering Corporation had Installed the ACES process which was not a proven one.
Two strippers were earlier installed in South Korea and Spain for factories with a daily capacity of 600 and 750 tonnes respectively. But the Ghorasal Urea Fertilizer Factory had a capacity of over 1400 tonnes a day.
The Toyo Engineering Corporation had also got the critical machinery — carbon dioxide stripper’ manufactured by the Olmi firm of Italy, not tn the short fist of the firms in contract with the Bangladesh Chemical Industries Corporation (BCIC). This it did to save 46 per cent of the money earmarked to manufacture the stripper, the report said.
The stripper installed In Korea was manufactured by a first class firm in Japan, the minister said.
The authorities concerned are now formulating charges against those who had initiated the project violating administrative procedures, and preparing to claim damages from the Toyo Engineering Corporation responsible for the accident
On the violation of administrative procedures, the Industries Minister said that BCIC had signed a contract with Toyo without getting the project approved by the National Economic Council. Presidential approval was taken three months after the signing of the contract.
Again. the National Economic Council had opined after one-year of the signing of the contract that the project should be dropped.
But the project was continued disregarding this, Shamsul Islam Khan said.
He said that the management and the employees union of the factory were opposed to the factory, because in their opinion it was not technically and economically viable.
A project proforma prepared for the project made wrong calculations to show that the rate of return would be 15. whereas the rate of re turn was actually negative.
The revamping project was •gain undertaken only two years following the implementation of Taka 60-crore again Balancing Modernization Renovation and Extension (BMRE) project expected to keep the factory operational till 1996. The BMRE project was also implemented by the Tbyo Engineering Corporation.
The Minister said that employees of the factory who had protested against the move to take up the revamping project were subjected to various harassments and some of them were put In detention to get it through. An Assistant Secretary of the ministry who had raised objections was also harassed.
The project, the minister said, was pursued by man who once held the post of Chairman of the BCIC and then became secretary, Ministry of Industries, by utilising both his positions.
The Taka 350 crore spent for the project included Taka 100 crore from the government of Bangladesh and the remaining amount from a Japanese loan.
The Industries Minister said that the Toyo Engineering Corporation has agreed to pay compensation to the families of the deceased. It also arranged for treatment of five of the seriously injured.
Steps would be taken soon to charge-sheet those responsible for turning the factory into a losing concern, undertaking the revamping project flouting administrative rules, and claiming damages, the minister said.
The Factory used to earn a profit of Taka 12 crore a year. Due to the project it will incur a loss of Taka 18 crore.
Assistant Secretary Moinul Hossain who had taken the courage to raise objection to the project, and two workers of Ghorasal Fertiliser Factory who had stopped further release poisonous gas by risking their lives following the accident would be rewarded.
Dr Iqbal Mahmud. Chairman of the Committee. Shaflul Alam. Secretary. Ministry of Industries. Habibur Rahman, Additional Secretary in charge of the Science and Technology Division who was also a member of the committee and Nefaur Rahman. Chairman BCIC were also present at the news conference.
The Industries Minister said that Bangladesh was grateful to the people and the government of japan, the single largest donor for-Bangladesh, for their generous assistance. But at the same time it looked forward to proper implementation of Japanese assistance programmes so that economic cooperation became stronger between the two countries in future.
He said during the rule of the previous government, many projects did not yield expected results due to lack of proper planning. We hope that properly planned Japanese economic and technical assistance and cooperation to economic and industrial development of Bangladesh will expand tn future', he said.