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Dissension over evaluation of NGL plant bid make IDA credit to lapse

By Toufique Imrose Khalidi
Delay, lack of professionalism. and then difference of opinion, in the evaluation of bids for a multi-million-dollar natural gas liquids (NGL) processing plant has resulted in the non-utillsatlon of the IDA credit available for the project.
The-NGL processing facilities at Ashuganj is part of the Second Gas Development Project (SGDP), funded by the International Development Association (IDA), the World Bank's soft lending arm.
More than a year after ten-der was first floated for the IDA-funded project, it would now be financed by the Government, spending about 40 million dollars from the country s scarce ADP resources.
The plant is to produce propane, liquified petroleum gas (LPG), petrol, kerosine and high speed diesel.
An accord between the IDA and the government said that the contract for the work would be finalised by mid-December 1991,but till to date it is yet to be ready.
After a second evaluation of financial proposals from three technically "substantially responsive" bidders, in May the contract had been awarded to a Canadian company. Colt Engineering Corporation, with reduced liability.
As the Petrobangla decided to award the job to Colt and called the company for precontract negotiations, the World Bank objected to the deviations from tender specifications.
Meanwhile, the closing date of the credit. June 30. expired and the Government decided to provide funds from its own resources.
According to sources, the blame could be put on the I’etrobangla's Infrastructure consultants, the Pencol Engineering Consultants, which sowed the seeds of discord by clearing the lowest bld as "responsive" at one stage and then again saying later that the bid was non-responsive."
The sources say that Pencol's initial evaluation was unprofesslonally done which is apparent from the fact that the consultants had approved the technical proposal of the Colt and subsequently they communicated in writing to the Project Implementation Unit that the Colt's technical pro posal was unresponsive and should be rejected.
With the existing subm^-slons, a contract with the Canadian company docs not give sufficient protection to the Government In respect of claims and liabilities and ensure that there will not be un determined cost Increases to rectify technical deficiencies.
Now the project Is expected to be delayed by more than two years ensuring extra employment for the consultants for the period. Pencol was also consultants for the North South pipeline project which had been completed more than one year behind schedule As a result, the Government is facing litigation with the contractor, the Satpem of Italy.
(Detailed story on Psge 7)