The parliamentary standing committee on the ministry of health has decided to cancel the tenders for two out of the four packages of the Tk 100 crore Second Health and Family Planning Services project funded by the ADB.

At a meeting on Apr 27, the standing committee also recommended re-tender for the two packages.

The decision was taken after investigation by the Parliamentary Estimate Committee (PEC) headed by Dr Mizanul Haq MP.

The parliamentary standing committee took cognizance of the report and constituted a three member sub-committee headed by State Minister for Health M Amanullah.

When contacted, Chairman of the Standing Committee Dr Kazi Abu Yusuf said. 'The subcommittee after reviewing ail the papers and documents submitted a report to the standing committee. After a very careful examination and taking all aspects into consideration." the standing committee decided to cancel tenders for two of the four packages of the project.

"For package one we recommended that it should be re-

tendered because the lowest bid Erice was about 50 per cent igher than the estimated cost.

Package two should also be retendered because the bid prices were about 100 per cent higher than the estimated cost. In the same package, only one bid was found technically responsive which did not make a competitive price bid." he said.

"For package three, the standing committee decided that the financial offer of reputed company Siemens (Bangladesh) Limited which had fewer material deviations and also recommended by the chairman of PEC should be considered and that the tender bid be opened and the lowest bidder be offered the contract." Abu Yusuf said.

"Package four was found to be in order. We decided that the PMU may open Letter of Credit for the package." he added.

The Daily Star on March 28 ran a report on irregularities in evaluating the tender offers of the project worth about Tk 100 crore. The project is being monitored by the PMU headed by its project director Nazrul Islam. Our story was later challenged by the PMU.