In a bid to resolve various problems of the trouble-infested fertiliser company Kafco. its partners will hold a meeting with Finance Minister SAMS Kibria on March 7. sources said.

The meeting would try to address Kafco’s pending gas bill issues, poor machinery replacement and loan issues.

The sources said the meeting Will be participated by Kafco Japan Investment Company President Yoshinori Matsuura. Chairman of Haldor Topsoe A/S. Copenhagen. Dr. Holder Topsoe and IFU representative Martin M Kristensen.

Industries Secretary and Chairman of Kafco KM Ejazul Huq. Chairman of Bangladesh Chemical Industries Corporation M Anwarul Hoquc and others will also participate in it.

The Kafco partners will also meet the Industries Minister afterwards.

Sources said that the foreign partners of Kafco are likely to press the government further to accept the commercial settlement proposed by general contractors Marubeni and Chiy-

oda. Both these companies are also lenders of the Kafco project.

The government has also formed a nine-member committee headed by the Finance Minister to probe into irregularities in Kafco.

Since inception in 1995. Kafco has incurred a loss of USS 120 million due to mechanical failures. The plant was shut down as many as 37 times since it was put into place. The export-oriented fertiliser factory, which gets natural gas at a rate much lower than any other consumer in the country, has not also paid over US$ 12 million in gas bill.

The government's refusal had prompted the Overseas Economic Cooperation Fund (OECF) of Japan to put pressure on Bangladesh,

Industries Minister Total! Ahmed in a meeting with OECF lasl month said that the plant was poorly built with low-quality equipment resulting in frequent breakdowns. He said, “if the plant is accepted as it is.

past and future losses due to mechanical and technical problems would emerge as a great concern for a poor country like Bangladesh."

He also maintained that excepting for Bangladesh, all others involved with Kafco had already made profit from Kafco.

The OECF. along with two Japanese companies. Chiyoda and Marubeni, holds 31.29 per cent share of Kafco while the BCIC owns 43.51 per cent.

Meanwhile, the current managing director and former managing director of Kafco are blaming each other on poor performance of the fertiliser factory.

Kafco MD'John H Wilson in a well-circulated letter alleged that Kafco’s former MD Dr M Towhidi was responsible for the poor performance of Kafco. On the other hand. Dr Towhidi said that the fertiliser plant was performing poorly as the general contractors (Chiyoda and Marubeni corporation) provided low-quality machinery and services.

Dr Towhidi also alleged the present MD of being "subservient to the will of Marubeni. Chiyoda and Haldor Topsoe and criticised him for joining hands with them to make the government agree to the so-called commercial settlement.

The former MD, who served in Kafco for five years till mid '98, maintained that the proposed commercial settlement with Chiyoda and Marubeni would make irreparable damage to Bangladesh.