The energy ministry may decide early next week the fate of the rehabilitation project for the 30-year-old Ghorashal power units suspended since early last year.

The rehabilitation project was halted when its Russian contractor --Technopromexport -- tried to force the Power Development Board (PDB) to accept the plant's heavy machinery without making its contract 'effective'.

Sources said the ministry has now decided to resolve the issue once for all. "Over 90 tonnes of power plant equipment have been

lying idle at the Mongla port for over a year now. Something must be done about it immediately," said an official.

The contract with Technopromexport, signed in May 2000, remained suspended due to gross procedural violation. Later, the suspension was withdrawn, but the contract remained ineffective.

In February 2001, the Russian company imported the heavy equipment and asked the PDB to accept them.

But the PDB said the contract was still ineffective as the company did not submit any bank guarantee and fulfil other obligations.

In addition, the PDB could not decide on accepting the equipment as these did not have any builder's guarantee.

The PDB signed the US$ 17.7 million contract, bypassing the Economic Relations Division (ERD), for the Ghorashal power units 1 and 2 rehabilitation project under suppliers' credit scheme on May 31, 2000. Following the contract, an irate ERD objected to the deal and an inter-ministerial investigation was undertaken. The contract was also suspended.

However, while the investigation committee proceeded with its work at snail's pace, Technopromexport on January 14 suddenly announced that a big consignment of equipment and other materials would soon arrive at the Mongla port and the PDB should immediately clear these from the customs.

The Russian company did it in spite of suggestions from the PDB not to import any equipment without making the contract effective. The equipment were later discovered to be old and refurbished and have been lying with the Mongla customs till date.