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Cabinet body rejects losing road contract

Turns down inflated health ministry proposal, okays 4

STAFF CORRESPONDENT
A meeting of the Cabinet Committee on Purchase yesterday rejected a communications ministry proposal for awarding a Tk 9 crore contract to a private firm to collect Tk 8 crore in revenues for the government.
The proposal projecting a Tk 1 crore loss was for contracting a certain private company to operate and maintain the 74km Jagadishpur-Sherpur segment of the Dhaka-Sylhet highway and also to collect road tolls.
Meeting sources termed the
proposal grossly flawed. One of them said, “Firstly, how can they want to pay this contractor Tk 9 crore when the income from this road is Tk 8 crore? Then, as this is an operation and maintenance contract, why there is no description of what maintenance tasks will be undertaken?”
The cabinet committee directed the communications ministry to either reduce the contract amount to a reasonable level or to scrap the whole idea and run the toll centre
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and maintain the road on its own, using its departments concerned.
The purchase committee meeting also rejected a health ministry proposal for construction of the main building of the proposed National Institute of Neuro Sciences in the city's Sher-e-Bangla Nagar.
The health ministry sought Tk 42 crore for the building job, which the committee found to be highly inflated. It asked the ministry to revise and reset the expenditure at a sensible amount, meeting sources said.
However, the meeting approved four proposals--one from the communications ministry, two from the Power Division and the last from the industries ministry.
The communications ministry proposal approved yesterday was for extending by 11 months the contract period of its consultant for developing an integrated Strategic Transport Plan for the Dhaka Urban Transport Project.
The committee approved the Power Division's proposal to endorse an agreement between the Rural Electrification Board (Reb) and Summit Power to expand Summit's 11 MW power plant at Savar by 25 MW. Summit will charge the Reb Tk 2.02 per kilowatt power.
The contract also makes Summit the least-cost power supplier, as it has agreed to always charge the Reb at a unit rate Tk 0.03 lower than that of any other power supplier.
The purchase committee also okayed the Power Division's proposal for extending the tenure of an adviser to the pre-paid power metering pilot project under the Power Development Board (PDB). The PDB has appointed Fichtner GmbH as consultant for this pilot project
funded under a German grant.
The industries ministry proposal cleared by the meeting was for importing 62 thousand metric ton fertiliser.