2nd bidding may be delayed by 45 days

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After wasting more than two years with the first tender, Gas Transmission Company Ltd (GTCL) is now trying to delay the second tender to set up four gas compressor stations that would help increase of gas supplies by 800 million cubic feet a day from late 2009.

Sources said the GTCL floated the second tender for the Tk 304 crore project on January 23, with a closing date of April 21. But, the GTCL is now pushing the project’s financier Asian Development Bank (ADB) to extend the tender closing time by another 45 days to increase participation of bidders.

The GTCL’s attempt to favour a certain bidder caused cancellation of the first tender that was floated two years ago. If that tender had been successful, the country would have adequate gas supplies to generate more power and to maintain gas-based industrial outputs now.

Petrobangla’s affiliates currently supply around 1750 million cubic feet of gas a day against a demand of more than 2000 million cubic feet a day. Due to this short supply, the authorities are rationing gas in selected industrial areas and are being compelled to produce less gas-fired power, resulting in huge economic loss for the nation.

“Given the constraints, the government should attach highest importance to the implementation of the project. The GTCL cannot be allowed to tamper with the bidding process as it did previously,” said an official.

If this tender is closed on April 21, the GTCL can complete evaluation of the bids and award the contract in three months. It will take another 18 months to install the compressor stations.

Insiders say a number officials of the GTCL are once again trying to delay the tendering process to accommodate a certain bidder which is “not ready” to submit its bid unless time is extended.

The GTCL kick-started the project back in November 2005 through appointment of a consultant. The GTCL floated a one-envelope tender on April 16, 2006 with a closing date of July 16, 2006. Three bidders submitted bids in the tender.

But during the tender evaluation process, the GTCL suspiciously sat on the decision. Complaints were lodged with the government and the ADB that the GTCL was making delays to award the project to a certain bidder. Upon an investigation by the ADB, the allegations were found to be true and the tender was cancelled.

“The investigation found that some GTCL officials and a compressor supplier named Solar had formed a nexus so that only Solar gets to sell the compressors through unfair means and irregularities,” said an official adding that the ADB then blacklisted Solar for the project and the GTCL fired an engineer.

“We hope nothing of this sort will happen this time,” he added.

The compressors were to improve gas transmission by increasing gas supply pressure. Most of the gas fields are located in the northeast and central regions of the country, while the delivery points are located throughout the country. However, in places far away from the gas fields, gas can not be adequately supplied due to low transmission pressure.

The GTCL upon analysing the most cost-effective solution to improve gas supplies to these far-off locations opted for the compressor stations over setting up new gas pipelines. These stations will be set up at Ashuganj (south and west), Rashidpur and Elenga under “Gas Transmission and Development Project”.

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