Munima Sultana

The government prefers participation of foreign companies in the bidding for construction of the Tk 23 billion Dhaka-Chittagong four-lane highway project to ensure 'competition' in the process.

Communication ministry sources said as the previous bidding on the same project, which was cancelled in July 2008, created scope for formation of a cartel the government is considering bringing changes in the public procurement rules (PPR) to ensure fair competition.

They said changes are being considered keeping in mind the large volume of work in the 200-km highway. The changes would also be necessary to foreign investment and transfer of technology.

"This is to ensure better competition and save government money," Communication Minister Syed Abul Hossain told the FE.

He said the government is working according to the PPR to avoid possible cartel in the construction work.

"If the number of local construction companies is close to the number of work segments, there is possibility of syndication," the communication minister said adding that government is committed to holding fair competition in the bidding and ensure quality work.

Ministry sources said bidding for construction of the four-lane Dhaka-Chittagong highway was cancelled last year as the nine out of 10 pre-qualified local bidders were finally selected for the work of 10 blocks.

They said apart from 10 to 12 companies, others companies were not capable of ensuring quality in work.

Some 27 companies were pre-qualified to participate in the final bidding for working in 10 blocks from Daudkandi bridge in Comilla to Chittagong Port city.

A source in the ministry concerned said possible changes in the bidding process are likely to be made in the provision of giving priority to local companies and increase the limit of direct cash purchase.

He said in the changed PPR, the local companies will get scope for working with the foreign companies, which will eventually help the local firms build their capacity.

When asked, a director of one of the pre-qualified companies differed with the government claim about poor capacity of the local firms and said many local companies have proved their skills in building quality infrastructure in the country.

He particularly referred to successful completion of construction of Dhaka-Khulna highway and four-lane road from Dhaka to Daudkandi bridge and said the Chinese company, which was given the work of Hatikamrul-Bonarpara road construction, was disqualified and two local firms completed the work.