The Bangladesh Shipping Corporation's bid to procure six ocean-going vessels with Chinese assistance has come under a fresh threat.
The officials of the Chinese Exim Bank, which had agreed to make available $171 million to the BSC for procuring the vessels, Monday last threatened to divert the loan if the corporation failed to secure the consent of the Bangladesh government by October next to sign a financial deal, sources said.
"Unless you get the government's approval by October we won't be able to provide the loan this year and our next year's priority list may be different. The fund may be diverted to other sectors in this case," Chinese EXIM Bank officials were quoted as saying in a closed-door meeting with the Bangladesh officials concerned in Dhaka Monday.
To procure three bulk carriers and three oil tankers, the BSC on April 30 last had signed a commercial contract with the CMC (China National Machinery Import and Export Corporation). Chinese EXIM Bank had agreed to provide a soft loan to fund the procurement.
However, the government is yet to give approval of the commercial contract, signed between the BSC and the CMC.
Sources said the BSC did not take approval form the ministry of law or other ministries concerned before signing the commercial contract with the CMC. After that, the issue of vessel procurement from China was sent to the Cabinet Committee on Economic Affairs (CCEA) for approval.
However, the CCEA at a meeting on July 14 did not approve the BSC decision and asked the Ministry of Shipping (MoS) to submit it again before the committee with opinion and vetting from the Economic Relations Division, the National Board of Revenue, and the law and parliamentary affairs division.
Official sources said after two months of the CCEA directive, the MoS on September 15 sent the issue of vessel procurement to the ministries and divisions concerned for opinion and vetting.
When contacted, BSC managing director Moqsumul Quader told the FE procedural delay was impeding ship procurement for the corporation which badly needs to expand its fleet.
"If we want to materialise the move of vessel procurement, we will have to complete all the processes by next month for signing financial contract with Chinese Exim Bank," he said.
Mr Quader was hopeful of completing the procedure by October saying: "It is possible through combined efforts of ministry, corporation and other concerned."
Presently, the Corporation has 13 ships in its fleet. Of these, one is container ship, 10 are product carriers and, two are lighterage tankers.
A BSC official said the average age of the BSC ships is 28 years which need to be replaced very soon.
Established in 1972, the BSC is entrusted with the responsibility of carrying bulk cargo, food grain and crude oil, chartering, tramping and feeder services, unloading and providing agency service and ship repairing.
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