Chinese co set to win Dhaka-Ctg four-lane highway project

---

Munima Sultana
A Chinese company is set to win contract to build Dhaka-Chittagong four-lane highway after its bidding price beats offers from 18 other foreign and local firms, officials said Saturday.
Communication ministry officials said Chino Hydro has been primarily selected to build eight of the ten blocks in the Tk 24 billion 200-kilometre four-lane project.
"It is almost confirmed that Chino Hydro is getting the work for building the Dhaka-Chittagong four-lane highway," a senior official close to the bidding process told the FE.
The Chinese company's bidding price is lowest among the 18 companies that finally competed for the key project, the official said adding construction of the road would begin in December.
Three local companies are expected to construct the remaining two blocks in the road, which is the biggest road construction project in the country.
Officials said experts doing technical assessment of the project are now in China to evaluate the company's capacity and proposals and will report to the Cabinet's purchasing committee after returning home this week.
The bid winners will be formally unveiled later this month, after the post-evaluation report by the technical committee and subsequent approval by the purchasing committee.
The key government project initially attracted 27 companies from China, India, Malaysia and Hong Kong. Later, 18 companies took part in the final bidding closed on September 8.
The authorities have expedited the bidding process after it declared the Dhaka-Chittagong four-lane project one of its top priorities in view of increasing foreign trade through the Chittagong Port.
The port now handles more than 95 per cent of the country's US$ 37 billion foreign trade, most of which is transported into the country and outside through the Dhaka-Chittagong highway.
Some 90 per cent of the country's manufacturing companies are also situated on the Dhaka-Chittagong economic corridor, making the road the busiest in the country.
Plans to expand the highway into four lanes were initiated in 2004, when the country first clocked six per cent economic growth due to booming garment exports and remittance.
But biddings for the project were twice cancelled following allegations of unfair competition among the local companies.
The government later amended its procurement rules, allowing foreign companies to take part in the bidding - allegedly under intense pressure by the donor agencies.
Officials said participation of foreign companies would ensure high standard of work, fair competition and transfer of technology and expertise.
Local companies have protested the government decision, arguing that they have already constructed big highway projects such as first phase of Dhaka-Chittagong four-lane project and Dhaka-Sylhet highway, maintaining high standard.
They also alleged that many foreign companies after winning bids have sub-contracted the projects to local companies, albeit devouring lion's shares of the profit.
"By contracting the work to a company from China, the government will in fact bring low standard technology," said one of the bidders of the four-lane project.
Government officials, however, rejected local companies' criticism, saying the Chinese company set to win the project has constructed many world class infrastructures at home and in developed countries.