Legal experts have given the green signal for awarding the river-training work under the Padma Multipurpose Bridge project to a Chinese company which drew criticism for poor performance in an important highway expansion project, sources said.
Bangladesh Bridges Authority (BBA), the executing agency of the US $ 3.0 billion project, sought legal advice from a reputed private firm after facing disapproval by different quarters about awarding Sinohydro Corporation Limited being the lowest bidder.
"It is now only a matter of time to award the work to the Chinese company as we have got the opinion from the lawyers as recommended by the project- design consultant," said a project official.
He said since the company's offer was the lowest among three bidders who participated in the financial bidding, the consultant guided the project office in seeking the legal advice on the question of awarding the work to the Chinese company.
Of the three firms that had submitted the financial offers for the Tk 90 billion river-training works, Sinohydro was found the lowest offering Tk 87 billion. The gap was Tk 40 billion with the second-lowest offer.
Hyundai Engineering and Construction Co Ltd of Korea offered Tk 121 billion and Jan De Nul NV of Belgium Tk 160 billion for 14-kilometre river training.
The Sinohydro has landed in controversy for their poor performance in the country's Dhaka-Chittagong highway four-lane project that led to delays in expansion work on the road, considered economic lifeline of the country.
When the two other companies almost completed almost 80 per cent of the two-package works, the Chinese company could manage to complete 40 per cent. The company has been responsible for 70 per cent of the 193-kilometre highway by offering what the experts say much lower than the real construction cost.
The Chinese company won the work at Tk 16 billion in 2010 but faced severe fund crisis within two years of start, which caused delay in completing the project within the timeline up to last December.
The cost of the Dhaka-Chittagong Four-lane project has been up by over Tk 10 billion and the project-completion time is now revised up to December 2014.
In such a situation, experts have expressed their doubts over timely completion of the river-training works by the company. They lamented that instead of punishing, the government, through giving the Padma-like important project's works, is going to "reward" the company.
They also doubted the company-selection technicality as the Sinohydro was on the World Bank's black list and its performance in the country's important project is also not satisfactory.
Commenting on the legal advice which also goes in favour of the Chinese company, another legal expert also said if the advice is given in the light of spirit of letter, the Chinese company would not be responsive as the lowest bidder.
The expert, who cannot be named under the briefing terms, said in most of the cases legal advice is given in the light of letter of law.
Asked about economic impact in case of delay of the project due to awarding a company whose reputation is low in performance, MA Taslim, professor in Economics Department of Dhaka University, said a company can only be awarded when it can complete a work in time.
"When it has been proven that the company could not complete the project in time as per the contract, the Padma Bridge-like important project may face the same consequence if they are awarded," he added.
The Padma Multipurpose Bridge project has taken up a total of 14km river- training works on both sides of Mawa and Janjira side to protect the river from erosion and ensure the river water flowing below the 6.15-kilometre bridge at least next 100 years.
The work is scheduled to be taken from 1.6 km on Mawa and 12.4 km on Janjira side.
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