All preparations have been completed for the much-debated supply, installation and commissioning of a multimode surveillance system comprising radar and other equipment at the city's Hazrat Shahjalal International Airport (HSIA).
The cost of the public-private partnership (PPP) project is estimated abnormally high at Tk 8.48 billion (848 crore).
Deputy Manager of Investment Promotion at the government's PPP Office, Abul Bashar, has told the FE that the feasibility study has already been completed and tender documents also prepared.
The documents were sent to the Civil Aviation Authority of Bangladesh (CAAB) on February 8 last seeking approval of the ministry concerned.
"We have not got any feedback as of now after sending the tender documents. CAAB has informed us that they are taking time as three line officials including the CAAB chairman have been transferred recently," said Mr Bashar.
On April 17 in 2012, the CAAB submitted a proposal for Supply, Installation and Commissioning of the Multimode Surveillance System comprising radar, ADS-B and Wide Area Multilateration (WAM) alongside ATC and Communication System at the Hazrat Shahjalal International Airport at an estimated cost of Tk 8.48 billion under the PPP Office.
The CAAB had earlier said the tender would be floated by November 2014.
An unsolicited bidder quoted the project cost at Tk 900 million (90 crore). But the price was later increased to Tk 1.90 billion when it was first sent to the cabinet committee on economic affairs (CCEA). But the CCEA sent back the proposal again as there were media reports criticising the project cost as excessively high.
In August 2013, the same unsolicited bidder, Karim Associates, sent the proposal increasing the cost to Tk 3.30 billion and the CCEA approved it in September that year.
Asked whether any security instrument like radar could be installed under the PPP arrangement and how the project complies with the PPP principles, Mr Bashar said this kind of project is rare but the process has been completed in consultation with the International Civil Aviation Organisation (ICAO).
"A team of ICAO has conducted the feasibility study and tender documents have been prepared as per their guidelines," he said.
"This security does not necessarily mean national security and it is well known that our maintenance skill is very poor," he added.
The present primary and secondary radar systems were installed in 1984 and 1986 respectively. Both the radar systems were repaired and overhauled in 1987 and 1994 and upgraded in 2008. ATC and VHF systems were installed in 1979. But the CAAB has been running well the surveillance systems for long with the help of the radar by maintaining them. That does not show their skill is poor.
Mr Bashar further explained there are various modalities of PPP and right now the government cannot invest for any radar or other airport upgradation system.
The estimated project investment would be made by the private partner thus reducing the burden of the government and the tender would be open and competitive, Mr Bashar said.
"The project was an emergency one. But we do not understand why CAAB is not responding," said Mr Bashar. "We have conducted the feasibility study by ICAO and the terms and conditions are also set by them to maintain transparency," he added.
When contacted, CAAB Chairman Air Vice Marshal M Sanaul Haque declined to comment on the issue.
Civil Aviation and Tourism secretary Khorshed Alam Chowdhury who presented the CAAB proposal to the cabinet committee, said the tender documents were lying with the CAAB.
When asked whether installation of any surveillance system under PPP was logical, he said definitely it was logical and, if not, why the CAAB had made the proposal.
But experts say the total air traffic management (ATM) income is calculated altogether. The return from radar and other communication equipment is not calculated separately. The CAAB does not have a separate account on the income from radar. Then how will the government pay the installments? In future there may be audit objections over such spending and graft cases may be filed.
Policy Research Institute of Bangladesh (PRI) Executive Director Ahsan H Mansur said many international airports are constructed and managed under the PPP arrangement. But radar is a sensitive issue, he added.
"In this case we are focusing more on installation of an instrument bypassing the main things as there is a scope of bribing while purchasing any equipment," said Mr Mansur.
Transparency International Bangladesh (TIB) Executive Director Iftekharuzzaman said any government project can be executed under the PPP, but the due process and PPP guidelines must be followed.
He said in the event of this project three things must be taken into account: whether PPP rules are followed, whether the lowest price is being followed and on what basis a single source is determined.
According to the CAAB proposal, the Tk 8.48 billion project cost includes the estimated project investment of Tk 2.67 billion, the Tk 4.92 billion compound interest income on the investment, the Tk 760 million profit to the private partner (10 per cent of investment cost and interest income) and the overhead cost (five per cent of the investment) of Tk 130 million.
An annual instalment of Tk 848 million will be paid to the private partner on account of the compound interest income on the investment, profit to the private partner and the overhead cost over a period of 10 years.
The CAAB has also mentioned that it can earn Tk 200 million in 10 years, Tk 7.17 billion in 15 years and Tk 19.73 billion in 20 years.
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Nod to bidding for radar project under PPP yet to come
Kamrun Nahar | Published: April 11, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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