BSC seeks to bend procurement rules

Syful Islam | Published: November 23, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

The state-run Bangladesh Shipping Corporation (BSC) finds PPR or public procurement rules clumsy and seeks immunity for quicker purchase of old or yard-ready vessels. However, planning authorities stand opposed.
Officials said the Implementation Monitoring and Evaluation Division (IMED) under the planning ministry has made it clear that going by the PPR is mandatory for a public sector corporation in any procurement.
Talking to the FE Sunday, BSC managing director H R Bhuiyan said there are a few conflicts between the procurement process under the PPR and the international rules in this regard.
He finds the procurement process under PPR very complex and lengthy.
For example, Mr Bhuiyan said, international rules allow a ship owner to carry out negotiations at a time with several interested buyers. But under the PPR, a ship owner can conduct negotiations with only one buyer at a time.
Besides, he said, the ship owner needs to provide security bond that he or she would not start talks with other interested buyers until conclusion of talks with Bangladeshi buyer.
Mr Bhuiyan noted that to start talks for selling a vessel to the corporation, a ship owner needs to keep vessels 'idle' for several months without any assurance that the BSC will definitely buy it.Â Â Â Â
"The complex procedure discourages owners from selling vessels to Bangladesh. Thus, we get very few offers when we express interest to buy ships," he said.
Justifying the BSC's plea for exemption from PPR in vessel procurement, Mr Bhuiyan said Biman Bangladesh Airlines has been given such immunity in case of buying aircraft from its own fund.
He cited the example of Norwegian Sales Form which made selling and buying process so swift and simple.
Replying to a query he said presently the BSC is not allowed to buy old vessels following an order from the prime minister's office (PMO). But, it is allowed to buy shipyard-ready vessels.
Opining on BSC's plea the IMED said the central procurement technical unit (CPTU) has no jurisdiction to give waiver from PPR to any public body in case of any procurement.
It said in some cases direct-purchase method and limited-tender method could be followed. But in case of the direct-purchase method negotiation is mandatory.
It also said in case of state emergency the cabinet committee on public purchase can allow any state body to procure anything pursuing direct-purchase method or other methods considering public interest.
"Since BSC is a statutory corporation, the public procurement act and the PPR is mandatory for its any type of procurement," the IMED opined.
The BSC is presently negotiating procurement of six new vessels - three bulk carriers and three oil tankers - with Chinese funding. Its bid to buy an old vessel was cancelled recently following objection raised by the PMO, the sources said.
Â Â Â syful-islam@outlook.com