The Cabinet Committee on Public Procurement (CCPP) on Wednesday approved procurement of 0.1 million electronic fiscal devices (EFDs) to collect value added tax (VAT).
According to the National Board of Revenue (NBR) proposal, a Chinese company - SZZT-KMMT-SYNESIS-EATL - will supply 10,000 devices at a cost of Tk 32,000 each in the first phase.
Briefing newsmen after a meeting of the CCPP at Bangladesh Secretariat, Finance Minister A H M Mustafa Kamal said these devices will be needed to collect VAT under the new VAT and Supplementary Act, introduced in July.
The NBR, after buying the devices, will supply those to shop owners. The receivers of EFDs will pay back the price in long-term instalments.
Replying to a query, the minister said the NBR previously estimated that the price of each EFD will be Tk 49,000. But the winning bidder quoted Tk 32,000 price for each device.
When his attention was drawn to lack of experience of the Chinese company in supplying such devices, Mr Kamal said, "We've asked it to supply 10,000 devices (at first). Otherwise we may have ordered 0.1 million (at once)."
The minister claimed that the Chinese supplier - SZZT-KMMT-SYNESIS-EATL - is a big company, and he knows about it.
"I know about the company. It is a big one. But I also have doubt how experienced it is in supplying such devices."
The minister, however, said: "The company officials have demonstrated their machines to us. We've found that these are very effective. We've examined all necessary things."
"Since the company has become the lowest (bidder), we must give them a chance."
At one stage, Mr Kamal further said he will also buy EFDs from all the companies that participated in the tender process.
The CCPP meeting also approved procurement of small equipments for Gopalganj 100-MW Peaking Power Plant, variation order for re-powering of Ghorashal Power Plant Phase-3, procurement of 30,000 tonnes bagged granular urea fertiliser, and dredging of old Brahmaputra, Dharla, Tulai and Punorbhoba rivers.
Before that the Cabinet Committee on Economic Affairs approved the proposed drafts of Onshore Model PSC-2019 and Offshore Model PSC-2019.
Briefing on the issue the finance minister said Bangladesh has gained a large area after settling maritime boundary disputes with two neighbouring countries. But the country's undersea resources are yet to be explored.
"We will float international tender soon in this regard."
The international oil companies (IOCs) are showing little interest to explore the sea resources, as fuel oil prices in the global market have dropped, he noted.
Mr Kamal hoped to get better response from the IOCs following approval of the new PSCs (production sharing contracts).
The cabinet committee also approved building Bay Terminal by PSA Singapore under public private partnership (PPP) initiative. Some US$ 2.5 billion will be needed to build the terminal for enhancing the capacity of Chittagong Port.
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