The cabinet committee on public procurement is set to approve on Wednesday procurement of six vessels by the Bangladesh Shipping Corporation (BSC) at a cost of US$171 million from a Chinese company, officials said.
Each bulk carrier of 36,000 DWT (deadweight tonnage) will cost the BSC US$27 million. The corporation had signed a memorandum of understanding (MoU) with the China National Machinery Import and Export Corporation (CMC) on April 30, 2014.
The Ceylon Shipping Corporation (CSC) of Sri Lanka also had signed a MoU with a Chinese supplier in December 2013 to buy each 63,600 DWT bulk carrier, almost double the BSC's one in size at $35 million.
Some officials at the economic relations division (ERD) and the ministry of shipping (MoS) had questioned about 'high price' of the vessels the BSC is going to purchase.
Recently, Bangladesh Ambassador to Sri Lanka Tarik Ahsan in a letter to the ministry of foreign affairs informed that the government of Sri Lanka was now probing procurement of the ships whose 'prices appeared to be on the higher side' (alluding to some kikckbacks).
A senior ERD official said the size of the CSC's bulk carriers are almost double than the BSC's but the price difference between them is $8.0 million for each vessel. The price of the BSC's bulk carriers should be much lower compared to Sri Lankan ones.
He said the CSC has bought the vessels comparatively at much lower prices than the BSC's, but the Lankan government is now probing the procurement apprehending irregularities.
"If there are irregularities in case of the CSC's vessel procurement, I think the same has definitely happened in case of the BSC's purchase," he added.
He also said when the vessel price is going down globally, the BSC is buying the same at higher prices.
The official said the cabinet committee should re-check the prices before giving approval to the BSC's vessel purchase.
When contacted, newly appointed managing director of the BSC Habibur Rahman told the FE Monday that a committee has fixed the price, taking into consideration related issues including international market price.
"I have gone through the documents but did not find the prices high," he said.
Replying to a query, he said the cabinet committee will take the final decision on Wednesday. "At this stage, I can't make any comment whether the prices are high or low."
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