Petrobangla, ministry at loggerheads
Sunday, 15 May 2011
FE Report
Energy ministry and Petrobangla are at loggerheads over appointment of a consultant to help build the country's first liquefied natural gas (LNG) import terminal at Moheshkhali island, officials said Thursday. The energy ministry is interested to select a US firm, CH-IV International, although the firm has quoted a higher price and lacks sufficient expertise, they alleged. CH-IV has quoted US$2.70 million to carry out the consultancy job, while another bidder Poten & Partners offered almost half the price at $1.5 million, a senior Petrobangla official said. Despite quoting of higher price the CH-IV was primarily selected by the energy ministry, it was alleged. But the multilateral donor agency -- World Bank -- which is set to finance the project work has declined to award the job to CH-IV International smelling rot in the selection process. The WB has already informed the energy ministry of its inability to approve awarding of the job to CH-IV because of its insufficient experience and higher price, said officials. Following opposition from the WB, the energy ministry sought to get the awarding of the consultancy job to CH-IV endorsed by Petrobangla, they said. job to CH-IV International. Officials fear if the CH-IV is awarded the consultancy job the entire project of building the LNG import terminal at Moheskhali island in the Bay of Bengal might be in jeopardy. Officials said a consultant is required to provide support to state-owned Petrobangla for execution of the floating LNG import terminal project. In addition, the firm will have to draw up a plan for LNG imports to the terminal. Petrobangla in June last year had sought expression of interest for the consultancy services where 28 global companies had participated. The selected consultant is supposed to receive payment from a grant given by WB's International Development Agency, under Power Sector Development Technical Assistance Project in Bangladesh. Petrobangla has already primarily selected 10 potential bidders to build the LNG import terminal and associated facilities, which it aims to complete by 2012. The terminal will have the capacity to handle five million tonnes of LNG per year and a re-gasification capacity of at least 500 million cubic feer per day (mmcfd) of gas. But impasse in selection of the consultant is delaying implementation of the project, said officials.
Energy ministry and Petrobangla are at loggerheads over appointment of a consultant to help build the country's first liquefied natural gas (LNG) import terminal at Moheshkhali island, officials said Thursday. The energy ministry is interested to select a US firm, CH-IV International, although the firm has quoted a higher price and lacks sufficient expertise, they alleged. CH-IV has quoted US$2.70 million to carry out the consultancy job, while another bidder Poten & Partners offered almost half the price at $1.5 million, a senior Petrobangla official said. Despite quoting of higher price the CH-IV was primarily selected by the energy ministry, it was alleged. But the multilateral donor agency -- World Bank -- which is set to finance the project work has declined to award the job to CH-IV International smelling rot in the selection process. The WB has already informed the energy ministry of its inability to approve awarding of the job to CH-IV because of its insufficient experience and higher price, said officials. Following opposition from the WB, the energy ministry sought to get the awarding of the consultancy job to CH-IV endorsed by Petrobangla, they said. job to CH-IV International. Officials fear if the CH-IV is awarded the consultancy job the entire project of building the LNG import terminal at Moheskhali island in the Bay of Bengal might be in jeopardy. Officials said a consultant is required to provide support to state-owned Petrobangla for execution of the floating LNG import terminal project. In addition, the firm will have to draw up a plan for LNG imports to the terminal. Petrobangla in June last year had sought expression of interest for the consultancy services where 28 global companies had participated. The selected consultant is supposed to receive payment from a grant given by WB's International Development Agency, under Power Sector Development Technical Assistance Project in Bangladesh. Petrobangla has already primarily selected 10 potential bidders to build the LNG import terminal and associated facilities, which it aims to complete by 2012. The terminal will have the capacity to handle five million tonnes of LNG per year and a re-gasification capacity of at least 500 million cubic feer per day (mmcfd) of gas. But impasse in selection of the consultant is delaying implementation of the project, said officials.