Proposal goes to cabinet meet

The government is mulling installation of a   multimode surveillance system (MSS) at Hazrat Shahjalal International Airport (HSIA) on its own instead of proposed PPP arrangement, officials said.
To this effect, a proposal will be placed at the next meeting of the cabinet committee on economic affairs for approval, they said.
The government is now implementing the project titled "supply, installation and commissioning of a Multimode Surveillance System (Radar, ADS-B Wide area Multilateral-WAM) along with ATC and communication system at the airport.  
It has taken up the project aiming to ensure safe flying and landing of the aircraft as the airport has now age-old primary and secondary radars, according to the ministry of civil aviation and tourism.  
Earlier, the government had taken a decision to implement the project under public-private partnership (PPP) arrangement.
The government has received four proposals from four separate private organisations on June 22, 2016 for implementing the project.
The tender evaluation committee considered the proposals of two private organisations 'non-responsive'.
Later, the committee also considered the third one's proposal 'technically non-responsive'.     
The tender evaluation committee on September 20, 2016 selected the last one as 'preferred bidder'.
It also suggested the ministry of civil aviation and tourism accept the last one's project proposal.  
The project cost is Tk 5.79 billion. The cost of the project will stand at Tk 17.55 billion after ten years. The ministry considered the cost excessively high.
The financial model prepared by the consultant of the International Civil Aviation Authority (ICAO) suggests the project cost should be Tk 5.67 billion while the highest is Tk 7.14 billion.
By instalment of Tk 760 million annually, an estimated of Tk 7.60 billion has to be paid to the PPP partner in ten years if the project was implemented under PPP initiative.  
Besides, the proposed project cost of the unsolicited bidder is Tk 5.79 billion due to additional items and VAT.
Ensuring radar security is a highly and crucial technical matter. Considering the contemporary global security concern, the project should not be implemented under PPP, according to the ministry concerned.    
The Civil Aviation Authority of Bangladesh (CAAB) in 2013 proposed a Tk 2.0 billion project for installing radar. And after installation of new radars, it could be possible for the authority to earn around Tk 2.5 billion annually.  
The ministry concerned has sent a proposal to the cabinet division. The cabinet division will send the project proposal to the cabinet committee on economic affairs (CCEA) for its approval in the next meeting for implementing the project by the government rather than PPP arrangement.  
    talhabinhabib@yahoo.com