Thai co gets six more months to submit financial report

The Thai contractor of Dhaka Elevated Expressway (DEE) has been given a six-month extension to submit its financial report as the company has made headway in managing two Chinese partners for investment in the public-private partnership project.
Sources said the Bangladesh Bridge Authority (BBA) has verbally given extension after the Italian-Thai Development PLC submitted a partnership deal with Sinohydro Corporation and China Shandong International (CSI) to construct the 46-kilometre expressway.
Earlier, the company signed a deal with China Railway Construction Company (CRCC) to carry out engineering, procurement and construction of the US$ 1.4 billion public-private partnership (PPP) project in 2014.
But US$ 1.0 billion deal with the CRCC did not work and the Thai concessionaire or contractor could not submit the financial report due to its failure for arranging other sources of funding in three years.
Submitting the financial report known as financial closure in the PPP is important to commence a 25-year concessional period that would enjoy the concessionaire in the country's first PPP project from the time of construction.
According to the documents, the latest deal signed between Italian-Thai and two Chinese companies on July 03 hinted about a share of 51 per cent with Italian-Thai, 34 per cent with CSI and 15 per cent with Sinohydro.
After a meeting with a delegation of Italian-Thai and Sinohydro at Setu Bhaban in Dhaka on Thursday, Road Transport and Bridges Minister Obaidul Quader said the time was extended following the headway made by the Thai company.
The government has been facing questions with the expressway project for its slow progress, he said, adding that the government cannot wait for a long for having its commitments towards the people to complete the project.
"We have already started the process of cancellation but given another six-month time as the Thai company assured us of not letting down the government this time," he told reporters.
The minister said the government is still working to construct the first phase from Hazrat Shahjalal International Airport to Banani by 2018, adding that from the government side, all formalities including handover of acquired land were completed to launch the project in time.
The Italian-Thai has been trying to manage funds since 2011 when it signed an agreement with the BBA to construct the country's first expressway from Hazrat Shahjalal International Airport to Sonir Akhra point of the Dhaka-Chittagong Highway.
Though the deal with BBA was revised again at the end of 2013 due to change in alignment, the company continued to face troubles in managing funds for the project and could not submit the financial closure in due time.
The latest deadline for submission of the financial report expired in June last.
    smunima@yahoo.com