The Energy Division is set to cancel the contract for the operation and maintenance (O&M) of Single Point Mooring (SPM) with a double pipeline project with the Chinese company China Petroleum Pipeline Engineering Co. Ltd (CPPEC).
"BPC is giving Tk 20-21 tax to the NBR and making profit of Tk 1.66 by selling diesel per litre, however, the price of diesel could be slash down further," Bangladesh Petroleum Corporation (BPC) chairman Md Amin Ul Ahsan told the reporters on Thursday at its office while exchanging views with the energy reporters.
"Recently, the Energy and Mineral Resources Division has taken a decision not to allow BPC to sign the contract with CPPEC. We are set to go for a fresh open international tender to select an O&M firm through a competitive bidding process," BPC's chairman Md Amin Ul Ahsan told the reporters on Thursday at its office while exchanging views with the energy reporters.
CPPEC had been working as the contractor for the SPM project, and BPC selected the firm for the O&M job, in the last ECNEC meeting, the council has also gave a green signal to the BPC to go-ahead with the project.
"The Energy and Mineral Resources Division will move the proposal again to the ACCEA to repeal its earlier decision… it may take 7-8 months to invite an international tender and complete the bidding process to appoint an O&M firm," he
BPC's official made these remarks while exchanging views with the Energy Reporters Forum of Bangladesh (FERB), officials of BPC and FERB were present.
Clarifying the government position, BPC chairman has said, the proposal was moved to ACCEA by the Energy and Mineral Resources Division under the Speedy Increase of Power and Energy Supply (Special Provision) Act 2010.
But a few days after the approval, the government repealed the Speedy Increase of Power and Energy Supply (Special Provision) Act 2010 on December 1, following an order from the High Court that removed the scope for signing the contract with the Chinese firm.
Earlier, the Advisers Council Committee on Economic Affairs (ACCEA) had approved a proposal from the Bangladesh Petroleum Corporation (BPC), the implementing agency of the SPM project, to sign the O&M contract with the Chinese company during its meeting on November 21.
The BPC chairman also informed that the SPM project's implementation work will be completed by December 31 this year, and it will become operational only after the appointment of an O&M contractor.
As part of the project work, approximately 135 kilometers (km) of offshore pipeline and 58 km of onshore pipeline have also been installed.
