Chittagong Port Authority (CPA) has opted to extend its deal with Saif Powertec Limited, allowing the company to operate its New Mooring Container Terminal (NCT) under direct procurement, as the process of floating an open tender to this end is facing delays.

The agreement with the firm is set to end on January 7.

The CPA had earlier decided to float an open tender to appoint a new operator for the NCT for an interim period until a foreign operator is appointed under public private partnership and government-to-government basis.

The CPA also sent a proposal to the shipping ministry to amend some clauses in a previously issued statutory regulatory order that recognised Saif Powertec as the only firm competent enough to operate the terminal.

For long there has been criticism over the appointment of Saif Powertec to operate the port's two main terminals, the NCT and Chittagong Container Terminal, through the direct procurement method.

Shipping Adviser Brig Gen (retd) M Sakhawat Hussain had criticised such practices while visiting the port in October.

In a letter on October 30, Nazrul Islam Azad, deputy secretary of the shipping ministry, directed the chairman of the CPA to take steps for lodging an open tender to appoint an operator for NCT.

CPA sources said the previous government issued an order in 2018 through the inclusion of two new clauses in the Regulation for Working of Chittagong Port (Cargo and Container), 2001.

Those clauses were actually obstacles for placing an open tender as they were included to make Saif Powertec the only competent firm for the job of operating NCT, they said.

In November, a committee of the CPA sent proposals to the shipping ministry for amending those clauses, but the process is yet to be completed.

A senior CPA official said the authority could not float open tenders for finding operators of NCT as the amendment is yet to be made.

Since the agreement with Saif Powertec is going to expire on January 7, and there is not enough time left for the CPA to float open tender, the CPA board in its recent meeting decided to extend its agreement with the firm.

Confirming it, CPA Secretary Md Omar Faruk said as the agreement with Saif Powertec would be expiring soon, the authority had to take a decision because the terminal cannot be kept idle.

He said the CPA board decided to extend the agreement by another six months on condition that the agreement would be cancelled as soon as a new operator is appointed through open tender.

In the meantime, the CPA will continue its process of amending the statutory regulatory order and floating an open tender, he added.