Consultant set to become builder

In complete violation of procurement rules, the government is going to award the construction of the Karnaphuli tunnel to the consulting firm of the project.
Bangladesh Bridge Authority (BBA) signed a Memorandum of Understanding (MoU) with China Communications Construction Company (CCCC) in December, identifying it as the builder of the tunnel, which is likely to revolutionise communications in the Chittagong region.
Under the Public Procurement Rules (PPR), if a company is hired as consultant for preparation or implementation of a project, it cannot supply goods or perform physical works resulting from its own consultation services.
Though the CCCC is the consultant for the nine-kilometre-long tunnel project, the BBA went for the construction deal with it bypassing the PPR, allegedly under the influence of a strong political lobby.
The BBA had earlier awarded the same company and its partners with a Tk 13 crore feasibility study for the tunnel in April 2011.
In its feasibility report, the CCCC suggested that the project would cost $674 million and recommended building it at Patenga after reviewing three sites. The cost, however, has been hiked to $720 million in the project proposal.
As per the study, the tunnel would significantly facilitate transit traffic and relieve the existing bridges of traffic pressure. It would also promote regional economic growth and enhance joint development of the regional economy.
"It will provide convenient transport conditions for the planned Deep-Sea Port in south Bangladesh, thus exerting a significant role in promoting development of the transportation industry in Bangladesh and improving the state highway network,” says the study.
According to the government project proposal, the dual two-lane tunnel, first of its kind in Bangladesh, will improve the Dhaka-Chittagong-Cox's Bazar highway network.
It can later be linked to the planned Asian Highway Network, enabling road connections with Myanmar and India.
The tunnel would also attract downtown population in the east side and promote “One City and Two Towns” development model adopted by Shanghai, the largest city in China.
The tunnel is also necessary because heavy siltation on the Karnaphuli riverbed is a major threat for proper functioning of Chittagong Port and also for building new bridges. The existing two bridges are inadequate to accommodate the rapidly increasing huge traffic flow.
The eastern side of Chittagong across the Karnaphuli is abundant with heavy industries. If the planned deep-sea port is built in Sonadia, the cargo traffic through Chittagong is likely to increase significantly.
The Karnaphuli tunnel project will take four years to complete from the date of signing the agreement.
During the prime minister's visit to China in June last year, an MoU was signed between the communications ministry of Bangladesh and the commerce ministry of China stating that the “Chinese side would support capable and reputable enterprises” in the tunnel project.
However, it did not mention the CCCC.
But in December, the BBA signed an MoU with the CCCC for the tunnel's construction. And in January, the road transport and bridges ministry asked the CCCC to submit a detailed commercial proposal while seeking concessional loan from China.
The Economic and Commercial Counsellor's Office of the Chinese embassy in Dhaka indicated that the project would be funded by China, but Bangladesh should begin negotiations for a commercial contract with the CCCC.
“Awarding construction contract to the same project's consultant is unusual anywhere in the world,” notes a Bangladesh government official, adding that multilateral financiers like the Asian Development Bank or the World Bank specifically prohibited such practices.
Speaking anonymously, the official said the authorities were bending the rules due to the influence of a former Awami League minister. A company run by the former minister's family was unofficially acting as the CCCC's agent and representing some other Chinese companies in Bangladesh, the official added.
The CCCC and its affiliated company China Road and Bridge Corporation (CRBC) were blacklisted for corruption for eight years by the World Bank in 2009.
The ex-minister holds such strong influence over the government that his family company represents both the Chinese companies that were awarded the Padma Bridge construction and the Padma river training projects.
Besides, his family-run company is currently involved in the following projects: Khulna 150 megawatt Simple Cycle (Isolux-Spain), Khulna 75MW Upgrade (Shanghai Electric), Sirajganj 335MW Combined Cycle Power (Isolux-Samsung), Ghorashal Re-Powering (Alstom), Sylhet 150MW Peaking Plant (Shanghai Electric), Bibiyana South (Isolux-Samsung), Locomotive Supply under Korean EDCF Funding (Daewoo International), and Dhaka-Chittagong four-lane (Sinohydro).