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Local expertise for mega projects must


Published : 14 Nov 2020 09:47 PM | Updated : 15 Nov 2020 08:31 AM

If the use of own resources and manpower in various mega projects of the country is not ensured, there will be a shortage of skilled people in operation and maintenance. 

It is important and mandatory to include local contractors as partners in mega projects like in neighboring countries.

In addition, protection of local contractors should be given as for foreigners in international tenders. Otherwise, they will not be able to compete with foreign contractors after paying 35 percent duty. If necessary, arrangements can be made to refund their duty in an international tender.

The statements came from speakers at a virtual seminar titled "Utilizing Local Resources in Infrastructure Development Projects: Challenges & Prospects,”organized by Energy and Power Magazine on Saturday afternoon. Energy expert, Professor M. Tamim said ‘The policy has become a big hurdle in the development of local entrepreneurs. We have to make a policy that can protect the national interest. Some conditions are given for foreign contractors, which are not functioning properly. The implementing agency does not give much importance about it.’

Additional Secretary of the Power Division, Sheikh Faizul Amin said that 5,500 Bangladeshis working in the Rampal power plant project. Of them, 2,500 people are skilled, 1,500 semi skilled, and the rest are unskilled. In contrast, 2,000 Indians are working there.

He said “an Indian bank is financing the Rampal project. They have some conditions for the financing. If we did not comply with these conditions, the implementation of big projects would be complicated. We have to look at how we can reap more benefits by enhancing negotiation skills in the future.” 

Shah Abdul Moula Helal, project director of the Payra 1320 MW coal-fired power plant said "I didn't know technology. That's why some people with consultancy expertise had to be brought in from outside. Until now, permanent contractors have not been able to qualify for such a mega project. In the case of manpower, we can say that a maximum of 3260 Chinese have worked together. In contrast, there were about 6000 Bangladeshis. 

Max Group Chairman, Engineer Golam Mohammad Alamgir said, "We are giving 35 per cent duty on 60 per cent import of goods in international tenders. On the other hand, the foreign contractors are getting duty free facilities which is not a good sign for Bangladesh in future.”

“It is important to ensure that the GOB funded project is fully for the local company. Of course, it must be protected as a local organization,” he said. 

Engineer Rabiul Alam, Chairman of Energypac Power Generation Company said “We have no compatibility with the policy of the neighboring state. Each organization follows a different formula. Uniform policy is most urgent. We work in Nepal, where local partners are mandatory. Why is Bangladesh not able to do it? If the policy had been done in that way in the beginning, the big contractors would have been ready to make 1320 MW power plants and other mega projects today.”

Mollah M Amzad Hossain, Editor of Energy and Power conducted the programme. He said there is no doubt that government and non-government organizations have acquired a lot of capacity. The issue of local partners is being harmed due to local agents. Partnership law is needed, and it must be done.

Dipan Group Director (Business Development) GSM Shamsuzzoha Nasim presented the keynote paper. Among others Engineer Khandaker Salek Sufi, Consultant Editor of Energy and Power also spoke at the seminar.