CHITTAGONG, Oct 2: The financial contract for procurement of six vessels (3 product oil tankers and 3 bulk carriers) for Bangladesh Shipping Corporation (BSC) at a cost of 184.50 million US Dollar from China is expected to be placed at the ERD in the middle of this month.
The ERD will verify the draft contract and then BSC will go for signing the contract.
It may be mentioned that ECNEC approved the project on July 7, 2014.
Earlier the purchase committee of the Cabinet approved the proposal of Bangladesh Shipping Corporation (BSC) for procurement of six vessels at a cost of 184.50 million US Dollar from China on March 4, 2014.
According to the Shipping Ministry sources, the financer of the project, the China Exim Bank had already revised the financial documents for the several projects of Bangladesh. Sources also said the China Exim Bank also revised the financial contract of the six vessels for BSC.
It may be mentioned that BSC has signed an agreement with the CMC (China National Machinery Import and Export Corporation) to procure a total of six vessels in Dhaka on April 30, 2014, in order to make the state-owned organisation a profitable one.
According to the Shipping Ministry sources, the China Exim Bank has agreed to provide the concessional loan under govt. to govt. basis at a very lower interest rate.
A Memorandum of Understanding (MOU) in this connection was signed with the CMC (China National Machinery Import and Export Corporation) in the Chinese Capital Beijing on June 15 in 2012 when the Bangladesh Prime Minister visited China.
Meanwhile, the Chinese government has approved the proposal.
After a series of successful meetings, the CMC delegation had agreed to sign the agreement with BSC on April 30, 2014.
A total of six vessels will be purchased with the Chinese loan while the interest of Chinese loan is very lower at around 2 per cent.
After signing of final the agreement, the construction of these vessels will begin.
It may be mentioned that the BSC has been trying to procure vessels in order to survive the organization for the last few years. But the BSC could not proceed with their plan further due to shortage of fund.
It may be mentioned that the fleet of the BSC is declining gradually. After the liberation, the total numbers of the BSC fleet include more than 38 ships. But now it contains only 8 vessels that are sailing after expiry of their economic life with frequent repair after each voyage.
Of them three more vessels will be sold this year due to failure of sailing in the sea.
The economic life of a vessel is generally 25 years. So the procurement list of the BSC showed that the economic life of all the vessels has been expired.
It may be mentioned that BSC did not procure any seagoing vessel since 1991 last.