CHATTOGRAM, Jan 17: The operations of the Single Point Mooring (SPM) are expected to be delayed until the end of the current year due to a government decision to appoint operations and maintenance (O&M) contractors through the open tender method (OTM) instead of the government-to-government (G2G) basis.
Earlier, the government had decided to award the contract for the operation and maintenance (O&M) of Bangladesh's first Single Point Mooring (SPM) with a double pipeline project to the China Petroleum Pipeline Engineering Co. Ltd (CPPEC) on a G2G basis.
However, on January 2, during a meeting of the Advisers Council Committee on Economic Affairs (ACCEA) held at the Cabinet Division conference room with Finance Adviser Dr Salehuddin Ahmed in the chair, it was decided to appoint the operations and maintenance (O&M) contractor through the open tender method (OTM).
As a result, the Bangladesh Petroleum Corporation (BPC) will invite tenders through the open tender method.
"We hope to invite tenders for the appointment of the operations and maintenance (O&M) contractor for SPM in February next," said Md Amin Ul Ahsan, Chairman of BPC. He also committed that the authorities would try to sign the agreement with the O & M contractor by August next.
"As a result, the operations of the SPM may begin in November or December," BPC Chairman said.
The works of the SPM project had already been completed last year.
Currently, the decision to award the contract for the operation and maintenance (O&M) of the SPM with a double pipeline project to the China Petroleum Pipeline Engineering Co. Ltd (CPPEC) has been cancelled.
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.
CPPEC had been working as the contractor for the SPM project, and BPC selected the firm for the O&M job without any competitive bidding process.
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But, the government repealed the Speedy Increase of Power and Energy Supply (Special Provision) Act 2010 on December 1 last, following an order from the High Court that removed the scope for signing the contract with the Chinese firm.