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Project cost spikes up for tender manipulation

DESCO refutes allegation

Published : 01 Aug 2022 09:25 PM

Incidents of tender manipulation of Dhaka Electric Supply Company Limited (DESCO) has allegedly increased recently. It was learnt that a tender worth around Tk 10 crore has been shown as Tk 23 crore in the tender process.

The allegation has also pointed that Siemens Bangladesh, a manufacturing company for the related work is also engaged with such deeds. 

Although it was an open international tender, it was learnt that six out of eight companies who have participated in the tender are the representative of Siemens Industrial Ltd. 

According to the allegation, DESCO had invited tenders at an estimated cost of Tk 23 crore (excluding VAT-tax) in January for the tender titled Design, Supply, Installation, Testing and Commissioning of 33kV AIS to GIS conversion of New Tongi Grid 132/33/11 kV Substation on Turn-key basis. 

However, sources of related products said that the rate of these products specified in the tender is around Tk 10 crore to Tk 12 crore. It is to be noted here that, Bangladesh Post has also obtained a copy of the same products specified in the tender process. In the document, it is found that the prices of those products are around Tk 10 crore excluding some specific costs. 

To know more details, when this correspondent contacted an official of Siemens Industrial Ltd he refused to make any comment. 

Meanwhile, sources at the DESCO said that it was an open international tender which got an extension of two months. Eight companies participated in the tender but only one of them met all the criteria specified for the products in the process. 

However, what price they had offered is yet to be known as the technical committee is inspecting the offer. 

DESCO Executive Director (Procurement) Engineer AKM Mohiuddin told Bangladesh Post that the tender process is a long process which has various steps that are evaluated by their board. 

He said, “There is no base of such allegation. The price in the tender is based on the previous purchase rate, existing market price and dollar rate. We are using heavy products as Tongi area has huge demand for electricity. Comparing to other companies we are having those products at a lower rate.” 

He has also placed an open challenge to compare their tender price with other companies. Besides, he also said, after the tender process other costs like  vat, tax, commissioning, transport, labour and other variable costs are included.