The Ministry used to finalize the price, Bapex would do the DPP formalities
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Photo: Collected
The bid is finalized in DPP (Development Project Proposal) considering the cost of holding works. But in the case of Gazprom, Russia's largest energy supplier, the amount to be paid is according to the formal DPP. According to Gazprom's demand, information has been received that each well will be paid Tk. 100 to Tk. 130 crore more.
There is a demand to scrutinize all contracts executed with Gazprom in a special law without tenders. A syndicate has stolen tens of thousands of crores of takas from the country's tenders. Stakeholders have requested the contract review committee under special law to unmask those involved in looting.
During the regime of Awami League, the issue of giving work to Gazprom at higher rates was an open secret. Gazprom has been paid Tk. 220 crore to dig the same well that the state company Bapex can dig for Tk. 70 to Tk. 80 crore. In this way, the state has been accused of wasting tens of thousands of crores of takas in digging 19 wells. Energy sector stakeholders have been objecting to the exorbitant rates from the beginning.
Energy experts said what has happened in drilling wells can be called ocean robbery. Billed up to three times without tender. Thousands of crores of takas would have been saved if competitive bidding was ensured.
And the work that can be done by the state company Bapex should be given to the contractor at a high price, the energy expert said. Badrul Imam told Barta24.com that it is unfair to give foreign companies where BAPEX is capable of working. I don't see any justification in giving Bapex wells to Gazprom. There should be an investigation as to why it had to be done by a foreign company.
A committee was formed by the interim government on September 5 to review the agreements executed under special laws during the Awami League government. This has been done by a 5-member committee headed by retired High Court judge Moinul Islam Chowdhury. Other members of the committee are - BUET Electrical and Electronic Engineering Department Professor Abdul Hasib Chowdhury, KPMG Bangladesh former COO Ali Ashraf, World Bank's former lead economist Dr. Zahid Hossain, Professor Moshtaq Hossain Khan, Faculty of Law and Social Sciences, University of London.
In 2010, the government enacted the 'Prompt Provision of Electricity and Energy (Special Act) Act' to deal with the power and energy crisis. Initially, the law was made for two years, but later in 2012 for 2 years, in 2014 for 4 years, in 2018 for 3 years and last extended for 5 years in 2021. Section 9 of the Act states that no question shall be raised before any court about the validity of any act done or purported to be done under this Act, any action taken, any order or instruction given.
A total of 19 wells were awarded to Gazprom using a special law. The same well which state company Bapex can do for Tk. 70 to Tk. 80 crore, has been given for Tk. 2000 crore. While Gazprom was paid Tk. 200 crore per well, Bapex Rupganj (year 2015) dug a well at a cost of Tk. 61 crore. The estimated cost of the DPP of that project was Tk. 97 crore, Bapex completed the work by Tk. 61 crore and returned the remaining amount.
Srikail East-1 and Salda North-1 (year 2016) have spent Tk. 144 crores in drilling wells. It is said that Bapex did not have to rent the rig, hence the cost is lower. The bill paid to Gazprom is not close to the borrower even if it rents the rig. The ideal time to drill a well is considered to be 45 days, thus the rig (daily rent of 20,000 dollar/Tk. 120) costs around Tk. 10 crore. That is, Tk. 82 crores in total.
With these figures in hand, contracts were awarded for 62 million dollars to drill the Tobgi, Bhola North and Elisha wells which in Bangla Taka was about Tk. 200 crore . At different times, 19 wells were awarded to Gazprom at several times higher rates. Another 15 well proposals were near finalization. The most advanced was Bapex's 5-well drilling project at Bhola Gasfield.
Another meeting of the Cabinet Committee on Procurement would be finalized. The nation was saved from wastage by the fall of the Awami League government in the anti-discrimination movement. Fawzul Kabir Khan, Adviser on Power, Energy and Mineral Resources of the Interim Government, took responsibility and suspended the project under special law. Although these domestic agents of Gazprom have not yet given up, they have continued to lobby in various ways.
Russian Company Gazprom wants to use wheat and potash fertilizers as bait to get jobs at high prices. It is said that 30 thousand tons of potash fertilizer and 50 thousand tons of wheat are going to be provided free of charge to lure the interim government. 1 ship (30 thousand tons) of potash and the government wants 30 thousand tons of wheat but the company is going to increase and supply 50 thousand tons of wheat. These are being given as assistance to the flood victims.
On August 29, Russian Ambassador to Bangladesh Alexander Mantitsky met Agriculture Adviser Lieutenant General (Retd) Md. Jahangir Alam Chowdhury. After that meeting, it was informed that 30 thousand metric tons of potash fertilizer will be given to Bangladesh for free.
Although it is said by the Russian government, Gazprom and their agents are said to be behind the wheel through the Gazprom grant is trying to get close to the Dr. Yunus led government. So that the work of digging wells in without tender can be continued in Bangladesh.
Gazprom has set a rare example of corruption and looting by using the opportunity of closeness with the Awami League government. Gazprom’s Bangladeshi agent turned into monsters day by day. Under their pressure, the state institution Bapex has become a life-threatening situation. The rush to award wells under special laws without tendering was eye-watering.
Bangladesh was going to sign the contract for 23 million dollars (Tk. 120) for each of the proposed 15 wells for around Tk. 4200 crore. Those works can be done with BAPEX for a maximum of Tk. 1200 crores. The precedent of which exists within the country, yet the work has been consistently given high rates with a blind eye.
Energy experts said there are precedents that are simultaneously dire. Nevertheless, the syndicate of Tawfiq-e-Ilahi Chowdhury, former Prime Minister Sheikh Hasina's Energy Affairs Adviser, has done that terrible work. In 2014, BAPEX's 354th board meeting approved the proposal to drill Srikail-4 well. In the 556th board meeting, DPP (Development Project Proposal) worth Tk. 64 crore was approved. Approved DPP sends to Petrobangla. The rule is that the work will start subject to Petrobangla approval. But Petrobangla asked to send DPP of Tk. 200 crore instead of approving DPP of Tk. 64 crore. A DPP of Tk. 200 crores is forced for the same work (same depth). And that work was given to Gazprom.
Bapex Managing Director Md. Shoaib said, first the price is finalized, then the DPP is prepared accordingly.
While Gazprom's rig was sitting in the Bhola gasfield, the DPP billed 4.25 million dollars for bringing the rig. After drilling the Bhola North well in 2017, Gazprom left the rig at Bapex's yard. As the rig was not removed, a letter was sent by Bapex demanding yard rent. At that time Bapex billed 4.25 million dollars for mobilization. Those stories defeat Rama's reign.
Behind it is mainly the Chairman of the National Group, Bangladeshi Abdus Sattar Mia (Mia Sattar) expatriate in Russia. Mysterious man Mia Sattar was once Russia's ambassador to Bangladesh. The Awami League did whatever they wanted because of the close relations. Despite many controversies, his misdeeds did not stop.
Mia Sattar played an active role in building public opinion in favor of Awami League during the last parliamentary elections. Formed 'Bangladesh Friendship Society' in Russia and organized various meetings and seminars. Allegations of interference in Bangladesh were raised against America from these seminars. Mia Sattar played a key role behind the scenes in all those events.
Mia Sattar is trying to change the bowl after the fall of Awami League. Now looking to open own line with potash fertilizer and wheat. Mia Sattar wants to get an additional Tk. 3 thousand crore from 15 wells.
Gazprom's Bangladesh office consultant Amirul Islam told Barta24.com that the calculation you are talking about is not correct. We are doing quality work rather cheaply. While Bapex shows well drilling costs, it does not show rig hire, labor salaries, ancillary costs. If these are caught, each well will go over Tk. 200 crore. I can show it with numbers.
