4:53 pm - Thursday May 24, 8227

Deal inked with Chinese firm for Padma Bridge construction

Bangladesh signed a deal Tuesday with a Chinese company for the construction of around 6.15-kilometre main part of the Padma bridge, which is set to start by November and end by 2018.

padma bridgeProject Director Shafiqul Islam and Chairman of China Major Bridge Engineering Company (CMBEC) Lieu Ziming inked the Tk 12,133-crore contract on behalf of their respective sides at Hotel Ruposhi Bangla in the capital this evening.

According to the agreement, the government will pay the first installment of Tk 1,820 crore by this month.

Meanwhile, the Chinese state-run firm will provide Tk 1,213 crore performance bank guarantee.

Earlier on May 22, the government awarded the Padma bridge construction job to the lone bidder CMBEC at a meeting of the cabinet committee on purchase.

The CMBEC has got the Tk 12,133-crore job at 12.62 percent lower than the cost estimated by design consultant firm Maunsell AECOM.

Earlier on April 25, only one Chinese firm submitted a financial bid for construction of the main bridge by the deadline.

Two other companies—Samsung C&T Corp and Daelim-L&T JV—appealed to extend the deadline by another 10 to 11 weeks, but the government did not accept it.

The bridge project hit a snag as the World Bank in 2012 cancelled its $1.2 billion credit, saying it had evidence of a corruption conspiracy involving Bangladeshi officials, executives of a Canadian firm and individuals.

 Courtsy: Star Online Report