Cabinet purchase body set to consider SPM project

Cabinet purchase body set to consider SPM project


Dhaka-The Cabinet Purchase Committee is set to consider a proposal of the Energy Division on Wednesday for the installation of Single Point Mooring (SPM) with Double Pipe Line.According to officials at the Energy Division, the government undertook the project with financial support of the Chinese Exim Bank under “Prompt Power and Energy Supply Special Act 2010”.
The Energy Division has moved the project to appoint China Petroleum Pipeline Bureau (CPP), a Chinese state-owned company, to implement the project under direct procurement method (DPM).
As per the proposal, once the SMP is installed with double pipeline facilities, it would save Tk 1000 crore annually as the government would not have to spend money for transporting petroleum through Lighterage vessels from deep sea to the Chittagong port.
Officials said the Bangladesh Petroleum Corporation (BPC) has already signed a memorandum of understanding (MOU) with the Chinese firm to implement the project on a G-to-G basis.
They said initially the CPP sought $682.069 million as contract value of the project. But through negotiation finally it was settled at $550.40 million excluding customs duty and VAT.

The officials also said they have received the approval from the Prime Minister’s Office to implement the project under the “Prompt Power and Energy Supply Special Act 2010.”
As per a decision of the Cabinet Economic Affairs Committee, a team of the Energy Division visited Angola and Abu Dhabi to see the similar projects CPP had implemented there.

Sources said the project was undertaken more than five years ago. But it bureaucratic tangle has been impeding its timely implementation.
The idea of SMP is that a 110 km pipeline would be installed in the bay to directly receive crude petroleum from deep sea vessels to the Eastern Refinery, the country’s only refinery in the public sector.
At present, the crude oil carrying large vessels are anchored in the deep sea area and the BPC uses some lighterage vessels to transport the raw petroleum to the ERL.


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