bd EnergY LinK

Pulack Ghatack

The WB will not allow Bangladesh to use anything purchased from Siemens while the power companies, mostly from China, bidding in Bangladesh, use Siemens equipment.

A parliamentary watchdog body has identified that an important power project of Bangladesh is remaining stalled due to objection of the Bank.

The government’s bold initiatives to remove power crisis could not make any headway due mainly to the objections of the WB, the Parliamentary Standing Committee on the Power, Energy and Mineral Resources Ministry observed.

“The political government is on the verge of failing to fulfil its electoral commitment to solve power problems due to some reasons including the row between Siemens and WB,” a member of the committee told The New Nation yesterday.

However, a meeting of the committee on Monday put forward recommendations to take necessary steps to resolve the existing problems with the Siemens Company as well as to reconstitute different companies under the Power Development Board (PDB).

The meeting reviewed the progress of various projects taken by the present government for the development of the power sector. The committee also reviewed the tender process of different projects and directed the concerned authorities to complete the process quickly.

It also directed the concerned authorities to complete the work of the projects within the stipulated time.

The WB imposed a condition that as the Bank is investigating corruption charges against leading power generator maker Siemens, it will not entertain bids based on Siemens equipment till the end of 2010.

The WB sent a letter to the Economic Relations Division (ERD) and the Electricity Generation Company of Bangladesh (EGCB) in July last year informing its position about Siemens.

The German power plant equipment manufacturer Siemens also has a decision to restrain itself from taking part in WB Group financed projects till December 31, 2010, it is learnt.

The WB letter to the government said, “Siemens AG and its consolidated subsidiaries and affiliates are precluded from bidding or participating in bids as part of a joint venture or as a nominated sub-contractor, manufacturer, or supplier under projects financed by International Bank for Reconstruction and Development (IBRD) or International Development Association (IDA).”

This WB embargo about the company came following a corruption case in Russia in which the World Bank Group (WBG) “concluded a comprehensive settlement” with the Siemens AG.

The German company was allegedly involved in bribing relatives of top politicians to procure a contract for a state-owned telecommunication project during the rule of former Prime Minister Khaleda Zia between 2001 and 2006.

The WB following allegation of corruption is now investigating Siemens. This tussle has slowed down the bidding process, sources said.

If any government organisation violates or ignores this prohibition, the Bank will either suspend its financing or will not provide any fund for implementing the relevant project.

Siemens has been participating in various biddings in different sectors as contractor or equipment supplier, particularly in Power, Energy and Telecommunications.

Siemens is also under process of participating in some power plants and telecom projects in Bangladesh.

However, the parliamentary body suggested that the Government should come out of the row anyhow and take bold steps immediately as the country is badly in need of power generation, committee member Abdul Matin Khasru, MP told The New Nation.

Committee Chairman M Subid Ali Bhuiyan presided over the meeting, while its members M Abdul Kader Khan and Sheikh Fazley Noor Tapash were also present