The government has awarded contract to a Japanese firm for consulting works of the Metrorail Project ignoring strong objection from the funding agency, JICA.
It was alleged that the Dhaka Mass Rapid Transit Development Project (DMRTP) and the Communications Ministry selected the Japanese firm Nippon Koei for the consulting job of the Project through practicing irregularities and unfair means.
For this contract, the government now may have to incur a financial loss of several hundred crores of Taka.
Concerned sources said Japan International Cooperation Agency (JICA) raised its objection following an allegation received from a corruption watchdog NGO. The Japanese donor agency found the allegation substantive.
The government is implementing the Dhaka Metro Rail Project under its MRT Line-6 project at a cost of about Tk 22,000 crore under which 20.1 km elevated rail track, 16 stations, one depot and 24 rolling stock will be procured and implemented.
The Communication Ministry has recently appointed the Japanese Nippon Koei and its associates as the project’s consultant at a contract value of Tk 928.17 crore.
According to sources in the communication sector, the DMRTP, a special wing of the Communications Ministry, invited proposals from international consulting firms to qualify for the job on quality-based scrutiny.
After initial scrutiny, three firms were short listed for the job, which are Systra S.A. of France, Oriental Consultants Company of Japan, and Nippon Koei of Japan.
Of the three firms, the allegation is that Nippon Koei was given highest marks in the evaluation of the proposal though it does not deserve to get the highest mark for its non-compliance with some of the tender conditions.
Finding such irregularities and unfair practices, Odhikar Unnayan Sangstha, an NGO, brought the issues to the notice of the DMRTP and alleged that a Bangladeshi Deputy Team Leader (DTL) of Nippon Koei failed to fulfill the requirement of having an experience of working with three projects.
“The DTL could not submit any valid document to prove the DTL’s claim,” the allegation said adding that this has been a serious violation of the JICA guidelines and thus the Nippon Koei’s proposal is deemed to be cancelled.”
When the managing director of the DMRTP, who is also convenor of the proposal evaluation committee (OPEC), received the allegation, he refrained from taking action against the Nippon Koei on the issue of the DTL’s experience.
However, upon receiving an allegation, the Prime Minister’s Office (PMO) asked Road Division, Railway Ministry and the Local Government Ministry to investigate into the allegation and take action against such irregularities and unfair practice.
In response to the PMO’s directive, LGED Chief Engineer under the Local Government Ministry, in a letter dated June 6, 2013 informed that the Nippon Koei’s DTL was not involved in the Khilgaon Flyover project while Railway Ministry informed that there was no DTL post in the railway until 2008 to be held by the said person. All these proved to be wrong claims by the Nippon Koei about its DTL.
But despite determination of such irregularity, the proposal evaluation committee (PEC) neither rejected, nor canceled the proposal of the Nippon Koei. Rather, he just gave only zero mark for such willful practice of major unfair means.
JICA Guidelines dictates that if such irregularities are unearthed and proved to be true, the whole proposal will be rejected and cancelled by the committee.
About the corruption and fraudulent practice, the JICA Guidelines said: “It is JICA’s policy to require that the Consultant and the Client, as well as the Borrowers under contracts funded with Japanese ODA Loans, and other Japanese ODA, observe the highest standard of ethics during the procurement and execution of such contracts. In pursuance of this policy, JICA will reject the result of evaluation of proposals if it determines that the Consultant evaluated as the highest ranked has engaged in corrupt or fraudulent practices in competing for contracts in question.”
As per the JICA guidelines, if a consultant is determined to be fraudulent, it will be ineligible to further participate in any Japanese ODA funded project.
Under this guideline, the local JICA office sought clarification from the managing director of the SPO of the DMRTDP where the Japanese donor agency said: “We have some observations on issues that undermine fairness and require clarifications.”
In response, the SPO managing director sent a letter to the JICA which failed to satisfy the Japanese donor agency. The JICA urged the SPO to re-evaluate the educational qualification and, working experience as DTL.
As a result, the SPO was compelled to give lower marks to the Nippon Koei for failing to meet the experience requirement on DTL issue.
But it refrained from rejecting or canceling the proposals of the Nippon Koei which helped the disqualified Japanese firm to qualify for the consulting job of the Metrorail project, said a source.
The sources brought another allegation of putting wrong claim by Nippon Koei about its associate consultant Delhi Metro Rail Corporation’s experience as a consultant. But the Delhi Metro Rail Corporation (DMRC) never worked as a consultant in any such project.
Rather, documents show that Delhi Metro Rail Corporation was the implementing agency of the Delhi Metro Rail Project where the consultants were some American and Japanese firms.
Source: UNB Connect