Rampal Power Station
Indian company withdrew security deposit before completion of work and 'fled'
Local worker and suppliers stopped work because of due and debt
Indian company EMC has fled Bangladesh without completing the construction of power transmission line for the much-discussed Rampal Thermal Power Plant project. They have also withdrawn the performance guarantee money deposited in the bank. Due to this, the implementation of the project has been delayed for more than two years.
Meanwhile, the local workers have stopped the ongoing work of the River Crossing Tower at Batiaghata Kachubunia due to non-receipt of arrears of wages.
The contractors who were working in Bangladesh with the contract from the Indian company who left the country are also on their way. The company owes about Tk 11 crore to 4 small domestic contractors.
Now that the rest of the work on the project has been completed, it has to be explained to the Chinese company TBEA, the joint venture company of the fleeing Indian company EMC. The aggrieved contractors are suing the company for arrears. TBEA agreed to pay only Rs 1 crore, which the contractors refused. Hundreds of local workers and suppliers stopped work on the project from 10:30 a.m. on Tuesday (November 3) and staged sit-ins and human chains. The speakers told the human chain that they will not allow the project to work if they do not get the due money.
Bangladesh-India Friendship Power Company is constructing the Rampal Thermal Power Plant, the first mega project to build a coal-fired power plant in the country.
According to Power Grid Company of Bangladesh (PGCB) and project sources, the Khulna-Mongla 230 kV double circuit transmission line is one of the projects planned by the government to supply power from the 1,320 MW Rampal thermal power plant. PGCB selected a joint venture (JV) of Indian company EMC and Chinese company TBEA for the job. For this, PGCB signed an agreement with EMC-TBEA in Bangladeshi currency of Tk 48.95 crore and in foreign currency of USD 65.16 lakh. Under the agreement, EMC and TBEA will carry out the necessary equipment excavation and inspection and implementation of the transmission line.
According to the agreement signed between PGCB and EMC-TBEA in December 2015, the construction of the transmission line is expected to be completed in the next 18 months, i.e. in June 2018. The length of the line from the center to Harintana substation in Khulna is 24 km. The work was to be completed by December 2017 by extending the deadline by two points. But the EMC, which was leading the construction work, left Bangladesh in October of that year without completing the work. The EMC closed their Dhaka and Khulna offices without informing the PGCB and all their officers and representatives left Bangladesh. As a result, the work of the project under construction has been stopped for a long time.
EMC-TBEA extended the 18-month work period by two times to 36 months. EMC leads this joint venture. The PGCB complained to them several times that the work was not progressing. But the work was not done at the desired speed. The Indian company did not explain its dues to the local suppliers-contractors even though it understood its dues from PGCB. Even at the beginning of the project, EMC has taken away 10 per cent of the contract value (Tk 46.9 million and US ৮ 851,000) deposited in the bank as performance guarantee and EAR insurance.
In such a context, PGCB sent a letter to their joint venture company TBEA on December 20, 2016 without getting any response from EMC. The PGCB said in the letter that the project's Performance Guarantee (PG) and EAR (Erection All Risks) insurance expired on August 26 and September 30, respectively. A letter has been sent to EMC twice to extend the validity of this PG and EAR insurance. But EMC did not respond. No work is being done in the project area. Eighty-five percent of the work has been completed. 25 percent left. By that time 90 percent of the equipment has been supplied and all the related dues have been paid.
The letter further said that it was clear that EMC Limited India had failed to complete the work on the project. As per the agreement, the responsibility of TBEA as a joint venture company of EMC is to complete the rest of the work and make it clear to the government. About a year passed after that letter from PGCB. Among them, TBEA got the task of implementing two more big projects in the power sector. If the remaining work of Khulna-Mongla 230 KV double circuit transmission line is not completed, PGCB will blacklist TBEA and cancel other works in the country. After that message, TBEA agreed to do the rest of the work of EMC. TBEA started the unfinished work of the project at the end of November 2019. For this, new contracts are also made with the contractors. But the debts of the previous domestic contractors have not been paid yet. As a result, local entrepreneurs and traders are suffering extreme losses. No action has been taken against the Indian company (EMC) which caused the delay.
The domestic contractors informed all the concerned departments about their financial loss but no solution was found. A financial loss contractor is now bedridden after suffering a heart attack. Contractors of other organizations are also in unbearable pain due to loans. With this, they swore allegiance to TBEA, a joint venture company of the fleeing Indian company EMC. TBEA has proposed to pay only Rs 1 crore out of Rs 11 crore owed by domestic contractors. Their offer was rejected by the aggrieved domestic contractors. The Rampal thermal power plant was supposed to come into production by 2019. According to the latest estimates, the country's first thermal power plant will start production by February 2022.
EastWestBD / NN
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Indian company withdrew security deposit before completion of work and 'fled'
Local worker and suppliers stopped work because of due and debt
Indian company EMC has fled Bangladesh without completing the construction of power transmission line for the much-discussed Rampal Thermal Power Plant project. They have also withdrawn the performance guarantee money deposited in the bank. Due to this, the implementation of the project has been delayed for more than two years.
Meanwhile, the local workers have stopped the ongoing work of the River Crossing Tower at Batiaghata Kachubunia due to non-receipt of arrears of wages.
The contractors who were working in Bangladesh with the contract from the Indian company who left the country are also on their way. The company owes about Tk 11 crore to 4 small domestic contractors.
Now that the rest of the work on the project has been completed, it has to be explained to the Chinese company TBEA, the joint venture company of the fleeing Indian company EMC. The aggrieved contractors are suing the company for arrears. TBEA agreed to pay only Rs 1 crore, which the contractors refused. Hundreds of local workers and suppliers stopped work on the project from 10:30 a.m. on Tuesday (November 3) and staged sit-ins and human chains. The speakers told the human chain that they will not allow the project to work if they do not get the due money.
Bangladesh-India Friendship Power Company is constructing the Rampal Thermal Power Plant, the first mega project to build a coal-fired power plant in the country.
According to Power Grid Company of Bangladesh (PGCB) and project sources, the Khulna-Mongla 230 kV double circuit transmission line is one of the projects planned by the government to supply power from the 1,320 MW Rampal thermal power plant. PGCB selected a joint venture (JV) of Indian company EMC and Chinese company TBEA for the job. For this, PGCB signed an agreement with EMC-TBEA in Bangladeshi currency of Tk 48.95 crore and in foreign currency of USD 65.16 lakh. Under the agreement, EMC and TBEA will carry out the necessary equipment excavation and inspection and implementation of the transmission line.
According to the agreement signed between PGCB and EMC-TBEA in December 2015, the construction of the transmission line is expected to be completed in the next 18 months, i.e. in June 2018. The length of the line from the center to Harintana substation in Khulna is 24 km. The work was to be completed by December 2017 by extending the deadline by two points. But the EMC, which was leading the construction work, left Bangladesh in October of that year without completing the work. The EMC closed their Dhaka and Khulna offices without informing the PGCB and all their officers and representatives left Bangladesh. As a result, the work of the project under construction has been stopped for a long time.
EMC-TBEA extended the 18-month work period by two times to 36 months. EMC leads this joint venture. The PGCB complained to them several times that the work was not progressing. But the work was not done at the desired speed. The Indian company did not explain its dues to the local suppliers-contractors even though it understood its dues from PGCB. Even at the beginning of the project, EMC has taken away 10 per cent of the contract value (Tk 46.9 million and US ৮ 851,000) deposited in the bank as performance guarantee and EAR insurance.
In such a context, PGCB sent a letter to their joint venture company TBEA on December 20, 2016 without getting any response from EMC. The PGCB said in the letter that the project's Performance Guarantee (PG) and EAR (Erection All Risks) insurance expired on August 26 and September 30, respectively. A letter has been sent to EMC twice to extend the validity of this PG and EAR insurance. But EMC did not respond. No work is being done in the project area. Eighty-five percent of the work has been completed. 25 percent left. By that time 90 percent of the equipment has been supplied and all the related dues have been paid.
The letter further said that it was clear that EMC Limited India had failed to complete the work on the project. As per the agreement, the responsibility of TBEA as a joint venture company of EMC is to complete the rest of the work and make it clear to the government. About a year passed after that letter from PGCB. Among them, TBEA got the task of implementing two more big projects in the power sector. If the remaining work of Khulna-Mongla 230 KV double circuit transmission line is not completed, PGCB will blacklist TBEA and cancel other works in the country. After that message, TBEA agreed to do the rest of the work of EMC. TBEA started the unfinished work of the project at the end of November 2019. For this, new contracts are also made with the contractors. But the debts of the previous domestic contractors have not been paid yet. As a result, local entrepreneurs and traders are suffering extreme losses. No action has been taken against the Indian company (EMC) which caused the delay.
The domestic contractors informed all the concerned departments about their financial loss but no solution was found. A financial loss contractor is now bedridden after suffering a heart attack. Contractors of other organizations are also in unbearable pain due to loans. With this, they swore allegiance to TBEA, a joint venture company of the fleeing Indian company EMC. TBEA has proposed to pay only Rs 1 crore out of Rs 11 crore owed by domestic contractors. Their offer was rejected by the aggrieved domestic contractors. The Rampal thermal power plant was supposed to come into production by 2019. According to the latest estimates, the country's first thermal power plant will start production by February 2022.
EastWestBD / NN
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