No China credit until limited tender system finalised

Bangladesh is going to introduce new criteria for the Chinese contractors to implement its development projects under the Chinese credit, officials said, which include limited tender system for Chinese projects and direct procurement system for priority projects. Economic Relations Division has already sent a proposal on the new criteria to the Cabinet Division, which will be placed at a meeting of the Cabinet Committee on Economic Affairs for approval. Senior Secretary Mohammad Mejbahuddin signed the proposal. The proposal said China keeps itself from invest in new development projects in Bangladesh as the limited tender processing system has yet to be finalised. At a meeting in Dhaka on August 15, 2015 China’s commerce minister and Bangladesh’s finance minister agreed to introduce limited tender processing system for the China-funded projects in Bangladesh. Although the ERD sent a letter on limited tender on May 2, 2016 to the Chinese Embassy in Dhaka, the embassy has responded yet about finalising the new system. Bangladesh government has so far selected Chinese contractors under direct procurement method to implement projects under the Chinese concessional loans and preferential buyer’s credit. On August 12, 2015 the cabinet committee on economic affairs decided and later directed the ministries and divisions to avoid unsolicited Chinese development projects apart from projects under the Speedy Supply of Power and Energy Law (Special Provision) Act 2010 and projects under the Public-Private Partnership initiative.