Govt fixes purchase limit for state-run companies

Staff Correspondent | Published: 00:33, Oct 27,2016

 
 

The government on Wednesday fixed thresholds for purchasing of goods and services by the state-run companies in power and telecom sectors to ensure transparency in public procurements.
Officials said a cabinet committee on economic affairs approved a proposal by Implementation Monitoring and Evaluation Division to fix the thresholds during a meeting chaired by finance minister AMA Mihuth at the secretariat.
The threshold for purchasing works by the state-run companies operating under the company act of 1994 would be Tk 500 crore.
The threshold for purchasing of goods would be Tk 200 crore and Tk 50 crore for the intellectual and professional services.
Companies like Coal Power Generation Company Bangladesh Limited, North West Power Generation Company, Electric Generation Company of Bangladesh, Ashuganj Power Station Company Limited, Power Grid Company of Bangladesh, West Zone Power Distribution Company Limited, Dhaka Power Distribution Company Limited, Dhaka Electric Supply Company and Bangladesh Telecommunications Company Limited operating under the company act enacted in 1994 did not need any permission from any cabinet committee for purchases of goods and services.
Additional secretary of the cabinet division Mostafizur Rahman said now they would require permission from the cabinet committee on national purchase to procure services and goods beyond the thresholds.
The companies would need to change their respective rules as per the decisions, he said.
A meeting of the cabinet committee on national purchase was held at the same venue earlier to clear 10 purchase proposals including awarding contract of Bus Rapid Transit (Gaziur-Airport) project to a Chinese company at Tk 855 crore.
Toma Construction won the construction works of 42 cyclone centres at Tk 224 crore to be financed by the World Bank and construction of a bridge over the river Kali in Kishorganj district at Tk 71.79 crore.
The committee approved two proposals from power division to purchase per unit electricity at Tk 11.12 from the solar power plant to be built by local Beximco Group and Jiangsu Zhongtian of China.
The purchase rate of per unit electricity would be Tk 10 from another solar power plant to be built by local Green Housing and Energy Limited, and CETC of China.
The committee also approved a proposals of the ministry of food for purchasing 1.25 crore pieces of sacks from the Bangladesh Jute Mills Corporation at Tk 74.75 crore under direct purchase method.

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