 | 2nd Meghnaghat Project - Favoured Orion fails to sign deal for fund crisis
08 October, 2006
The BNP-led four-party alliance government's failure in power sector takes yet another blow as its' favourite business house Orion failed to show up at the signing of the Land Lease Agreement (LLA) to start implementing the second Meghnaghat 450 megawatt (MW) power project.
Orion and its partners Belhasa and Steag under the banner of BON Consortium were given seven months extra time to sign the agreement that was finalised in March.
Under the current regime, Orion has been awarded with the Gulistan-Jatrabari flyover deal with terms that go against the national interest. They were also awarded a multi-storied car park project in Motijheel for a nominal price, management lease of profit making Bangladesh Chine Friendship Conference Centre etc. Besides, the company has been given primary license for airline operations. Orion's executives who own Oriental Bank shares are also accused of defrauding the bank of nearly Tk 600 crore between 2003 and 2006, which executives deny.
The Power Development Board (PDB) gave it the last deadline to sign the LLA for the power project on October 3 and warned of taking 'appropriate measures' if they failed to show up. The 'appropriate measures' in this case would be the encashment of Orion-Belhasas' bid bond of $10 million.
“This is yet another proof that favouritism and corruption fail to deliver anything good for the nation, let alone a power plant," quips a PDB official.
Orion never actually gave the bid that was selected for this power project and it actually submitted its name as one of the two partners of a Japanese bidder Nisso Eiwi, which has the experience to qualify for the power plant project. However, Nisso disappeared from the scene in 2004 and Orion brought in another German company Steag showing it as the lead bidder. The government initially rejected such a gross anomaly, but then with pressure from the 'alternative powerhouse' -- the source of power of Orion --the government accepted and approved the bid in August last year.
This followed negotiations and signing of a set of agreements for gas, power pricing, land lease and project implementation with various government agencies between December and January last.
Using political pressure, Orion also made these agencies include undue concessions in these agreements undermining national interest. These concessions would be worth no less than $70 to 80 million, according to experts who dissected the Power Purchase Agreement for The Daily Star. A number of these concessions will monetarily deprive the PDB.
Release link:http://www.thedailystar.net/2006/10/08/d6100801033.htm
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