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The Financial Express

Cabinet body okays Biman’s proposal to procure Dash8 aircraft

| Updated: December 22, 2017 15:54:41


Cabinet body okays Biman’s proposal to procure Dash8 aircraft

The Cabinet Committee on Economic Affairs has approved a proposal of Civil Aviation and Tourism Ministry to allow Biman Bangladesh Airlines to procure three aircraft from a Canadian firm. 

The national flag carrier aims to ensure smooth flight operations on domestic and international routes by incorporating three more aircraft in its existing fleet.

The committee also approved the Textile and Jute Ministry's proposal to reopen 13 state-owned textile mills under public private partnership (PPP).

The committee approved the two proposals 'in principle' at a meeting held with Finance Minister AMA Muhith in the chair, reports UNB.

Now these two proposals will come for approval of the Cabinet Purchase Committee when the specific deals will be ready for signing with the parties concerned.

As per the Civil Aviation and Tourism Ministry's proposal, Biman's three aircraft of 'Dash8-Q400NG' series -- each having 74 economy seats -- will come from Bombardier Inc of Canada.

The aircraft are being purchased without any tender process under of the Public Procurement Act.

In its proposal, Biman said such aircraft are manufactured only by the Canadian company.

It quoted the price of each aircraft at $22.422 million with a credit facility of Export Development, Canada (EDC) under a government-to-government agreement.

While moving the proposal, it said Biman requires more Dash8 aircraft for its flioght operation on its different national and international routes amid its growing passengers.

About its proposal, the Textile and Jute Ministry said the 13 state-owned textile mills currently owned by Bangladesh Textile Mills Corporation (BTMC) will be reopened following the administrative order of Prime Minister Sheikh Hasina.

The 13 mills have some 380.47 acres of land worth Tk 15.92 billion and they will need an estimated amount of Tk 152 billion as PPP implementation cost to resume their operation.

According to the ministry's proposal, the land of the mills will be considered as capital of the BTMC in the PPP patch-up while the interested private parties will have to implement the relevant projects, carry out maintenance, processing and marketing of products in addition to operations.

The shares of the BTMC and private parties will be distributed on ratio-basis or through negotiations.

Initially, the partnership between BTMC and the private parties will be for 30 years and the contract could be renewed or a new party could be reappointed for the PPP after the expiry of the PPP deal.

As per the BTMC's official website, the state-owned corporation has 24 textile mills. Of these, six textile mills (7 units) are now running under the service charge system and producing different counts of cotton yarn/viscose yarn in the form of 32/1 to 80/1.

Another three closed mills are under process of reopening by Service Charge and Balancing, Modernisation, Rehabilitation and Expansion (BMRE).

Two mills -- Khulna Textile Mills, Khulna and Chittaranjan Cotton Mills, Narayanganj -- have been asked to set up Textile Pallis, inviting investors to buy industrial plots.

The Economic Affairs Committee approved another proposal of Public Administration Ministry to purchase 30 Mercedes Benz (S-Class) or BMW (7-series) limousines to facilitate the foreign ministers' conference of Organisation of Islamic Cooperation (OIC) in May next year in Bangladesh.

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