The authorities concerned have finally agreed to pay part of the claim made by the Japanese firm for completing construction of three new bridges on Dhaka-Chattogram corridor by saving time and money.
Sources said the Ministry of Road Transport and Bridges (MoRTB) agreed to pay Tk 1.42 billion to the Japanese firm responsible for the construction of 2nd Kanchpur, Meghna and Gumti bridges and existing bridges rehabilitation project amid pressure from Japan.
Another claim made by the firm is set to be placed before Dispute Adjudication Board (DAB) for settlement, they added.
Officials said Roads and Highways Department (RHD), the executing agency of the Tk 84.86 billion project, recommended settling the claim through hearing as those were not included in the Tk 59.66 billion contract.
OSJI Joint Venture of Obayashi Corporation, Shimizu Corporation, JFE Engineering Corporation and IHI Infrastructure Systems Co Ltd demanded Tk 5.21 billion including Tk 2.0 billion as time recovery cost in November 2017.
They put in the claim as the JV firm had to change the work plan by increasing the pieces of equipment and shifting of works etc to cover time loss which happened due to the terror attack on Holey Artisan Bakery in July 2016, five months after it started working under the contract signed with RHD.
Following the Holey Artisan attack, most of the Japanese engineers and consultants involved with the project left the country fearing further terror attacks.
They returned to Bangladesh after six months when foolproof security was ensured for them to carry out the work.
But other claim of the firm was placed against the RHD's notices to carry out rehabilitation work for removing different obstructions under three rivers beyond the contract.
After year-long negotiations, sources said, MoRTB agreed to pay a part of time recovery lost of OSJI amid pressure from Japan International Cooperation Agency (JICA), the project's Japanese financier.
JICA as well as the Japanese embassy took the issue seriously and sent official e-mails to the ministry for paying the claim made by the Japanese firm.
The last email from JICA was received by MoRTB on April 28 as the claim was not officially approved after more than one and a half years.
It is learnt that JICA also held up funding for two important ongoing projects - Dhaka Metro rail and Matarbari power plant - during the negotiations on the 40th ODA.
According to the rules of international contract, any claim made by any party must be settled through international arbitration clause by forming DAB if it cannot be resolved amicably.
RHD officials said Kanchpur, Meghna, Gumti (KMG) project's negotiations took place in two parts - one amicable and another dispute board settlement.
"We have decided to pay one claim from the contingency fund showing variation orders as there is no such provision in the contract," said Project Director Abu Saleh Mohammed Nuruzzaman.
But another claim is needed to be settled by the DAB as RHD cannot decide on those issues, he told the FE.
The PD, however, admitted that the claim put in by the Japanese JV is not 'unjust' as they worked well maintaining the quality and standard.
However, execution of the decision taken by the ministry needs to be approved by the purchase committee according to the public procurement rules.
But sources said the ministry is yet to take the issue with the purchase committee as the minister is now in Singapore.
Road Transport and Highways Division Secretary took the decision as Minister Obaidul Quader represents the ministry at the purchase committee meeting.
RHD appointed OSJI Joint Venture Company to implement the Tk 84.86-billion project on January 04, 2016 against its proposal to carry out the entire work in four years by January 03, 2020.
The firm has already completed 2nd Kanchpur bridge over Shitalakhya which was opened to traffic on March 13. Second Meghna and Gumti are set to be opened to traffic by this month.
The project office has already taken steps to revise the development project proposal, reducing the project cost by Tk 15 billion, saved from the project.
The project office said a significant amount of money would also be saved from the contract value of Tk 59.66 billion which is now under evaluation.
smunima@yahoo.com