The Interim Government of Bangladesh has officially terminated its existing agreement with Summit LNG Terminal II Co. Ltd., which was tasked with constructing the country’s third Floating Storage Regasification Unit (FSRU) at Maheshkhali in the Cox’s Bazar district.
The FSRU project, with a proposed regasification capacity of 600 million cubic feet per day (mmcfd), was being developed under the Quick Enhancement of Electricity and Energy Supply Act (Special Provisions) Act, 2010 (amended in 2021).
According to a statement from the Ministry of Power, Energy and Mineral Resources dated 3 October 2024, the decision to terminate the contract follows a recommendation from a government-formed review committee.
The committee, composed of representatives from the Implementation Monitoring and Evaluation Division (IMED), the Attorney General’s Office, and Rupantarita Prakritik Gas Company Limited (RPGCL), along with procurement experts, was tasked with evaluating the project’s future.
The committee’s recommendations advised that following the contract termination, the government should initiate a new procurement process. This process is expected to comply with either the Public Procurement Act (PPA) of 2006 and the Public Procurement Rules (PPR) of 2008, or be conducted under the Public-Private Partnership (PPP) Act of 2015, depending on the chosen framework.
The termination of this agreement opens the door for a re-tendering process, ensuring that the new FSRU project is carried out in line with current legal frameworks governing public procurement.
This strategic move is aimed at maintaining transparency and efficiency in the project’s development, as the government seeks to boost the country’s energy supply to meet growing demand.
Further actions regarding the initiation of a new tender process or project activities will be undertaken promptly, in line with the country’s procurement laws.
Deputy Secretary of the Energy and Mineral Resources Division S.M. Ferdous Islam issued the official notice to relevant stakeholders, including the Chairman of Petrobangla.
This development is seen as a significant shift in Bangladesh’s approach to expanding its energy infrastructure, emphasizing the need for accountability and adherence to proper legal protocols in critical projects.