10 Locomotives from Hyundai: Minister now questions order itself

After years' of process, 10 locomotives bought from Hyundai Rotem reached Bangladesh without the alternators specified in the contract, but the railways minister is now questioning the order itself.

Bangladesh Railway (BR) in May, 2016, floated a tender for procuring the 10 metre-gauge locomotives and some other equipment under a project funded by the Asian Development Bank (ADB).

After a long bidding process, in which different government bodies and the ADB were involved, BR in May 2018 signed a deal with South Korean Hyundai Rotem for Tk 297.63 crore.

The locomotives reached Bangladesh in September and it was discovered that Hyundai delivered the locomotives with TA-09 alternators, violating the contract that specified the TA-12 model.

Railways Minister Nurul Islam Sujan at the Rail Bhaban yesterday said the alternators, an important component of the diesel-electric locomotives, specified in the contract should have been different. He said they were looking into as to why the "applicable" alternators, which according to him is the TA-09, were not selected in the first place.

The minister said this after a probe committee found that Hyundai supplied the locomotives with the TA-09 alternators breaching contract. The probe body recommended punitive action against the company.

THE PROBLEM

A BR commissioning committee last year said the technical specifications of four key components – engines, alternators, compressors, and traction motors -- of the locomotives did not match the specifications mentioned in the agreement.

The project authorities halted payment for the locomotives and the railways minister in October ordered a probe.

The locomotives have been sitting in a workshop since then.

The probe committee, led by Farukuzzaman, additional secretary (law and land) of the ministry, submitted its report on February 25.

The Daily Star obtained a copy of the report.

The committee also recommended punitive actions against CCIC Singapore Pte Ltd, which the BR employed for pre-shipment inspection, for failing to carry out its duties.

RAILWAYS MINISTER'S SAY

Citing the probe report, a reporter yesterday asked the railways minister whether they were going to take action against Hyundai.

He said all locomotives in BR's fleet use the TA-09 alternators and the same alternator was going to be used in the 20 locomotives the BR was going to buy soon.

The people involved in the bidding process of the 10 locomotives under discussion selected TA-12 alternators, he said. But the TA-12s are used in broad-gauge locomotives.

However, a project official told The Daily Star that the BR on October 10, 2018, signed another contract with Hyundai Rotem for buying 70 metre-gauge locomotives for Tk 1,986.53 crore. The alternator mentioned in the contract was TA-12.

The minister said there were talks about BR collecting metre-gauge locomotives that could be used on broad-gauge lines later by changing their undercarriages.

"But we did not find any such decision … If there is any such decision then why would we go for a contract for buying 20 locomotives with [TA-09] alternators," he said.

However, the project director had told the probe committee that as per the railway's masterplan, and an instruction from the prime minister, they were supposed to convert the main lines to dual-gauge lines within four-five years so that more passengers and goods could be carried at higher speeds and safety be improved by operating broad-gauge trains.

"The main purpose of the procurement was to buy metre-gauge locomotives with relatively high-powered capital components, like engines, alternators traction motors, compressors, turbochargers so that metre-gauge trains could be operated now and later broad-gauge trains could be operated with the same locomotives by just changing the bogies," the probe report said citing the PD.

Despite this, the minister said, "We have formed another technical committee to find out why [TA-] 12 alternators were used [mentioned in the contract], even though [TA-0] 9 alternator is used everywhere. Why [TA-] 12 alternators came up in the contract? [TA-] 12 alternator was not supposed to be in the contract. [TA-0] 9 alternator is supposed be there.

"So, we are looking into the matter … The technical committee would see whether the people involved in the preparation of the bid documents had made any mistakes. Where was the fault?"

Citing the probe report, a reporter asked why the BR authorities refused when Hyundai wanted to change the TA-12 alternators with TA-09s even after the singing of the contract, the minister said a project director deals the project on behalf of BR.

The PD was supposed to take advice from his higher authorities and if the PD was at fault, action would be taken as per the committee report, he said.

Contacted, PD Nur Ahmed Hossain said he informed his higher authorities time-to-time about each and every development.

He said the contract and the ADB's guideline mentions what should be done if the contractor violates the contract but a vested quarter was trying to use the "sub-standard" locomotives.