Top contractors in rail and road over a decade and a half

Max Toma NDI gets top-paying projects

During the previous Awami League government, the transportation and communication infrastructure sector received the highest allocation from the development budget. A substantial amount of money was spent on constructing, repairing, and improving new roads, bridges, and railways. Local contractors also worked with various foreign contracting firms in this sector. Over the past fifteen years, among local contractors, Max Infrastructure Limited and Toma Construction have handled the most significant contracts for the Ministry of Railways. On the other hand, one of the leading contracting firms for the Roads and Highways Department (RHD) is National Development Engineers Limited (NDE).

During the previous Awami League government, the transportation and communication infrastructure sector received the highest allocation from the development budget. A substantial amount of money was spent on constructing, repairing, and improving new roads, bridges, and railways. Local contractors also worked with various foreign contracting firms in this sector. Over the past fifteen years, among local contractors, Max Infrastructure Limited and Toma Construction have handled the most significant contracts for the Ministry of Railways. On the other hand, one of the leading contracting firms for the Roads and Highways Department (RHD) is National Development Engineers Limited (NDE).

The other contracting firms among the top ten on the list are Rana Builders, Hassan Techno Builders, Mozahar Enterprise, Moyeenuddin (Banshee) Limited, Masud Hi-Tech Engineering Limited, Spectra Engineers, and Muhammad Aminul Haque.

Among local contractors working with Bangladesh Railways, Max Infrastructure Limited has received the highest amount of work in monetary terms. The company has been involved in constructing and developing several railway infrastructures, including the Laksam-Chinki Astana and Kashiani-Gopalganj railways. Currently, Max is working on two ongoing railway projects. One is the Dohazari-Cox's Bazar railway project, where Max is collaborating with a Chinese company on a contract worth BDT 35.02 billion. The other is the Akhaura-Laksam railway project, where Max Infrastructure Limited works with Chinese and Bangladeshi firms on a contract valued at BDT 34.73 billion.

The company chairman is Ghulam Mohammad Alamgir. There are allegations that he was one of the contractors who received the most benefits during the previous government. Despite multiple attempts to contact him for a statement on Tuesday (September 3), no response was received.

In addition to its railway work, Max Infrastructure has recently been awarded a BDT 23.20 billion development project for the Dhaka-Sylhet highway. The company has secured part of the construction work for this road in collaboration with two Chinese contracting firms.

Another leading railway contractor is Toma Construction. The company, owned by Ataur Rahman Bhuiyan, is working on contracts worth BDT 61.61 billion in joint ventures with multiple contracting firms for the Dohazari-Cox's Bazar and Akhaura-Laksam railway projects.

He once served as the Vice President of the Noakhali District Awami League. He contested the last national parliamentary election as an independent candidate but was defeated. There is a public rumor about a connection between Toma Construction and Mirza Azam, the organizational secretary of the AL and former state minister.

On the other hand, among local contractors, National Development Engineers Limited (NDE) is at the top for the Roads and Highways Department. According to the Central Procurement Technical Unit (CPTU) database, the company has received 113 work orders from the Roads and Highways Department since September 2014. The total contract value for these projects exceeds BDT 59.66 billion. NDE is involved in constructing various types of infrastructure, including roads, bridges, electricity, and housing. The chairman of the company is Ashraf Uddin Sarkar.

Rana Builders is another leading contractor for the Roads and Highways Department. Since February 2014, the company has received 422 work orders from the department. The total contract value for these projects amounts to BDT 57.14 billion. Md Alam owns Rana Builders.

An investigation by Bonik Barta has revealed that Md. Alam's rise in the contracting business, which has spanned over four decades, has primarily occurred in the past ten years. Before this, Rana Builders mainly worked on smaller projects for various government agencies, including the Roads and Highways Department (RHD). Since 2010, the company has started securing major development projects from RHD. Rana Builders has worked on several significant projects, including the Sheikh Russell Bridge in Patuakhali, the Khepupur Bridge, the Mohipur Bridge, the Jinjira-Dohar Highway, the Jatrabari-Kanchpur Highway, the Joydebpur-Tangail-Jamalpur Highway, the Kanchpur-Bhairab-Sylhet-Jaflong Highway, the Daulatdia-Khulna-Jessore Highway, the Laksam-Maizdi Highway, and the Dhaka-Mawa Expressway.

Md. Alam's nephew, Nazmul Hassan (Pakhi), who owns Hassan Techno Builders, has secured 420 contracts from the Roads and Highways Department since October 2015, with a total contract value of BDT 47.87 billion. Similarly, Md. Alam's other nephew, Zulfiqar Hossain Masud, has obtained contracts worth BDT 34.53 billion from the Roads and Highways Department since December 2017.

Md Alam, the owner of Rana Builders, claims they have received their work in full compliance with all rules and regulations. He told Bonik Barta, "All the work we have received has been done according to proper tenders. No one will find any discrepancies. Since 2020, the volume of our work has decreased. This is mainly due to the government's procurement process (e-GP). Many contractors on the roads have more work but lower prices. However, in the tendering process, the work is awarded to those with higher volumes of work. This has allowed many contracting firms to obtain work unusually."

Mozahar Enterprise is another leading contractor for the Roads and Highways Department. According to CPTU records, the company has received 1,176 contracts since December 2016. The total contract value for these projects is BDT 41.05 billion.

The owner of Mozahar Enterprise, Kazi Mozaharul Haque, is from Khulna. There is a public rumor that he established his contracting business by maintaining connections with an influential local family that supports the AL.

Since February 2014, the contracting firm Moyeenuddin (Banshee) Limited has received 641 work orders from the Roads and Highways Department, with a total contract value of BDT 40.6 billion. Since November 2016, Spectra Engineers Limited has received work orders worth BDT 31.89 billion from the Roads and Highways Department. The chairman of Spectra Engineers Limited is Khan Md. Aftab Uddin.

Muhammad Aminul Haque Limited from Naogaon has emerged as a leading road and highways department contracting firm in recent years. The company's owner, Aminul Haque, started his contracting business in the 1990s. Until 2015, the number of projects Aminul Haque had secured was limited, and some were obtained through joint ventures with other companies.

According to CPTU records, since December 2017, Aminul Haque Limited has received 3811 work orders from the Roads and Highways Department, with a total contract value of BDT 28.79 billion.

Attempts to contact Aminul Haque by phone multiple times on Tuesday (September 3) for a statement were unsuccessful, as he did not answer the calls.

Among the Roads and Highways Department's top contractors are MM Builders, Mahfuz Khan, Orient Trading and Builders, and Abed Mansur Construction. Some contracting firms have been accused of obtaining work orders using fake certificates. Following an investigation that confirmed these allegations, the Roads and Highways Department has blacklisted companies such as Mozahar Enterprise, Abed Mansur Construction, Masud High-Tech Engineering, Moyeenuddin (Banshee) Limited, Rana Builders, and Hassan Techno Builders at various locations across the country.

Syed Moinul Hasan, the department's Chief Engineer, told Bonik Barta, "We are taking action when we receive complaints. Currently, instances of a single contractor receiving excessive work have significantly decreased. This is an ongoing process, and it will be further reduced in the future. Moreover, the number of contractors in the country is relatively low compared to the amount of work available, so many contractors need to secure more work."

Infrastructure expert and Professor Dr. Hadiuzzaman from Bangladesh University of Engineering and Technology (BUET) believes that the existing government procurement system contributes to forming a large syndicate among contractors in Bangladesh. He told Bonik Barta, "Every contractor has its limitations regarding capacity. Various complications arise when the amount of work exceeds a contractor's financial capability, workforce, and equipment. This leads to delays and poor quality of work. Additionally, in many cases, a contractor receiving more work may transfer it to a third party, further deteriorating the quality. To avoid such issues, fundamental changes are needed in the tendering process. By relaxing some of the tender conditions and allowing more contractors to participate, competition in this sector can be increased. Furthermore, a limit should be set on the amount of work a single contractor can receive."

 

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