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Japanese company Marubeni Corporation has withdrawn from two metro-rail projects without explaining the reason.
Sources said the withdrawal came at a time when the Dhaka metro rail company is reviewing most of the mass rapid transit (MRT) line contract packages (CPs) on various grounds, including exorbitant quotation submission and non-competitiveness due to poor bidder participation.
Marubeni, one of the largest trading companies in Japan operating since 1858, was involved in MRT 6, along with India's Larsen and Toubro (L&T), under CP 7, which is mainly about electrification and mechanical (E&M) work.
Sources said the company has officially informed the project office of discontinuing the E&M work, though it submitted a proposal as part of a joint venture for the MRT 6 extension from Motijheel to Kamalapur nearly two years ago.
They also said despite showing interest in participating in MRT 1 under CP 9, Marubeni withdrew from the same joint venture, asking the project office to change the business policy from the headquarters.
Its partner L&T later participated in the final bidding after forming a joint venture with another Japanese company.
This joint venture was the lone bidder in CP 9.
In both CP 7 of MRT 6 and CP 9 of MRT 1, Marubeni was the lead partner.
On June 3, 2018, the Marubeni-L&T joint venture signed the contract for CP 7 of MRT 6 to be involved in design, procurement, installation, testing, commissioning, maintenance support of track work, electrification, signalling, communication, automatic fare collection, platform screen doors, lifts, and escalators.
The MRT 1 project divided the CP 7 work into three different packages, including CP 9 for which the joint venture was shortlisted after the prequalification bid.
Sources said the situation turned volatile after the 2024 political changeover and over quoting unusually high prices for MRT 6 extension.
The joint venture quoted Tk 6.42 billion for only one kilometre of E&M work on the Motijheel-Kamalapur extension as the lone bidder during the Awami League government.
It was the lone bidder as the previous management did not arrange fresh tendering to save time.
A high official at the Marubeni Corporation's Dhaka office declined to comment on the matter but said the company is no longer involved in the projects.
"It is true, but we cannot disclose the reason," he told The Financial Express, hinting that the engineering, procurement, and construction (EPC) business environment in Bangladesh is very tough now.
It was also learnt that Dhaka Mass Transit Company Limited (DMTCL) had forced Marubeni to change 100 computers in all MRT 6 stations as those, supplied under CP 7, were below the original specifications.
The specifications were approved by the previous management during the Awami League government.
Sources said after the new management's takeover, the Japanese company, as the lead partner, agreed to replace the 100 computers, along with four large video screens for automatic train supervision, as per the revised specifications.
Marubeni has already replaced 53 depot point machines with accessories.
smunima@yahoo.com