Unsolicited billion-dollar bid to Canadian firm foiled

by Special Correspondent
November 20, 2011

http://www.weeklyblitz.net/1951/unsolicited-billion-dollar-bid-to-canadian-firm

Frantic bid of leasing out Shahjalal International Airport in Dhaka [Bangladesh] to Canadian firm Visual Defense Incorporation for 25 year has been finally been foiled at the timely intervention of the local media. It was alleged that Visual Defense Incorporation falsely placed the emblem of International Air Transport Association [IATA] in their letterhead and claimed to be the only Strategic Partner of IATA involved in aviation security projects. On a scrutiny of IATA's strategic partnership directory it was revealed that Visual Defense Incorporated is in fact just one of 34 companies, which has a strategic partnership with IATA on security issues.

The decision to investigate also comes two weeks after the secretary to the ministry, Atharul Islam, received a letter from IATA expressing concern that it had read reports that the company was suggesting payment of a fee of US$35 per departing international passengers to be collected from the airlines as a way of paying for the establishment of the security system. The letter, dated November 3, 2011 says that such a fee was "excessively high compared to security fees charged at airports around the world."

IATA's director of industry charges, fuel and taxation, who signed the letter, 'urges' the Bangladesh government to "withhold any decision to implement a security charge at [the airport] until proper consultations have taken place with the airlines."

IATA is an international trade body which represents about 230 airlines comprising 93% of scheduled international air traffic.

On October 27, the cabinet committee on economic affairs in principle approved the US$40 million project placed by the civil aviation ministry to establish a comprehensive security management system in Hazrat Shahjalal International Airport. The cabinet body suggested that the project should be implemented under the public-private partnership initiative. Under the proposal, if a deal was struck between the International Air Transport Authority and the Civil Aviation Authority of Bangladesh, the company would receive US$35 in security fee from each departing passenger for 25 years. CAAB at present does not impose any security fee.

If Visual Defense Incorporated was awarded the contracted, it would bag roughly US$ 150 million per year, thus making the total to US$ 3.7 billion, which the Canadian company would extract from the outbound passengers at Shahjalal International Airport in Dhaka.

When the Bangladesh government started investigation into the matter, Visual Defense Incorporation hurriedly withdraw their proposal and left the country, possibly to skip legal consequences. In a letter dated November 14, 2011 in a letter signed by Eugene Gerstein the company's vice-president business development, Visual Defense Incorporation said, "We are officially withdrawing our proposal to the People's Republic of Bangladesh."

It was revealed by the Civil Aviation Minister Golam Mohammed Qader that, some extremely influential quarters in the government were continuously putting pressure on the ministry in awarding the unsolicited contract to the Canadian firm for reason well-anticipated. One of the members of the extremely influential political families in the country, who resides in United Kingdom, came to Bangladesh months back with the agenda of getting the contract in favor of Visual Defense Incorporated. It is further learnt by Weekly Blitz that the same person would be holding 25 percent share in the profit of Visual Defense Incorporated in its activities in Bangladesh, once the contract was awarded to the Canadian firm.

Hazrat Shahjalal International Airport, formerly known as Zia International Airport, is the largest airport in Bangladesh located just 11 miles [17 kilometres] from city center. It has an area of 1,981 acres and serves approximately 6 million international and domestic passengers every year as well as 150,000 tons of cargo and freight, this equates to 52 percent of the country's total arrivals and departures. The airport is a hub for all 4 major airlines of Bangladesh, including Biman Bangladesh Airlines, GMG Airlines, United Airways and Regent Airways, and it is used by over 30 other airlines such as Thai International Airways, Singapore Airlines, Air India, Qatar Airways, Emirates, Druk Air, Dragon Air, Malaysian Airlines, Turkish Airways, Etihad Airways, Saudia, Air Arabia, China Eastern Airlines, Bangkok Airways, Kuwait Airways, Gulf Air, Jet Airways, Pakistan International Airlines, Cathay Pacific Airways, Kingfisher Airways, Airasia, Flydubai etc are operating international flights to various destinations in the world.

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