The committee last year made the same violation by providing the Fenchuganj Power Plant project implementing company an advance of Tk 56 crore, 10 per cent of the project cost.

However, this time the committee attached the condition -- "if the prime minister approves" -- to the 20 per cent advance.

The government through a circular in 2004 prohibited such advance payments for contracted work. The embargo followed a review that found that such advances create much scope for corruption. In stead of using credit facilities they are supposed to arrange themselves, contractors use the advances to launch the work. They practically take no credit but take the full advantage offered against the fictitious credits.

Three international firms -- China National Machinery Import and Export Corporation, PT INKA of Indonesia, and IRCON of India -- would get the 20 per cent advances, if the prime minister approves, for carrying out four railway projects under the communications ministry, decided yesterday's cabinet committee meeting.

The Chinese company has been contracted to supply 80 metre gauge railway carriages under two contracts -- one for 50 and the other for 30 carriages.

PT INKA has to supply 50 broad gauge carriages for Bangladesh Railway.

The contract with IRCON, India is for modernising the signalling and interlocking system to a turnkey status at 12 railway stations in the Akhaura-Sylhet section.

Earlier, the cabinet committee on purchase had turned down these proposals and referred them to the cabinet committee on economic affairs.

The communications ministry at yesterday's meeting argued that the tenders for the projects had been floated before the government imposed the bar against advances, and so the bar is not applicable for these particular projects.

The cabinet committee on economic affairs also approved two other proposals yesterday. One of them is for relaxing the obligation of observing the Public Procurement Regulations (PPR) in leasing aircraft on an emergency basis to carry Hajj pilgrims in the current fiscal year.

The other proposal is to waive the obligation of abiding by the PPR in procuring arms, ammunitions and explosives for the Special Security Force.