Jisha Surya/TNN
February 10, 2014
Thiruvananthapuram: The bidding process for the work on Chengannoor-Ettumanoor stretch of the MC road, under the Kerala State Transport Project (KSTP), has run into trouble with the World Bank shooting down the works department move to award the work to a bidder who quoted 16% more than the estimated value.
The steering committee, chaired by chief secretary E K Bharat Bhushan, had earlier found that first bidder NAPC Ltd failed in clearing the qualification criteria and second bidder Essar-Sacyr consortium had not submitted the performance guarantee in time. Sources said the World Bank had favoured giving more time to Essar that sought time till January 20 to submit the performance guarantee. The KSTP was, however, not in favour of giving more time and the consortium was asked to submit it by December 31 last year.
The consortium said in a letter to the project director that its representatives had reached the KSTP office on January 20 to submit the performance bank guarantee but was told that the government had decided to award the contract to the third bidder -- DELMA-Sree Dhanya constructions. A file inspection by TOI under the provisions of section 4 of RTI also revealed that the steering committee had met on January 20 and decided to award contract to the third bidder after Essar-Sacyr failed to submit bank guarantee in the stipulated time.
Senior KSTP officials said the consortium did submit the bank guarantee but after the stipulated time. “The World Bank has objected to the decision to award contract to the third bidder. A decision will be taken at the next steering committee meeting on February 13,” one of them said. The award of the contract to the third bidder will result in a loss of Rs 28 crore to the exchequer while the work could be delayed by at least four months if the KSTP goes for a re-tender.
Essar-Sacyr had sought time to submit the bank guarantee in a letter dated January 8 while the government encashed the bid security on January 15. The consortium had also sent all necessary details such as scanned copies of performance guarantees, power of attorney and consortium agreement to the KSTP on January 21.
Sources in works department said the KSTP was not satisfied with the performance of Essar, which was awarded the contract for work on Thalassery-Valavupara stretch under KSTP phase II in June. They said works were yet to begin on the stretch even seven months after awarding the contract.
February 10, 2014
Thiruvananthapuram: The bidding process for the work on Chengannoor-Ettumanoor stretch of the MC road, under the Kerala State Transport Project (KSTP), has run into trouble with the World Bank shooting down the works department move to award the work to a bidder who quoted 16% more than the estimated value.
The steering committee, chaired by chief secretary E K Bharat Bhushan, had earlier found that first bidder NAPC Ltd failed in clearing the qualification criteria and second bidder Essar-Sacyr consortium had not submitted the performance guarantee in time. Sources said the World Bank had favoured giving more time to Essar that sought time till January 20 to submit the performance guarantee. The KSTP was, however, not in favour of giving more time and the consortium was asked to submit it by December 31 last year.
The consortium said in a letter to the project director that its representatives had reached the KSTP office on January 20 to submit the performance bank guarantee but was told that the government had decided to award the contract to the third bidder -- DELMA-Sree Dhanya constructions. A file inspection by TOI under the provisions of section 4 of RTI also revealed that the steering committee had met on January 20 and decided to award contract to the third bidder after Essar-Sacyr failed to submit bank guarantee in the stipulated time.
Senior KSTP officials said the consortium did submit the bank guarantee but after the stipulated time. “The World Bank has objected to the decision to award contract to the third bidder. A decision will be taken at the next steering committee meeting on February 13,” one of them said. The award of the contract to the third bidder will result in a loss of Rs 28 crore to the exchequer while the work could be delayed by at least four months if the KSTP goes for a re-tender.
Essar-Sacyr had sought time to submit the bank guarantee in a letter dated January 8 while the government encashed the bid security on January 15. The consortium had also sent all necessary details such as scanned copies of performance guarantees, power of attorney and consortium agreement to the KSTP on January 21.
Sources in works department said the KSTP was not satisfied with the performance of Essar, which was awarded the contract for work on Thalassery-Valavupara stretch under KSTP phase II in June. They said works were yet to begin on the stretch even seven months after awarding the contract.
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