The state government has finally decided to call fresh tenders for the Hyderabad Metro Rail project.This decision, taken at a high-level meeting chaired by the Chief Minister, Dr Y.S. Rajasekhar Reddy, puts to rest rumours that the state government would take up the project on its own with the support of Central infrastructure fund.
The high-level meet opted for Public-Private-Partnership (PPP), in which global tenders would be called.Talking to media persons, the municipal administration minister, Mr Anam Ramnarayana Reddy, along with the Metro Rail project managing director, Mr N.V.S. Reddy, assured that the project cost would not be increased, though there was a delay of one year.
Mr Ramnarayana Reddy also said the Viability Gap Funding (VGF) factor would be retained. The firm or consortium that wins the bid will get nearly Rs 4,000 crore under the VGF component.The government decided to start the tender process from July 16 and wants to grant the contract in four months.
“The Chief Minister specifically instructed that by November 15, the tender should be awarded,” said Mr Ramnarayana Reddy.Though the government initially thought of contacting the second best bidder Magna Allamore, Siemens consortium and Reliance Infrastructure consortium, they were not keen on taking up the project under the norms of previous tender. “They also favoured fresh bidding,” said a senior official.
The project will also follow the changed PPP guidelines laid down by the Centre a month ago, which would block frivolous companies from participating in the bid.Under the new norms, a developer bidding for a PPP project worth Rs 500 crore have a record of executing projects worth Rs 1,000 crore. Earlier, the bidder need to have executed projects which are only one-and-a-half times the cost of the proposed project.Further, the state government has decided to increase the performance guarantee deposit from 0.5 per cent to 1 per cent. This means the successful bidder would have to deposit bank guarantees worth Rs 120 crore with the government. All this would make the bid process more serious.
The high-level meet opted for Public-Private-Partnership (PPP), in which global tenders would be called.Talking to media persons, the municipal administration minister, Mr Anam Ramnarayana Reddy, along with the Metro Rail project managing director, Mr N.V.S. Reddy, assured that the project cost would not be increased, though there was a delay of one year.
Mr Ramnarayana Reddy also said the Viability Gap Funding (VGF) factor would be retained. The firm or consortium that wins the bid will get nearly Rs 4,000 crore under the VGF component.The government decided to start the tender process from July 16 and wants to grant the contract in four months.
“The Chief Minister specifically instructed that by November 15, the tender should be awarded,” said Mr Ramnarayana Reddy.Though the government initially thought of contacting the second best bidder Magna Allamore, Siemens consortium and Reliance Infrastructure consortium, they were not keen on taking up the project under the norms of previous tender. “They also favoured fresh bidding,” said a senior official.
The project will also follow the changed PPP guidelines laid down by the Centre a month ago, which would block frivolous companies from participating in the bid.Under the new norms, a developer bidding for a PPP project worth Rs 500 crore have a record of executing projects worth Rs 1,000 crore. Earlier, the bidder need to have executed projects which are only one-and-a-half times the cost of the proposed project.Further, the state government has decided to increase the performance guarantee deposit from 0.5 per cent to 1 per cent. This means the successful bidder would have to deposit bank guarantees worth Rs 120 crore with the government. All this would make the bid process more serious.
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