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JBIC-funded project: Jacob denies allegations

By Our Special Correspondent

THIRUVANANTHAPURAM JULY 7. The Minister for Water Resources, T. M. Jacob, said in the Assembly on Monday that the Kerala Water Authority (KWA) had saved Rs. 29.57 crores in consultancy fee following the re-tendering of the consultancy contract for the Kerala Water Supply Project.

Denying allegations of corruption raised by the Opposition during the debate on the demands for grants for Water Supply and Sanitation and Irrigation, the Minister said that the contract was awarded to the Tokyo Engineering Company for Rs. 92.75 crores, excluding tax and contingencies. The previous bid, made two years ago, was for Rs. 122.32 crores.

The implementation period had been reduced from six to four years. Consequently, the contingency costs in case of extension of time and cost escalation had gone up from Rs. 6.12 crores to Rs. 9.27 crores.

Mr. Jacob said that the project could not be implemented without engaging consultants as per the terms of the loan from for the project from the Japan Bank for International Cooperation (JBIC). The bids had been examined at various levels and there was no irregularity in its award. The whole process had been transparent.

All the companies which had submitted bids had retired engineers of the KWA in their consortia. Substantial work was involved in the consultancy work. "Consultancy did not mean payment for nothing in return.''

He said that the proposed Bill to protect the water resources of the State would be brought during the current session itself. An expert committee to advice the Government on inter-State river water issues was being constituted. The State would not agree to transfer of additional water from the State's rivers through interlinks. It was demanding that the maximum water level in the Mullapperiyar dam should be reduced to 132 feet.

He said that there were no plans to increase water charges for domestic consumers or privatise the KWA. However, restructuring of the KWA would be undertaken.

The proposed Ground Water Authority, he said, will be formed shortly. Action will be taken about complaints about ground water depletion by Coca Cola company in Palakkad district. After the Minister's reply, the House passed the demands Rs. 369 crores.

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