Two years after the Corporation terminated the agreement with the contractor for failing to complete the underground drainage (UGD) work, it has now finally appointed a contractor to complete the pending works.
The Rs. 149.39-crore ambitious UGD work was divided into three packages, Package I to cover 86.14 km at a cost of Rs. 15.50 crore, Package II to cover 150.65 km at a cost of Rs. 37.70 crore and Package III to cover 184.82 km at a cost of Rs. 37.40 crore. Work includes laying collection pipelines, constructing manholes and providing house connections. Work orders were issued in 2010 and the work was scheduled to be completed by the end of 2012.
As the Hyderabad based joint venture company, PSVCPL-BBIPL, that was awarded Package I and II failed to show progress in work, the contract was terminated in July 2013. The contractor approached the Madras High Court against the termination and the case is pending.
ADVERTISEMENT
Tender was floated in February 2014 for completing the work in which a Chennai based construction company quoted the lowest bidding value at Rs. 19.91 crore for Package I and Rs. 50.69 crore for Package II. Since it is a World Bank funded project and the funding period is over, the Principal Secretary of Municipal Administration Department has asked the Corporation to renegotiate the price and award the contract.
After three price revisions, finally the contractor agreed to complete the work.