Vested interests among Bhubaneswar Development Authority (BDA) top circles, apparently tilted in favour of their chosen contractor firm, have been delaying construction of “Affordable Housing for Economically Weaker Section (EWS)” in the capital city though the foundation-stone for the project was laid by Chief Minister Naveen Patnaik about a year ago.
The BDA’s machinations have landed the issue in the Orissa High Court, which stated that the lowest bidding firm, which has not been given work order, may file an application before the BDA Vice-Chairman and reiterate its grievance. But the BDA authorities are yet to take a positive stand, for which the project work is not taking off.
According to information, the BDA had invited tender for construction of affordable housing at four different places, Chandsekharpur, Ghatikia Pandara and Nakhara, Ghatika and Jaydev Vihar, with total estimated tender cost of Rs 323.06 crore on September 19, 2015.
On April 2, three bidders, the Malar Energy and Infrastructure Pvt ltd, Chennai and two firms from Odihsa, were declared qualified after technical evaluation and the bids were opened the same day where the Malar Energy was declared the lowest bidder (l-1) for all the four packages.
The BDA held a negotiation with the Malar Energy on April 27 at its office where the company offered a competitive lump sum of Rs357,20,76,000 to undertake the projects. The Malar Energy formally sent its agreement on negotiation amount to BDA officials on May 13 and 19.
In the meanwhile, the BDA had issued an office order cancelling the tender for administrative reasons.
When Malar Energy officials met the Chief Engineer-cum-Engineer member of the BDA on May 21, the latter said contract would be given if it reduces quoted lump sum amount to maximum upto 10 per cent of the provisioned bid amount of the BDA. The Chief Engineer also asked Melar Energy officials to give a written consent in this regard by evening itself.
But the Melar Energy sought some time and requested the BDA VC through e-mail to give an appointment on May 23 for negotiation.
As it didn’t receive any response, the firm filed a suit with the Orissa High Court on May 23. The court on May 25 directed the firm to continue discussions and negations during the pendency of the case.
Then the Malar Energy requested the BDA VC to call if tor negotiation and remove the office order (cancellation) from the website. On June 6, the Melar Energy officials met the Engineer Member BDA and offered to execute the work within 10 per cent of the considered bid but with a request to give exemption for the applicable taxes and duties. On June 9, the company received a letter from the BDA that it would consider the offer price without any conditions pertaining to the exemption of taxes. Then the company submitted its final offer.
By now, seventy days have passed, but the company has not received final work order from the BDA.
While the validity of the price bid was for 180 days upto July 14, 2016, the company has now requested the BDA to consider the increase in the cost of materials as its price quoted was for a lump sum contract amount without any escalation. The company said it wouldn’t be responsible for delay in commencement of the work beyond the valid period.
Hence, it has urged the BDA VC to facilitate availing standard practice of providing 7 per cent on the quoted lump sum amount as escalation due for one year as per the BDA’s terms of reference otherwise supply cement and steel at a fixed cost for the entire duration of the project ( 18 months) without any escalation.