The Times of India 22.06.2010
After KMC row, new tender for sewerline work
KOLKATA: Within days of a tender controversy over sewerline work under JNNURM, mayor Sovan Chatterjee on Monday ordered the fresh calling of tenders for a part of the Rs 500 crore project. The move follows legal advice from state advocate general Balai Ray, Chatterjee said.
In a letter to the mayor, Ray advised him to float a second tender for a portion of the sewerage upgrade programme. The work was originally allotted to APS Michigan, a foreign firm that missed a deadline, after which the it was awarded to two more foreign firms, Angel Liner and Michael Beu, without a fresh tender being called. This led to the controversy and the fresh tenders call.
Chatterjee has decided to impose a penalty of Rs 9.6 crore on APS Michigan for missing several deadlines and not completing its job on time. “Going through the documents of the project and an advice from the state advocate general, I had no option but to order a fresh tender according to norms,” Chatterjee said. The decision to impose a penalty on the errant contractor was taken under a clause of the project agreement with the contractor, the mayor said.
The source of the trouble dates back to January when APS Michigan was found to have missed a deadline. Its contract was terminated on January 27 and the pending work was divided among Angel Liner and Michael Beu. Both firms had already been engaged under the JNNURM project and were asked to take on the additional load.
While Angel Liner would desilt Rashbehari Avenue and Canning Street for Rs 93 crore, Michael Beu would free the sewerlines under Beodon Street and Hazra Road for Rs 71 crore. But no fresh tender was issued for this, which led to complaints of irregularity.
In a letter to the mayor, Ray advised him to float a second tender for a portion of the sewerage upgrade programme. The work was originally allotted to APS Michigan, a foreign firm that missed a deadline, after which the it was awarded to two more foreign firms, Angel Liner and Michael Beu, without a fresh tender being called. This led to the controversy and the fresh tenders call.
Chatterjee has decided to impose a penalty of Rs 9.6 crore on APS Michigan for missing several deadlines and not completing its job on time. “Going through the documents of the project and an advice from the state advocate general, I had no option but to order a fresh tender according to norms,” Chatterjee said. The decision to impose a penalty on the errant contractor was taken under a clause of the project agreement with the contractor, the mayor said.
The source of the trouble dates back to January when APS Michigan was found to have missed a deadline. Its contract was terminated on January 27 and the pending work was divided among Angel Liner and Michael Beu. Both firms had already been engaged under the JNNURM project and were asked to take on the additional load.
While Angel Liner would desilt Rashbehari Avenue and Canning Street for Rs 93 crore, Michael Beu would free the sewerlines under Beodon Street and Hazra Road for Rs 71 crore. But no fresh tender was issued for this, which led to complaints of irregularity.
