BENGALURU: Even as the controversy over the steel flyover continues to rage, the Bangalore Development Authority is steadily going ahead with the formalities required to kickstart its construction.
However, it now appears that a series of steps need to be taken before the actual work order (green signal) for the project is issued. “We have issued a Letter of Acceptance to L&T and NCC Ltd on Wednesday for the offer they have made to us for the project,” said a top BDA official. The flyover proposed between Basaveshwara Circle and Hebbal had been okayed by the BDA’s Board recently.
However, it is going to take some time before the actual work order is issued, the official said. Elaborating, he said the next step would be a ‘Performance Guarantee Advance’ from the contractors. “This would be an advance deposit they give BDA and amounts to 5 per cent of the total cost of the contract, which would be `89.55 crore for the flyover.”
This amount is refundable to them only if the project is completed within the stipulated time it has been decided upon, he added.
After the performance guarantee is given, an agreement has to be entered into by the BDA and the contractors. “The work order would be issued to them only after this formality is completed,” the source said.
When asked about the funding for the project, the official said after work commences, the Board would release a maximum of five per cent of the project cost as advance. “This would again be `89.55 crore. They could even ask for a much smaller amount as advance. The contractors need to pay a 12 per cent interest on this amount,” he added.
The remaining amount would be paid in phases depending on the progress of the work.