Andhra Pradesh government set to re-tender left main canal works of Polavaram project
VIJAYAWADA: Buoyed by the positive response to reverse tendering for headworks, hydel power plant and a package (65) of left main canal (LMC), the Water Resources department is set to cancel contract related to another package of LMC and go for reverse bidding. The government on Thursday issued orders for pre-closure of contract of package 5A works to engage a new agency.
According to the order issued (RT 456) by Special Chief Secretary (Water Resources) Adityanath Das, the government accorded permission to the Chief Engineer of Polavaram Irrigation Project for pre-closure of the contract awarded to PSK-HES (joint venture) of package 5A of LMC under clause 55.3 of the General Conditions of Contract and settlement of the account. Permission was also given for inviting fresh bids under reverse tendering for the same package.
For the record, the LMC of Polavaram project was divided into eight packages and package 5 was awarded to Sabir Dam and Water Works Construction Company in 2005 under Engineering Procurement and Construction (EPC) mode after calling bids. The works, worth Rs 181.6 crore, were later entrusted with PSK-HES agency in March 2016, with a few additional works. The agency completed 64.36 per cent of works with Rs 64.816 crore works pending. The expert committee constituted by the government recommended that the contract be withdrawn as works in 2016 were given on nomination basis without tendering process. With this, the government has taken a decision to pre-close the agreement and go for reverse tendering.
The department will now release a fresh notification with revised cost estimates for the balance works of package 5A. Sources said that reverse tendering would be initiated in more packages for which the expert committee recommended fresh tendering process.