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THE Brihanmumbai Municipal Corporation (BMC) has finalised contractors for its ambitious Rs 29,653 crore-Sewage Treatment Plants (STPs) project, after several hiccups since it was first planned in 2002. Now, the corporation will submit an affidavit before the Supreme Court seeking further direction for the project. The BMC has proposed to construct seven STPs at Worli, Bandra, Dharavi, Versova, Malad, Ghatkopar and Bhandup having capacity of treating 2464 million litres of sewage daily under the Mumbai Sewage Disposal Project-II (MSDP).
In February, the civic body had scrapped the tenders following a controversy over the high bidding price from the contractors and the Opposition’s allegation of cartelisation. Contractors had quoted 30% to 70% above the BMC estimates of six STPs. It was the fourth time in the last few years when the tender for MSDP-II had to be cancelled.
Details from the MSDP department show that while the revised estimated cost for construction and maintenance of all seven STPs is Rs 29,653 crore, the contractors finalised have agreed to execute the project for Rs 25,963.32 crore.
While this time civic body has invited tenders for all seven STPs, In August, 2020, the BMC had floated tenders for construction of six STPs (excluding Malad). The revised estimated cost for six STPs has seen a 42 per cent increase in the last 20 months. Back then, all six were costing Rs 16,412 crore.
For Worli, the lowest bidder, Suez India and Suez International (Joint Venture), has quoted Rs 5,811.70 crore (0.35 per cent above the estimate); for Versova, DRN Infrastructure Private Limited quoted Rs 2,138.23 crore (24.99 per cent below the estimate); for Ghatkopar, GVPR Engineers Private Limited quoted Rs 3,681.94 crore (30.72 per cent below the estimate); for Bandra, L&T Limited quoted Rs 4,293.34 crore (2.88 per cent below the estimate); for Malad, NCC Limited quoted Rs 6,370.34 crore (0.54 per cent below the estimate); for Dharavi, Welspun-EDAC JV quoted Rs 4,634 crore (0.04 per cent below the estimate); and for Bandra, joint venture of JWIL-OMIL-SPML quoted Rs 1,170 crore (53.88 per cent below the estimate).
BMC officials said the latest estimates were made in consultation with the Peer Review Committee (PRC) that has experts from IIT-Mumbai (Indian Institute of Technology) and VJTI.
“Construction of all the seven STPs is challenging as there are several issues, such as, land constraint, technical difficulties, and execution risk. This has led to an increase in cost,” said a BMC official.
On February 1, the Supreme Court, while hearing a petition on coastal pollution due to discharge of untreated sewage into the sea, had slammed the civic body. Expressing anger over the delay in the project, the apex court had said that it will monitor the process and directed the BMC to submit a report after contractors are finalised.
“We will present all the details before the court, seeking further direction,” said P Velrasu, Additional Municipal Commissioner (Projects).
BMC officials said once contractors are appointed, it will take 48-72 months to complete the work. Apart from design and construction, contractors will also be responsible for operation and maintenance of STPs for the next 15 years. This is the first time in the past decade that the project has reached the final stage of awarding the contract.
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