Premium
This is an archive article published on September 17, 2007

NHAI to tighten eligibility criteria for bidders

Annoyed with several of its road projects getting delayed or stalled, the National Highways Authority of India is set to tighten the eligibility criteria for contractors...

.

Annoyed with several of its road projects getting delayed or stalled, the National Highways Authority of India (NHAI) is set to tighten the eligibility criteria for contractors bidding for its projects. The move, say officials, will help keep out non-performing contractors from bagging its projects.

“We are planning stringent pre-qualification criteria for bidders. The eligibility conditions have not been reviewed for some time and thus tightening of pre-qualification criteria will prove effective for the coming projects. A committee has been set up by the NHAI to decide on this. These conditions will be in keeping with the new Model Concessionaire Agreement (MCA),” said a senior official of the Ministry of Shipping, Road Transport and Highways.

The Planning Commission and the Ministry of Finance, are putting together pre-qualification conditions for all BOT (Build-Operate-Transfer) infrastructure projects — including highway upgradation — to streamline the process.

Story continues below this ad

The NHAI has identified over 17 contracting firms as non-performing contractors on the basis of their review of project implementation. Of these, nine are Indian companies and eight of them are foreign firms. As per policy, the NHAI does not award any future contracts to non-performing contractors.

The Golden Quadrilateral Project — connecting Delhi, Mumbai, Kolkata and Chennai with two-lane highways across 5,846 km — is still awaiting completion in several pockets, owing to failure of contractors. Several contracts had to be terminated and re-awarded leading to project delay. About 249 km along the GQ, spread between 25 contracts, are yet to be completed. As many as seven contracts on GQ have been terminated since 2004 with the Haveri-Harihar and Hraihar-Chitradurga sections on NH 4 project contracts terminated early this year.

Including the North-South and East-West corridor and port connectivity projects, a total of 14 contracts have been terminated between 2004 and 2007 by the NHAI.

Even as GQ drags along, North-South / East-West corridor is also in the slow lane and the NHAI has recently estimated that several contract stretches are likely to miss their scheduled deadlines by months or even years in some cases.

Story continues below this ad

The latest NHAI report shows as many as 24 NSEW projects under National Highways Development Programme (NHDP) Phase II will not meet their scheduled deadlines. What’s more, there is a yawning gap between the scheduled completion date and the actual “anticipated” date of completion.

All 10 NSEW NHDP Phase I projects are already heavily delayed and the expected completion dates have shifted by a couple of years in most cases. A 28-km stretch on NH 31 from Purnea to Gayakota, on which work started in September 2001, has missed the March 2004 deadline and is staring at a March 2008 deadline with just 61 per cent progress against a target of 96 per cent. Similarly, a 16-km Lucknow-Kanpur section on NH 25 has reported just 49 per cent progress even after missing the May 2005 deadline and with an anticipated completion date of December 2007.

North-South & East-West corridors are part of the ambitious NHDP Phase I and II projects — 7,588 km long — to connect Srinagar with Kanyakumari and Porbander with Silchar. The NSEW projects are scheduled for completion in 2009.

The stumbling blocks

Golden Quadrilateral Project

249 km spread between 25 contracts yet to be completed

7 contracts on GQ terminated since 2004 NSEW NHDP phase I

A 28-km stretch on NH 31 missed March 2004 deadline. Target 96 pc, completed only 61 pc

Story continues below this ad

16-km stretch on NH 25 missed May 2005 deadline. Completion only 49 pc

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement