New RFQ raises bidders threshold capability

Taking a cue from the difficulties faced by administrative ministries in implementing the model request for qualification RFQ document,the government today made a series of changes to the original RFQ released in 2007. With almost no progress in the award of road projects and a similar slackness in ports,the empowered committee on infrastructure ECoI,has enhanced the minimum threshold technical capability of bidders to twice that of the total project cost.

This means to bid for a Rs 1,000-crore project,the bidder must have collected or appropriated twice the amount in revenues from similar projects in the past five years. This has been done to keep serious and stable bidders in the fray, according to a senior government official.

The other changes made include that apart from holding minimum 26 per cent stake in the special purpose vehicle SPV consortium members must at least hold equity equivalent to 5 per cent of the total project cost. The government has also allowed operation and maintenance Oamp;M partners to hold 10 per cent stake in the project compared to 26 per cent in the previous RFQ document.

The new changes also provide for sector specific provisions under which new restrictions can be placed to prevent projects from concentrating in the hands of a few developers.