NHAI likely to snap contract over incomplete road work
The National Highways Authority of India (NHAI) may terminate the contract of Mecon-GEA Energy System for not completing the construction work of the highway connecting the Tuticorin port.
By Nirbhay Kumar, TNN |
NEW DELHI: The National Highways Authority of India (NHAI) may terminate the contract of Mecon-GEA Energy System for not completing the construction work of the highway connecting the Tuticorin port. The 47-km road project on the national highway 7A was estimated at Rs 231 crore.
NHAI had awarded the contract for a highway connecting the Tuticorin port in 2004. The project was scheduled for completion in August 2006.
“We have taken a serious note to the delay in executing the road project connecting Tuticorin port. We are even considering termination of the contract and invite a rebid for the project. In February this year, we reviewed all the major highway projects connecting various ports and found that two highway stretches connecting the Haldia and the Cochin ports were far behind the original schedule of completion. Later, we terminated the contracts for both the highway projects, an NHAI official said.”
NHAI has already terminated Mecon-GEA’s contract to construct a highway connecting Cochin port and is expected to invite bids for the same shortly.
“Bids for reawarding the Haldia port connectivity has already been invited,” he added. The joint venture between China National Water Resources & Hydro Power Engg Corporation and Harish Chandra India was working on the highway connecting the Haldia port.
A NHAI source, however, said the highway authority and Mecon-GEA have agreed for the termination of the Tuticorin project. The joint venture has indicated that they won’t be able to complete the project.
The ministry of shipping, road transport and highways (MoSRTH) has already shown its tough stand on contractors not completing the project on time.
Since 2004, the ministry has put in 17 companies including Essar and Lanco in the non-performing list. This also bars them to do projects with NHAI.
The ministry declared these companies as non-performers on account of their poor performance, delayed completion of the project and several liabilities of joint venture partners. Eight foreign contractors also figured in the list of non-performers.
NHAI had awarded the contract for a highway connecting the Tuticorin port in 2004. The project was scheduled for completion in August 2006.
“We have taken a serious note to the delay in executing the road project connecting Tuticorin port. We are even considering termination of the contract and invite a rebid for the project. In February this year, we reviewed all the major highway projects connecting various ports and found that two highway stretches connecting the Haldia and the Cochin ports were far behind the original schedule of completion. Later, we terminated the contracts for both the highway projects, an NHAI official said.”
NHAI has already terminated Mecon-GEA’s contract to construct a highway connecting Cochin port and is expected to invite bids for the same shortly.
“Bids for reawarding the Haldia port connectivity has already been invited,” he added. The joint venture between China National Water Resources & Hydro Power Engg Corporation and Harish Chandra India was working on the highway connecting the Haldia port.
A NHAI source, however, said the highway authority and Mecon-GEA have agreed for the termination of the Tuticorin project. The joint venture has indicated that they won’t be able to complete the project.
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The ministry of shipping, road transport and highways (MoSRTH) has already shown its tough stand on contractors not completing the project on time.
Since 2004, the ministry has put in 17 companies including Essar and Lanco in the non-performing list. This also bars them to do projects with NHAI.
The ministry declared these companies as non-performers on account of their poor performance, delayed completion of the project and several liabilities of joint venture partners. Eight foreign contractors also figured in the list of non-performers.
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