IIM experts to level field for small cos in core projects

NEW DELHI: Experts from Indian Institutes of Management (IIMs) would examine whether public-private-partnership projects in roads, ports, power and railways sectors would require separate request for qualification (RFQ) documents. The government has involved the IIM experts since a common RFQ for all infrastructure projects is stated to be the cause of delays.

The complexities of the common RFQ have also led to controversies over shortlisting procedures and projects delayed due to litigations. Doubts have been raised whether the ���one size fits all��� approach of the RFQ is suitable to the bidding process of all sectors or not, official sources said.

The RFQ, which is a major component for the model concession agreement (MCA), has been cited as a major cause for delays by administrative ministries. ���We are facing huge delays in the award of contracts solely due to the complexity of the RFQ,��� an official in the department of road transport & highways said.

Under the present format, the RFQ allows shortlisting of only six of the largest infrastructure players for any single project. Consequently, even if a player lacks expertise in say roads sector, it may bag the project on the grounds that it has immense experience in other areas such as ports, power and airports.

Administrative ministries in-charge of awarding contracts are under huge pressure to meet targets for awarding contracts from the government but find that in some cases it is difficult to award the project to the more technically competent. As far as road projects are concerned, there are a large number of players some of which have been in the business for decades. But when larger players involved in port or power projects bid, they get more points at the RFQ stage and smaller players are left out.

���In any bidding process the larger players get more points as they have more exposure in various sectors largely on account of their financial size,��� an official with an infrastructure consulting firm said. It is taking as much as six months to shortlist players after inviting RFQs.

After which the request for proposal (RFP) stage is to be undertaken as per the stipulations under the model concession agreement. The national highways development programme (NHDP) has been facing huge delays in award of contracts with projects worth Rs 55,000 crore awaiting to be awarded under phase III alone.