THIRUVANANTHAPURAM: Water Authority is amending the tender conditions to award the project of providing 24-hour clean water in Kochi city to a private company with the assistance of a World Bank loan. Despite quoting 23.06% more than the tender amount, the contract is set to be awarded to Suez Projects, a multinational company, resulting in the government having to pay Rs 104.23 crore more, which is 13.06% of the tender amount.
The total excess amount to be paid is 184.05 crores when calculated at 23.06% over the estimate of the project, which stands at 798.13 crores. The tender amount may increase by up to 10% of the estimate, with the Water Authority having the discretion to pass it directly or retender if necessary. However, in the case of Suez, the Cabinet's approval is being sought without retendering, following protests from unions.
Out of eight companies participating in the tender, only Suez and Maharashtra-based Vishwaraj Environment Pvt Ltd made it to the final list with Suez being chosen despite quoting 36% more due to its lower quota. The scrutiny of the tender saw relaxed conditions, benefiting Suez including maintaining a 23.06% over-quota, reducing maintenance from 40% to 30%, eliminating the requirement for a fixed amount for performance guarantee and including a price escalation clause.
The project, named the Kerala Urban Water Supply Improvement Project, initially implemented in Kochi, will later extend to Thiruvananthapuram. By entrusting it to a private company for ten years, the project aims to modernize the water supply network and ensure uninterrupted drinking water, with a promised reduction of the water authority's losses by 20 percent.