Andhra government to invite new global tenders for Metro project

Andhra government to invite new global tenders for Metro project
Comment E-mail Print Share
First Published: Tue, Jul 14 2009. 01 28 AM IST

Fresh start: Signage for a Metro rail line in Secunderabad. Key features of the rail project, such as routes, cost, stations and distances would remain almost the same, but the performance guarantee w
Fresh start: Signage for a Metro rail line in Secunderabad. Key features of the rail project, such as routes, cost, stations and distances would remain almost the same, but the performance guarantee w
Updated: Tue, Jul 14 2009. 01 28 AM IST
Hyderabad: The Andhra Pradesh government on Monday decided to call for fresh global tenders on 16 July for the ambitious Hyderabad Metro rail project, after terminating on 7 July the contract it awarded to Maytas Infra Ltd-led consortium to do this.
Click here to watch video
“The chief minister, Y.S. Rajasekhara Reddy, has directed the officials to complete the shortlisting of bidders and technical and financial bidding process by 15 November and finalize the winning bidder to award the Metro rail project,” said state urban development and municipal administration minister Anam Ramanarayana Reddy.
He said the idea was to ensure that the project is executed within three-four years of award of the contract. If these dates are adhered to, Hyderabad will have its Metro while the Congress government is still in power in the state.
Fresh start: Signage for a Metro rail line in Secunderabad. Key features of the rail project, such as routes, cost, stations and distances would remain almost the same, but the performance guarantee would be doubled. Bharath Sai / Mint
The minister said the key features of the project would remain almost the same in terms of cost, routes, stations and distances.
The bidders could choose to avail the so-called viability gap funding facility being offered by the Union government, which is around 20% of the total project cost. Reddy added that the government would insist on 1% of the project cost being provided as performance guarantee against 0.5% the last time.
A spokesman for Reliance Infrastructure Ltd, which had bid for the project earlier in a consortium including Bombardier Inc., said, “We will be bidding for the Hyderabad Metro rail project once the AP government invites fresh global bids for the project.”
The spokesman, who didn’t want to be named, refused to provide more details or comment if the firm would continue with the same partner.
G.V. Sanjay Reddy, vice-chairman of GVK Infra Ltd, head of one of the four short-listed last time, said he wasn’t aware of the call for fresh tenders and that his firm would wait for more details before taking a decision. GVK had pulled out before the financial bids stage the last time.
Maytas Infra is promoted by B. Teja Raju, elder son of the jailed founder of Satyam Computer Services LtdB. Ramalinga Raju who, on 7 January, confessed to having fudged the books of Satyam to the tune of at least Rs7,136 crore over the years. The infrastructure firm has since found itself in financial trouble with firms and governments that had awarded it projects terminating them, and lenders becoming more anxious about its ability to repay debt. Some of these lenders approached the government in the wake of the Satyam fraud.
c.sukumar@livemint.com
Comment E-mail Print Share
First Published: Tue, Jul 14 2009. 01 28 AM IST