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65% cost escalation in CWG Village project: CVC

65% cost escalation in CWG Village project: CVC
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First Published: Sun, Nov 14 2010. 12 15 PM IST
Updated: Sun, Nov 14 2010. 12 15 PM IST
New Delhi: The CVC has found several discrepancies in a DDA project for construction of certain facilities in the Commonwealth Games Village that led to a cost escalation from Rs38 crore to over Rs63 crore.
According to an internal investigation report, the CVC’s Chief Technical Examination Wing has also said that the construction company has flouted government norms related to testing, purchase and security.
As part of its different development projects, the work for construction of swimming pool, training hall, fitness centre and athletic track in the Village spread over 63.5 hectares area was given to Sportina Payce Infrastructure Private Limited, a consortium of four companies especially created for the job, by the Delhi Development Authority.
“Sportina Payce Infrastructure Pvt Ltd was the lowest tenderer with their quoted amount of Rs64.86 crore which was 67.39% above the estimated cost of Rs38.76 crore... Negotiations were conducted with the agency and and the agency reduced their quoted amount to Rs63,09,67,855 which was 62.77% above the estimated cost and 11.79% above the justified amount of Rs56.44 crore.
“As per CPWD manual which is being followed by the DDA the work can be awarded up to 10% above the justified cost. Work Advisory Board decided to place the matter before the Hon’ble LG for acceptance... and work was awarded to Sportina Payce Infrastructure Pvt Ltd at their negotiated amount of Rs63,09,67,855,” the report, which was received in reply to an RTI query filed by PTI, said.
According to the finding, an application was submitted by a consortium of Payce Consolidated Ltd and Paynter Dixon Construction Pvt Ltd, Australia, Sportina Exim Pvt Ltd, Mumbai, and Robertson + Marks Architect Pvt Ltd, Australia.
“As per the agreement to establish a consortium, the consortium members agreed to incorporate a limited liability company i.e. a Special Purpose Vehicle Company (SPV) in the name and style of Sportina Payce Construction (India) Pvt Ltd.
“But at the time of submitting the tender, a company was formed as Sportina Payce Infrastructure Pvt Ltd which submitted the tender and became L1 and finally work was awarded to them,” it said.
“In this company other partners except Sportina Exim Pvt were not represented at all. Ultimately at site only Sportina Exim Pvt Ltd was executing the work which does not have expertise, experience which was considered at the time of pre-qualification. Thus undue favour has been shown to agency,” the anti-corruption watchdog noticed in its report.
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First Published: Sun, Nov 14 2010. 12 15 PM IST