Call tenders for Shimla water scheme afresh, Chief Secretary RD Dhiman urged

Shimla, November 20

Former Shimla mayor Sanjay Chauhan and deputy mayor Tikender Panwar have urged Chief Secretary RD Dhiman to call afresh tenders for the 24×7 water supply project for Shimla, a major component of the over Rs 1,800 crore World Bank-aided Shimla Water Supply and Sewerage Services Project.

The duo has also written to the HP State Vigilance Department regarding the alleged irregularities in the tender for the project.

The duo has written to the Chief Secretary after the World Bank refused to intervene in the matter and forwarded their complaint to the state government. The duo had written a letter World Bank’s India Head alleging irregularities On October 14.

“There is cartelisation in the project by L1 and L2 bidders, resulting in huge loss – almost 33 per cent above the estimated value of the project. This is resulting in a loss of more than Rs 200 crore to the state exchequer,” said Panwar, adding that fresh tender should be called for the project.

The Shimla Jal Prabandhan Nigam Limited (SJPNL) Board of Directors, chaired by the Chief Secretary, has already given its approval to Suez India’s tender and the SJPNL is currently evaluating the tender to check whether it meets the conditions of the World Bank and the government. Besides, the SJPNL maintains that the tender has been done in a fair and transparent manner.

The complainants claim that the SJPNL’s overall estimate for the project, including capital expenditure and operation and maintenance, was Rs 592 crore, but the quoted cost would exceed it by around Rs 200 crore. The other irregularity they are pointing out is that since the tender for the project was called the first time, it should have been floated again as only two bids had been received.

The SJPNL maintains that the tender was called for the fourth time and was awarded to the lowest bidder.