BMC’s failure, a boon for trenches contractors

Brihanmumbai Municipal Corporation’s failure to appoint new contractors for filling trenches will be a boon for the existing contractors, who will now be given extension for their contracts.

The BMC had appointed seven zone-wise contractors for filling of trenches, which were dug by underground utility companies, at the cost of Rs 350 crore — Rs 50 crore each for seven administrative zones — for two years (2015-17). However, the contract cost was increased by Rs 82 crore and later again by Rs 27.50 crore, making the total cost to nearly Rs 460 crore.

The civic standing committee on March this year had given its approval for the additional expenditure on the condition that all works should be completed by May 30, 2016.

However, due to its failure in completing the tender process in time, the BMC has decided to given extensions to the existing contractors up to March 2017. Meanwhile, four of these seven contractors, who have been allotted trenches repair works, were blacklisted in the desilting scam. Hence the civic administration has planned to allocate trenches filling works to the remaining three contractors in all seven administrative zones.

“Due to some technical problems, the tender process for the appointment of new contractors was not completed in expected time. In all the zones, some of the additional contract amount is yet to be used, whereas in zones I and IV, the original contract amount of Rs 50 crore is yet to be utilised fully. Hence it is necessary to extend the contract period of existing contractors,” said a senior official.

In the amended tender process for new contractors, e-tenders have been received by June 20. They will be opened and scrutinised as per the proposed schedule and a proposal will be soon tabled before the civic standing committee for approval, he added.

An internal audit in 2013 had revealed that freshly-laid roads worth Rs 550 crore were damaged by poor filling of these trenches.