Political turbulence in West Bengal has is now threatening to impact the quality infrastructure development.
The closing date for a $79-million Asian Development Bank (ADB) loan granted in 2001 for a project that was supposed to be completed by 2007, has been extended twice, adding a burden of over Rs 15 crore to the state’s beleaguered exchequer.
Contractors are wary of the turmoil that currently characterises West Bengal and the cult of the ‘rally and strike’. So, while 19 contractors evinced interests in the initial bids, not even one showed up for final negotiations.
The loan amount was supposed to aid construction of 232 km of state highways along with rural approach roads (RARs). The project was supposed to be completed by June 2007 but got delayed because of poor performance of contractors.
“We engaged a Spanish company — Elsamex International — in 2004. They defaulted on quality, and while we engaged Gammon for the 108.9-km stretch from Gajol to Hilly, other contractors also started showing interests,” said M Ghosh, project director, ADB-funded units.
Problems with contractors cropped up regarding RARs connecting National Highways 34 and 35 with districts. Since the first set of contracts was terminated, there were two more similar instances.
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The project included eight RARs, of which five were completed in time, along with the Gajol-Hilly road. The initial estimates by the project implementation unit were kept at Rs 180 crore, and Gammon won the bid at Rs 223 crore after re-tendring.
“This drove up the closing date of the loan. This also meant that a commitment charge, which is part of the loan contract, had to be paid. We have almost completed the project and should be over by June 2011,” Ghosh said.
ADB role in technical assistance
The West Bengal project implemented unit (PIU) has sent a proposal to ADB for providing project planning and technical assistance (PPTA) for a road project worth Rs 2,270 crore.
“The department of economic affairs (DEA) has cleared the proposal and forwarded it to ADB for technical assistance. We will construct two-lane roads on a 271-km stretch at a cost of Rs 2,270 crore,” Ghosh said.
The project will connect NH-60 at Morgram to NH-6 at Mechogram through Arambagh and NH-2 at Bardhaman. The project assumes importance because it would provide an alternative north-south route in the state, freeing the currently clogged route.
West Bengal needs the PPTA because the exchequer, already overburdened and ridden by debt, cannot afford to finance a further stretch of road. The state is currently facing Rs 1.76 lakh crore outstanding market debt.