The government has decided to re-tender the long-pending Rs 300 crore container terminal project at Kandla Port in line with the new guidelines for bidding for port projects proposed by the Infrastructure Development Finance Company (IDFC).
P&O Ports, a subsidiary of Australian ports major, was earlier shortlisted for operating an existing terminal and developing a new terminal on a build-operate-transfer (BOT) basis.
According to secretary, ministry of shipping, M P Pinto, the decision to call for fresh bids was taken following the government deciding to remodel the bidding norms in line with IDFC's guidelines.
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"The project has been pending since 1997. When the bidding process was initiated for the project, there were no clear guidelines for award of such projects in the ports sector. With IDFC forwarding the guidelines, the government has decided to call for fresh bids based on the norms," he said.
P&O Ports has decided to opt out since the ministry had decided change the norms for the bidding process, Pinto said.
The Kandla Port Trust had issued a letter of intent to the P&O Ports in July 1999 after it emerged as the highest bidder for the project. After approval by the Central government, the letter of intent was issued by the Board of Trustees of Kandla Port Trust to P&O Ports.
Consequently, the board of trustees of Kandla port ruled against awarding the terminal at berth No. 7 on a build-operate-transfer (BOT) basis to P&O Ports citing monopoly clause.
The government has also decided to re-tender the Rs 1,870 crore container transshipment project at Vallarpadam, cancelling the lone price bid submitted by P&O Ports for developing the project, he said.
The ministry would be seeking cabinet approval for retendering the project. The project would be retendered under the BOT model using the revenue sharing norm as the criterion.