MARGAO, JAN 20
Former Margao Municipal Chairperson Savio Coutinho, who had initiated the tender process to set up the waste treatment plant at Sonsodo has asked a member of the high powered committee, MLA Damu Naik to oppose the contemplated 100 per cent advance payment to Fomento’s since the project is to be implemented on DBOOT basis.
Coutinho also demanded that the performance guarantee of Rs two crore ought to be valid for the entire concession period of 25 years and not till the setting up of the waste treatment plant as a security for the Council in case the project is abandoned midway.
Addressing a press conference on the eve of the Margao Municipal Council meeting scheduled on Friday morning to discuss and ratify the draft concession agreement to be inked with Fomento, Coutinho has expressed surprise that payments to the company to the tune of Rs 12.21 crore have come to the fore for the first time. “Nowhere in the bid it was specified that the cost of the project would come to Rs 12.21 crore. In fact, even the negotiation was done on Rs 7.41 crore. Vide letter dated January 21, 2010, Fomento had stated the reasons why the Council’s request to lower the bid by Rs 50 lakh was not feasible. Vide the same letter, the bid was reduced to Rs 7.31 crore. And, subsequently, the Council vide letter dated February 2, 2010 issued the letter of acceptance/award confirming their bid of Rs 7.31 crore being the project cost for 25 years, subjecting to the furnishing of the performance guarantee of Rs two crore.
Replying to a question, Coutinho said the payment of Rs 5.2 crore in four equal installments of Rs 1.3 crore cannot be justified since this project is on DBOOT basis and the entire amount of Rs 5.2 crore should be release after the setting up of the facility is completed.
The former Chairperson said that an unsuccessful attempt of setting up of plant by Hyquip is in news for 10 per cent advance payments made to the company. “Here, we have a project under DBOOT basis which is being provided 100 per cent advance payment”, he said and appealed to the Fatorda MLA to oppose the contemplated 100 per cent advance payment to Fomento’s since its is on DBOOT basis.
Another shocking feature in the draft agreement, he said, is with regard to the constitution of a monitoring committee, wherein the elected Council, including the Chairperson has no role at al.
Replying to a question, he said the reason behind his decision to highlight the anomalies in the draft agreement is that most of the Councilors out of innocence and fear may agree for conditions which may be against the interest of the Council and appealed to the City Fathers to apply their mind in the project, specially since it is long term project spanning 25 years.
