Calls for payment of Rs 5.30 cr in first year
MARGAO, AUG 9
The draft concession agreement mooted by Fomento to the Margao Municipal Council has called for payment of an amount of Rs 5.30 crore in the first year in four equal installments.
The draft states that the first installment of Rs one crore thirty-two lakh and fifty thousand of the first year payment shall be paid to the company as “mobilization advance” upon execution of the agreement on receipt of the unconditional irrevocable bank guarantee of Rs two crore.
The second, third and fourth installments of the first year payment shall be paid to the company by the Civic body after three, six and nine months, respectively of the payment of the first installment.
As far as the performance guarantee is concerned which has been insisted by the Civic body from day one, Fomento in its draft agreement has stated that the company will furnish to the MMC an unconditional irrevocable bank guarantee of Rs two crore within 30 days of execution of the agreement.
Simultaneously, the MMC is required to refund to Fomento the sum of Rs 30 lakh paid by the company to the Civic body on July 27.
The bank guarantee of Rs two crore shall constitute the performance guarantee the draft further states that the bank guarantee of Rs two crore shall be returned within seven days of completion of construction of the plant.
On the issue of scrutiny and payment of the company’s bills, the draft states that the scrutiny and payment of bills that the company shall raise shall be made by the MMC Chief Officer.
The draft further states that the chief officer may be assisted by a technical consultant, who will be appointed by the High Powered Committee.
The function of the technical consultant would be to scrutinize and verification of the bills raised from time to time by the company.
Incidentally, the Margao Municipal Council had last week abruptly postponed the pre-bid meeting with the four consultants who had responded to the Request for Proposal (RFP) floated by the Civic body to appoint consultant to monitor work at Sonsodo.
Co-incidentally, MMC Chief Officer Y B Tawde maintained that the pre-bid meet was postponed as the Civic body had plans to place the RFP for approval before the High Powered Committee headed by Chief Minister, Digambar Kamat.
When contacted, Fomento CEO Shridhar Kamat said the draft proposed by the company are just proposals and the company is ready and willing to sit across the table with the MMC if they have any grievances or apprehensions on the draft.
Kamat further maintained that the agreement ought not to be signed in haste since the document would govern the relations between Fomento and the Civic body for the next 25 years.
