MMC to decide on modalities of payments to Fomento for Sonsodo

MARGAO, DEC 29
When the draft concession agreement is finally placed before the Margao Municipal Councilors in the new year, the City Fathers will have to decide one important question – whether to pay Rs 7.31 crore to Fomento at one time or pay Rs 12-odd crore over the next 25 years.
For, the legal counsels engaged by the Civic body have approved the Net Present Value (NPV) concept of computing the payments towards the work done by the company engaged to treat waste at the Sonsodo dump yard.
Sources in the know said the NPV finds a mention in the draft concession agreement which has been dispatched to Fomento as well as the Margao Municipal Council for approval.
Fomento has already communicated to the civic body that the total cost of treatment of the waste at Sonsodo would work out around Rs 12-odd crore over the next 25 years.
When contacted, Margao Municipal Chief Officer Prasanna Acharya admitted that the Net Present Value is part of the draft Concession agreement since it forms part and parcel of the tender document.
But, when asked whether the Civic body would be duty bound to pay Rs 12-odd crore to Fomento as per the Net Present value concept, Acharya shot back “Not necessarily. The Council can decide whether to clear the entire amount of Rs 7.31 crore at one time or Rs 12-odd crore over the span of 25 years”.
He said this question will have to be decided by the City Fathers as and when the draft concession agreement is placed before the Council for ratification.
Meanwhile, Acharya said the MMC would call for a meeting to discuss the draft concession agreement once the draft is approved by the Board of Directors of Fomento group.
“We are awaiting for the nod from Fomento first so that the same can be deliberated in detail at the Civic body”, he said.
Meanwhile, sources in the Margao Municipal Council informed that the NPV would be in contrary to the acceptable letter issued by the Civic body to Foment, wherein the Municipality stated that the Civic body has accepted the offer from Fomento to treat the waste at Sonsodo for Rs 7.31 crore for 25 years.