CAG finds bidding process for sewage plant fishy

The Comptroller and Auditor General (CAG) of India's report for 2004-05 has revealed that the work of sewage treatment plant in the city was awarded to a single bidder for Rs 13.33 crore without competitive offers, as the Public Works Department (PWD) had not finalised technology parameters, while calling for financial bids.

"Though tenders were initially invited (October 2002), inter-alia, for 12.50 mld sewage treatment plant based on activated sludge process, the concept of alternate offer was brought in December 2002, before submission of tenders and alternate designs were called for," the report says.

The department deputed a technical committee in June 2003 to study the technologies available in Germany and Austria after the receipt of tenders and accepted their recommendation to adopt the C-Tech process, for which only one agency MHN Bhat & Company had quoted (Rs 14.79 crore), thus vitiating the tendering process.

As the department had not invited tenders for the sewage treatment plant based on C-Tech process, and MHN Bhat & Co only had quoted for the C-Tech Process, the tender accepted was not competitive as it was a single tender, the report says.

Besides, the rates cannot be considered reasonable as the department did not prepare an estimate for sewage treatment plant based on C-Tech process.

On directions of the Goa State Works Board (August 2003), negotiations were conducted by the chief engineer with MHN Bhat and the lone bid was accepted for the work of Rs 13.33 crore in October 2003. An expenditure of Rs 11.14 crore was incurred up to March 2005.

A detailed project report for the sewage system in Margao town prepared at a cost of Rs 29.50 lakh by the Sewerage and Infrastructure Development Corporation was not found useful by the PWD rendering the expenditure unfruitful.