The Mumbai Port Trust (MBPT) has shortlisted five parties for executing a Rs 400-crore order for replacement of submarine pipelines and modernisation of marine oil berths.
These include two consortia and three individual companies. The consortia are led by Larsen & Toubro and the US -based Global Industries Offshore Inc. Interestingly, Global Industries has also been shortlisted in its individual capacity. The other two contenders in the fray are Hyundai of South Korea and Smithland Marine Engineering of UK.
The other members of the L&T-led consortium are Cloug Engineering of Australia and Jan de Nul of Belgium. Globals partner is Indian infrastructure company Afcons.
The five parties have been shortlisted on the basis of recommendations made by a Singapore-based company, Kvaerner R J Brown.
Kvaerner was appointed by the port trust as consultants last year. It was selected on the basis of guidelines stipulated by the Asian Development Bank which is part-funding the project, sources said.
Kvaerners brief included preparation of tender documents to overseeing the execution of the project. The five parties have been shortlisted on the basis of pre-qualification bids.
The project entails replacement of submarine pipelines from Jawahar Dweep to Pir Pau and modernisation of marine oil berth nos 1,2 and 3 at the Mumbai Port Trust.
However, the entire process has turned controversial, according to sources in MBPT. The shortlisting had been accepted by the MBPT board as far back as December, 1997.
At that time Kvaerner had recommended that another multinational Ham Dredging too could be considered for shortlisting although it did not satisfy all the criteria in the pre-qualification bid. Its contention was that Ham Dredging could be considered on the basis of its international track record.
However, it had also recommended that the pre-qualification bid of Essar Oil should not be accepted. The MBPT board had taken the view that Ham Dredging and Essar Oil bids should not be considered. It was argued that strict adherence to tender terms and conditions should be observed. However, things took a different turn in March, 1998. MBPT sources said a section of the board began querying the very basis of appointing Kvaerner as consultants. According to some trustees it had exhibited a bias in favour of multinationals.
They demanded a special meeting of the board on March 24 for revocation of the contract. The board met on March 30 and debated on the issue. Meanwhile, the board found itself in a ticklish position as its tenure was due to expire on March 31,1998.
The dominant feeling was that an outgoing board should not take a decision on such a sensitive matter. Finally, the board decided that the matter should be considered afresh by the new board.
The new board of MBPT is slated to hold its first meeting on April 27. Sources said the issue is likely to be discussed then.
