Nazir Ahmed
The much awaited commencement of work on zojila tunnel has once again hit a road block, as latest tenders invited by National highways and Infrastructure Dev. Corp.(NHIDCL), on design, built, finance, operate and transfer (DBFOT) Annuity model of PPP has not received any response up to last date of receipt of bids on Oct.6th 2016. As reported in TOI dated oct. 12th, 2016, construction of strategically important all weather tunnel at Zojila pass is likely to be undertaken with full Govt. funding, as project did not get a single bid during last round of tendering process, which ended last week. The report has quoted Anand Kumar, MD, NHIDCL, that they have started documentation work to implement project under EPC – Engineering, procurement and construction mode, wherein Govt. provides 100 percent funding.
It is to recall that though overwhelming public demand of Kargil for construction of Zojila tunnel remained unheeded for more than 30 years; its importance from strategic angle was recognised by the Government only after Kargil war. The National Security Council meeting held under Chairmanship of the then PM in April, 2010 on “Border Infrastructure “constituted an Empowered Committee on Border Infrastructure (ECBI), under Cabinet Secretary to monitor Border Infrastructure Projects including Srinagar – Kargil – Leh section. The Committee felt that development of this road including construction of tunnel is strategically important and enormous. Accordingly, project for constructon of Zojila tunnel was approved by the Union cabinet Committee on Economic Affairs (CCEA) in its meeting on Oct. 17th, 2013 at a cost of Rs. 9090 Cr. on BOT (annuity) mode, to build a 14.2 km single tube bi – directional tunnel from Baltal to Meenamarg, thus avoiding present road at 11500 ft over Zojila pass.
Tenders were invited since April, 2013 five times and on four occasions, single tenders were received, in spite of NHIDCL having several round of meetings with potential Highway builders across the country to attract more bidders.
Earlier, Union Highway Ministry awarded this contract to IRB Infrastructure developers Ltd. on single tender basis in Dec. 2015 at a cost of Rs. 1050 Cr. But, this contract was cancelled after a senior opposition leader alleged that Central Vigilance Commission (CVC) guidelines have been violated while awarding the contract to IRB. Thereafter, the project was entrusted to NHIDCL for development.
The Road Transport Ministry issued a statement that due process in line with the Cabinet approval was followed in award of strategic RS. 1050 Crore Zojila pass tunnel contract to IDB Infrastructure; that contract was awarded after due diligence after bid was found technically responsive and quoted semi Annuity amount found in line with approval of CCEA for award of work. The Road Transport Ministry further clarified through PIB GOI that subsequent to invitation of bids in April, 2013, only one agency submitted Technical bid. On retendering, although four agencies technically pre-qualified, only one agency submitted financial bid, which was not opened as per standing guidelines of the Ministry. On the basis of above experience, system of calling bids was changed from two stage system to single stage (two cover) system,(i.e. submission of technical & financial bid in one go but in separate sealed covers, instead of submitting financial bid after technical bids are evaluated and only technically responsive bidders are declared as qualified). In response, to the changed system of tendering and after retendering twice, only single bid was received from M/S IRB Infrastructure Developers Ltd. The bid was found technically responsive and its financial bids were opened and quoted semi Annuity amount was found in line with approval of CCEA for award of work.
It appears that Zojila tunnel has become a victim of political bickering at National level. Prima facie, there appears no malfide in decision of Road Transport Ministry in changing system of calling bids in one stage (two cover) system, when repeated tendering in two cover system failed to evince any response. After all these guidelines are framed keeping in view the overall conditions in the country and not cast in stone, which cannot be changed/altered, when peculiar condition demand so. It is a known fact that working and climatic conditions at Zojila are challenging and not same as working at Banihal or other tunnels on Jammu – Srinagar highway, or for that matter, anywhere else in the country. Therefore, peculiar conditions call for bold and` out of box solutions. Keeping these factors in view, the decision of Highway Ministry to change system of calling bids appears justified in larger public interest, even if it is at variance with the CVC guidelines. Also, the system having been changed prior to invitation of bids, gives level ground to all intending bidders and only serious bidders shall participate in bidding process. Besides, financial bids quoted in single stage(two cover) system is likely to be more competitive, as in two stage the number and particulars of technically qualified bidders are known before submitting financial bids, which is not the case in single stage system. Further, a compassionate back of the envelope calculation reveal that bid amount of Rs. 10500 Cr. quoted by IRB is almost equal to approved cost of Rs. 9090 Cr. Considering yearly Consumer Price Index (CPI) inflation of 7.45% Avg. during 2012 – 2016 for two years – from year of approval in 2013 to year of allotment in 2015. This corroborates the plea of Ministry of Highway that amount quoted by IRB is in line with the approval of CCEA for award of work.
Now, project for 100 percent funding of tunnel is likely to go to CCEA again for approval, as earlier approval has been granted for construction on PPP (Annuity) mode, i.e. partial funding by Govt. over a concession period of 22 years including construction period of 7 years. This process is likely to further delay work on project. It appears that aspirations of people of Kargil have become a causality of political brinkmanship. Here, I am reminded of a similar situation regarding purchase of high altitude clothing for troops stationed at Siachen glacier immediately after Kargil war. When officials blocked such purchase citing guidelines and procedures, the than Defence Minister George Fernandes made concerned officials visit Siachen; only then they realised the conditions and fell in line. A similar visit to Zojila in winter should be arranged for those who think that guidelines of CVC are more important than miseries faced by people of Ladakh, which remain landlocked for 5-6 months, but for Zojila tunnel. It is hoped that State Govt, MP Ladakh and legislators from Leh/Kargil shall take note of it and take up the matter with Union Govt. for early sanction of Project on EPC mode of construction, now that PPP (Annuity) mode has failed to attract competitive bidding.
(The author is Former Chief Engineer PWD/ Information Commissioner – RTI)
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