Dimapur, March 25 (MExN): Reacting to the clarification by the Power Department on the Likimro Hydel Electric Project the Nagaland Builders Ltd in a letter to the Chief Engineer, Department of Power has clarified on various counts.
On the allegation of non-fulfillment of terms and conditions in reference to the Nagaland Builders Ltd Mesenyi Therie of the firm terming it untenable clarified that the plain reading of the invitation bids clearly invites competent/ reputed firms or organization to take over operation and maintenance of 24MW(3x8) LHEP in Nagaland. Thus on the strength of this aforesaid invitation the present local firm being competent to handle the project was able to participate the bid with other firms.
The interpretation of the Department of Power (DoP) on Operation and Maintenance (O&M) and Lease being an issue under dispute the Builders also reminded that Lease means to convey absolute right of ownership to a firm for a specific period in return for a fixed payment, whereas, under O&M it inherently intent the concern department to have control directly on the activities of a given project, it was stated. However the builders opined that if the interpretation differs it is the Court of Law to interpret the content of Notice Invitation Bid. “Further as stated by the Department “No contract or Tender laws states to accept only the lowest or the highest bidder …… department also reserves the right to accept or reject any tender without assigning any reason thereof”. The content does not mean that this clause can be invoked to justify an arbitrary decision. But this right is reserved, so that it can be invoked for the interest of the State and its citizens basing on facts and legality” it was asserted.
On the allegation that the firm’s comparative statement evaluation did not reflect the detailed scope of work offered including that of other firms Therie maintained that the comparative statement evaluated by the firm was based on the facts, on the basis of O&M or Lease, at what rate and scope of work that was announced by the official of the department on opening of the bid on the November 30 2005. “The minute details of all the firms bid was not made available, so our evaluation was based on the entire generation of power process, in short from Diversion Weir to Switchyard” Therie explained adding that the Notice Inviting Bid (NIB) did not specify any criteria on scope of work. Hence, to allege that our firm had not reflected or reflected the detailed scope of work is incorrect, the builders argued.
The NBL also drew attention to the department’s parameter table which appeared on a local daily on assured generation and other conditions. “Our firm reiterates that we have never mentioned normal generation target of 50 MU and maximum of 75 MU anywhere in our offer, but 75 MU as fixed target and share the profit of excess generation at 50-50 basis. We have only pointed out a condition that, if the Department restricts our firm to generate throughout, since it is a run-of-the-river project the generation may be reduced to 50MU. Refer to our Commercial & Financial bid at para-6. Therefore, the department should not misquoted our bid to mislead the general public. It regretted the department’s conclusion alleging that NBL was not taking risks for the upkeep of the power plant. Does it mean that our firm who had bided for O&M at the rate of Rs.2.76 crores annual average for three years should take the same risk who had offered to take on lease, generate 105 MU power and sell to the State at Rs.1.65 per unit which would amount to Rs.17.32 Crores annually before negotiation, it stated
Asserting that the firm is competent and technically sound and aware of the necessity for spares, repairs, etc on electrical, mechanical and civil works the NBL stated that it has no intention to undermined or compare its competency with other firms, “as we believe all the firms are competent but when the department failed to understand our genuine concern for the welfare of our State, the hydropower sector and the general interest of the public appears bleak”.
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