Date:27/11/2008 URL: http://www.thehindu.com/2008/11/27/stories/2008112755290100.htm

Front Page

Japanese agency clears Metro Rail project

S. Vydhianathan

Agreement was signed in Tokyo on November 21
Salient features of project explained to bidders

CHENNAI: The Chennai Metro Rail project has been cleared by the Japan International Cooperation Agency (JICA), formerly known as Japan Bank for International Cooperation.

An agreement to this effect was signed by the Union Government and the Japanese Government in Tokyo on November 21.

Announcing this at a meeting of bidders, convened by the Chennai Metro Rail Ltd here on Wednesday, Tetsutaro Kon, representative of JICA, explained the procurement procedures of the agency.

According to Metro Rail officials, the purpose of the bidders’ meet was to assess the potential of contracting firms having experience in construction of similar works and to decide on the size and type of packages to be floated for tenders. The salient features of the project were briefed to the bidders and the meeting discussed packaging of contracts, the type and scope of each of the contracts and the qualification criteria.

The project retained the services of the Tamil Nadu Urban Infrastructure Financial Services (TNUIFSL), which invited national and international bidders for the meeting, who had executed similar works. The bidders were asked to indicate their interest in bidding for the project along with their credentials such as the line of business, financial turnover, net worth, capabilities, value of similar works executed by them year-wise in the last 10 years, and support facilities. The bidders offered various suggestions for packaging of contracts, contract management, and cost reduction.

The estimated cost of the project (in March 2007 prices) is Rs.11,124 crore. Of this, the Central and State governments together are expected to contribute about 40 per cent and the balance will be met by a loan granted by the Japanese agency.

Praveen Kumar, Special Secretary (Finance), Phanindra Reddy, Managing Director, TNUIFSL, and other senior officials participated in the meeting. Seventy three national and international bidders attended the meet and participated in the discussion.

The project consists of two corridors – partly elevated and underground. Contracts for the project are classified into two major categories, viz. civil and system contracts. A detailed project report (DPR) had already been prepared and it envisages the creation of 2 initial corridors one from Washermenpet to the Chennai airport and the other from Chennai Central to St.Thomas Mount.

Tentatively, the project is programmed for completion in 2014-2015.