Kohima-Jessami road package-2 in limbo as contractor fails to meet deadlines

KOHIMA — The construction of 2-lane road with hard shoulders on the Kohima-Jessami stretch under package-2 faces delays as the Engineering Procurement and Construction (EPC) contractor, M/s Ratna Infrastructure Projects Pvt. Ltd, has reportedly failed to meet critical project deadlines, shown non-conformity to specifications, and made minimal progress to date.

The road project is on NH-29 (Old NH-150) from existing km 30.474 (near Chakhabama) to existing km 53.220 (near Kikruma village), having a design length of 21.90 km. The project is being executed under Bharatmala Pariyojana on an EPC mode.

As earlier reported by Eastern Mirror, the National Highways and Infrastructure Development Corporation Limited (NHIDCL) had reprimanded the EPC contractor for non-maintenance and safety concerns. Subsequently, the NHIDCL, PMU- Pfutsero, addressed a letter to the EPC contractor warning of termination due to several lapses.

Also read: Kohima-Jessami road: NHIDCL passes buck to contractor

The Letter of Acceptance (LOA) for the project was issued on October 10, 2023, and the contract, valued at INR 69 crore, was signed on December 21, 2023. The appointed start date for the project was January 5, 2024.

However, according to reports from the NHIDCL, the contractor has failed to make significant progress on the project. By the deadline for the first project milestone on September 16, 2024, the contractor had only completed 3.63% of the physical work, which is much lower than the required 10% financial progress. Despite receiving multiple warnings from the authorities, the financial progress remains at 0%.

In this regard, the authority has mentioned that as per Article 10 Clause 10.3 (ii) of the EPC Agreement, the contractor is liable to pay liquidity damages.

Delays and non-compliance

The contractor reportedly submitted a work programme on May 29, 2024, but it was not approved due to multiple non-compliance issues. The programme outlined specific physical and financial progress targets, but the contractor failed to meet these expectations. From April to September 2024, significant progress was anticipated; however, by October 8, 2024, physical progress stood at just 3.70%, while financial progress remained at 0%.

Despite several meetings between the NHIDCL and the contractor, little improvement has been made. During a July 2024 meeting chaired by the Executive Director (Projects), the contractor was instructed to achieve 5% physical progress by August 30, 2024. The contractor, however, managed to achieve only 0.87% progress. Subsequent meetings in August and September emphasised the urgency of hitting the project milestones, but progress continues to lag far behind targets, the report stated.

The NHIDCL also highlighted that despite receiving several approvals for designs and drawings for key structures such as the box culvert, breast wall, retaining wall, and open lined drain, the EPC contractor has only executed the construction of the breast wall at the site.

Discrepancies in site conditions

Meanwhile, the NHIDCL PMU-Pfutsero maintained that it had given several notices to the contractor for mobilisation of sufficient manpower and machinery to execute work and maintain the road in traffic-worthy condition. Yet, it expressed concerns that the contractor failed to do so, with discrepancies in the deployment of machinery.

Out of two excavators deployed, one was broken down as of September 30, 2024. The lone HM plant required maintenance, one each of batching plant and crusher were being installed, three out of four available Tipper/Hywa were out of service due to breakdowns, one out of two LMVs was also broken down, while there were three backhoe loaders, two transit mixers/Ajax, and one each of soil compactor, trailer, and water tanker (9KL) available as of September 30.

Manpower shortages were also evident, with key positions such as project manager for the Civil department not being deployed and remaining vacant, as per the report.

The project’s laboratory, critical for quality control, has not been operational since the project’s inception, hampering the ability to conduct necessary tests. Despite multiple notices from NHIDCL and the supervising engineers, the contractor has failed to rectify these pertinent issues.

The report also noted that the quality of construction, particularly in the construction of the breast wall, has been called into question. Three non-conformance reports (NCRs) have been issued for the entire 82 metres, and rectification is still pending.

Works without prior approval

Further, the NHIDCL noted that the contractor has been executing soil nailing work at the site without prior approval from the Authority’s (NHIDCL) engineer, contrary to the specifications and standards set. The design and drawings require conformity and are subject to approval by the Authority’s engineer prior to execution at the site.

While the design and drawings are required for approval within 90 days from the appointed date, several lapses have been highlighted. The hard copies of drawings were not submitted, some drawings and designs were not submitted, and compliance was pending from the contractor’s end, against the EPC Contract Agreement terms.

Additionally, the NHIDCL highlighted the lack of maintenance of the existing road, which has caused significant inconvenience to local commuters and raised safety concerns. This has led to adverse criticism of the Authority, besides complaints raised by the district administration against the maintenance.

Contract termination warning

It may be mentioned that the project has been under intense scrutiny, with the public, political parties, and authorities expressing frustration over the slow pace of work.

The NHIDCL managing director, on September 23, during a video conference, reportedly gave the final ultimatum to the contractor to achieve 10% physical progress by October 30. Failing this, the Authority will terminate the contract.

Meanwhile, reliable sources said the PMU-Pfutsero has already recommended termination of the contract for the project.

However, the latest progress report indicates only 3.70% physical progress, till October 8, 2024, raising concerns that the contract may soon be terminated for non-compliance with the terms.