Naga Contractors-ECI MoU Not Cancelled - Eastern Mirror
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Nagaland

Naga contractors-ECI MoU not cancelled

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By EMN Updated: Sep 20, 2016 9:21 pm

Dimapur-Kohima 4-lane project

 

DIMAPUR, SEPTEMBER 20 : Contrary to reports carried in some local newspapers recently, the memorandum of understanding (MoU) signed between Naga contractors and ECI Engineering and Construction Company in connection with the project to construct a 4-lane National Highway between Dimapur and Kohima has not been cancelled, Eastern Mirror can confirm.

Though the news (published by Eastern Mirror) that Nagaland Contractors’ and Suppliers’ Union (NCSU) and ECI Engineering and Construction Company have signed an MoU to sublet contract works of said project to local contractors was labelled as “rumours”, this newspaper can confirm that NSCU officials on Tuesday left for Delhi to negotiate a final deal with ECI representatives.

When contacted, an NCSU official said the Naga contactors were “positive” that the ECI Engineering and Construction Company would sublet the project to NCSU members. He admitted that at a certain point during the negotiations, there was a misunderstanding between the two parties.
The confusion was related to the period of time within which the local contractors were supposed to make the security deposit with the ECI. But now, according to the source, the confusion has been cleared. “The MoU has not been cancelled. We are rather positive that they will sublet the contract to us.

“In fact, we are looking forward to working together with such a big company like ECI. We (Naga contractors) can only learn by working together with such big companies,” he said. Eastern Mirror also contacted minister for National Highways, Mechanical Engineering and Election, Nuklutoshi Longkumer for clarification.

According to the minister, the information about the MoU signed between NCSU and ECI was considered as a “rumour” since he neither has seen the document nor was it done with the knowledge of the Nagaland PWD (NH). Longkumer said that his intention was to assert that in case of any fallout during the contract negotiations, his department would not be responsible.

Out of the three packages that complete the 4-lane highway project, the Ramky-ECI joint venture has been awarded with two. Between the two construction firms ECI and Ramky, there is an agreement which states that “the entire work will be executed by M/s ECI Engineering and Construction Co Ltd” with regard to the two packages allotted to M/s Ramky-ECI (JV). Thus, the NCSU has signed the MoU only with ECI.

The other contract package has been given to M/s Gayatri Projects Ltd. But in April this year, the NCSU had announced through the newspapers that it would not allow M/s Gayatri Projects Ltd to execute the 4-lane project of NH connecting Dimapur and Kohima “unless it first completes the 4 projects under SARDP Phase-I in Nagaland.”

By “the 4 projects under SARDP Phase-I in Nagaland”, the NCSU was referring to the now-stalled 329 km project to construct 2-lane roads in the four sections of: Mon-Tamlu-Merangkong, Longleng-Changtongya, Phek-Pfutsero and Chakabama-Zunheboto.

Gayatri Projects is one-half of a joint venture to whom the contract for said project was awarded in 2010. Almost six years since, though the contractors were given 36 months to complete the project initially, it has yet to see any road construction – except for some excavation works.

The reason behind this arrest in progress of work has been attributed to the proposal of a revised project estimate that inflated the cost from its original estimate of Rs 1,296 crore to Rs 2,988 crore. The Union Ministry of Roads and Transport (MoRTH) had refused to approve the revised estimate.

Consequently, the matter was taken to the Gauhati High Court who, in October last year, had ruled in favour of the revised cost and directed those concerned to “do the needful within a month’s time”. This ruling, however, has been contested by the MoRTH. Two weeks ago, the ministry has filed a Special Leave Petition against the High Court ruling in the Supreme Court.

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By EMN Updated: Sep 20, 2016 9:21:35 pm
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