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Amit Mitra

Mumbai , Sept 29

WHILE accepting most of the changes suggested recently by the Ministry of Shipping in the on-going bidding process for the Rs 900-crore third container terminal project at Jawaharlal Nehru Port Trust (NJPT), the port's board of trustee has, however, rejected one of the vital changes that relates to evaluation of the final price bids.

The board of trustees, which met on Tuesday last, has rejected the Ministry's suggestion that the port give weightage of 40 per cent to the technical strength of the bidder and not evaluate the bids on the strength of their price bids alone.

The Ministry, in its letter to the port dated September 16, had observed that "in order to ensure that only bidders with the best quality will be considered for the project, it has been decided that the RFP document should include a composite score for giving due weightage to the technical strength of the bidders and the price bids. The marks obtained for technical strength will get 40 per cent weightage and the price bid will get 60 per cent weightage. The port will lay down the criteria for award of the marks. The ultimate score will be a composite score and the bidder obtaining the highest score will be awarded the contract for the project."

Sources told Business Line that some of the board members had argued that as the bidders have already been shortlisted on the basis of the eligibility norms laid down in the tender document, there was little point in having post-price bid technical evaluation. Also, the matter regarding evaluation of technical strength and award of marks will become "subjective" and could lead to litigations.

The port has expressed this opposition to the change in evaluation process to the Ministry in a letter and expects to get a reply from the latter by October 7. Only after that, will the revised RFP document be prepared, before the port chairman has a meeting with the bidders on the issue. The port is keen on issue of the revised RFP document by October 31 so that it can receive the price bids by November 30 (the original date was October 31).

However, the board has accepted the other changes proposed by the Ministry, the primary being a switch over in payment terms from the existing revenue sharing arrangement to the Minimum Guaranteed Throughput (MGT) formula.

As per the Ministry's suggestion, the bidders will now have to quote their price bids, taking in account the actual quantity of MGT prescribed by the port. In the existing RFP document, the bidder had to quote their price bids on the basis of their respective estimation of traffic throughput. The bidders will now have to first guarantee a minimum throughput 1.3 lakh TEUs in the first year of operation, 3.5 lakh TEUs in the second year, 5.35 lakh TEUs in the third year, 7.35 lakh TEUs in the fourth, 9.50 lakh TEUs in the fifth and 12 lakh TEUs in the sixth year. On the basis of this MGT, the bidders will now have to quote their bids.

Another of the Ministry's changes that has been accepted by the port relates to tie-up with management contractors, which will have a significant impact on the bidding process. In the existing document, the successful bidder was to be given a time of eight weeks to provide proof of tie-up with the management contractors.

The Ministry had rejected this, stating that "this would enable the bidders to go ahead with the bid in hand while searching for a management contractor, which could result in speculative bids, distortion and back door entry. To preclude this possibility, it is essential that the bidders furnish upfront proof for tie-up with the management contractor before the bids are opened." The Ministry will then give a security clearance for the management contractor, before the contract is handed over.

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