The Hindu Business Line : Vizhinjam terminal: Changes in request for proposal

Thiruvananthapuram, June 28 The Kerala Government has made changes in the request for proposal (RPF) documents for the global tender to be floated to invite private partner for the development of an international container trans-shipment terminal at Vizhinjam, near here.

The changes have been made in line with the suggestions that arose at a meeting of potential investors in the project held on April 17 this year. Representatives of 43 companies, including international firms, participated in the investors meet.

As per the changes, it will be stipulated in the RPF document that if the Government decides to bid out the port operation for another term after the expiry of the concession period of 30 years, the first right of refusal shall be given to the original concessionaire to match the winning bid.

The document will also contain a provision that the Government shall bear a maximum contingent liability of Rs 67.50 crore if there is any escalation in the project cost due to change in the basic design subsequent to drilling and collection of data by the successful bidder.

Another stipulation will be that the Government will not allow any private developer to construct a similar trans-shipment hub within 150 km of the coastline on either side of the proposed terminal, but within the State boundary.

The document will also have the clause that the Government should bear the expense for the development of external infrastructure for the project amounting to Rs 80 crore (as per 2003 rates) as contained in the earlier bid.