The Hindu Business Line : Seven cos respond to Kochi port capital dredging tender

Kochi, July 7 The Cochin Port Trust has received a good response from both Indian and foreign dredging companies when the port made a second attempt for tendering the capital dredging work together with maintenance dredging in the channel prior to the commissioning of the ICTT project.

As against two tenders received for the work last time, the port has received request for participations (RFP) from seven firms, of this three are foreign companies, Mr N. Ramachandran, Chairman of the port, told Business Line. The port also extended the last date for submitting the tender by another two weeks following the request from companies that attended the pre-bid meeting on June 30, he said. The last date for submitting the tender has now been extended to July 29.

It may be recalled that the tender for capital dredging was cancelled last time by the port as the price quoted by the international company was higher than estimated costs.

Provisions relaxed

Mr Ramachandran said the port had relaxed certain provisions in the new tender conditions based on the recommendations by the Rani Jadhav Committee, which made a series of suggestions in the qualifying criteria to attract more competition in dredging tenders in major ports. This proposal, for a formal relaxation of the criteria, is under the active consideration of the Shipping Ministry, he said.

As far as Kochi is concerned, the port has to complete the dredging work before November 2009. “Therefore, we cannot wait indefinitely until the criteria are formally relaxed. We have gone on tendering with these relaxed provisions, with a rider that these relaxed criteria will be subject to the final approval of the Ministry. The idea is to save time on tendering and processing of the tenders,” he said.

Govt grant

The port hoped that the Ministry would relax the qualifying criteria by the time tenders are received and processed. Besides, the relaxed conditions are likely to substantially improve competition as a number of Indian as well as foreign firms would get qualified, he said. “Although we are hard pressed with regard to time, we have agreed to requests from some participants to extend the last date for two weeks. We want to ensure that there is maximum competition,” he added.

The Rs 485-crore dredging work involves achieving a draught of 14.5 metres in the channel along with a maintenance dredging for a period up to December 31, 2010.

The port is also awaiting formal clearance from the Cabinet Committee on Economic Affairs on the proposal to avail a grant in aid for the capital dredging work. The Public Investment Board had already cleared the proposal. With the full Government grant, the port will be able to provide services at ICTT at internationally competitive rates.