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KSTP and the allegations
- 01/12/06
By Girish
Raghavan, Koyilandy |
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Once
again it is proven that who rules the state does not make any difference in
its performance. The Govt is going to sleep and talk and talk
with nothing achieved on the ground and for the people.
The recent example is the govt messing up a World Bank aided ambitious
project. World Bank- Aided Kerala State Transport Project (KSTP) was
launched in 2002. The project was being implemented in three stretches. The
project’s primary intention was to up grade the state highways and major
district highways.
This was said be a great help to improve the transportation facility in the
state which is getting crowded day by day. As approved by the World Bank the
total project cost be Rs 1,613 crores (336 million us dollar) of which 24 %
or 81 million US dollar (Rs. 388 crores) was to be borne by the state
government.
The project is currently so messed up due to delay in implementation and
defaulting prompt payment that the project is certain to take the
governments share to a plump Rs. 2000 crores. Such an increase will be an
unbearable burden on the budget as pointed out by the finance ministry in
2005.
It is now clear that the state government or the Public Works Department (PWD)
was not prepared in terms of attitude or logistical capabilities for a
project of this magnitude. The project has come to a standstill with the
govt and the contracting companies trying to wash their hand of the mess
blaming each other for entire problem. Now the stage is set for the
litigation between the govt and the contracting company.
There are two main visible reasons for the delay. The failure on the part of
the state government to make the necessary extent of unencumbered land to
the contractors on time and the cash flow management problems that have
dogged the contractors.
The above reasons may make one think that both government and the
contractors are to share the blame for the delay equally. But the recent
incidents suggested that the fault might lay more on the part of the
government and the PWD than on the contractor. A closer look at the
implementation now shows that the manner in which the PWD has failed to
respond to the demands of the ambitious project.
The government has still not handed over the total extend of unencumbered
land to the contractor. The delay in making payment to the contractor
resulted to the contractor putting the government on notice repeatedly under
the term of contract for possible stoppage of work. The last such notice
taking effect on November 16. But this does not take the blame away from the
contractor as there was an honest attempt on the part of the government in
mid 2005 to address this issue and sufficient land to carry out the work was
handed over to the contractor by November last year and a letter dated March
29 2006 to PAT BEL, JV project contractor from RITES - Consultant supervisor
for KSPT said the contractor had not responded to the repeated request to
speed up the work.
Although the PWD under United Democratic Front (UDF) regime had no
hesitation in granting extension of deadline for completion of the project
it defaulted in prompt payment. Arbitration by the contractors could prove
costly for the state with out the govt enjoying any similar advantage.
This will be clear when one compares the likely claim from the contractors
with the liquidated damages that it claims from the contractors for the
delays on account of contractors failures. In govts own estimation this
would come to only Rs 25 crores to Rs 30 crores. Every 10% enhancement in
cost if sought by the contractor will result in state exchequer becoming
poorer by Rs 40 crores to Rs 50 crores.
A foul play at the higher level can be naturally doubted but as usual the
culprits were not the payers ‘Lee Been Seen’- the chief project officer
killed himself apparently after delay in payment. Another middle-level IAS
officer Gyanesh Kumar former PWD secretary was removed from the post of
officer after allegation was brought against him. Two scape goats to save
the real jackals!
The minister of public works T.U. Kuruvilla has said that the KSPT will be
completed. But the road ahead does not appear to be of flowers with PWD
taken initiative. The finance Dept will also have to step in because it will
have to find money to pay up the bill as and when they come home. The works
ahead call for tact a little bit of guile and tremendous amount of
determination to see the project through.
Trading of charges already begun:
Finance minister T.M.Thomas Isaac and the former public works minister M.K.
Muneer have made conflicting views and allegations on the project.
At a press conference Dr. Isaac said there were “irregularities regarding
the government’s management of the project” and that “Muneer sahib should
give clarifications on these points”.
Dr. Muneer said “if there were any procedural lapses these should be brought
out through an impartial inquiry”. He also admitted that there was a delay
in land acquisition and added that the process was faster when compared to
delay experienced by railways and other agencies. “The LDF is hoping to use
the KSPT to counter against the SNG - lavalin case” he said.
- Girish Raghavan for CalicutNet |
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