Indian road ministry to speed up awarding of projects

To speed up the process of awarding road projects in the engineering, procurement and construction mode, the Ministry of Road Transport and Highways recently clarified that single stage bidding under the single stage two-part system will be the default mode of bidding for all projects.

In the single stage two-part system, National Highways Authority of India invites the bid under two parts. In the first part, the bidder’s eligibility and qualifications are examined based on the information provided in the technical bid. The eligibility and qualification criteria are prescribed in the Request for Proposal. The financial bid submitted by the bidder under the second part is opened only if the technical bid is responsive to the eligibility and qualification criteria in the RfP.

In the two-stage bidding process, on the other hand, the bidder goes through prequalification in the first stage. The prequalification is carried out on the basis of technical and financial expertise and track record on similar projects. Prequalified bidders submit commercial bids in the second stage. There is a time lag between the first and the second stage.

In an office memorandum dated August 29, 2014, the ministry said the two-stage bidding process could be adopted for specific projects, but in such cases, it added, the reasons need to be recorded in writing and approval taken from competent authority.

The office memorandum stressed that the time period between invitation of bids and submission of bids in case of all projects should be 45 days. Depending upon complexity of the project, the time period could be extended to a maximum of 90 days after approval of competent authority, it said.

Meanwhile, MoRTH has enhanced the target for road construction during 2014-15 to 17.26 km per day. In 2013-14, the average road length constructed per day stood at 11.67 km. The target for awarding road projects has also been significantly increased. From an average of 8.68 km of road works awarded per day in 2013-14, MoRTH is aiming to award an average of 23.28 km per day in 2014-15. In addition, it plans to cover all toll plazas with the electronic toll collection system. In 2013-14, less than 10 per cent of the toll plazas were covered by the ETC system.

Till October 2014, road projects measuring 3,419 km in length have been awarded as against the target of 8,500 km for the current financial year. Construction of roads measuring 1,984 km in length were completed between April and October 2014 against the target of 6,300 km for 2014-15.

ROAD SECTOR TARGETS AND PERFORMANCE

Source: Ministry of Road Transport & Highways