BWSSB sustained 'avoidable loss'

The Bangalore Water Supply and Sewerage Board (BWSSB), has paid up to Rs 12.69 crore to a single company superfluously, according to the report by the CAG. 

 The BWSSB in April 2007 awarded a tender for Rs 99.63 crore to an unnamed construction company for providing and laying feeder mains to the newly-added areas of BBMP, seven city municipal councils and one town municipal council. The project was awarded under three separate packages with the stipulation for completion by January 2008.

According to the contract agreements for these three packages, the Board was to hand over 75 per cent of the work fronts in a continuous block. However, scrutiny by the CAG showed that the BWSSB entered into an agreement with the company without being in possession of 75 per cent of the work fronts, resulting in their delayed handing over of the same to the company. The Board later made changes to the approved alignment at many places based on the suggestions of the agencies such as BDA, BBMP, NHAI and others, resulting in increases over the tendered quantities under many items, besides several  “extra items not included in the tender”.

The company demanded extra payment of Rs 17.05 crore for the balance work to be executed  beyond the contract period at the schedule of rates of 2007-08 and 2008-09 plus or minus the tender percentage. The Board also released extra payments of Rs 4.96 crore due to increase in quantities under tendered items and another Rs four crore on account of extra items, ‘escalating the cost of the three packages from Rs 99.63 crore to Rs 125.64 crore’. The CAG has said that the lapses in co-ordination with other agencies and lack of due diligence has resulted in the loss of Rs 12.69 crore, which could have been avoided.