BDA asks Peripheral Ring Road bidder to secure different bank guarantee

The Bangalore Development Authority (BDA), currently reviewing bids for the Peripheral Ring Road (PRR) project, has instructed the lone bidder to furnish the bank guarantee to the State Bank of India rather than ICICI Bank.

The agency issued the directives last week, citing the substantial amount of Rs 270 crore involved in the bank guarantee.

A team of BDA staff visited Kolkata to confirm if Astrum International, a Kenya-based company having its regional office in West Bengal, complied with the tender requirements by furnishing the bank guarantee. The company had purportedly requested a two-week extension last month to submit the surety, citing the financial year's end.

Officials on Sunday said the firm, which has formed a consortium with Chennai-based companies, has given the surety from ICICI Bank, but insisted on it being from SBI. “We are currently evaluating the bidder for technical compliance. The financial bid will only be opened after the model code of conduct for the Lok Sabha polls is over,” a BDA source told DH.

This is the BDA’s third attempt to find a bidder for the 74-km PRR project, which is estimated to cost Rs 27,000 crore, including land acquisition.

The bidder is expected to arrange the entire amount and recover the investment by collecting toll charges for 50 years. The company will also get advertisement rights along the corridor.

Sources said the BDA would evaluate the percentage of toll the company offered to it. "Generally, the company that shares the highest percentage stands to win the project. Since we have got only one bidder, we will send the bids to the government for approval," he said.

Some argue that proceeding with just one bidder could be perilous for the BDA given the project's scale. Some advocate for dividing the project into two or four segments to expedite implementation and mitigate the risk of failure.

Farmers' grievances 

Farmers are unhappy with the way the BDA is handling the project.

“We had requested a meeting with the BDA commissioner to clear doubts about the compensation proposed for land losers. We are yet to get an appointment. The Supreme Court had ordered compensation based on British-era law, but no farmer would want to part with his or her land for a pittance. We have been demanding compensation as per the 2014 act,” Srinivas Mavallipura, a social activist and farmer, said.