Bengalurru: Firms bidding for waste collection fail to provide crucial document

The 'unconditional certificate' is crucial when the BBMP’s payments are delayed since it offers line of credit and loan facilities

Nearly a third of the bidders taking part in Bengaluru's waste collection tender struggled to furnish relevant documents from nationalised banks.

This would likely derail the much-awaited process to revamp the city’s waste collection system after a 15-year gap. BBMP sources said bidders participating in at least 35 of the 89 packages submitted the ‘conditional certificates’ from the bank instead of the mandatory ‘unconditional certificates’. This is an important document prescribed in the tender as it would indicate the bidder’s financial appetite.

The certificate is also crucial when the BBMP’s payments are delayed since it offers line of credit and loan facilities. Officials said the civic body has formed a committee to verify the technical soundness of over 300 bidders.

“We are also seeking the assistance of legal experts to ensure that the bids are scrutinised impartially,” a spokesperson stated.

Complaint filed

During the technical evaluation process, a group of contractors filed a complaint with the chief secretary’s office alleging that the BBMP is attempting to protect certain bidders in violation of the Karnataka Transparency in Public Procurements Act.

The complaint states that bidders who submitted conditional banker’s certificates have not been rejected as specified in the tender.

The complaint’s copy also refers to a 2021 Directorate of Municipal Administration (DMA) order. Writing to district deputy commissioners and commissioners of municipal corporations, the DMA directed to reject tenders with conditional bank certificates.

Sources said civic authorities overlooked conditional bank statements since successful bidders may not make required capital investment after bagging the work. Conditional certificates do not guarantee loans.