Friday, November 7, 2008

Garden of Eden - 1

Laying it on thick

You need to have an imagination for what I am about to reveal, and imagination you have. You just gotta to have it in Goa. Imagine just how little it would take to renovate a garden of 570 sq m. Then imagine, your government is currently spending Rs 1,59,68,204.24 to renovate it because of the Panjim MLA Manohar Parrikar. Now after this colossal figure was conjured and configured, the imagination (this time) of the planners in government went into overdrive. For those who live deep south or up north, the garden is at Rua De Ourem, at Panjim's old entrance and exit road. This once popular area of Panjim is now used by pedestrians to exit and enter the KTC bus stand. Nothing more!

This is how the garden deal unfurled. On 24 April 2008 the scheduled date of opening the tender, there were no responses for the first call though two bidders, one who came from Mumbai; bought tenders forms. They were My Associates of Andheri (W) Mumbai and Bhella Constuctions of Ponda. At the next call, two bidders purchased the tender forms: My Associates (again) and A. Ponnuraj of Panjim. Now, why would My Associates try a second time when it refused to bid the first time despite buying the tender forms? Beats me.

Beyond Reasonable Doubt

On 5 May 2008 the scheduled day of the second call, A. Ponnuraj was disqualified as his EMD (earnest money deposit) was not submitted as per rules. Surprise, surprise! We have here an experienced contractor (the rule states a contractor must completed pre-specified high-worth jobs in the last 5 yrs) who appears incapable of completing a mere EMD formality! This time however My Associates after appearing to be reluctant the first time, quoted Rs 2,00,63,649.50. The figure brought down 2.5 % by the Goa State Infrastructure Development Corporation (GSIDC) to Rs 1,95,62,058. It was however still 68.48% higher than the GSIDC estimated cost of Rs 1,16,10,674 and 39.24% above the reasonable (of GSIDC again) amount of Rs 1,40,48,719.97. If you have not comprehended this jargon, estimated cost is what the GSIDC knows is the estimated cost going by market calculations. Reasonable cost, I guess is, if the contractor is unreasonable enough to quote above the estimated, it requires GSIDC to be reasonable and make unreasonable look reasonable. Remember, I warned you to wear your imagination cap before you read this. So, don't blame me, if this sounds weird. It is. As a result, My Associates' bid was rejected because it was too high.

Beyond The Call Of Duty

Now, this is where your imagination truly gets stretched like India rubber. In response to the third call, A. Ponnuraj made a second comeback. This time however KG Thomas of Panjim and New Park Sun Gardens of Mahim, Mumbai join the game. But on the scheduled day of the opening 28 May 2008, mysteriously only KG Thomas bids. Does this not stretch your imagination? You have Mumbai's My Associates who drops by twice (1st & 2nd call) but does not bid the first time. The second time, it bids so high, it is bound to be rejected. Then you have A. Ponnuraj who buys the tender forms twice (2nd & 3rd call) makes a silly (tactical perhaps?) error the first call, then does not bid at the 3rd call. You would think Ponnuraj would want to make amends. No? Finally, you have New Park Sun Gardens from Mumbai who suddenly enters the field at the fag end (3rd call) but does not bid. Not to mention Bhella Constructions, who apparently didn't want to play ball at all.

The Games Begin

The tactical maneuvering done, KG Thomas waltzes into the scene, and there's a chest full of silver dollars to be dug out of the garden. The only bidder left now is him. He bids Rs 1,72,62,923.50, then agrees to negotiate his quote despite being the only bidder left in the arena. Blows my mind away! So, he reduces his bid by 7.5 % and his quote is now Rs 1,59,68,204.24. The negotiated offer is 9.94% above the reasonable amount of Rs 1,45,24,697.48 and 37.53% above the estimated cost put to tender (pun not intended) that is Rs 1,16,10,674. This makes GSIDC really pleased because it promptly claims the offer made in the third call is Rs 35,93,854 (Rs 1,95,62,058 minus Rs 1,59,68,204) lesser than the offer it received in the second call. Do make a note also that GSIDC's reasonable amount has by now risen from Rs 1,40,48,719.97 to Rs 1,45,24,697.48. It doesn't end here.

(Next week: Garden of Eden -11)

(Feedback: 6658606, lionroars.goa@gmail.com)

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