Simplex Project likely to be blacklisted
Source: The Sangai Express
Imphal, September 04 2018:
Simplex Project which executed and is executing many major construction projects in the State including the Sanjenthong Bridge since the time of Chief Minister O Ibobi is likely to be blacklisted by the N Biren Singh Government.
Notably, Simplex Project is currently in charge of many major construction works such as Civil Secretariat at Chingmeirong Lei Ingkhol, Information Technology Special Economic Zone at Mantripukhri and market complex at the erstwhile Tombisana High School campus.
Sources informed that the State Government is deeply concerned with the failure of Simplex Project to finish construction of Civil Secretariat which started in 2011.The Civil Secretariat was supposed to be completed in 2013 but it has been dragging on for years without any sign of completion.
The Government is also equally displeased with the Simplex Project's failure to finish construction works of IT Special Economic Zone at Mantripukhri and market complex at the erstwhile Tombisana High School campus.
The firm (Simplex Project) is likely to be blacklisted on the charge of failure to complete the three major projects even after overshooting the completion targets by many years.
If the firm is blacklisted or its contract is terminated, the firm must also be penalised as per rules.
In case the contract is terminated, there must be adequate funds with the Government to complete balance or incomplete portions.
The work order amount of the Civil Secretariat was Rs 280 crore but it later rose to around Rs 300 crore.
If it is assumed that Simplex Project had completed works valued at Rs 250 crore, there must be Rs 50 crore with the Government to complete the balance works.
However, even if the balance work is said to be for Rs 50 crore, actual execution of the work will require more than Rs 50 crore because the work order amount was estimated at the rates prevalent in 2011 and it was never revised, said the sources.
If tender should be floated for the balance work, the rates prevalent in 2011 will not be applicable now.
As such, the Government will need additional money.
Nonetheless, the Government may forfeit the 5 per cent performance of bank guarantee and another 5 per cent security amount deposited by Simplex Project in the bank, and the same amount may be utilised to meet the additional fund requirement, informed the sources.
5 per cent (performance of bank guarantee) of the total work order amount Rs 300 crore is Rs 15 crore.
There is another Rs 15 crore in the name of security deposit.
The total Rs 30 crore may be forfeited by the Government from Simplex Project as penalty.
Whereas the performance of bank guarantee amount lies with the bank, the security deposit must be obtained from either running account bill or fixed deposit.
As such, the Government must first check whether the performance of bank guarantee amount is still available or not before the firm is blacklisted or its contract is terminated, said the sources.
Notably, M/S Raghaba abandoned the construction and expansion works of Koubru Leikha-Tendongyang road and Canchipur (MU main gate) to Lilong Bridge road at the initial stage after the Ministry ofRoad Transport and Highways sanctioned Rs 37.4 crore and Rs 30.75 crore respectively for the two works.
However, when the Government initiated due process to forfeit the 5 per cent performance of bank guarantee amount for abandoning the works, the bank guarantee was found to be forged.
Since then, the State Government is unable to start the road development projects.
In the meantime, MoRTH has scrapped the two projects.
Moreover, it is questionable whether Simplex Project would be allowed to bid when fresh tender is held for the balance work of Civil Secretariat, said the sources.
There were heated arguments between the Government and Opposition parties over allotment of several contract works related to National Highways to a firm named SN Pavei which had been already blacklisted.
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