The Malaysian contractor PATI is back in picture on Kerala roads, after a chequered interlude, including the suicide of the company’s seniormost executive on Indian assignment. By the $45-million contract in 2003 for the Phase I of the $336-million World Bank-backed KSTP road project, the upgradation was to be complete by 2006.
“By the new understanding, however, the PATI-BEL consortium will get 72.5% hike rate. They had sought 80% rate of hike,” Chief Minister VS Achuthanandan said. The Malaysian company had also sought Rs 96 crore in arbitration claims. This has been settled at Rs 35 crore.
Lee See Ben, chief project manager in Kuala Lumpur-based PATI company, had committed suicide last year, saying in a note that he had lost hope of getting timely payment. Time escalation on the part of the company had also slipped to cost-esccalation to the tune of Rs 2000 crore to Kerala governemnt, according to the state government sources.
But now, the team has been told to expediate work on the 127 km of Kerala State High Way from Taikkod to Kottarakkara, from Kottarakkakara to Chengannur, Taikkod to NH-47 and from Alapuzha to Changanassery.
“PATI-BEHL combine will resume work on the upgradation of that they had undertaken,” chief minister said. Late Lee See Ben would be happy to know that after the bargaining wrangle, the two – Kerala government and the Malaysian firm have buried their hatchets to be back to business.