Bids for Mumbai’s Rs 15,000-crore coastal road project have come in at over 200% higher than the estimated cost for civil engineering and construction.
Larsen and Toubro was the lowest bidder, quoting Rs 3,520 crore for Package I to construct the stretch from Priyadarshani Park at Napean Sea Road to Haji Ali. For package II, the stretch from Haji Ali to the Worli end (south end) of the Bandra-Worli Sea Link, the joint venture of Hindustan Construction Company and Hyundai Development Corp was the lowest bidder, quoting Rs 2,206 crore.
At the time of issuing the expression of interest in June 2016, the nodal agency for the project – the Municipal Corporation of Greater Mumbai (MCGM), or BMC – had estimated the construction cost at Rs 1,540 crore for package I and Rs 758 crore for package II. The actual quotes received are higher by 220% for the the first package and by 290% for the second package.
Since June 2016, BMC has not published any revised cost estimates, either at the time of the request for proposal (RFP) (issue of contract documents), or at any other point. MCGM is now believed to be in the process of putting up the winning bids for the civic standing committee’s approval. Sanjay Mukherjee, additional municipal commissioner, projects, MCGM, did not respond to messages seeking his comment.
The coastal road was proposed almost a decade ago. Construction of the 9.98-km coastal road has been divided into three parts, starting from Princess Street on Marine Drive to the south end of the Bandra-Worli Sea Link.
Separate bids were invited for each of the three packages. Bids for the third package, which also includes a 3.4-km tunnel, will be opened at a later date.