NEW DELHI, May 11 � The ambitious Kaladan Multi-modal Transit Project is likely to suffer delay on account of slippages in completion of bidding process and appointment of contractors, leading to slashing of budgetary allocation by Government of India.
The grand project that envisages to link the land locked North Eastern region to an outlet to the sea through the Sittwe Port in neighbouring Myanmar, has already lost some of its importance because of recent agreement by Bangladesh to allow access to Chittagong and Mongla Ports.
In a report to the Parliament, the Standing Committee attached to the Ministry of External Affairs, reported that Kaladan Multi-modal Transit Project in Myanmar has been substantially reduced during 2008-2009.
The Parliamentary Panel remarked that it was not convinced with the reply of the Union Government that the reduction had to be effected due to delay in signing the agreement with the consultant.
The Parliamentary Committee said it was of the opinion that had the Government taken care to sign the agreement earlier, then the need of making drastic cut would not have arisen.
The Panel was told that the actual work on the Project would start by the end of �09-2010. The Committee suggested that the time frame should be followed scrupulously in respect of the Project so that such situation does not recur.
The External Affairs Ministry in its action taken report stated that Inland Waterways Authority of India (IWAI), the Project development consultant, has updated the Detailed Project Report (DPR) of the inland water transport component after joint visit to the sites along with Myanmar authorities.
Due to nature of the terrain, two of the bidders also visited the sites before they participated in the pre-bid meetings.
A pre-bid meeting was held on November 24, last year. This was followed by submission of bids to IWAI on February 1. The technical bids have been opened by IWAI and are being assessed and thereafter the financial bids would be opened, the Parliamentary Panel was told.
The actual construction is expected to start after appointment of the main contractor after selection of bids.
The Parliamentary Committee, which is headed by Yashwant Sinha and has Takam Sanjay as member has remarked that it is not satisfied with the pace of the progress of the project.
� It is desired that the Ministry expedite the process of completion of bidding process and appointment of contractor to ensure that the actual construction work can begin at the earliest. The Committee would also like to reiterate that the timelines should be adhered to strictly so that no surrenders take place at the end of the year and possibility of cost and time overrun in the Project minimized,� the Ministry of External Affairs was advised.
Kaladan Project envisages connectivity between Indian ports on the eastern seaboards and Sittwe Port in Myanmar and then through riverine transport and by road to Mizoram, providing an alternate route to NER for transportation of goods, the Ministry told the Committee.
India had signed the Kaladan multi modal transit transport project with Myanmar on April 2, 2008. The $120 million project proposes to develop Myanmar�s Sittwe port on Kaladan River from where goods would be transported.
The agreement was signed by the then Minister of External Affairs, Pranab Mukherjee and his Myanmar counterpart U Nyan Win in the presence of vice-senior-general Maung Aye, and Vice President Hamid Ansari.