Chittoor Drinking Water Supply Project – Procurement Process


Orders were issued according administrative approval for Stage-I works of Phase-I for implementation of the Chittoor District Drinking Water Supply Project to be implemented in two phases with an approximate project cost of Rs.5,990 crores for Phase-1 and Rs.1,400 crores under Phase-II.  Sanction was also accorded   for an amount of Rs.137 crores during the financial year 2012-13 for Stage-I works of Phase-I and to consider according administrative sanction for Stage-II works separately on completion of Stage-I works.

Vice-Chairman & Managing Director, INCAP has submitted the status of Stage-I works along with the population projections  and raw water demand of Urban Local Bodies viz., Tirupathi, Chittoor, Madanapalli, Punganur, Palamaneru and Rural areas covering 52 Mandals fo prospective year 2030 and ultimate year 2045 by taking 2015 as base year, as per CPHEEO guidelines and NRDWP norms. Proposals for revised allocation of water due to consideration of partial water demand for industrial requirement in Chittoor District as requested by APIIC,  have been submitted to the Government in I&CAD Department for issue of a consolidated G.O. for allocation of 6.61 TMC (2.372 TMC for Urban areas, 2.798 TMC for Rural areas and 1.44 TMC for Industrial purpose) with permission to draw water from Kandaleru Reservoir. Accordingly, Government in the G.O.  11th read above issued consolidated orders for water allocation of 6.61 TMC with permission to draw water from Kandaleru Reservoir for  the Chittoor District Drinking Water Supply Project duly superseding the earlier G.Os issued.

The Vice-Chairman & Managing Director, INCAP has requested for consideration and according administrative approval for the estimated cost of Rs.4,300 crores for Stage-II works of Phase-I for main trunk line and secondary trunk lines covering 8468 Habitations in 46 Mandals and 5 Urban Local Bodies during the project period 2013-14 and 2014-15 as administrative approval for Stage-I works was already accorded in the G.O.1st read above since DPR along with designs are finalised, detailed investigation is completed, RoW approvals/permissions are obtained and Land Alienation process is under final stage.  He has further stated that the proposals for balance component of construction of Cluster Reservoirs and Distribution network at a cost of Rs.1500 crores would be projected to JICA, JnNURM and NRDWP for financial assistance, and in case of non-receipt of funds from the above funding agencies, State Government support is required, in view of the importance and crucial phase of the project.  The Vice Chairman & Managing Director, INCAP has reported that these proposals have been agreed in the Government Level Co-ordination Committee meeting held on 02-08-2013.

Vice-Chairman & Managing Director, INCAP, has requested the Government to take a decision on seeking assistance from HUDCO for      Rs.2000 crores at applicable rate of interest by extending State Govt. guarantee and budgetary provision for repayment of the loan.  He has also requested to provide the budgetary support for the balance amount of Rs.2300 crores from Plan funds during the financial years 2013-14 and 2014-15 for implementation of the project.

Government, after examination of the matter, hereby issue the following orders.

a)    Administrative approval is hereby accorded for Rs.4300 crores (Rupees Four thousand three hundred crores only) for implementation of Stage-II works of Phase-I of Chittoor District Drinking Water Project towards the cost of  laying main trunk line and secondary trunk lines, with the following funding pattern. (Rs. in Crores)

Source

2013-14

2014-15

HUDCO Loan

1000.00

1000.00

GOAP (Budget support including maching grant under Plan funds)

1000.00

1300.00

Total:

2000.00

2300.00

b) The Vice-Chairman & Managing Director, INCAP is  permitted to raise loan from HUDCO for an  amount of Rs.2,000 crore for implementation of Stage-II works of Phase-I at applicable rate of interest as per the terms and conditions laid down by the HUDCO with State Government guarantee and with financial support of Government of Andhra Pradesh towards repayment of loan, providing budget under line item “Loans to Chittoor District Drinking Water Supply Project’ in each annual budget for full repayment of loan including interest for the loan availed, till completion of entire loan repayment, subject to meeting the balance project cost and cost overruns, if any, and provide budgetary provision during the project construction period for completion of the project as envisaged.

c)    For the approximate cost of Rs.1,500 crores towards the other components of the project like the transmission lines from secondary trunk line to about 30 cluster reservoirs, construction of cluster reservoirs, distribution lines from cluster reservoirs  to the habitations, the Vice Chairman & Managing Director, INCAP shall  submit separate proposals to Government at appropriate time, on finalization of the DPRs for taking up the same under JICA / JNNURM / NRDWP for financial assistance.

The expenditure shall  be debitable to the following Head of Account.

Capital Outlay on Other Industries. 60 – Other Industries.

M.H 800 – Other Expenditure. G.H.11 – Normal State Plan

SH (16) – Chittoor District Drinking Water Supply Project Implemented by INCAP. 530   –  Major Works 531  –  Other expenditure 532  –  Lands

Orders will be issued separately in respect of procurement process & constitution of committees for implementation of the project.

The Vice Chairman & Managing Director, INCAP shall take necessary further action in the matter.

This order issues with the concurrence of Finance Department vide U.O.                      No. 24410/965/Exp.PW.II/13, Dt.13-09-2013.

Vice-Chairman & Managing Director, Infrastructure Corporation of Andhra Pradesh Limited (INCAP), has requested for issue of orders on the following issues in respect of implementation of Chittoor District Drinking Water Supply Project:

a)    Consideration for procurement of agency on design/build system under EPC mode for the intake well.

b)    Consideration of LS method of procurement for all other components except intake well for the project.

c)  Constitution of various Committees for approval of Tenders.

d)  Permitting the SE/GM (CWP) for issuing tenders NCB and also for concluding     agreements after issue of LOA by CE/CGM(CWP) with the qualified lowest      tenderer.

Vice-Chairman & Managing Director, Infrastructure Corporation of Andhra Pradesh Limited (INCAP) has requested to constitute various committees for finalizing the procurement process for intake well of Chittoor Drinking water Supply project under   Engineering, Procurement & Construction (EPC) mode.

Vice-Chairman & Managing Director, INCAP, has requested to issue appropriate orders for following the guidelines of G.O.Ms.No.94, I&CAD (PW-CAD) Dept., Dt.1.07.2003, regarding payment of mobilization advance under      clause-17,   for all components of the project , since  the tentative cost of construction of Intake Well cum pump house, pumping machinery is Rs. 200 Crores which was proposed under EPC mode and balance components are proposed to be called under LS contract out of total cost of Rs. 4300 Crores of the project.

Further, the Vice-Chairman & Managing Director, INCAP, has requested to issue orders for adopting the  orders issued by the I&CAD Dept.,  in the G.O. 2nd read above, regarding the  qualification in respect of past experience in relaxation to the  clauses No.10(A) and 11(a) of  G.O.Ms.No.94, I&CAD (PW-CAD) Dept., Dt.1.07.2003, for tendering the works of this project, in order to encourage the competition.

The Government Level Coordination Committee in its meeting held on 02-08-2013 have agreed to the proposal of LS Contract system for all components except intake well and the Committee also opined to adopt the EPC mode for procurement of agency for intake well.

Government have accorded Administrative Sanction for Stage-II works of Phase-I for implementation of Chittoor District Drinking Water Supply Project at an estimated cost of Rs 4300.00 Crores.

Government, after careful examination, and taking into consideration of the proposals of the Vice-Chairman & Managing Director, INCAP, hereby issue the following orders in respect of procurement process & constitution of committees for implementation of  the Chittoor District Drinking Water supply project

a)    Procurement of agency for intake well shall be under EPC mode and Procurement of all other components shall be through LS contract system.

b)    The following Committees are hereby constituted in respect of L.S. Contract System.

i)             Technical Evaluation Comniittee:

  1. Director , Technical , HMWS&SB                                    –           Member
  2. Chief Engineer, Central Designs                          –           Member

Organisation, I&CAD

  1. Chief Engineer Rural Water Supply,                    –           Member

(to be nominated by Secretary, RWS&S)

  1. Chief General Manager -II (CWP), INCAP          –           Member
  2. Chief General Manager (T), INCAP                     –           Member
  3. Chief General Manager -I (CWP), INCAP           –      Member-Convener

The above Committee shall take up technical evaluation for LS mode of tenders

ii) Tender Committee :

(1) The Prl. Secretary to Govt., I&I Dept.        –           Chairman

(2) The VC&MD, INCAP                 –           Member

(3) The Director (Technical), HMWS&SB                  –           Member

(4) The Secretary / Jt. Secretary to Govt.  Finance (PMU) Dept  –     Member

(5) The Chief General Manager (T), INCAP              –           Member

(6) The Chief General Manager (Finance), INCAP   –           Member

(7) The Chief General Manager (CWP), INCAP –          Member-Convener.

The above committee shall approve the tenders called for on LS mode.

c)    The following Committees are constituted in respect of EPC Mode of tenders.

Committee –I:

  1. Engineer-in-Chief, I&CAD Dept.,                    –           Member
  2. Director (Technical), AP Genco                      –           Member
  3. Director (Technical), HMWS&SB                   –           Member
  4. CGM-I (CWP), INCAP                                                –           Member
  5. CGM-II(CWP), INCAP                                                –           Member-  Convener

The above Committee shall examine the technical parameters such as scope, objective and final deliverables of the project, IBM/decoding Basic parameters/ approval of live bid documents/ evaluation criteria / payment schedule and make necessary recommendations.

Committee –II:

  1. Principal Secretary to Govt. I&I Dept.,                Chairman
  2. Vice Chairman & Managing Director, INCAP      Member
  3. Engineer-in-Chief, I&CAD Dept.,                        Member
  4. Director (Technical), HMWS&SB                                    Member
  5. Representative from Finance Dept.                     Member
  6. CGM-I (CWP), INCAP                                         Member
  7. CGM-II(CWP), INCAP                                  Member-Convener.

The above Committee shall examine and approve the tenders called for on EPC mode

Committee –III:

  1. Director (Technical), HMWS&SB-           –           Member
  2. CGM-I (CWP), INCAP                             –           Member
  3. Representative from I&I Dept.,                 –           Member
  4. Representative from Finance Dept.,        –           Member
  5. CGM-II (CWP), INCAP                            –          Member- Convener.

The above committee shall approve the EOT beyond six months/price to be paid for additional works/ contingent outside scope of work:

d)    The CGM (CWP), INCAP/ Chief Engineer rank officer is authorised to issue tenders,  LoA and conclude agreement after due approvals made by the Tender Committee.

e)    The  Vice-Chairman & Managing Director, Infrastructure Corporation of Andhra Pradesh Limited (INCAP) is permitted to adopt the guidelines issued under clause 17 in G.O.Ms.No.94, Dt.1-7-2003 for operating mobilization advance. For relaxation of  eligibility criteria while calling for tenders for implementation of Chittoor District Drinking Water Supply Project, the orders issued in G.O.Ms.No.28, I&CAD (PW.Reforms) Dept., dt.30-04-2012 shall be followed.

f)     The Tender Committee shall decide the quantum of Mobilization Advance for the works with a ceiling limit upto 10%.  Suitable conditions for payment of Mobilization Advance and recovery of Mobilization Advance along with interest shall be laid down in Standard Bid Documents.

The Vice Chairman & Managing Director, INCAP shall take necessary further action accordingly.

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