Highway developers have approached the Competition Commission of India (CCI) against an NHAI move to restrict the number of bidders for EPC projects to be developed in Uttar Pradesh.
In other words, financial bids from top seven bidders in the technical score list will be invited. This is evident in the tenders for two projects to be developed under the engineering procurement contract (EPC) mode.
This is not the first time such a clause has made it to the NHAI bidding process. In September 2008, a similar clause –which sought to restrict the number of bidders to five -- had been dropped from the model request for qualification (RFQ) document for highway projects.
The two EPC projects with this clause involve development of about 305 km stretch of NH connecting Raibareilly in Uttar Pradesh. They are Tanda-Raibareilly section (165.5 km stretch with an estimated total project cost of Rs 692 crore); and Raibareilly-Banda section (140.2 km stretch with Rs 525 crore project cost).
The National Highways Authority of India (NHAI) has stated in the qualifying tender document for these two projects, “The Authority (NHAI) expects to short-list up to seven pre-qualified Applicants for participation in the Bid Stage. The Authority, however, reserves the right to increase the number of short-listed pre-qualified Applicants by adding one additional Applicant.”
Highway builders lobby body -- National Highways Builders Federation (NHBF) -- has recently written to the CCI against this move. The NHBF argues that the clause “goes against the prevailing Competition Act”.