Four infrastructure firms – Larsen & Toubro, Gulermak, Afcons Infrastructure and Italian-Thai Development have emerged as the lowest bidder for constructing a package each on the 13.92 km Dairy Circle – Nagawara underground section of Bangalore Metro’s 21.415 km Line-4 (Reach 6) of the 72 km Phase 2 project after officials today opened the financial bids packets submitted to this build this section.
Civil construction bids for this underground section’s tunnels, stations, ramps and other allied infrastructure were invited in late-June 2017. Out of 16 firms which bought tender documents, only 4 bidders submitted bids in October of which Larsen & Toubro submitted bids for only package 2 & 3 – see other interesting notes here.
The bids placed were 67-75% higher than BMRCL’s estimate – see my thoughts at the bottom of this post.
• Package 1 (R6-UG-P1) 3.67 km – South Ramp to Vellara Road Station with 3 stations at Dairy Circle, MICO Industries, Langford Town
|Afcons||Rs. 2223.54 cr|
|Gulermak||Rs. 2311.34 cr|
|ITD Cem||Rs. 2337.93 cr|
BMRCL’s estimate: Rs. 1268.90 cr
Difference: Rs. 954.64 cr (75.23% higher)
• Package 2 (R6-UG-P2) 3.62 km – Vellara Road Station to Cantonment Station with 3 stations at Vellara Road, MG Road, Shivaji Nagar
|Gulermak||Rs. 2219.86 cr|
|Afcons||Rs. 2311.11 cr|
|L&T||Rs. 2333.71 cr|
|ITD Cem||Rs. 2349.70 cr|
BMRCL’s estimate: Rs. 1325.97 cr
Difference: Rs. 893.89 cr (67.41% higher)
• Package 3 (R6-UG-P3) 3.32 km – Cantonment Station to Venkateshpura Station with 3 stations at Cantonment, Pottery Town, Tannery Road
|L&T||Rs. 2237.58 cr|
|Gulermak||Rs. 2341.32 cr|
|Afcons||Rs. 2361.32 cr|
|ITD Cem||Rs. 2373.35 cr|
BMRCL’s estimate: Rs 1334.83 cr
Difference: Rs. 902.75 cr (67.63% higher)
• Package 4 (R6-UG-P4) 3.31 km – Venkateshpura Station to North Ramp with 3 stations at Venkateshpura, Arabic College, Nagawara
|ITD Cem||Rs. 1872.47 cr|
|Gulermak||Rs. 1994.41 cr|
|Afcons||Rs. 2010.95 cr|
BMRCL’s estimate: Rs. 1117.86 cr
Difference: 754.61 cr (67.50% higher)
Here’s a general alignment of the line. The BMRCL in January decided to stick with their decision to place the Cantonment Station at Bamboo Bazaar (see location) instead of the original location which was closer to the railway station (as depicted below).
Combined totals for all 4 Packages
• Lowest bids: Rs. 8553.45 cr
• BMRCL’s estimates: Rs. 5047.56 cr
• Difference: 3505.89 cr (69.45% higher)
The lowest bid placed in each case was way higher than the BMRCL’s estimate, so either the BMRCL got their calculations wrong or the firms colluded together.
Now that the bids are opened, the BMRCL is staring at a repeat of Phase 1 in which the bids received for Package UG-1 (North Ramp – Majestic – Chickpet – KR Market – South Ramp) of the Green Line were higher than their estimates. The BMRCL subsequently broke it up into 2 packages, with the construction of the Majestic Interchange Station placed under a different package, and re-invited bids.
The BMRCL now has two options, both of which are time consuming –
- Reinvite tenders as-is or consolidate into 2 or 3 packages.
- Negotiate with the lowest bidders by minimizing the scope of the project (example – reducing number of cross passage tunnels, reducing number of TBMs required, reducing station length or number of entrances). In Mumbai, the MMRCL successfully did that between October 2015 – July 2016 for 7 underground packages on the 33.5 km Line-3. Combined contract values were brought down by 7.45% (compared to the bids) which means the BMRCL has a very small wiggle room available to negotiate.
Both options add a minimum delay of 6 months. Needless to say, contracts for this section’s construction will be awarded only after one of the above options is exercised and successful.
Update – Thanks for the warm welcome, everyone! Glad to be back in action. 🙂
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