Parking projects hit by meltdown

Thursday, January 8, 2009
Source: http://timesofindia.indiatimes.com

The Municipal Corporation of Delhi (MCD) has raised fears that the economic downturn may take its toll on important infrastructure
projects like creating more parking space in the city in view of the Commonwealth Games 2010.

During a discussion at an MCD standing committee meeting on the delay in implementation of parking projects, municipal commissioner K S Mehra said there are apprehensions that the meltdown may lead to lack of response from private agencies to the projects to be taken up on a build-operate-transfer (BOT) basis.

"Most infrastructure projects in Delhi are awarded to private firms for development on BOT basis after inviting tenders from them. The civic body may go for liberalising its tender policy to attract private firms who would otherwise be hesitant to come forward due to economic reasons,'' said Mehra. The MCD is planning to set up a panel to study if the economic turmoil will hit the infrastructure projects and revise its tender policy if necessary.

The civic agency would be relaxing some of the norms for the tender process to make sure companies with greater turnovers are selected for infrastructure projects, including constructing the 24 conventional parking projects.

Said leader of opposition J K Sharma: "In such a situation, none of the parking projects will be completed in time. Whether it is getting clearances from various departments or recession, some reason is given for the delay even though the projects were suggested as long back as 2003. I want to know whether the financial closure of contracts happened before or after the meltdown.