PANAJI
Here’s a shocker! JICA the principal funding agency for the Rs 1031-crore water supply and sewerage project has refused to further fund the consultancy charges of the project, in the wake of Louis Berger’s declaration that it paid bribes to Indian officials and Ministers leaving the Goa government in a spot.
The State government has now written to the Union Ministry of Finance seeking advice and decision regarding the continuation of the project under the supervision of the project director without engaging the services of the project management consultants.
In a letter dated September 18, last year, addressed to the joint secretary of the Government of India, JICA has informed that they will not finance any expenditure for goods and services (includes consultancy) provided under the contract package 1 (project management consultants) from that day.
JICA has also requested the cancellation of the letter of credit issued for paying the expenditure for the Goods and Services provided under the consulting package under the loan agreement which was signed between JICA, the central government and the State government.
The State Finance Department has issued an interim response to the Ministry of Finance Department of Economic Affairs seeking their advice.
The Consultancy is managed by a consortium consisting of Nihon Suido Consultants Co., NJS Consultant Co. Ltd. the Louis Berger Group, and Shah Technical Consultants Pvt. Ltd.
The Project Management Consultants contract, was due to expire on December 31, 2015 and D J S Borkar Project Director of the JICA project had in a letter the Department of Finance sought an extension for six months up to June 30, 2016 “as major packages are at a final stage of completion and vital packages are at the verge of trial run and subsequent commissioning.”
The Finance Department has, however, recommended that since JICA will not finance the consultancy, “it would be appropriate that the project is continued under the supervision of the project director without engaging the services of the consultants rather than extending their services for a period of six months.”
A decision will, however, be taken only after a reply is received from the central government.
