PANAJI
The Goa government effected changes to the Mopa Request for Proposal (RFP) document and the concession agreement in favour of the participating bidders without approval of the finance department or the State Cabinet.
The changes include waiver of the ₹150 crore upfront premium that the selected bidder would have to pay, a revenue holiday of a total of eight years -- three for the construction period and another five of the first five years of operation -- while also agreeing that the government would have to design and construct the expressway connecting the airport to the National Highway for the cost of ₹300 crore.
Another change included increasing the pre-bid security from ₹36-crore to ₹54 crore.
As per the RFP document which was approved by the Cabinet on October 28, 2015 had included provisions that the concessionaire would have to pay the upfront money of ₹150 crore and build the airport and the 6-lane expressway at the cost of ₹300 crore.
As per the rules of Conduct of Business for the Government of Goa 1991 when the RFP and concession agreement was approved by the council of ministers at the draft stage, any changes made thereafter should also have been placed before the council of ministers with advice sought from the law department as well as the concurrence by the finance department on the important changes made.
Sources in the government have informed that the changes in the RFP and concession agreement were unilaterally made by the Directorate of Civil Aviation pursuant to the pre-bid meetings that the directorate held with the eligible bidders and the fresh RFP was issued to the bidders on June 13, 2016.
Bidders raised many queries including about the viability and bankability of the project and also of cash flow problems in the initial period of concession which led the government to make the changes.
The Goa cabinet has subsequently cleared the letter of award and signing of the concession agreement earlier this month on September 16 and the letter of award was issued to the winning bidder GMR Airports a subsidiary of GMR Infrastructure.
