The Churchill Alemao led PWD department ofthe Congress government took escalation to the level of a fine art but hissuccessor, Sudin Dhavlikar of the BJP is trying very hard to match them. Documentsrelating to the high value JICA (Japan International Cooperation agency) watersupply and sewerage project now in possession of The Goan, reveal two potential high value scams. Firstly,the total cost of 19 components of the project hadincreased from Rs 709 crores (after conversion) in 2009 to a massive Rs 1358.5crores in 2011.The second scam highlights the manner in which the PWD satquietly on a surplus on account of a falling yen and wanted the public tobelieve that it was due to a hike in prices.
“There is nothing unusual about an increasein costs. Since the previous Govt sat on the JICA files for 3 years there was acost escalation” said Dhavlikar trying to explain the reason for a 91% increasein cost in less than 5 years. Of the 19 components only 16 have been awarded andnone have been completed. The escalation appeared as early as this stage. Accordingto estimates, even if one took into account the falling yen, the initial costof Rs 709 crores would have increased to Rs 1031crores and not Rs 1358.5 crores as estimate show. Why is this difference of Rs327 crores (Rs 1358.5 less Rs 1031 crores) being factored?
Under CVC norms, a cost overrun of upto 30%is overlooked. Anything above that is viewed with suspicion and calls for aprobe. In this case, it was a 50% plus cost overrun, with Rs 1031 crores as thebase figure but in reality a 100% plus cost overrun if the base rupee amount ofRs 709 crores is taken into consideration. This is a case fit for a vigilance inquiry.
Dhavlikar however confirms that his Govthad reduced the cost of the project by over 40%. Since this was a plannedexpenditure PWD would not be investigating the cost overrun. What Dhavlikar didnot explain was the following.
In 2007 when the JICA Project was awarded,the Indian Rupees was worth 2.70 Japanese Yen. The entire amount was awarded toPWD. When the Yen fell, Goa Govt gained almost Rs 700 crores. This amount wasonly known to the PWD and Goa Govt’s Finance Dept. No wonder the project cost increasedfrom Rs 709 crores in 2007 to Rs. 1031 crores in 2010 to the current Rs. 1358.5.
16 of the packages have already beenawarded. Under CPWD norms these contracts cannot be renegotiated or withdrawn.Then where did the extra Rs 649.5 crores come to cover the cost overrun withthe Govt.
Why did the PWD not surrender the extra thatit had from the fall of the yen to the exchequeror return the money to JICA?
Why is the Govt now justifying the increasein the cost of the project by almost 100% despite clear cut guidelines by CVC?Who pocketed or is pocketing almost half of JICA funds at current conversion inrupees?
The project was meant to have betterpipelines and water supply. Public funds seem to have gone via the public draininto someone’s pocket.
