‘Magnanimous’ BMP awards Rs 256.5 crore garbage contracts

‘Magnanimous’ BMP awards Rs 256.5 crore garbage contracts
New Indian Express

BANGALORE: The Bangalore Mahanagara Palike (BMP) seems to have thrown wisdom to the winds in its new garbage contracts which would cost the tax payer Rs 85.5 crore per year and the three year contracts would cost Rs 256.5 crore.

The civic body has benefitted the contractors by manipulating the health wards and packages while not preparing any basic estimate.

Even the consultant IDeCK seems to have ignored the fundamental necessity of a basic estimate of works.

At present, BMP has 182 health wards contracted in 62 packages. Now, the same BMP area is reworked into 253 health wards but contracted in 32 packages.

BMP now pays about Rs 3 crore per month to the 62 contractors and the new contracts would entail a payment of about Rs 8 crore per month to 32 contractors.

The civic body has justified the increase in cost on the grounds of escalation and modernisation of garbage clearance. But that too, is unfounded as explained here by few examples.

Yeshwantpur package is awarded at Rs 25.83 lakh per month and the contractor has to deploy 18 auto tippers, 11 lorries and 375 workers.

Even if total maintenance of autos cost Rs 2.16 lakh, lorries Rs 3.8 lakh and salaries Rs 7.78 lakh, the final cost to contractor would be Rs 13.7 lakh. The graceful BMP has awarded the contract at Rs 25.83 lakh per month!

In Madivala, 39 tippers, 13 lorries and 570 workers would cost the contractor Rs 21 lakh per month while BMP has agreed to pay Rs 39.33 lakh.

Sarvajnanagar package would cost BMP Rs 28.69 lakh per month but the contractor would spend Rs 15.24 lakh for 22 tippers, 12 lorries and 408 workers. In a reply to a RTI application, urban development department (UDD) said that 11 packages were awarded for bids less than estimated cost, 3 were given for bids upto 10 per cent premium, 8 at 10-30 per cent premium and 5 at more than 30 per cent premium.

On the contrary, BMP’s chief medical officer replied to another RTI application saying that there were no estimates at all to begin with. Then with what UDD compared the bids?

BMP officials said that the entire process was as per transparency act but failed to explain the contradictions.