Delays in Goa road projects could cost Centre crores
Panaji:
Over the past few years, bridge and road projects worth over Rs 14,000 crore have been funded by the Union ministry of road transport and highways in Goa. However, some of these infrastructure projects could soon cause losses to the ministry running into hundreds of crores.
Contractors of three major projects have already gone in for arbitration in three separate cases, claiming that losses of Rs 300 to Rs 500 crore each have been caused to them due to delay in the projects, sources said.
The contractors have said that the delays in the project execution occurred because Goa govt was unable to complete land acquisition for the road or bridge works within the required time.
'Three separate cases are already in the process of arbitration for road and bridge stretches in Cortalim, Mormugao, and Salcete.
A fourth contractor is also in the process of taking the same route for work carried out in Pernem. The contractors have said that delays in land acquisition and changes to scope of work caused due to protests have caused them losses of around Rs 400 crore each,' said the source.
The contractors have said that their machinery lying idle due to the delay in the works are some of the causes for the losses to them.
'Three of the cases are in advanced stages of arbitration, and if the matter does not go in favour of the govt, then the ministry in two of the cases and Goa govt in one of the cases will have to pay a heavy amount in settlement,' said the source.
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The Arbitration and Conciliation Act, 1996, allows for a streamlined system for resolving disputes outside of traditional court proceedings. 'The Act recognizes the parties' autonomy to determine the procedure for arbitration and conciliation. They agree on the terms and conditions of their dispute resolution process. Each party appoints their own arbitrator and there is a chief arbitrator, who could be a retired judge, etc,' said a source.
He said that although govt has placed its say that the Covid pandemic and other factors outside its control were also causes for the delay, usually these cases do end in the party having to cough up a settlement amount as per the arbitral award.
'As three of the four projects that have gone for arbitration were tendered by the ministry, the ministry will become liable to pay the amount as per the award,' said the source.
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