Punjab has awarded the Mohali Next Generation Roads Programme to Gawar Construction Limited, even as the project remains under legal scrutiny and faces a likely reduction in scope. The development comes around three months after The Tribune broke the story.
A letter of award (LoA) has been issued to the Hisar-based firm for upgradation, resurfacing and beautification of 83.4-km roads and junctions in Mohali under the hybrid annuity model (HAM), according to a senior government functionary.
The Gawar Construction’s bid for Rs 673.99 crore was accepted as the lowest evaluated offer. With an interest annuity of Rs 238.64 crore over a 10-year concession period, the total financial outgo rises to Rs 912.63 crore, about Rs 11 crore per kilometre for a decade. This exceeds the original project estimate of Rs 783.46 crore, which had drawn public criticism.
The award is subject to two key conditions. It remains contingent on the final outcome of two civil writ petitions filed by the GMADA Contractors Association and rejected bidder VRC Constructions India Limited in the high court. The LOA also states that the scope of work might be reduced further, with the contractor to be informed after approval by the competent authority. The project’s cost and scope have already been revised multiple times.
The firm has been asked to furnish performance security within 15 days of receiving the LOA and sign the contract within the period specified in the request for proposal (RFP). Failure to do so will lead to cancellation of the award.
