With the removal of River Princess by the Arihant Ship Breakers the company that won the bid to execute the cutting-removal and sale of scrap of the ship leaving a lot of questions unanswered; Swapnil Naik, Director of Tourism, Department of Tourism speaks exclusively to GoaChronicle.com on the issue…
Why is the Disaster Management Committee (DMC) and the Department of Tourism not considering the offers to buy-out the scrap of River Princess at a price as high as Rs 20 but choosing the Rs 12.70 offer of Arihant Ship Breakers (ASB)?
ASB had won the bid to cut-remove and also deal with the scrap of the entire ship. It was a comprehensive turnkey solution bid to handle all aspects to the job. More importantly, the deal was is Ex-Candolim which means that the government would not be involved in any form of financial assistance if ASB needed any barges or storage points once they cut the ship. The price ASB has quoted for the scrap is Rs 12.37 for 11,927 metric tons of scrap and the committee felt that it was a fair price owing to work involved and other cost components that would be borne by ASB.
How could DMC consider it to be a fair price when the government appointed valuers Uday Gohgate & Associates and Erickson Richards valued the scrap higher than the price ASB is offering?
It is true Uday Gohgate & Associates and Erickson Richards had given us a valuation of Rs 14 per kilogram and Rs 14.01 per kilogram. However, since the job was Ex-Candolim, the DMC found that offer was reasonable and should be considered.
Considering the DMC has got two more offers of a higher price would it not make sense to opt for the higher price value since the formal agreement with ASB was inked much later than the new offers?
We have received six offers from different companies with prices ranging from Rs 15 to Rs 17, however since the deal with ASB is a comprehensive turnkey solution it is will be a violation of the tendering process and not fair to ASB who had offered the government the most minimum bid to execute the job.