“The delay in tendering of works under JICA projects resulted in additional burden of Rs 166.37 crore to the state government. Moreover, delays in tender acceptance resulted in additional liability of Rs 69.02 crore due to price escalation,” highlights the CAG report.
JICA projects were supposed to carry out work on augmentation of water supply and sanitation sector in 22 different packages.
“The estimated cost of the works was Rs 459.85 crore, which includes cost of the tender and expenditure incurred upto January 2014,” the CAG report said.
“As against the estimated cost of Rs 459.85 crore assessed, the accepted tender cost of these packages was Rs 626 crore. The loan amount was limited to Rs 459.85 crore on these packages. The remaining amount of Rs 166.37 crore will have to be met from the state budget,” the CAG report read.
JICA works are expected to expand the existing water distribution pipeline at Selaulim, lay water transmission lines, set up a central water testing laboratory and other works.
“It was observed that the stipulated dates of completion of six packages were already over but physical progress was 40 per cent to 60 per cent only,” the CAG said.
The CAG report observed that the delay in finalising tenders would lead to an additional financial burden.