Assam: GMDA terminates water supply project contract with Gammon
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Guwahati: The Guwahati Metropolitan Development Authority terminated the contract for the Gammon Engineers and Contractors Pvt Ltd for the contract of “design and construction of complete new 107 MLD capacity portable water supply infrastructure project on turnkey basis in the south Guwahati western part.”

The contract cancellation could affect the drinking water supply for up to 15,000 consumers. 

The stretch in question runs from Kamakhya to Dharapur. It was under contract with Gammon and funded by the Asian Development Bank.

The letter from the Guwahati Metropolitan Development Authority (GMDA) to Gammon required the execution and delivery of the scope of work within 30 months from 24.03.2009. Many extensions were granted to the firm by the GMDA in light of the sensitive nature of the work and great interest in the Guwahati Metropolitan area. The firm has failed to execute within the extension time. 

As a measure of conciliation, a supplementary agreement was executed on 11.09.2021 which novated certain terms and conditions of the contract, under which they were required to maintain the progress of the work per the scheduled annexe to the supplementary agreement. The supplementary agreement also provided an amount of Rs 7.7 crore as per the firm’s demand.

Again failing to maintain the monthly progress needed to receive the milestone under the supplementary agreement, GMDA sent a letter on April 6 to the firm requesting a reply within 14 days. The firm replied on April 20 and the reasons given were found unsatisfactory by GMDA.

Under clause 60 of the general condition of the contract dated 24.03.2009, the GMDA has directed to “hand over physical possession of the site(s) to the engineers on 8th august, 2022 at 10 am.” 

“We have given them many extensions, and they have failed to perform. We will give the contract to another firm for a duration of the required time, and till then, we will take up all the challenges that will come up,” said Kausar Jamil Hilaly, CEO, Guwahati Metropolitan Development Authority. 

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