Thursday, February 12, 2015

A Rs. 58-crore terminal delay

Chennai: The delay in the construction of new domestic and international terminals of the Chennai airport had resulted in a cost escalation of over Rs. 58 crores, according to a reply from Airports Authority of India to (AAI) an RTI query.

AAI has admitted to the delay and said it had paid this sum to the contractors — Herve Pomerleau International (HPI) and Consolidated Construction Consortium Limited (CCCL) — who executed this project as a joint venture.

To the query, AAI responded: “Escalation cost as per agreement clause was paid to M/s. HPI-CCCL (JV) for the work of construction of both terminals for an amount of Rs. 58.50 crore. Since the delay is not because of the contractor no penalty to be imposed.”
 “It took us time to acquire land for the international terminal from the defence department. This was one of the primary reasons for the delay in the construction and commissioning of the terminals,” an official said.
12/02/15 Sunitha Sekar/The Hindu
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