Angry contractors criticise IOC tender for Ennore

Vol 17, PW 12 (30 Jan 14) Midstream & Downstream

IndianOil is facing the prospect of legal action by disqualified bidders over a regasification facilities tender at its proposed 5m t/y Ennore LNG terminal.

Industry sources speculate IOC will issue a fresh tender to soothe disgruntled companies Tecnimont, Toyo Engineering, Technip, Techint and Tecnicas Reunidas. IOC has yet to formally tell them they are disqualified - four months after the tender.

IOC issued tender documents on September 10 last year to 10 other qualifying firms who sent in EoIs, rejecting those who didn't receive documents. “This month (January) we wrote to IOC asking why we were disqualified,” says a contractor.

“But they haven’t replied.” He claims his firm fulfilled all the tender terms and has good LNG experience.

“Our top level team is involved in discussions with IOC management,” adds a second contractor. “But we're still awaiting a formal response.

” IOC qualified Saipem, Samsung, Fernas Construction, Black & Veatch partnering Fluor, TGE with Linde, Huanqiu Contracting & Engineering (HQC), Mitsubishi Heavy Industries (MHI), Japan’s IHI and Taiwan’s CTCI. At least two of the qualified bidders are involved in court cases and arbitration over contract irregularities in India.

IOC meanwhile has extended its bid deadline from early January to February 17. In December the Ennore LNG project cleared a major hurdle when it secured approval from the environment ministry's Expert Appraisal Committee.

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