Pune PMC Warje Multispeciality Hospital | Warje hospital project: Contractor firm fails to submit letter of intent within deadline; Ball in civic administration’s court

On Jun 1, 2023

Pune PMC Warje Multispeciality Hospital | Warje hospital project: Contractor firm fails to submit letter of intent within deadline; Ball in civic administration’s court — File Photo

PUNE : Pune PMC Warje Multispeciality Hospital | The Standing Committee of the PMC has given permission to take a loan of ₹360 crore loan on the civic body’s behalf for the contractor who is building the 350-bed hospital on Design, Build, Finance, Operate and Transfer (DBFOT) at Warje. While granting the approval, a condition was put that the contractor should give a letter of intent in 45 days. However, even a week after the deadline is over, the contractor has not contacted the civic body. A question is being raised whether the PMC is favouring the contractor due to some pressure.

A 350-bed hospital is going to be set up on land owned by PMC at Warje on DBFOT basis involving an expenditure of ₹360 crore. For the first time, the PMC has taken a strange decision to take a loan on its behalf instead of a contractor taking a loan. BJP corporators, while approving the proposal, had clarified that the state government will not take any responsibility.

The administrator approved the proposal in February. The Standing Committee has approved payment of ₹55 lakh to the advisor of the project. Apart from opposition parties, some NGOs have opposed the move by PMC to take a loan on contractor’s behalf. They have threatened that if the PMC tries to take a loan, then they will take legal action.

While sanctioning the tender of building the hospital, a condition was put that the contractor will have to give a letter of intent. The contractor is expected to give details of the international bank from where it is going to take a loan, the interest rate, insurance of the loan in the letter. However, the contracting firm has not submitted a letter of intent to the PMC by May 25 and has not contacted it. Civic officials have also not contacted the firm. The civic administration has not taken any decision even after a week. Hence, there is suspicion that the civic administration and the administrator is forcing the Warje hospital project down the Puneites’ throat.

Additional Municipal Commissioner Ravindra Binwade said that the company whose tender has been approved had not submitted the letter of intent within the deadline. The municipal commissioner and the administrator will take further decision.