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Games Village gets going as DDA clears lone bid
July 03, 2007
The controversial Commonwealth
Games village project coming up near Akshardham temple is finally
ready to take off.
The Delhi Development
Authority (DDA) on Thursday accepted the financial bid of a consortium
led by Dubai-based real
estate firm Emaar-MGF to develop the residential facility for
the Games village.
The facility will comprise of about 4000 rooms and will accommodate
8,500 athletes and delegates expected to participate in the 2010
Games.
The financial bid was accepted at Rs 321 crore as against the reserve
price of Rs 300 crores. Emaar-MGF was the sole developer to submit
the bid for the project.
On the June 28, DDA had cleared Emaar-MGF’s technical bid
for the project. The agency had extended the deadline four times
because they failed to get a good response from developers. “Emaar-MGF
has been declared successful after a DDA high powered committee
scrutinized the bid documents in minute detail. The bidder has already
deposited 25 percent of the bid amount after it was opened today,”
said DDA spokeswoman.
The agency will now issue the letter of intent to Emaar-MGF by
July 5. The developer will have to make the full payment by September
5. DDA has fixed December 2009 as the date for completion of the
project.
In February this year, DDA had short listed 11 private developers
to bid for constructing the residential facility under a public
private partnership model. After the Games are over, the developers
were given the option to put up the flats for sale.
The Commonwealth
Games village project has been embroiled in controversy from
the very beginning.
Initially, DDA had to extend the deadline as none of the 11 private
developers who were short listed by DDA (way back in February) came
forward to submit their bids.
Finally on June 15, only two of them submitted their bids for the
project. Even then, only one of them submitted both the technical
and financial bid for the project. The second developer –
DLF Limited – submitted an incomplete bid.
Of the 11 short listed developers, which included big players in
business like Ansal Properties and Infrastructure Limited, Unitech,
DLF Limited, Larsen and Toubro, Nagarjuna Constructions, Shapoorji
Pallonji, Omaxe, Parsavnath, SOMA consortium among others, only
Emaar- MGF submitted the complete technical and financial bid.
Developers blamed the stiff terms and conditions and various restrictions
imposed by DDA for the poor response. DDA was then forced to relax
the conditions it had fixed earlier. Under the relaxed norms, DDA
has reduced its share in the residential facility from 50 per cent
to just one third.
The developers will have to construct three residential blocks
of which DDA will keep one block after Commonwealth
Games 2010 in Delhi.
Source: Hindustan Times
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