The Ministry of Power (MoP) has released a report of the committee constituted by the MoP to examine the contractural issues and different modes of contracting in hydro power projects (HPPs).
The report lists different modes of contracting, i.e. turnkey, engineering, procurement and construction (EPC), and item rate. As per the report, selection of mode of contracting package should be considered on case to case basis considering the factors such as nature of project, cost of the project, status of various project clearances, law and order, etc. Therefore, a one-size-fits-all approach may not be appropriate and the decision should be left to the developer of the project.
As per the report, the qualification criteria (i.e. general, technical and financial) for the tender should be finalised considering availability of competent contractors, site conditions, complexity of works involved and other related issues. Further, among other things, the scope of work should be clearly specified in the contract.