In a strategic overhaul, the Ahmedabad Municipal Corporation (AMC) has successfully slashed the projected cost of a planned 375 MLD capacity sewage treatment plant in Vasna by 32%. This significant cost reduction comes after meticulous modifications to tender conditions and two rounds of reissuing tenders.
Initially estimated at Rs 1,084 crore, funded by a Rs 3,000 crore World Bank loan to AMC, the lowest bid received in August 2023 exceeded expectations, coming in at a staggering Rs 1,549 crore—42% above the projected cost. Responding promptly, the AMC scrapped the tender, revising conditions seven times before reissuing it with a revised estimated cost of Rs 1,148 crore. Recently, the civic body accepted the lowest bid of Rs 778.15 crore, marking a commendable 32.23% reduction from the original projection. Key alterations included shortening the operations and maintenance period to 10 years, eliminating a 15% loading charge, and revising terms related to biogas and energy generation. The proposal for the Sewage Treatment Plant (STP), now estimated at Rs 778.15 crore, is set to be presented at the upcoming standing committee meeting.
However, the Water and Waste Water Service Association of India has urged the municipal commissioner to reconsider the project approach. They highlight successful upgrades in cities like Surat, Bangalore, and Pune, where existing STP plants were improved for Rs 1 crore to Rs 1.30 crore per MLD, as opposed to AMC’s plan to build a new STP plant as a World Bank project for Rs 1.90 crore per MLD. Upgrading, they argue, could be accomplished in a more efficient 18-24 months, compared to the 54 months required for a new plant. This strategic cost reduction not only signifies fiscal prudence but also underscores the AMC’s commitment to optimising resources in critical infrastructure projects for the benefit of the community.
