Limited understanding of contractors of complex site conditions impacted their performance, delayed implementation, and often resulted in contract termination; About 30% of the total cost of civil works were contracted before loan signing and over 90% of total contracts awarded by 2014. However, contract award projections at effectiveness were not met during implementation because of (i) initial procurement delays of nearly 2.5 years as several procurement packages had to be resized and rebid several times because bidders failed to meet qualification criteria; and (ii) termination and re-tendering of some sewerage contracts because of the contractor’s poor performance which continued until 2015. Unrealistic contract periods for network contracts resulted in time overruns. Lack of understanding of specific contract conditions while delivering in complex urban environments impacted contractors’ performance. Consequently, only four out of 14 project works were completed by December 2016. Spillover works were to be undertaken by the Government of Karnataka, using its own funds.
North Karnataka Urban Sector Investment Program - Tranche 3