VPP Raises Concerns Over Rs 850 Crore Water Supply Scheme Tender

Shillong, India Aug 25, 2026 ALN: VPP MLA Ardent Miller Basaiawmoit on Tuesday raised a Zero Hour notice on the Rs 850 crore New Shillong Water Supply Scheme Phase-II, questioning the tender structure and transparency associated with this significant infrastructure project. The New Shillong Water Supply Scheme is a critical initiative aimed at enhancing the water supply capacity in Shillong, which has been facing challenges related to water scarcity and distribution inefficiencies.

Basaiawmoit stated that the tender for Phase-II Part-A, valued at Rs 850.58 crore, was floated on July 31, with bids closing on August 28, 2026. This timeline indicates a prolonged bidding process, which could have implications for project execution and financing. He emphasized that the House must seek clarity before making any financial commitments, particularly given the substantial amount of public funds involved.

One of the primary concerns raised by Basaiawmoit relates to the government's previous assurances to local contractors' associations. He pointed out that the government had committed to not issuing Phase-II as a single package, as several components of the project do not require highly specialized work. By bundling everything into one large package, capable local contractors who may not have the financial capacity to bid for a Rs 850 crore project could be excluded from participating. This raises important questions about fairness and competition in the tendering process. The issue, he noted, is not about unfair preference but about restricting competition, which could ultimately affect the project's quality and cost-effectiveness.

Basaiawmoit sought detailed information regarding the project cost, the Bill of Quantities, the completion status of Phase-I, and the justification for the Rs 850 crore cost and the single package approach instead of smaller, more viable packages. The Bill of Quantities is a critical document that outlines the materials, parts, and labor required for a project, and transparency in this area is essential for ensuring that all contractors can accurately assess their ability to bid on the project.

Additionally, he inquired about the number of contractors eligible for the entire package, the steps taken to encourage local participation, and the safeguards in place to ensure competition and achieve the best value for taxpayers. Local participation is vital not only for economic reasons but also for fostering a sense of community ownership and accountability in public projects.

Highlighting the financial context, Basaiawmoit noted that pending Jal Jeevan Mission (JJM) bills have crossed Rs 900 crore, raising concerns about how the government plans to finance another Rs 850 crore project. “Rs 850 crore is not merely a figure. It is taxpayers’ money,” he said, urging the government to provide a detailed project cost, the complete Bill of Quantities, Phase-I expenditure and performance, and justification for the tender structure and funding pattern before awarding the contract. This call for transparency reflects a growing demand among citizens and elected officials for accountability in public spending, especially in large-scale infrastructure projects that directly impact the quality of life for residents.

In response to these concerns, PHE Minister Marcuise Marak stated that the scheme was sanctioned at Rs 850.589 crore, with the tender invited on an Engineering, Procurement and Construction (EPC) mode on July 31. The EPC model is often employed for large infrastructure projects due to its potential advantages in terms of efficiency and accountability. Under this model, a single contractor is responsible for all aspects of the project, including engineering, procurement, construction, testing, commissioning, and performance demonstration. This approach provides single-point accountability, better coordination, reduces interface delays, ensures cost certainty, and allows concurrent activities.

The components of the project include a comprehensive range of tasks such as surveying, designing, and laying of pumping mains from the water treatment plant at Mawpdang to clear water reservoirs at Mawlynrei and Umsawli. It also encompasses the construction of main and zonal reservoirs, feeder and distribution mains, pumping systems, pump houses, DG sets, power lines, substations, approach roads, integrated operation and technology, and Supervisory Control and Data Acquisition System, labs, hydrants, motorable roads, non-residential blocks, backwater protection, rejuvenation of sources, and pipelines. This extensive scope underscores the complexity and scale of the project, which is essential for addressing the water supply needs of Shillong's growing population.

Furthermore, the government defended the choice of the EPC model by emphasizing the scale and complexity of the project. The rationale is that having a single contractor manage all aspects of the project can streamline processes, minimize delays, and enhance overall project delivery. The contractor will also handle operation and maintenance for three years after project completion, ensuring an uninterrupted supply of water to households and institutions. This aspect of the project is particularly crucial, as reliable water supply is a fundamental service that affects public health, economic development, and overall quality of life.

In conclusion, the concerns raised by MLA Ardent Miller Basaiawmoit regarding the Rs 850 crore New Shillong Water Supply Scheme Phase-II highlight significant issues related to transparency, competition, and local participation in public procurement processes. As the government moves forward with this project, it must address these concerns to ensure that the project not only meets its objectives but also garners public trust and support. The implications of this tender process extend beyond immediate financial considerations, as they touch upon broader themes of governance, accountability, and community engagement in the development of vital infrastructure.