Dabhol Terminal: Fresh bids invited for breakwater facility; full capacity unlikely to be achieved in next three years

Ratnagiri Gas & Power Pvt Ltd (RGPPL) has resumed its search for a competent contractor for completing the balance construction work on the breakwater facility for the Dabhol LNG Terminal. The company recently invited single-stage bids for hiring the services of a contractor for constructing the breakwater. The tender says that the breakwater facility should be constructed within a period of 33 months. Given an additional three months for processing the tender, it seems quite likely that the job will take three years or more to finish. Till that time, the Dabhol terminal will not be able to work at full capacity.

• The marine facilities at the LNG terminal include a 2.3 km long offshore breakwater, approach channel, 1,750 metre long approach trestle and jetty head. Pertinently, construction of the marine facilities was initially awarded to a consortium of Besix and Kier. The work commenced in 1999 and approximately 55% of the breakwater and 95% of the jetty was completed by the contractor when the works were abandoned in 2001. Subsequently, a detailed assessment of the existing marine facilities was carried out in 2006 as part of the revival of the project. Thereafter, the tender for construction of the breakwater facility was awarded on three different contractors, the latest being in June, 2009. However, the contract was terminated on account of poor performance by the contractor. 
• The current contract is only for completion of the breakwater and not for balance jetty work. The scope of work for the completion of the breakwater comprises the engineering and design; including model testing, mobilization, temporary works, surveys, acquisition and development of quarries. Other work under the contract include supply of all materials, fabrication of accropodes, loading, transportation and placing of rock core and removal of temporary works, including mobilization and demobilization of all personnel, equipment and marine spread, among other work. 
• The construction of the breakwater facilities is scheduled to be completed in a period of 33 months from the data of award of the contract. The last date for submission of bids is February 28, 2011. 
• It may be recalled that for the time being, the Dabhol Terminal is equipped to handle crude only through smaller ships as dredging and construction of breakwater facility is not yet complete. As a result, the terminal can currently operate at 30% to 40% of its total capacity. 
• The bids for completion of dredging work has already been invited on December 27, 2010, the last date of bid submission being January 31, 2011.