The controversial Commonwealth Games village project coming up near Akshardham temple is finally ready to take off.
The Delhi Development Authority (DDA) on Thursday accepted the financial bid of a consortium led by Dubai-based real estate firm Emaar-MGF to develop the residential facility for the Games village.
The facility will comprise of about 4000 rooms and will accommodate 8,500 athletes and delegates expected to participate in the 2010 Games.
The financial bid was accepted at Rs. 321 crore as against the reserve price of Rs. 300 crores. Emaar-MGF was the sole developer to submit the bid for the project.
On June 28, DDA had cleared Emaar-MGF's technical bid for the project. The agency had extended the deadline four times because they failed to get a good response from developers.
“Emaar-MGF has been declared successful after a DDA high powered committee scrutinized the bid documents in minute detail. The bidder has already deposited 25 per cent of the bid amount after it was opened today,” said DDA spokeswoman.
The agency will now issue the letter of intent to Emaar-MGF by July 5. The developer will have to make the full payment by September 5. DDA has fixed December 2009 as the date for completion of the project.
In February this year, DDA had short listed 11 private developers to bid for constructing the residential facility under a public private partnership model. After the Games are over, the developers were given the option to put up the flats for sale.
The Commonwealth Games village project has been embroiled in controversy from the very beginning.
Initially, DDA had to extend the deadline as none of the 11 private developers who were short listed by DDA (way back in February) came forward to submit their bids.
Finally on June 15, only two of them submitted their bids for the project. Even then, only one of them submitted both the technical and financial bid for the project. The second developer - DLF Limited - submitted an incomplete bid.
Of the 11 shortlisted developers, which included big players in business like Ansal Properties and Infrastructure Limited, Unitech, DLF Limited, Larsen and Toubro, Nagarjuna Constructions, Shapoorji Pallonji, Omaxe, Parsavnath, SOMA consortium among others, only Emaar- MGF submitted the complete technical and financial bid.
Developers blamed the stiff terms and conditions and various restrictions imposed by DDA for the poor response. DDA was then forced to relax the conditions it had fixed earlier. Under the relaxed norms, DDA has reduced its share in the residential facility from 50 per cent to just one third.
The developers will have to construct three residential blocks of which DDA will keep one block after the Games.