Additional municipal commissioner in charge of projects Rahul Asthana informed that consulting firm A G Woodword Clyte has agreed to revaluate the decision taken by the Mayor-in-Council (MiC) in August last year. However, the terms and conditions of the revaluation, including the consultant's fee for the report, have to be worked out, he added. The company will submit its report in two months' time.

The Bombay High Court had asked BMC to gets its decision on the lagoons contract reviewed from a global-level consultant. Accordingly, the administration drew up a list of the three top-most consultants in the world and sent a letter to Clyte, which is first on the list.

The MiC decision was questioned by Dutch company Hubert P V, which was not awarded the contract on technicalgrounds despite having quoted the lowest tender. The contract was given to Gammon India, which had quoted the second lowest tender, though it was double the amount quoted by Hubert. While Hubert had asked for Rs 13.5 crore for the project, Gammon had asked for Rs 26 crore.

Mayor Nandu Satam had justified the decision saying the tender submitted by Hubert had some discrepancies, hence it had to be rejected on technical grounds. Satam said Hubert had reduced the weight of each lagoon (from 3,500 kg to 2,700 kg) after tenders were opened. Hubert argued the BMC had not mentioned the weight in the tender form, but this was not accepted by the civic body.

After this, Hubert went to court, forcing the state government to intervene and demand an explanation from the mayor. But the MiC was firm on its decision and wrote to the state government, saying it would not change its stand.

The MiC was severely criticised for favouring Gammon and awarding the contract at a high cost at a time when BMC was making majorlosses. But the MiC argued that Hubert had quoted an amount less than that estimated by the administration (Rs 18 lakh), leading to doubts if Hubert would carry out the work in time.

The World Bank, which is funding the project -- part of the Mumbai Sewerage Disposal Project (BSDP) -- had also objected to the decision and threatened that if the BMC went against the recommendations of WB consultants, the Bank would withdraw the loan for the lagoons project.

Though the BMC had already given a go-ahead to Gammon to start the work, the HC ruled that the agreement between Gammon India and BMC did not hold. It had directed the BMC to take a decision again on the issue after the report of the consultant was submitted.

However, according to officials, the recommendations of the consultant are not binding on the administration. ``We will take a final decision. It may or may not be in tune with the consultant's recommendations,'' added Asthana. He informed the report will be placed before MiC, and it is up to itto take a decision.