Monorail arbitration goes international

The fate of arbitration over cost escalation and dispute arising out of constructing India's first Monorail from Wadala to Jacob Circle will now be decided by nation's first international arbitration centre known as Mumbai Centre for International Arbitration (MCIA).

The Mumbai Metropolitan Region Development Authority (MMRDA) along with a consortium of contractors — Larsen & Toubro (L&T) and Malaysian based Scomi Engineering — have decided to dissolve the local arbitration committee and approach the international arbitration in the city to solve the differences between the two.

The MMRDA and the contractors are in dispute over Monorail's cost escalation for several years. The contractors claim that the cost escalated due to frequent changes in the alignment by MMRDA and consequent delay. To look into this dispute, a three-member team was formed, and the hearing is ongoing for the last two years.

However, according to MMRDA, the arbitration committee is also taking time when compared to the MCIA. The contractors L&T and Scomi Engineering also have shown interest in taking the dispute to arbitration MCIA, MMRDA officials said.

Sanjay Khandare, Additional Metropolitan Commissioner, MMRDA confirmed to DNA, "The existing committee looking into arbitration will be dissolved and the MMRDA along with L&T and Scomi Engineering will approach the international arbitration centre at Mumbai. We will sign a separate agreement making the dispute of Monorail subject to international arbitration meaning the MCIA."

AWAITING PHASE 2

In case of phase-2 between Wadala to Jacob Circle is yet to be made open for the public, as trial runs are yet to be completed.