Monday, 23 November 2020 19:18

Central Expressway Construction Delay incurs Rs 8B Loss

Unnecessary dealy in awarding the Central Expressway construction contract has csued an undue loss of Rs 8 billion.

This was revealed at the meeting of the Committee on Public Enterprises (COPE), held in Parliament recently.

Accordingly as a result of work on the first part of the Central Expressway from Kadawatha to Meerigama, being delayed from 2015 until 2019, a financial loss of Rs 8 billion has incurred for the dtae coffers, COPE detected.

It has also been revealed that a sum of more than Rs 1.7 billion has been spent on the feasibility study for this expressway. Another revelation is that SMEC Company had been selected for the first feasibility study sans any procurement procedure.

At the same time, the project that was to be completed in three phases in 2012, as the Northern Expressway, had been changed to four phases in 2015.

Accordingly, the expressway which was to be constructed from Enderamulla to Meerigama was later decided to be constructed from Kadawatha. It was revealed that because of this decision, another large sum of money had to be spent on several more feasibility studies.

COPE pointed out that the relevant Cabinet decisions had been made without obtaining any expert opinion at all.

COPE Chairman Professor Charitha Herath has ordered the Secretary to the Ministry of Highways to provide a report on the financial loss that has occurred due to the change in the project.

Meanwhile, it has been revealed that prior to 2012 a sum of approximately Rs 284 million had been spent on a feasibility study regarding construction of this expressway.

It has been further revealed that irregularities have taken place regarding the third part of the Central Expressway, which is from Potuhera to Galagedera.

According to the tender procedure, the tender should have been awarded to the company MS Taisei,but Yahapalana Government authorities had influenced the tender committee to hand it over to a company named Fujita.


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