Tuesday Sep 17, 2024
Tuesday Sep 17, 2024
Monday, 23 November 2020 03:31 - - {{hitsCtrl.values.hits}}
Multiple irregularities have taken place in the Central Expressway with over Rs. 1.7 billion spent on feasibility studies alone, officials who appeared before the Committee on Public Enterprises (COPE) disclosed on Friday.
The delay in the commencement of work on the first section of the Central Expressway extending from Kadawata to Mirigama between 2015 and 2019 also caused a financial loss of Rs. 8 billion, the Committee further heard.
The Road Development Authority Chairman, Central Expressway Project Director and Accountant along with officials of the Ministry of Highways were among those who appeared before COPE chaired by SLPP National List MP Charitha Herath.
It was also revealed that the selection of SMEC Holdings Ltd., an Australian based firm that provides consulting services on major infrastructure projects, for the first feasibility study took place without a procurement process. Furthermore, the project which was under three phases as the Northern Expressway in 2012 has been changed to three phases as the Central Expressway by the year 2015.
Deciding to construct the road from Kadawatha to Mirigama instead of from Enderamulla, as initially planned, has thus resulted in additional feasibility studies being carried out at a huge cost. It was revealed that the decision was taken by the Cabinet in 2015 without consulting experts in the field.
This decision had been taken by the Cabinet Committee on Economic Management (CCEM) delaying the construction work for four years due to a payment issue and the work had recommenced in late 2019. Officials told the Committee that the delay had caused a loss of nearly Rs. 8 billion.
The procurement process has not been completed yet due to irregularities in the procurement process for the Pothuhera-Galagedara phase which is the third section of the Central Expressway. It was revealed that the CCEM committee was pressured to grant the tender to Fujita Corporation whereas Taisei Corporation should have been rightfully granted the tender in accordance with the process and thus causing a delay in the procurement process.
The COPE Chairman pointed out that while there was nothing wrong with having committees like CCEM, it had had a huge impact on the country’s financial discipline in its involvement in the procurement process dealing with billions.
He said there was written evidence that the CCEM Committee had in some cases attempted to influence the procurement process and emphasised the importance of carrying out the future work in relation to the said expressway in accordance with the due process.
It was also revealed that only 5% of the work on the Kadawatha-Mirigama section had been completed and 75% of the work on the second section from Mirigama to Kurunegala had been completed on the Central Expressway by now.
The Secretary to the Ministry of Highways stated that since the construction of this section had been carried out with the help of local contractors and loans had been obtained from local banks, construction could be completed by June next year.
Meanwhile, the Project Director said that the procurement process for the Galagedara section from Pothuhera had resumed and work could commence in the coming year.
The Committee recommended that a progress report should be submitted on the progress of the first, third and fourth sections of the Central Expressway.
Chairman Herath also directed the Secretary to the Ministry of Highways to submit a report on the financial loss incurred due to the change in the original project.
Minister Mahinda Amaraweera, State Minister Sarath Weerasekara, State Minister Dilum Amunugama, State Minister Ajith Nivard Cabraal, MPs Eran Wickramaratne, Jagath Pushpakumara and Premnath C. Dolawatta, Ranjan Ramanayake and D. V. Chanaka were present at the Committee on Public Enterprises on Friday.
