MG Consultants sign Rs. 1.8 b landmark project with RDA and BOC

Monday, 3 November 2014 00:25 - - {{hitsCtrl.values.hits}}

MG Consultants Ltd., a leading engineering consultancy firm, last week announced the signing of a landmark Financing Agreement between the Road Development Authority (RDA) of the Ministry of Highways, Ports & Shipping, and the Bank of Ceylon (BOC). The Financing Agreement of Rs. 1,800 million marks the first time ever that a local bank has financed a consultancy in construction supervision of a road construction project. MG Consultants Ltd organised the funding through the BOC, which will finance the consultancy service for the project. The signing of the Financing Agreement and a Construction Supervision Agreement between RDA and a local engineering consortium was held at a ceremony on 20 October 2014.

This prestigious Construction Supervision Project has been granted by the awarding body – RDA of the Ministry of Highways, Ports & Shipping – to the consortium of local consultants, namely, MG Consultants Ltd, Resources Development Consultants Ltd and Engineering Consultants Ltd., which brings together the leading engineering consultancy firms in Sri Lanka. All three companies bring extensive experience in construction supervision with years of expansive growth in the road network improvement in Sri Lanka and the region. This project will witness the construction of the Northern Section of Outer Circular Highway from Kerawalapitiya to Kadawatha, measuring an extent of 9.32 km. Answering to a question asked by media personnel at the press briefing held after signing the dual agreements, R.W.R. Pemasiri, Secretary to the Ministry of Highways, Ports and Shipping said that the Outer Circular Highway to the city of Colombo is a new expressway. That will have full control of access linking, Colombo-Katunayake Expressway (CKE), Southern Expressway, Northern Expressway and other National Highways radiating from the city of Colombo. He also noted that the prime objective of OCH is to ease out the traffic congestion in Colombo Metropolitan and will become an expressway to the city of Colombo while connecting northern and southern highway networks of the island. MG Consultants Ltd is credited for making this project financing a reality, as this is the first time that a local bank has stepped forward to finance a project of this nature, thereby underscoring the sound credentials of all parties in the consortium. The consortium was ranked No. 1 in the evaluation, boasting the highest technical score and the lowest financial bid. However, it faced a challenge of securing local financing for the project, as the industry has never been supported by local banks in the past. MG Consultants Ltd then approached the BOC for financial assistance and also made representations to Dr. P.B. Jayasundara, the Secretary to the Treasury. BOC responded positively, with a financial package to help the local consortium. The consortium expressed its gratitude to the Treasury for its decision to support local industry and the BOC for supporting the local consortium, as otherwise this project would have been awarded to an international firm, thereby relegating the local consulting industry to mere sub consultants. This triumph by a local consortium is aligned with the vision of the ‘Mahinda Chinthana’, which foresees the rising influence of local talent and skills not only within the country, but also spreading beyond the island’s shores. Sri Lanka has a long and rich history of engineering knowledge harking back to ancient times and this augurs well for promoting local engineering expertise in mega development projects. D.M. Gunasekera, General Manager of the BOC declared that the bank wasdelighted to sign this landmark agreement with the RDA because it was not simply supports the development initiatives of the Government, but it will result in elevating the capabilities of local consultancy allowing them to expand, internationally. MGC Managing Director Ranjith Gunaratne, speaking on behalf of all partners of the consortium, stated, “We are proud to have secured this prestigious contract and to have the support of local financing.” He declared, “This is a watershed moment in the history of the industry and will hopefully open the floodgates for securing local financing in the future, while making local companies the preferred choice, for mega infrastructure development projects. This four-year contract is extremely significant for the construction supervision in Sri Lanka. This will be a stepping stone for the consortium members to get into large-scale projects without partnering with international firms in highway sector development work in the country and in the region.” Joining the discussion at the press briefing, Engineering Consultants Ltd Managing Director Prabhath Jayasundara said,”This contract will add tremendous value to the consortium partners. The consortium is geared up to commence the project that the consortium has mobilised over 60 engineering professionals with extensive experience, and out of which one-third are international experts.” He added, “The consortium wishes to thank RDA for recognising local consulting companies and BOC for offering their financial support.”