Access Engineering sets record straight on $ 85 m BIA project
Monday, 23 March 2015 00:00
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Access Engineering Plc (AEL) has issued a disclosure to the Colombo Stock Exchange (CSE) explaining its position in relation to the Government’s annulment of $ 85 million tender for a runway overlay and associated work at the Bandaranaike International Airport (BIA).
AEL said that whilst respecting the decision taken by the Cabinet of Ministers, the disclosure was for the purpose of further clarity. The following is the statement of disclosure.
Access Engineering Plc (AEL) is a responsible, civic conscious business enterprise operating in full compliance with the rules and regulations pertaining to a public company listed on the Colombo Stock Exchange. AEL values as well as practices transparency and principles of good governance in all its dealings and transactions.
Initially, for the execution of the works encompassed under the captioned project, a tender was published in the local newspapers in January 2013 to requesting for Proposals (RFP) with funding arrangements.
Two bids were received pursuant to the aforesaid RFP from two international contractors, namely M/s. Lagan Construction Ltd. of Northern Ireland and M/s China Harbour Engineering Company Ltd. of China where the financial bids were opened on 27 May 2013.
The following local contractors attended a meeting called by the Secretary, Ministry of Finance on 11 and 13 December 2013: Nawaloka Construction Company, Maga Engineering Ltd., Tudawe Brothers Ltd., Sierra Construction (Pvt) Ltd., Access Engineering Plc.
The contractors present were informed that the GOSL has decided to use local bank finance to carry out work with respect to the above project and the tender called in January 2013 for carrying of the project where finance was from overseas, would not be pursued. At this meeting, the local contractors expressed that they would not possess the required experience and would not meet with the required pre-qualification to carry out this work.
The local contractors were informed that they could collaborate with foreign contractors to meet with the relevant pre-qualification and experience criteria and was invited to submit their proposals.
The local contractors present were informed that this is a great opportunity to enhance their capacity and avail to themselves the opportunity to be prequalified for any future works in the region.
In the event the local contractors are unable to form a suitable consortium and submit a proposal, the GOSL will be compelled to proceed with the international contractor selected through the tender called. The RFP document was made available to the local contractors. (Attendance records and minutes would be available at the Ministry of Finance).
AEL submitted its preliminary proposal on 28 January 2014 together with Louise Berger Group (LBG) of USA, Katahira & Engineers International (KEI) of Japan and World Kaihatzu Kogyo Company Ltd., (WKK) of Japan.
Thereafter, having ascertained the exact scope of work and/or parameters of the project, and site visits, in consultation with AASL, AEL submitted its detailed proposal incorporating the scope changes and new requirements of AASL on 24 April 2014.
After further discussions with the Cabinet Appointed Negotiation Committee (CANC) and the Procurement Committee (PC) on 2 July and 12 August 2014, the final revised financial proposal was submitted by AEL on 18 August 2014. Pursuant to further negotiations between AEL and the CANC/PC on 25 August, 10,11 and 12 September and 31 October 2014, AEL agreed to the contract sum of $ 85,770,919.98 (consist of $ 34,308,367.99 and SLR.6,702,740,083.68).
A Letter of Acceptance dated 10 December 2014 was issued by AASL awarding the said contract to AEL. AEL accepted the said award of the contract through letter dated 11 December 2014. The award of the contract was communicated by AEL to their association partners who subsequently mobilised to carry out their respective scope of work.
Thereafter, on two consecutive occasions AASL granted an extension of time until 28 February 2015 for the submission of the relevant Performance Security.
Through letter dated 19 February 2015 AASL advised that the captioned project is under review for which we replied on 27 February 2015 explaining the factual position of the process followed in awarding us the project as mentioned above.
