Japan intervenes in Central Expressway tender impasse
View(s):Japan has stepped in to ‘firmly’ recommend Fujita Corporation’s eligibility in the construction of section 3 of the Central Expressway in the wake of uncertainty since November last year in awarding the tender.
Shigeru Kiyama, Special Advisor to the Japanese Cabinet, has informed Sri Lankan high authorities including Highways Minister Lakshman Kiriella that ‘Fujita’ is a prominent civil works contractor, technically and financially capable of constructing the expressway.
Considering a letter submitted by Secretary to the Prime Minister Saman Ekanayake on the Japanese government’s recommendation, the Cabinet Committee on Economic Management (CCEM) has directed the Highways Ministry and Cabinet Appointed Negotiation Committee (CANC) to re-consider the Fujita Corporation bid.
It has also directed the CANC to revisit evaluation criteria to find out as to whether there had been a disadvantage to Fujita, which had offered a lower bid to build the road but was rejected by a tender evaluation committee on the basis that it was unqualified to implement such a massive project.
Only the bid offered by Taisei Corporation was being negotiated without considering Fujita’s offer until the Japanese Government intervened.
Taisei is said to be backed by China Harbour and Engineering Company (CHEC), the Business Times reliably learns.
With its complex terrain and land acquisition requirements, the 32.5 km Central Expressway Project Section 3 from Pothuhera to Galagedara is believed to be one of the most expensive road developments undertaken in recent times.
Although Fujita was the lowest bidder for this project with a price difference of almost Rs. 12 billion, CANC invited Taisei for negotiations. Taisei’s bid price was Rs. 159 billion while Fujita quoted lower at Rs. 147 billion.
Funding for the project is from the Japanese Government based on a yen loan equivalent of US$ 1 billion from Sumitomo Mitsui Banking Corporation for the tender exclusively for Japanese/Sri Lankan companies (prime/sub-contractors). The tender closing date had been November 23, 2016. Â Â Â (BS)