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Two reservoir projects: Questions over tender procedures
The awarding of the contracts to design, build and finance the Kumbukkan Oya and Heda Oya reservoirs in the Moneragala District has run into problems after questions were raised about the manner in which the tenders are being awarded. The Sunday Times learns that plans were initially made to call for tenders for the two projects under the open bidding system but there was a sudden change in the procedure with the Ministry of Irrigation and Water Resources Management deciding to opt for the Swiss Challenge System method of awarding government contracts to private players. This has been done in Sri Lanka since 2016.
Late last year, a Cabinet memorandum submitted by Irrigation and Water Resource Management Minister Wijithamuni Soysa requested approval to sign a Memorandum of Understanding with the China National Heavy Machinery Corporation (CNHMC) to implement the two projects under the Swiss Challenge method.
The minister also sought Cabinet approval to assign the Finance Ministry’s External Resource Department to negotiate and agree on the conditions of the loans for the expenses of the project.
However, the Finance Minister has observed that in accordance with the guidelines of the Swiss Challenge procedure, no provision has been made available to enter into an agreement between the proponents (originator) and the respective organisation at the initial stages. This is until the counter proposals are called for and the selection procedure is completed.
However, the Finance Minister has said he has no objection to designing the Memorandum of Understanding to carry out the feasibility study, subject to the condition that such a study will not be an obligation on the part of the Government that the originator is given the exclusive rights for implementing the project.
The Sunday Times learns that representations have been made to the Prime Minister to inquire into alleged malpractices that are taking place in the award of the tender to one Chinese company while shutting out others which are bidding at lower rates. Among others interested in the project are companies from India and China.