Chinese company continues e-train smart card ticketing project
The e-train smart card ticketing project handed over to a Chinese company with a leading conglomerate as its local representative during the previous regime is being continued despite a directive from the current government to suspend it, Railway Department officials complained.
The project office set up to implement the Chinese company venture is continuing its functions unabated despite the President’s directive to suspend it last year, the Sri Lankan Locomotive Engine Operators’ Union (LEOU) Secretary Indika Dodangoda said.
He added that the President has issued an order to suspend the project and close the office after heeding to representations made by trade unions highlighting the waste of money, corruption, various shortcomings and irregularities of the project.
A committee has been appointed to inquire into the feasibility of the project and make recommendations, but its report has not been released as yet.
Ignoring all objections, the relevant agreement to continue the project was signed recently with the consent of the Transport Ministry, he alleged.
However Deputy General Manager (Commercial) of Sri Lanka Railways V.S. Polwattage said the project implementation is being continued in accordance with proper procedures as the agreement and international agency funding have already been in place with the approval of the cabinet of ministers,
Despite Sri Lanka Telecom (SLT)’s viable proposal and expression of interest, the Transport Ministry has decided to continue e train smart card ticketing project under an Asian Development Bank (ADB) loan facility, union sources said.
The total cost of the project is approximately US$22 million and the warranty period of the project is eight years.
The ADB has approved a $160 million loan to modernise the operations and improve the efficiency of Sri Lanka Railways, by upgrading its infrastructure and technical capacity. This is ADB’s first loan in Sri Lanka’s railway sector, Treasury sources said.
Despite a local company having bid to install a smart card system at railway stations, the Government has decided to go ahead with a more costly deal with a Chinese company in collaboration with a local company, project documents, seen by the Business Times, have revealed.
Under this system, it will enable passengers passing through the respective stations to purchase reload cards, cards with monthly usage packages and tickets through ‘QR codes’ at the stations.
The contract for this project has been awarded to the relevant Chinese company after bidding through the national tender process and the company has been entrusted with the responsibility of installing all the ticket machines by the end of 2023.