Defence headquarters building complex consultancy fees skyrockets
Over 60 per cent of the construction work of Sri Lanka’s Pentagon-styled Defence headquarters building complex at Akuregoda, Battaramulla has been completed amidst the rise in consultancy fees and building material costs, a Cabinet memorandum indicated.
A sum of over Rs.810 million is to be allocated for consultancy service fees on engineering and quantity surveying as well as architectural services for three years during the period of 01-10 2020 to 30-09-2023.
Accordingly a sum of Rs.531.92 million will be set apart for engineering and quantity surveying consultancy and Rs.284. 6 million for architectural consultancy services without VAT, the memorandum divulged.
The total cost of the project in the first phase has been increased to Rs.55.6 billion from the previous estimate of Rs.43.17 billion. But according to latest estimates it has further risen to Rs.60.88 billion.
The project was launched in 2011 to house the army, navy and air force headquarters moving from Galle Face Green and Fort to Battaramulla, under a government plan to shift all government administrative complexes to the same area, Finance Ministry sources said.
A sum of over Rs.60 billion has already been spent so far on this project while another Rs.100 billion is needed to complete the massive building complex.
The source added that project work will resume if and when money is raised for the project with the likelihood of work being disrupted on-and-off based on budgetary constraints.
The money for the project initially came from US$ 125 million earned in the sale of the Galle Face land to Shangri-La Hotel.
The construction of this complex was temporary halted due to non-availability of funds. Construction work resumed on the directions of former President Maithripala Sirisena during his tenure as president.
Previous governments have suspended the services of the private consultancy firm involved in the construction of the new defense headquarters complex at Akuregoda in June 2016.
A Committee appointed to inquire into the consultancy firms hired for the project and related payments has observed that selection of consultancy firms and their payments have been done without providing proper information to the Cabinet of Ministers at that time, according to the latest Cabinet memorandum.
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