News
Central Expressway Section 3: Local builders see crookedness in bidding process; petition RDA
The National Construction Association of Sri Lanka (NCASL) has protested to the Road Development Authority (RDA) that the bidding process to award Section 3 of the Central Expressway Project (CEP 3) is noncompliant with established procurement guidelines. The Association warns that the non-standard bidding documents and conditions of the contract have been used and that local bidders were requested “unreasonable financial and experience…disregarding the challenges faced by the construction industry since 2015.” CEP 3 spans 32.45 km from Pothuhera to Galagadera. The RDA invited bids for the project on February 2, 2025. While the bid submission deadline has elapsed (March 3, 2025), the NCASL sent its letter to RDA Chairman T. Paskaran on Monday, February 24.
NCASL points out that the project has been advertised under national competitive bidding (NCB) and is based on local, Government of Sri Lanka, funds, which the RDA (employer) will arrange. Therefore, the RDA must adhere to the current procurement laws and regulations.
“These regulations are in place to ensure fairness, transparency, and competitiveness, but there appear to be deviations from these requirements in the current bidding process,” it states. “This lack of adherence undermines the integrity of the process and restricts opportunities for all potential bidders.”
The Association says the bidding process did not follow the standard bidding documents established by the Construction Industry Development Authority (CIDA) despite these being mandatory for identified construction work (ICW)—any construction activity specifically recognised and documented as needing to be performed on a project—since November 2021. The “use of other documents can lead to confusion, ambiguity, and potentially favour certain bidders over others.”
NCASL also complains that the formalities and proposed qualifying requirements are also “unfair, unreasonable and unjust, allowing only a small number of contractors (two or three) to submit bids under following criteria”—average annual construction turnover and construction experience in key activities.
These “unfair and arbitrary qualification requirements and restrictions” have made it impossible for the majority of local contractors to bid for the project, resulting in less competition, NCASL insists. In effect, there is no best value for public funds, fairness or competitiveness, thereby violating principles of public procurement as stipulated in the Procurement Guidelines of 2024.
NCASL cautions that failure to follow procurement laws and regulations places the RDA at risk of potential legal consequences, with noncompliance leading to challenges, delays or even bid annulments.
Among other things, it warns that, “When the bidding process is perceived as unfair or nontransparent, it undermines public confidence in the government’s ability to manage funds effectively. Citizens may view the government as biased or corrupt, which can lead to decreased trust in public institutions.”
It was the “crucial responsibility” of government servants to adhere to updated and prevailing regulations and laws, the NCASL stresses, calling for the use of current procurement guidelines, the use of the CIDA standard bidding document, and a revision of requested financial data and experience under evaluation and qualification criteria. It also offers detailed recommendations for how the process could be conducted.
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