BIA Tender Controversy: Unfair deadline extension raises concerns
The Bandaranaike International Airport (BIA) Phase II expansion project has been in the eye of controversy in recent days after the most recent tender process raised serious concerns about fairness, transparency, and the integrity of Sri Lanka’s public procurement system.
A highly questionable extension was granted to the bidding process, allegedly to favour one bidder, which has evoked widespread criticism for undermining the integrity of the tendering system.
The expansion of the BIA has been pivotal to the Sri Lankan aviation network, with Japan International Cooperation Agency (JICA) having invested Rs. 170 billion to establish the terminal. It is to raise the annual passenger capacity of the airport to 16 million. The project, which was first launched in 2020, was to be worth Rs. 145 billion. But with Sri Lanka’s economic crisis in 2022, the work was stalled, and only 6 per cent of Phase II was done.
The tender for the project was to be done under the Japanese Official Development Assistance (ODA) rules and invited qualified international bidders. The original deadline for bid submission was March 18, 2025, but recently the authorities extended it at the request of a single bidder, several leading construction company heads complained.
The extension has been severely criticised by bidders and they brought this matter to the notice of the Sri Lanka Airport & Aviation Academy (SLAAA).
Several issues have been challenged against this controversial extension particularly the unfair advantage to one bidder while the extension has disadvantaged those who maintained the original timeline. The sudden change in the bidding process has disenfranchised other bidders, most of whom had already invested significant resources to stay within the original deadline, informed sources said. These manipulations of the bidding process can potentially considerably damage the reputation of Sri Lanka in the international business world. The credibility of Sri Lanka’s procurement system is questioned, and it can discourage future foreign investment, particularly in major infrastructure projects that incorporate international funding.
Economic and Corruption Risks: Favouring one bidder can lead to higher project costs and substandard work. There are concerns that it can result in delays, overpayment, and cost overruns, and ultimately put more pressure on the Sri Lankan taxpayer. There are myriad examples of rigged tenders in history that have had disastrous consequences.
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