Estimated cost: Rs. 5,544 million or $ 110
million in 1991. The route was finalised, designed, and ready to be commenced
when President Premadasa’s demised on May Day 1993.
During the presidential elections in 1994,
Chandrika Kumaratunga promised to abandon the land route that required the
demolition of a large number of houses and shift the road over the
Muthurajawela marshes (She wanted to save 60 houses & demolished 700 at the
end!). Kumaratunga won the elections and instructed the route to be moved.
International tenders were called for the
construction of the expressway and the contract was awarded to the
Daewoo-Keangnam joint venture from South Korea for Rs. 9,516 million in August
1999, shortly before the presidential elections CBK was re-elected. The Koreans
were not the lowest tenderer and the award was marred by allegations of
corruption.
With the changes on the political front, Ranil
Wickremesinghe was appointed Prime Minister in December 2001. The tight
monitory policies of the new government reduced payments to the contractor and
the progress slowed down, resulting in a mutually accepted termination in
January 2003. The contractor had already incurred costs and in settlement, the
contractor was paid a total expenditure amounting to Rs. 5,444 million. Which
means Rs 5,444million were paid just as PENALITY and NOT for any finished
project.
After President Rajapaksa came into power, the
funding of the long-delayed project was then agreed with the Chinese Government
with US $ 292.4 million on a loan facility extended by China. The Chinese offer
was for 85% of the project or US$ 252 million, with the Sri Lankan Government
to fund the balance 15% or US$ 40 million. Based on the above, China
Metallurgical Construction Group Corporation (MCC) submitted a financial
proposal in March 2006, and the contract agreement was signed in May 2008 for
the construction of the Colombo-Katunayake Expressway project, with work to
commence in 60 days and to be completed in 39 months (November 2011). The
Chinese Government owned company was to fund, plan, design and construct the
25.6 km long expressway for a cost of US$ 310 million (Rs. 35,600 million).
The route for the expressway remained unchanged
from the abandoned Korean contract, with minor modifications.
The most important factor in the construction of
any project is the cost. The expressway proposed in 1991 was estimated to cost
only Rs. 5,544 million or US$ 110 million. The cost of the completed expressway
amounted to over Rs. 45,000 or US$ 342 million. In addition the failed Korean
contractor’s work cost the country Rs. 5,444 million in breached contract
penalty charges. Thus the total costs amounted to over Rs. 50,444 million or
Rs. 50 billion, almost a 10-fold increase, which needs to be borne by the
citizens.
If the 1991 proposal was carried out, the
highway would have paid for itself by now.
To be able to finish this Katunayake Expressway
after 37 years in the making and ten times the original cost itself is an
achievement that no other person than President Rajapaksa could have
achievedeven after been exhausted by a protracted war.
In the last 30 years all Presidents and Prime
Ministers with the exception of President Rajapaksa benefited from the war and
made political promises that would cost the country billions in losses. He has
been accused of corruption and is yet to be proven guilty. But this right here
is true corruption and it happened again with projects like Colombo Port City.
We were paying for constructions that were unfinished and President Rajapaksa
was the only leader who pulled through for the good of the country with a
vision for a united and prosperous Sri Lanka.
Chandrika, Ranil and
President Sirisena, please keep your personal grudges personal, don’t let our
economy, our national security and our sovereignty suffer because of your
election promises and deals you cut with the devil. Haven’t we all sacrificed
enough?
Reference: http://www.ft.lk/2013/10/25/colombo-katunayake-expressway-from-rs-5-5-billion-to-rs-50-billion/
Thank you DailyFT.
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