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Controversial Central Expressway tender cancelled

31 Jul 2022

  • Adverse economic conditions stop third phase tender
  • Cancellation made pursuant to Fin. Min. directive to halt capital expenditure
  • No decisions on when fresh tender will be called
By Shenal Fernando The controversial tender related to the third phase of the Central Expressway has been cancelled considering the adverse economic conditions of the country, according to the Ministry of Highways. Speaking to The Sunday Morning Business, a source from the Ministry revealed that the tender process related to the third phase of the Central Expressway had been cancelled due to the dire economic conditions of the country and that no decision had yet been made with regard to if and when a fresh tender would be called in relation to the project.  It was further revealed that this cancellation of the tender process was made pursuant to the directive issued by the Finance Ministry to halt all capital expenditure. This revelation was confirmed by Access Group of Companies Founder Chairman Sumal Perera, whose company Access Engineering was part of the local consortium named LDIC, which was linked to the tender process.  Perera stated that the Government had decided to cancel the tender owing to the dire state of the economy and further revealed that at the time of cancellation, the tender proposals presented related to the third phase of the Central Expressway were still being evaluated by the Cabinet Appointed Negotiating Committee. In July 2021, the Highways Ministry called for tenders from local and international companies interested in constructing the third phase of the Central Expressway. It was later revealed that proposals were submitted by the Metallurgical Corporation of China (MCC) and a local consortium named LDIC comprising Access Engineering, International Construction Consortium (Pvt) Ltd., K.D.A. Weerasinghe & Co (Pvt) Ltd., and NEM Construction (Pvt) Ltd. However, controversy arose when it was revealed that the proposal submitted by MCC had not been considered by the Government on technical grounds and that only the proposal submitted by LDIC had been opened and considered, despite the fact that the bidding price of LDIC was higher by $ 822 million (56%) at $ 1.87 billion compared to MCC’s bid of $ 1.05 billion. In response, Chinese Ambassador to Sri Lanka Qi Zhenhong and MCC’s parent company, MCC International Incorporation Ltd. called on the Sri Lankan Government to ensure that the procurement evaluation was open and equitable.  


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