Several high-profile urban development projects have been halted midway due to various challenges despite significant financial investment, an audit report from the Ministry of Urban Development, Construction, and Housing has revealed.
The report highlighted that the Metro Colombo Urban Development Project, which began on 10 July 2012 and was originally scheduled for completion by 30 June 2017, had faced multiple delays, with the latest deadline extended to 30 June 2022.
However, even by the extended deadline, only 49% of the allocated funds had been utilised.
The project had been stalled after legal action from nearby apartment residents, with construction on the Norris Canal being halted.
The project aimed at reducing flooding in the Colombo Water Basin, strengthening Local Government capacity, and beautifying the city.
The total allocated budget was $ 213 million, with the Government contributing 93% of the funding.
In late 2022, the contract for this development had been mutually terminated, with plans for the Colombo Municipal Council to complete the remaining work.
The audit recommends implementing a Supervisory Control and Data Acquisition (SCADA) system to achieve the project’s intended benefits.
Additionally, the Urban Project Preparatory Facility (UPPF) Project has also faced significant setbacks.
Initially scheduled to run from 6 March 2019 to 31 March 2022, with a loan amount of $ 4.65 million, only 38% of the funds had been spent by December 2022.
The project’s operations had been suspended in August 2020 and key reports had not been received as planned.
The project’s completion date had been extended to 31 March 2024, but no detailed action plan had been developed to address the delays or complete the remaining tasks.
The audit report urged decisive action to address the delays and complete the remaining work to achieve the intended benefits.
Attempts to reach the Urban Development Authority for more details were unsuccessful, as Chairman Eng. L.B. Kumudu Lal was out of office and unavailable for comment.