- Maga submits lowest bids for Ruwanpura Expressway
- Only entitled to one section under tender conditions
Therefore, if the RDA is going ahead with awarding tenders, as per the tender conditions, Maga would be shut out of three sections despite submitting the lowest bids.
Therefore, the Government is likely to incur a loss of around Rs. 10 billion from the entire project, as the bids submitted by other companies are nowhere near as low as the bids submitted by Maga Engineering.
Hence, prior to seeking approval from the Cabinet, the Ministry is planning to negotiate with the other companies that have submitted low bids to see if they could match the prices, the RDA source elaborated.
The source added that the proposals were now being finalised by the Ministry and the process had been expedited, considering the delay faced by the project during the past few years. The project would commence soon after the contractors are finalised, the source stressed.
However, as learnt by The Sunday Morning, the funds for the project have not yet been finalised and the estimates are yet to be calculated after concluding the tender process.
“Once the contractor is selected, the total cost of the project would be calculated and then a loan would be applied from state banks to raise the necessary funds,” the RDA official said, adding that the project has not been delayed under the present Government.
When asked for the reasons behind Maga’s low rates, the RDA source stressed that they have cut down the machinery cost and that they already possess most of the infrastructure needed for the project.
When contacted by The Sunday Morning, RDA Director General D.M. Dayaratne said the tenders are still being evaluated and no final decision has been taken yet.
In July, the Cabinet officially removed the Chinese contractor from Section I of the Ruwanpura Expressway Project (REP) which extends from Kahathuduwa to Ingiriya, and decided to go ahead with local funding. As confirmed by Secretary to the Ministry of Highways Ranjith Pemasiri, local funds are to be raised through state banks and the Ministry of Highways is yet to lay out a mechanism for funding purposes.
Accordingly, the Cabinet has removed the Chinese contractor, China National Technical Import and Export Corporation (CNTIC), that was awarded the construction of the 26.3-km-long Section I of the REP in 2016. As per the cabinet memorandum dated 26 July 2016, CNTIC was the proposed contractor for Section I of the REP. The Cabinet of Ministers approved a proposal presented by the Minister of Highways to proceed with the expressway constructions using funds of local banks and the services of local construction companies.
The proposed 73.9-km-long Ruwanpura Expressway from Kahathuduwa to Pelmadulla to Ratnapura will connect the Western Province with the Sabaragamuwa Province. The project has been divided into three phases for implementation purposes: Phase I from Kahathuduwa to Ingiriya (26.3 km), Phase II from Ingiriya to Ratnapura (26.2 km), and Phase III from Ratnapura to Pelmadulla (21.4 km).
The first phase will be further divided into four packages: Package 1 – 7.3 km (0+000 to 7+300 km), Package 2 – 6.5 km (7+300 to 13+800 km), Package 3 – 6.5 km (13+800 to 20+300 km), and Package 4 – 4 km (20+300 to 24+300 km).
Phase I of the Ruwanpura Expressway commences from the 19+600 km of the Colombo-Horana Road (B084) and proceeds up to Ingiriya to Horana. The design speed of this phase will be 110km/h and will be a four-lane, two-way expressway. This section comprises two interchanges in Horana and Ingiriya.