By Maheesha Mudugamuwa
The External Resources Department (ERD) called for the terms and conditions of a Cabinet-approved LED Street Light Installation Project by Korean Telecom Company (KTC) to be revisited.
Cabinet approval for the proposal submitted by Internal and Home Affairs and Provincial Councils and Local Government Minister Vajira Abeywardana to award the LED Street Light project to KTC was granted on 8 April.
The project is to replace conventional street lighting with LED street lights in Colombo and other main cities.
An Officials' Committee had been appointed by the Cabinet of Ministers to examine the Korean company's proposal and submit its recommendations. Accordingly, the expected benefits that could be accrued by the proposed project include enabling the installation of a CCTV system to regulate security and waste management in main cities including Colombo, and providing WiFi facilities that could be used by the public.
Speaking to The Sunday Morning, Secretary to the Ministry of Internal and Home Affairs and Provincial Councils and Local Government Kamal Pathmasiri said that Sri Lanka had not yet finalised the agreement with the Korean company. “The ERD will negotiate the loan agreement with the Korean company,” he said.
According to Pathmasiri, the Ministry received the project proposal in 2017. The Korean company will bring down the necessary equipment and will provide the necessary funds.
“Basically, the project was on a loan agreement which the Government will have to repay in another 10 or 15 years. The process was started in 2017 and the Cabinet-appointed negotiation committee approved the proposal and after that, the Minister submitted it to Cabinet. There was no tender process as the Korean company was the only company, and it was the one which proposed the project,” Pathmasiri explained.
Meanwhile, ERD Director General Priyantha Ratnayake told The Sunday Morning that the LED Street Light proposal was an unsolicited proposal, and the line Ministry has negotiated with the contracting party. He said he had not seen the Cabinet decision yet, as he was out of the country last week. "If the Cabinet wanted us to negotiate it with the Korean party, it’s our duty, and they are supposed to negotiate," he said.
Ratnayake added: “My initial reaction was that Sri Lanka should go into detail with the terms and conditions of the project, and whatever the terms and conditions that they have agreed to have to be revisited. It also has to be agreeable to the Treasury.”
The External Resources Department (ERD) called for the terms and conditions of a Cabinet-approved LED Street Light Installation Project by Korean Telecom Company (KTC) to be revisited.
Cabinet approval for the proposal submitted by Internal and Home Affairs and Provincial Councils and Local Government Minister Vajira Abeywardana to award the LED Street Light project to KTC was granted on 8 April.
The project is to replace conventional street lighting with LED street lights in Colombo and other main cities.
An Officials' Committee had been appointed by the Cabinet of Ministers to examine the Korean company's proposal and submit its recommendations. Accordingly, the expected benefits that could be accrued by the proposed project include enabling the installation of a CCTV system to regulate security and waste management in main cities including Colombo, and providing WiFi facilities that could be used by the public.
Speaking to The Sunday Morning, Secretary to the Ministry of Internal and Home Affairs and Provincial Councils and Local Government Kamal Pathmasiri said that Sri Lanka had not yet finalised the agreement with the Korean company. “The ERD will negotiate the loan agreement with the Korean company,” he said.
According to Pathmasiri, the Ministry received the project proposal in 2017. The Korean company will bring down the necessary equipment and will provide the necessary funds.
“Basically, the project was on a loan agreement which the Government will have to repay in another 10 or 15 years. The process was started in 2017 and the Cabinet-appointed negotiation committee approved the proposal and after that, the Minister submitted it to Cabinet. There was no tender process as the Korean company was the only company, and it was the one which proposed the project,” Pathmasiri explained.
Meanwhile, ERD Director General Priyantha Ratnayake told The Sunday Morning that the LED Street Light proposal was an unsolicited proposal, and the line Ministry has negotiated with the contracting party. He said he had not seen the Cabinet decision yet, as he was out of the country last week. "If the Cabinet wanted us to negotiate it with the Korean party, it’s our duty, and they are supposed to negotiate," he said.
Ratnayake added: “My initial reaction was that Sri Lanka should go into detail with the terms and conditions of the project, and whatever the terms and conditions that they have agreed to have to be revisited. It also has to be agreeable to the Treasury.”