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Light Rail Transit project, back on track with added costs  

14 Feb 2021

The controversial Colombo Light Rail Transit (LRT) Project is back in the spotlight following the Government’s decision to call for expressions of interest (EOIs) from foreign consultants to review and refine its prefeasibility study and to conduct a feasibility study for the extended tracks from Malabe to Kaduwela and Athurugiriya. As learnt by The Sunday Morning, by calling the new EOIs, the Government would have to incur an additional cost of around Rs. 400 million.  Further concerns have been raised as to why the Government is calling for EOIs and spending another colossal sum of money to review and refine two feasibility studies that were conducted by a set of high-quality foreign consultants together with local partners.  However, the new decision is backed by several transport sector experts who have worked closely with the Japan International Co-operation Agency (JICA)-funded Colombo LRT Project, the agreement with which was scrapped by the Government last year as an attempt to secure the consultancy service of one Korean-based company which had conducted the feasibility studies of the other three lines – Green, Red, and Blue – of the Colombo Metro System (CMS).  As alleged by an expert who wished to remain anonymous, the feasibility studies conducted for the three lines of the CMS were completed without following the proper engineering approach. The expert also raised questions over the accuracy of the cost and the design of those feasibility studies which, as alleged, were conducted without proper professional consultants. The advertisement published for the calling of EOIs stated that the Purple Metro Line is planned to be implemented from the Port City to Kaduwela and Athurugriya with an approximate length of 32 km. Nevertheless, by calling EOIs, the State Ministry of Urban Development, Coast Conservation, Waste Disposal, and Community Cleanliness, through its Consultants Procurement Committee (CPC), has invited eligible consultants to indicate their interest in providing the services requested including reviewing and refining previous studies for a part of the Purple Line and performing the feasibility study for the balance. It also states that the consultants may form a joint venture/associate company with national/other international firms to enhance their qualifications, and a consultant will be selected in accordance with the procedures set out in the Guidelines for Selection and Employment of Consultants, August 2007 published by the National Procurement Agency following CQS method.  When contacted by The Sunday Morning, Western Region Transport Development Project (WRTDP) Deputy Project Director Eng. P. Dissanayake said the new EOIs were called to review and refine the two already completed feasibility studies and to conduct a feasibility study for the stretch from Malabe to Kaduwela and Athurugiriya.  “We have decided to extend the Colombo LRT up to Kaduwela and Athurugiriya considering the traffic demand in the new route. The new consultancy firm that would be selected in the near future would conduct a comprehensive feasibility study for the extended stretch,” he stressed.  When asked about the cost of the new feasibility study, Dissanayake said it would cost only around Rs. 50 million. “This is a small stretch and therefore, it won’t cost more,” he stressed.  The new plans are being laid for the much-talked-about LRT project by spending millions of rupees more in a backdrop where the Government cancelled the project which was about to get finalised following an evaluation process.  It is learnt that millions of rupees have already been spent on the two feasibility studies conducted for the same line and the JICA-funded project was at the final stage of evaluations when the Government decided to scrap it, claiming that the project is a costly one. As learnt by The Sunday Morning, discussions on the necessity of an LRT commenced in the mid-90s and proper planning on the proposed project began in 2015. After receiving the Cabinet’s approval in 2017, the planning of the project commenced in 2018.  The detailed design of the project was completed and the project was at the stage of calling for tenders when the new Government decided to cancel it. As learnt by The Sunday Morning, the detailed design of the LRT project has already been completed by local and international consultants, and based on the final engineering cost estimated, the project cost has now come down to $ 1 billion.  While it was cancelled by the Cabinet last year, which claimed that it was costly, transport experts claimed the total project would cost only around $ 1 billion, which, as per international cost estimates, is the average cost for the construction of an LRT.  Furthermore, the proposed 15 km Colombo LRT was expected to save Rs. 38 billion per year in public funds from the time it commenced operations. The project is expected to reduce travel time from Colombo Fort to Malabe to approximately 30 minutes.  The loan agreement on the project was signed between Sri Lanka and Japan in March 2019. Accordingly, Japan had extended a loan of around Rs. 48 billion to Sri Lanka for the project. The loan for the project was offered on highly concessional terms and conditions, including a 40-year repayment period for funds obtained for consultation services with a grace period of 12 years, a 0.1% interest rate per annum for civil work and equipment, and a 0.01% interest rate for engineering services.  Accordingly, in the project, the preliminary base cost estimated during the feasibility study was $ 1,374 million and including price escalation, contingencies, and interest, Sri Lanka and JICA estimated the loan amount as $ 1,850 million.  In the meantime, concerns have also been raised over the high resettlement cost of the three lines of Western Region Light Rail Transit Project (WRLRTP), which as revealed in a recently released environmental impact assessment (EIA) report was estimated at $ 74.6 million or Rs. 14.4 billion at the current exchange rate. However, when asked, WRLRTP Deputy Project Director Dissanayake stressed that the total amount is for the entire project. “The amount was estimated by calculating all expenditure that it would have to incur during the resettlement process,” he said, adding that the project is still at an evaluation stage and no final decision has been taken as yet.    According to Dissanayake, the Government would not spend a single cent for these projects, as all were planned to be conducted as public-private partnerships (PPPs). “The Government, if it wants, can contribute, otherwise those projects will be conducted as BOOT (build-own-operate-transfer) projects,” he added.  When asked about the finalised private partners, Dissanayake said that no final decision has been taken on the investors.  Nevertheless, The Sunday Morning reliably learnt that the Government had shortlisted six Chinese firms for a deal worth over $ 4 billion to construct the proposed LRT system under the Ministry of Megapolis and Western Development.  A top government source, who wished to remain anonymous, said that during the procurement process, 10 proposals were received from the six Chinese firms that were shortlisted out of 17 foreign bidders following the EOI called by the Megapolis and Western Development Ministry in 2017 to construct three lines of the LRT project launched by the Government in 2016.  The three Chinese investments would be in the form of FDIs (foreign direct investment) and PPPs in which the Government would hold the majority shares, according to the proposals received by the investors, sources said.  “The feasibility studies of the three projects have already been completed,” Dissanayake added.  The construction of the three projects is important in solving the current traffic congestion in Colombo and all projects should be completed to receive the best advantage, as the system is a network of roads, he explained.   According to the feasibility study, the WRLRTP will operate three lines – Red, Blue, and Green. The Red Line starts from the Ragama Railway Station and passes along the Outer Circular Expressway to the Kadawatha Multimodal Centre and reaches Fort Railway Station via Kiribathgoda, Kelaniya University, Peliyagoda, Panchikawatte, and Maradana. Thereafter, it proceeds to Kirulapone passing the Regal Cinema, Slave Island, Nawaloka Hospital, Altair, Colombo City Centre, Nawam Mawatha, and Kollupitiya. Then, along Duplication Road, it turns to Colombo University, and passes Thunmulla Junction and Havelock City, and meets the Green Line in Kirulapone. The Green Line will begin at the Moratuwa Railway Station and proceed to Piliyandala, passing Katubedda and Moratuwa University. Thereafter, it will take the 120 bus route and pass Werahera, Boralesgamuwa, and Jayewardenepura University; then turn onto the Old Kesbewa Road to reach Nugegoda via Delkanda Junction. Then it reaches the last station of the Red Line at Kirulapone. From there, it will proceed along Baseline Road via Narahenpita, Borella, and Dematagoda on its way to the end of the line at the Kelaniya Railway Station. The Blue Line begins at the Makumbura (Kottawa) Multimodal Transport Hub. It passes along High Level Road to Pannipitiya and then along the 174 bus route, passes Depanama, Thalawathugoda, and Isurupaya; turns from the Three Bridges Junction to the Denzil Kobbekaduwa Mawatha. Then it passes the Road Development Authority (RDA) Head Office, Koswatta Multimodal Centre, Mulleriyawa, Angoda, and the Kelaniya Temple, and meets the Red Line and Kandy Road at Tyre Junction, to end at the Hunupitiya Railway Station.  


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