Maga Engineering (Pvt.) Ltd. (Maga) has been awarded the contract for the construction of the Kahathuduwa to Ingiriya Section of the Ruwanpura Expressway Project (REP) despite the tender conditions stipulating that one company could bid only for one section of the entire project, The Morning learnt.
The proposed 76 km long Ruwanpura Expressway from Kahathuduwa to Pelmadulla to Ratnapura will connect the Western Province with the Sabaragamuwa Province.
Speaking to The Morning, Secretary to the Ministry of Roads and Highways R.W.R. Pemasiri said that the Kahathuduwa to Ingiriya Section of the REP was divided into four separate Sections and that the Cabinet of Ministers had approved the bid placed by the lowest bidder, Maga, for the construction of the 24.3 kilometres (km) section (Kahathuduwa to Ingiriya) of the expressway.
When queried whether it was legal to give all four sections to one company despite the tender condition, he said that the Cabinet can make this decision and that it is made according to the cost saving for the Government.
Maga had submitted bids 25% lower than the engineer’s estimate of the project and for all four sections of the expressway.
Therefore, the Government was likely to incur a loss of around Rs. 10 billion from the entire project, if they had gone ahead with the original tender conditions, as the bids submitted by the other companies were nowhere near as low as the bids submitted by Maga Engineering.
Hence, prior to seeking approval from the Cabinet, the Ministry planned to negotiate with the other companies that have submitted low bids to see if they could match the prices, the RDA source elaborated.
When questioned about 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.
The Minister of Highways Johnston Fernando had instructed the respective company to complete construction within two and a half years according to the accepted standards.
“Supervising will be provided by the Road Development Authority (RDA),“ Pemasiri added.
In July, the Cabinet officially removed the Chinese contractor from Section I of the REP which extends from Kahathuduwa to Ingiriya, and decided to go ahead with local funding.
Accordingly, the Cabinet removed the Chinese contractor, China National Technical Import and Export Corporation (CNTIC), that was awarded the construction of the 24.3 km long Section I of the REP in 2016. As per the Cabinet memorandum dated 26 July 2016, the CNTIC was the proposed contractor for Section I of the REP.
The Cabinet approved a proposal presented by the Minister of Highways to proceed with the expressway constructions using the funds of local banks and the services of local construction companies.
Ruwanpura Expressway Phase I: Maga wins all 4 Sections as lowest bidder
24 Mar 2021
Ruwanpura Expressway Phase I: Maga wins all 4 Sections as lowest bidder
24 Mar 2021