Hon. Bimal Rathnayake - Minister of Transport, Highways, Ports and Civil Aviation and Leader of the House of Parliament

Jathika Jana balawegaya· National List· 22 February 2025 ·Oral question: Oral Questions: STaRR Project (Q.1/2025), KL-2 Project Kalutara (Q.2/2025), Lands - Elpitiya DS (Q.3/2025), Meegahakiula Bus Station (Q.4/2025)

Public FinanceInfrastructure

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Under the ADB-funded iRoad Programme in Kalutara, the KL-02 package was awarded in 2016 to a joint venture but was terminated in 2019 due to poor performance after only 34.63 km of 88.44 km had been developed. The Minister stated that rebidding was delayed by a Commercial High Court injunction, with the case disposed of only in December 2024 after the programme period had ended, leaving nine roads in Matugama and Agalawatte incomplete and causing public inconvenience. He said the performance bond proceeds have been credited to the Treasury Deposit Account and proposed using these domestic funds to complete the remaining works.

Verbatim record (translated)

Machine-translated from Sinhala / Tamil / English

¶ 01 Hon. Speaker, answers are as follows.

¶ 02 (a) (i) Yes. Under the ADB-funded iRoad Programme (1080-1), three packages were launched in Kalutara: KL-01, KL-02 and KL-03, with estimated values (Rs. million) of 1,912.46; 1,811.35; and 1,817.75 respectively. (ii) The KL-02 package contract was awarded on 31.08.2016 to the JV of Olympus Construction (Pvt.) Ltd. and Rani Construction (Pvt.) Ltd. (India). Work commenced on 29.09.2016. The package comprised 198 roads totaling 89 km with a contract sum of about Rs. 1,811.35 million. Due to poor performance, the contract was terminated on 19.07.2019. The RDA decided to complete the balance work via rebidding under NCB. However, immediately after bid invitation, the contractor filed suit in the Commercial High Court seeking to restrain RDA from rebidding, and an injunction was issued. (iii) Yes, residents have suffered serious inconvenience.

¶ 03 (b) (i) Under KL-02, only 34.63 km out of 88.44 km were developed; 53.81 km remained incomplete, affecting the public. In the Matugama Electoral Division, 6 roads, and in Agalawatte, 3 roads, were to be developed. The road list for KL-02 is placed in the Library. (ii) Contractor JV: Olympus Construction (Pvt.) Ltd. and Rani Construction (Pvt.) Ltd. (India). Authorized signatory for Daya Constructions (Pvt.) Ltd. was Mr. Chamindra Gamage; for the original agreement, Mr. G.S. Jayaratna (Director - Management) was the authorized representative. (iii) Case No. HC Civil 193/2020 MR in the Commercial High Court was disposed of on 18.12.2024. By then, the programme period had ended (works closed on 30.09.2024; overall close on 31.12.2024), so the balance could not be completed. (iv) The performance bond proceeds have been credited to the Treasury Deposit Account. It is proposed to utilize these domestic funds to complete the remaining works on the nine roads in Matugama and Agalawatte originally under KL-02.

¶ 04 (c) Not applicable.

Provenance

Source: Hansard, Saturday, 22 February 2025 ·No. 1741001658041256 ·English daily/uncorrected Hansard
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Cite as: Hon. Bimal Rathnayake - Minister of Transport, Highways, Ports and Civil Aviation and Leader of the House of Parliament. 10th Parliament, Parliament of Sri Lanka. Hansard, 22 February 2025. No. 1741001658041256. Politick, https://staging.politick.io/lk/speeches/24940