Four Sri Lanka expressway contracts draw only single bids
ECONOMYNEXT – Only one consortia of bidders submitted proposals for each of four civil work contract packages to build part of Sri Lanka’s Central Expressway, according to the ministry of highways.
Contracts for the construction of a 39.29 kilometre section 2 of the Central Expressway project, from Meerigama to Kurunegala, were approved by the Cabinet of Ministers this week, government spokesman Health Minister Rajitha Senaratne said.
The ministry had invited proposals from pre-qualified consortia of bidders for all four contract packages in the project.
But only one consortium of bidders submitted the bid for each contract package, according to the ministry.
The rates quoted by the four bidders were 18-20 percent higher than the engineer’s estimate, it said.
These rates were later negotiated down and the bidders lowered their prices to 7.80-8.25 percent higher than the engineer’s estimate.
The contracts were awarded to the following consortia:
Package A of 9.81km to the ICC, Access Engineering, Nawaloka joint venture, which bid at Rs42.5 billion, but was given the contract at Rs34.1 billion without value-added tax (VAT).
Package B of 10.20km to Sierra, Olympus, Tudawe, and CEC joint venture, which bid at Rs42.7 billion, but was given the contract at Rs34.6 billion without VAT.
Package C of 10.88km to KDAW, NEM, E&C consortium, which bid at Rs41.8 billion, but was given the contract at Rs32 billion without VAT.
Package D of 8.5 km to MAGA, CML-MTD consortium, which bid at Rs46.1 billion, but was given the contract at Rs36.3 billion without VAT.
(Corrected – Contract values corrected to billion rupees and not million rupees as incorrectly given originally)
(COLOMBO, Nov 09, 2016)