The Committee on Public Enterprises (COPE) held in Parliament on 20 November, disclosed that multiple irregularities have taken place in the construction of the Central Expressway. Accordingly, it was revealed over Rs. 1.7 billion had been spent on feasibility studies alone.

The delay in the commencement of work on the first section of the Central Expressway extending from Kadawatha to Mirigama between 2015 and 2019, had caused a financial loss of Rs.8 billion, the Committee heard.

It was also revealed that the selection of SMEC for the first feasibility study took place without a procurement process. Furthermore, the project which was under three phases as the Northern Expressway in 2012 has been changed to four phases as the Central Expressway by the year 2015.

Deciding to construct the road from Kadawatha to Mirigama instead from Ederamulla, as initially planned, has thus resulted in additional feasibility studies being carried out at a huge cost. It was revealed that the decision was taken by the Cabinet in 2015 without consulting experts on the field.

The COPE Chairman Prof. Charitha Herath thus directed the Secretary to the Ministry of Highways to submit a report on the financial loss incurred due to the change in the original project.

Minister Mahinda Amaraweera, State Minister Sarath Weerasekara, State Minister Dilum Amunugama, State Minister Ajith Nivard Cabraal, MPs Eran Wickramaratne, Jagath Pushpakumara and Premnath C. Dolawaththa, Ranjan Ramanayake and D. V. Chanaka  were present at the Committee on Public Enterprises on Friday (20).

It was disclosed that an amount of Rs.159 billion estimated to be spent and that this decision was taken by the Cabinet Committee on Economic Management (CCEM). It was further revealed that the construction work was delayed for four years due to a payment issue and the work had commenced in late 2019. Officials told the Committee that the said delay had caused a loss of nearly Rs.8 billion.

The procurement process has not been completed yet due to irregularities in the procurement process for the Pothuhera - Galagedara which is the third section of the Central Expressway. It was revealed that the CCEM committee was pressured to grant the tender to Fujita whereas MS Taisei should have been granted the tender in accordance with the process and thus causing a delay in the procurement process.

The COPE Chairman pointed out that while there was nothing wrong with having committees like CCEM, it has had a huge impact on the country's financial discipline in its involvement in the procurement process dealing with billions.

He said there was written evidence that the CCEM Committee had in some cases attempted to influence, it was problematic that such Committees for the purpose observing and assisting influencing the procurement process.

Therefore, the Chairman emphasized the importance of carrying out the future work in relation to the said expressway in accordance with the procurement process.

The COPE Chairman inquiring about the current condition of the Central Expressway revealed that only 5% of the work on the Kadawatha-Mirigama section has been completed and 75% of the work on the second section from Mirigama to Kurunegala had been completed.

The Secretary to the Ministry of Highways stated that since the construction of this section had been carried out with the help of local contractors and loans had been obtained from local banks, construction could be completed by June next year.

Meanwhile, the project director said that the procurement process for the Galagedara section from Pothuhera had resumed and work could commence in the coming year.

The Committee recommended that a progress report should be submitted on the progress of the first, third and fourth sections of the Central Expressway.

It was also revealed that a feasibility study for the construction of this expressway prior to 2012 had cost close to Rs. 284 million. The Chairman expressing his regrets as some of the feasibility study reports were of no use to the present Expressway, stressed the importance of managing all future financial activities.

COPE Chairman Prof. Charitha Herath also directed the Secretary to the Ministry of Highways to report on the impact of all feasibility studies on the project and its success.