A one-and-a-half year delay in completing the East Container Terminal (ECT) of the Colombo Port has caused massive losses, with the Chinese contractor demanding a staggering Rs 4,227 mn in compensation.
According to a statement issued by M. Jayalath Perera, Director Legislative Services / Director Communication (Acting), Parliament of Sri Lanka, the Cabinet approved the contract, worth Rs. 40,272 mn, in November, 2021, and the relevant agreements signed in the following month.
The project, which was scheduled to be completed by the first week of January 2025, is now due for completion in July, 2026.
The issue transpired at a recent meeting of the Committee on Public Enterprises (COPE), chaired by Dr. Nishantha Samaraweera, to discuss the Auditor General’s Reports for the years 2022 and 2023 and the current performance of the Sri Lanka Ports Authority (SLPA).
However, the Parliament refrained from naming the contractor and mentioning specific reasons for the delay.
Pointing out that due to the 548-day delay the contractor has claimed Rs. 4,227 million as compensation, Dr. Samaraweera called for a comprehensive report, containing all relevant particulars, to be submitted to the Committee. The COPE examined the performance of SLPA on 10 September and 13 November.
COPE members Dayasiri Jayasekara, S.M. Marikkar, Sujeewa Senasinghe, MKM Aslam, (Dr.) Pathmanathan Sathiyalingam, (Dr.) S. Sri Bavanandarajah, Lieutenant Commander (Rtd.) Prageeth Madhuranga, Thilina Samarakoon, Samanmali Gunasingha, Sunil Rajapaksha, Chandima Hettiarachchi, and Dinesh Hemanta participated in the meeting held on 13 November.
State-run China Harbour Engineering Company secured the contract, in late 2021, from President Gotabaya Rajapaksa’s government, after continuous protests backed by port unions affiliated to the SLPP, the UNP and the JVP/NPP against a tripartite agreement involving India, Japan and Sri Lanka to develop the port.
Sources pointed out that President Gotabaya Rajapaksa’s government tried to go ahead with a “memorandum of cooperation” (MoC) signed with India and Japan to develop the ECT, located just next to the USD 500 million Chinese-run Colombo International Container Terminal (CICT). (SF)