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East Container Terminal delay: Contractor demands Rs. 4b compensation
View(s):The delay in the construction of the East Container Terminal of the Colombo Port has prompted the contractor to claim Rs 4,227 million as compensation, the Committee on Public Enterprises (COPE) was told. This was revealed during extended discussions at a COPE meeting this week.
At the meeting presided over by COPE chairman Dr Nishantha Samaraweera, the committee resumed its scrutiny of the Auditor General’s Reports for 2022 and 2023 and the current performance of the Sri Lanka Ports Authority (SLPA). Some of the issues raised in the Auditor-General’s report were discussed at a COPE meeting held on September 10.
The Committee noted that Cabinet approval had been granted in November 2021 to award a contract worth Rs. 40,273 million to an institution for the development activities of the East Container Terminal of the Colombo Port. It also noted that in terms of the agreements signed in December 2021, construction activities should have been completed by January 3, 2025.
However, due to several reasons, the construction activities were delayed, and it was revealed that after extending the time period, these activities are now scheduled to be completed in July 2026.
It transpired at the meeting that due to the delay of 548 days, the contractor has claimed Rs. 4,227 million as compensation, prompting the COPE chairman to call for a report containing all relevant details.
SLPA officials, who attended the meeting, pointed out that construction activities were being carried out rapidly and would be completed soon.
The attention of the Committee was also drawn to the SLPA employees’ food expenses, and the Committee noted that the recommendations given by COPE in 2023 had not been implemented.
The officials stated that measures had now been taken to reduce expenses and that a competitive tender procedure had been introduced to minimise costs.
Drawing attention to the reacquisition of lands belonging to the Ports Authority, the COPE chairman emphasised that further legal action should be pursued if court eviction orders had been disregarded. The officials said necessary steps had already been taken in this regard.
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