{"id":237419,"date":"2024-06-24T15:05:11","date_gmt":"2024-06-24T09:35:11","guid":{"rendered":"https:\/\/www.colombotelegraph.com\/?p=237419"},"modified":"2024-06-24T15:07:44","modified_gmt":"2024-06-24T09:37:44","slug":"another-controversy-surrounding-the-tender-for-the-construction-of-the-new-terminal-building-at-the-bia","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/another-controversy-surrounding-the-tender-for-the-construction-of-the-new-terminal-building-at-the-bia\/","title":{"rendered":"Another Controversy Surrounding The Tender For The Construction Of The New Terminal Building At The BIA"},"content":{"rendered":"

Another controversy has arisen regarding the selection of a Contractor for the construction of the New Terminal Building<\/b> at the Bandaranaike International Airport, coming under the purview of Minister Nimal Siripala De Silva<\/a><\/span>\u2019s Ministry, namely the Ministry of Ports, Shipping and Aviation. On or about 4th<\/sup><\/span> December 2023 Bids were called under the International Competitive Bidding Category<\/b>, by the Standing Cabinet Appointed Procurement Committee, for the selection of a suitable\/qualified Contractor for the construction of a New Building for Departing Passengers with check-in counters, satellite boarding gates, baggage handling system etc. with a view to enhancing the existing capacities at the Bandaranaike International Airport (BIA). Given the critical importance of the project, in facilitating the achieving of the government\u2019s objective of attracting over 2.5 million tourists within the next few years and consolidating Colombo as a Regional Aviation Hub, the bids were called under the International Competitive Bidding Category.\"\"<\/p>\n

In response to the said Invitation for Bids several prominent local as well as foreign contractors, majority whom in the form of joint ventures with Sri Lankan contractors, submitted their bids. The bidding process was strictly governed by the Government Procurement Guidelines of 2006 as amended and the Government Procurement Manual.<\/p>\n

Pursuant to a bid evaluation process carried out by the Technical Evaluation Committee (TEC)<\/b> appointed to evaluate the bids, the TEC has by its report dated 15th<\/sup><\/span> March 2024, recommended that the bid\/tender be awarded to Sanken Construction (Pvt) Ltd, a reputed and diversified local civil engineering company. Thereupon, the Standing Cabinet Appointed Procurement Committee (SCAPC)<\/b>, had accepted the recommendation made by the TEC and decided to select Sanken Construction (Pvt) Ltd as the \u201cSuccessful Bidder\u201d<\/b> to whom the tender\/contract should be awarded. Pursuant to the said decision of the SCAPC being informed to the Line Ministry Secretary, namely Mr. K.D.S. Ruwanchandra, he had issued a media release stating that it has been decided to award the relevant contract to a reputed local contractor.<\/p>\n

Pursuant to selecting Sanken Construction (Pvt) Ltd. as the designated Successful Bidder, the Secretary of the Line Ministry had informed the Unsuccessful Bidders<\/b> of the said decision and informed them that they had a right of appeal, if they so wish to exercise, to the Procurement Appeal Board (PAB). However, despite being obliged under the Procurement Guidelines to inform the designated Successful Bidder of the decision to select it as the designated Successful Bidder, the Line Ministry Secretary had failed and omitted<\/b> to do so thereby violating the Procurement Guidelines. However, pursuant to an appeal being lodged to the PAB by a local\/foreign JV, namely, Consulting Engineers and Contractors (Pvt) Ltd. and China Nautical Aero Technology International Engineering Corporation Joint Venture (CEC+CAIEC JV), the PAB had decided to overturn and\/or disregard the recommendation made by the SCAPC\/TEC and instead recommended to the Cabinet of Ministers that the tender\/contract be awarded to CEC+CAIEC JV.<\/p>\n

The designated Successful Bidder, namely Sanken Construction (Pvt) Ltd, has only got to know about the appeal that was lodged by CEC+CAIEC JV to the PAB after recommendation to the Cabinet of Ministers was made by the PAB to award the tender\/contract to CEC+CAIEC JV. It is Sanken Construction (Pvt) Ltd.\u2019s position that they had a right to be heard before the PAB and the PAB had intentionally deprived them of their right to be heard, thereby violating the principles of natural justice, prior to deciding and recommending that the tender\/contract be awarded to CEC+CAIEC JV, by overturing the decision of the SCAPC\/TEC to award the same to Sanken Construction (Pvt) Ltd.<\/p>\n

On the aforesaid basis Sanken Construction (Pvt) Ltd. instituted a Writ Application before the Court of Appeal bearing No: 343\/2024 challenging the purported decision of the PAB to overturn the decision of the SCAPC\/TEC to recommend the award of the tender\/contract to Sanken Construction (Pvt) Ltd., without in any manner affording a hearing to Sanken Construction (Pvt) Ltd. During the course of supporting the matter for notice as well as interim relief, the TEC Report dated 15th<\/sup><\/span> March 2024 (received in response to the request made by Sanken under the Right to Information Act)<\/i> was produced to the Court of Appeal on behalf of Sanken Construction (Pvt) Ltd., which clearly and in no uncertain terms revealed that the Bidder (CEC+CAIEC JV) to whom the PAB had recommended to award the tender\/contractor has been declared non-responsive to the technical specifications of the Bid, in view of major deviations found in the required technical specifications. Hence, it was submitted on behalf of Sanken that the PAB could not have recommended that the tender\/contract be awarded to CEC+CAIEC JV as it was a technically unqualified bidder as per the TEC Report dated 15th<\/sup><\/span> March 2024. Also, it was submitted that when the Domestic Preference Margin of 15% was applied, which was meant to support\/assist local bidders when competing with international bidders, the Sanken Bid becomes the lowest bid. Hence, both in terms of technical specifications and price point, the Bid submitted by Sanken becomes the lowest evaluated substantially responsive Bid. Thereby it was submitted that the PAB could not have, under any circumstances, recommended to award the tender\/contract to the CEC+CAIEC JV, overturing the correct decision of the SCAPC\/TEC to award the tender\/contract to Sanken.<\/p>\n

It has also come to light that Mr. G.S. Withanage<\/b>, who functioned as the Chairman of the PAB which decided on the appeal relating to the above project, is also holding the Office as the Chairman of the Civil Aviation Authority of Sri Lanka, a position which comes under the purview of the Ministry of Ports, Shipping and Aviation. In fact, photographs of Mr. G.S. Withanage assuming office as the Chairman of the Civil Aviation Authority of Sri Lanka in the presence of Minister Nimal Siripala De Silva and the Secretary to the Line Ministry, namely Mr. K.D.S. Ruwanchandra (who is the 1st<\/sup><\/span> Respondent in the above Writ Application filed by Sanken) are available freely on-line. Hence, in view of the aforesaid serious conflict of interest, Mr. G.S. Withanage should not have, under any circumstances, acted as the Chairman of the PAB in deciding the matter in question. These are serious matters of concern which not only impugns the decision made by the PAB to recommend the tender\/contract be awarded to CEC+CAIEC JV, overturning the recommendation made by the SCAPC\/TEC to recommend the tender\/contract to be awarded to Sanken.<\/p>\n

It was brought to the attention of the Court of Appeal on behalf of the Petitioner (Sanken) that it was in relation to the same Airport Expansion Project<\/b> that a controversy broke out few years back when allegations were made in Parliament regarding the Minister concerned allegedly soliciting a bribe from a reputed Japanese Contractor, which in turn resulted in a Special Commission of Inquiry being appointed, chaired by a retired High Court Judge, to inquire into the matter.<\/p>\n

The above Writ Application filed by Sanken is being inquired into by the Court of Appeal, where Sanken Construction (Pvt) Ltd. (Petitioner) is represented by Dilshan Jayasuriya, Attorney-at-Law, the Secretary to the Line Ministry (1st<\/sup><\/span> Respondent), the AASL (2nd<\/sup><\/span> Respondent) and the PAB (3rd<\/sup><\/span> to 5th<\/sup><\/span> Respondents) are all being represented by Additional Solicitor General, Sumathi Dharmawardena, President\u2019s Counsel. The CEC+CAIEC JV (8th<\/sup><\/span> Respondent) is represented by Sanjeewa Jayawardena, President\u2019s Counsel. The matter is fixed for further hearing on the question of Notice and Interim Relief for 24th<\/sup><\/span> and 28th<\/sup><\/span> of June 2024. (By Jayantha Perera)<\/em><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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