Language Switcher

v2025 (2)

v2025

President urged to intervene over alleged $190M airport tender manipulation

Six TEC members reportedly refuse to endorse controversial price increase as allegations of undue interference rock the Terminal 2 project. President urged to intervene immediately.

A potentially explosive procurement scandal is emerging over the Bandaranaike International Airport Terminal 2 project, with serious allegations that the Secretary of the Ministry responsible for the airport is actively intervening in negotiations in favour of Japanese contractor Taisei Corporation, which is reportedly demanding an astonishing USD 190 million above its original tender price.

The most disturbing allegation is not merely the extraordinary price increase, but the conduct of the very senior public official entrusted with protecting the country's interests.

According to concerns raised over the negotiation process, the Ministry Secretary has allegedly been advocating Taisei's commercial position, facilitating its participation in discussions involving internal government matters and attempting to push through a price increase despite resistance from technical evaluators.

Has the official entrusted with safeguarding public money effectively become an advocate for the contractor seeking an additional USD 190 million?

The seriousness of this conduct demands an immediate investigation.

Six technical evaluators reportedly resist - but is the Secretary pushing ahead?

In an extraordinary development, six members of the Technical Evaluation Committee (TEC) are alleged to have refused to endorse the proposed price increase.

Instead of allowing the independent technical process to reach its proper conclusion, the Secretary is accused of attempting to override the resistance.

If confirmed, this would represent a deeply troubling breakdown of procurement governance.

Technical evaluation committees are not ceremonial bodies established to rubber-stamp decisions already made by powerful officials. Their responsibility is to protect the State through independent technical and commercial assessments.

Any attempt to pressure committee members into accepting an unjustified increase would warrant urgent investigation and appropriate disciplinary action.

A USD 250 million cheaper bidder eliminated - now another USD 190 million demanded?

The tender involved Taisei Corporation and the Sojitz–Larsen & Toubro consortium.

Sojitz–L&T was declared technically non-responsive, leaving Taisei as the sole responsive bidder, with JICA subsequently concurring in the selection process.

However, the competing bid was reportedly approximately USD 250 million cheaper than Taisei's offer.

Now, having emerged as the sole technically responsive bidder, Taisei is alleged to be seeking a further USD 190 million.

If both reported figures are confirmed, the combined difference between the competing offer and the proposed revised Taisei price would reach an extraordinary USD 440 million.

This is not evidence that the lower bid was technically acceptable, but it raises an unavoidable question: Has the procurement process genuinely secured the best value for Sri Lanka?

Is the Middle East conflict being used as an excuse?

Taisei reportedly attributes the additional demand to construction-cost escalation arising from the Middle East conflict.

While geopolitical instability can increase freight, energy, insurance and material costs, such increases must be supported by independently verified cost calculations.

Concerns have also been raised that Taisei's original price was already inflated by more than 30%, while the overall cost impact of the conflict would be considerably lower than the additional amount now sought. These claims require independent verification.

Sri Lanka's procurement framework places strict controls on bid modifications and negotiations. A contractor's commercial demands cannot simply override the principles of competition, transparency and value for money.

The urgency of completing Terminal 2 cannot become a weapon for extracting an unjustifiable premium from the Sri Lankan taxpayer.

President Dissanayake: This is the real test of your anti-corruption promise

President Anura Kumara Dissanayake's Government was elected on a powerful commitment to end corruption, political patronage and the misuse of public funds.

Yet the present controversy raises the disturbing possibility that, although governments change, the same questionable procurement practices and networks of influence may survive.

The President must now intervene decisively.

The reported USD 190 million increase should be suspended pending an independent review. The TEC members' objections must be examined, the Ministry Secretary's alleged interference investigated, and the competing bid evaluation and negotiation records scrutinised.

The Government should also urgently assess, in consultation with JICA, whether a properly structured rebidding process could restore competition and secure substantial savings. Even an additional three months, if achievable, could be a small price to pay to protect hundreds of millions of dollars.

This is not about delaying a vital national project or undermining Japan's longstanding support for Sri Lanka. It is about ensuring that the airport is built at a fair price, through a process free from improper influence.

USD 190 million is enough to fund major additional national infrastructure. It is not money Sri Lanka can afford to surrender through questionable negotiations.

The allegations against the Ministry Secretary and the reported TEC objections must be investigated fairly, with all parties given an opportunity to respond. But waiting until an inflated contract is signed would defeat the purpose of oversight.

Mr. President, stop the questionable increase. Protect the technical evaluators. Investigate the alleged interference. Restore procurement integrity. Save the people's money.

Your Government promised to fight corruption. This is an opportunity to prove it.

The entire country is watching.

Leave your comments

Post comment as a guest

0
Your comments are subjected to administrator's moderation.
terms and condition.
  • No comments found