By Third Eye
Sooriyawewa stadium
A recent report submitted to the Sports Ministry about Sri Lanka Cricket (SLC) had made several startling revelations.SLC had no intention to construct an International Cricket Stadium in Sooriyawewa but changed it’s mind after SLC Interim Committee Members headed by D.S. De Silva and Secretary Nishantha Ranatunge met former President and current Kurunegala District MP Mahinda Rajapaksa. The report also notes that in certain instances there were no evidence of adherence to the due process and no IPC were available for the final bill of the stadium amounting to Rs. 2.2 billion.
SLC did not have any intention to construct an International cricket stadium in Sooriyawewa. However consequent to the meeting held on May five, 2009 where SLC Interim Committee Members headed by D.S. De Silva and Secretary Nishantha Ranatunge met the then President Mahinda Rajapaksa, the Sooriyawewa project was discussed and it was noted that SLC will fund the total cost of the project for the ground amounting to Rs. 100 million approximately which will also consist of levelling the earth around the ground which will cost Rs. 30 million. It was also noted that the intention was to complete the levelling of earth by December 2009 enabling SLC to conduct domestic matches during January to March 2010 prior to ICC CWC 2011, in order to fulfill one of the ICC requirements in addition to facilitate ICC to inspect the ground.
MOU signed with SLPA
Accordingly, a budgetary allocation of Rs. 100 million comprising Rs. 30 million to be incurred in June 2009 with the balance Rs. 70 million by December 2009 had been made and such revised Budget 2009 was approved by the then Interim Committee on May 11, 2009.
A Memorandum of Understanding (MOU) was signed in August 2009 with Sri Lanka Ports Authority (SLPA) in order to develop Mahinda Rajapaksa International Cricket Stadium (MRICS) in Sooriyawewa. Accordingly SLPA agreed to construct the main pavilion building, other buildings, roads and parking areas, gates and fences, side screens, scoreboard and to provide infrastructure for other utilities.
The MOU stated that construction work will be commenced 14 days after the receipt of the detailed designs that SLC shall pay an advance payment of Rs. 200 Million within 14 days of signing of the MOU and that SLPA will prepare the Contract documents within 03 months from the receipt of the detailed designs. However, the MOU did not specify the value of the Contract. The MOU also stated that same will be in force until the signing of the formal Contract Agreement. However, no Contract Agreement has been signed between the said parties todate.
The Cabinet of Ministers granted the approval on June 16, 2009 to “design and construct the project” through SLPA and accordingly, awarded the contract to China Harbour Engineering Company Limited (CHECL) as a variation order to Hambantota Port Development Project.
A budgetary allocation of Rs.3.3 billion was made as capital expenditure on upgrading/construction of the 3 stadia for hosting CWC 2011 in Budget 2010 which was approved by Interim Committee on March 26, 2010. The amount of Rs.3.3 billion comprised Rs. 1.3 billion for RPICS and Rs. one billion each for PICS and MRICS respectively.
Even though the project value was not expressed in the MOU, SLC indicated that the commitment towards the project would be limited to a maximum of Rs. 1.2 billion and payments were made accordingly.
SLC received the BOQ approved by the Ministry of Construction and Engineering Services on October 25, 2010. The BOQ was approved with emphasis on the approval of the rates but not the accuracy of the quantities referred to, recommended strict adherence to measure & pay basis, and observed the rates as per BOQ had been marked up by 27%.
Towards the end of the project on February nine, 2011, the Cabinet of Ministers approved the estimated cost of the project as Rs.2.45 billion, in addition to the cost of the land. SLC used third party contractors to complete the project in order to meet project deadlines. SLC received the final claim dated April 25, 2011 for Rs. 3.76 billion on July 26, 2011. The final claim included Rs 582 Million as price adjustments and additional work performed without consulting SLC. It was also noted that certain work as per MOU were not delivered by SLPA in the absence of a formal contract.
As per the internal process, Interim Payment Certificates (IPC) should be signed off by Quantity Surveyor, Project Engineer, Chief Engineer and the C.E.O. It appears in certain instances there were no evidence of adherence to the due process and no IPC were available for the final bill amounting to Rs.2.2 billion.
SLC incorporated the cost of Mahinda Rajapaksa International Cricket Stadium as Rs. 4.282 billion into the financials as of June 30, 2011. This included Rs.3.368 billion. and Rs. 914 million for the work performed by SLPA and other contractors respectively and accrued under ‘Other Venue Creditors’. The existing Interim Committee headed by D.S. De Silva was dissolved and a new Interim Committee was appointed on July one, 201 1.
As per the Valuation Report received on March four,2015 from the Government Valuer, the value of the property was estimated at Rs.912 million. Hence SLC has requested certain clarifications from the Government Valuer and are awaiting same.
SLPA meanwhile had forwarded a letter dated January 27, 2016 to SLC enclosing letter dated December 22, 2015 from CH addressed to Minister of Ports & Shipping, copied to SLPA claiming a further amount of Rs.5.027 billion which includes interest on outstandings upto July 30, 2015 of Rs. 2.07 billion.
SLC did not have the independence of constructing a new stadium at their preferred location.
The final claim made included Price Escalation of Rs. 582 million without the consent of SLC, Rs.603 million as additional civil works where SLC had not been informed of such additional work and had not given the approval for such work. SLC did not have an, independent Project Manager to oversee such work, the Project Manager being SLPA.
SLC had also obtained the services from other contractors amounting to Rs.330 million, which had been duplicated in the above claim.
Based on the above and since SLC had indicated that the commitment towards the project would be limited to a maximum of Rs. 1.2 billion, the Executive Committee are of the view that no further amounts are payable and all claims will be disputed.