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Mar 19, 2017

Huge loss alleged in LED street lamp project? Featured

Disregarding a recommendation by the ministerial subcommittee on economic management, the Provincial Councils Ministry is planning to handover a contract to Korea Telecom to replace the existing traditional street lamps with energy-efficient LED bulbs, say government sources.

The ministry has been partial towards the Korean company since the beginning, but the cabinet instructed the project be reviewed by the subcommittee which subsequently questioned as to why a bid by Germany’s Siemens had not been considered.

Since the project would cost more than 260 million US dollars, the ‘Swiss challenge method’ was followed and several recommendations were submitted by the ministerial subcommittee.

Loss is Rs. 16,500 million

Those who oppose the project from being given to Korea Telecom say the ministry had not followed the method in question and as a result the state was risking a loss of nearly Rs. 16,500 million.

Government sources add that had the ‘Swiss challenge method’ been followed, many foreign companies had been willing to submit bids and they even forwarded their proposals for consideration by several top figures in the government.

When contacted, subject minister Faizer Mustafa said the cabinet was yet to take a decision on the project, adding that it would not be implemented without the collective responsibility of the cabinet.

When asked if the ministerial subcommittee recommendations had been disregarded, he said it would be inappropriate for him to comment to the media about that.

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