Connect with us

BIZ

Irrigation Ministry terminates contract with Chinese joint venture

Published

on

The Sunday Leader newspaper has reported that the Ministry of Irrigation has suspended a contract that was given to a Chinese joint venture, which was supported by the Asian Development Bank.

It further states that the multi-billion rupee project was suspended after the project showed less than three percent progress in the last 18 months.

The news report further states:

The Rs 10.7bn initiative to build the North Western Province’s two largest reservoirs called Mahakithula and Mahakirula is now set to be further delayed as the ADB has said it cannot release funds for at least three years in view of Sri Lanka’s debt default.

The project was awarded to a joint venture between China CAMC Engineering Co. Ltd. (CAMCE) and Qingdao Municipal Construction Group Co. The contract falls under the ADB’s Mahaweli Water Security Investment Programme’s North Western Province Canal Project (NWPCP). The start date was March 31, 2021, and it was due to be completed in two years.

As early as November last year, however, officials had drafted termination letters as work was only inching forward.  The companies bought time and eventually also cited the fuel shortages that started in March 2022.

A project report published on the ADB website this month states that physical progress was recorded as 2.4 percent by the end of June this year when it was expected to have been 45.4 percent.

“Work has been stopped by the contractor and physical progress has dropped,” it documents. “The main reasons for the slow progress of the contractor include delays in mobilising of contractor’s staff and equipment, delays in submitting the contractor’s deliverables, delays in carrying out site establishment activities and preparatory works, fuel shortage, and the broad incompetence of the contractor’s management team and senior engineering personnel.”

It was decided at a meeting between Treasury and Irrigation Ministry officials on Friday that termination notices will be served on the joint venture. It is likely that costs will be recovered from the bid bonds, authoritative sources said.

The objective of the NWPCP is to supply water from the Mahaweli River to areas experiencing scarcity through reservoirs and canals. Other phases of the project are continuing.

For instance, NEM Construction (Pvt) Ltd has made full physical progress in improving the Wemedilla left bank main canal up to Nabadagahawatta and in building a new sluice and tail canal, the ADB report indicates. The project cost is around Rs 926mn.

China State Engineering Corporation Ltd is implementing the Rs 7.2bn construction of the main canal from Nebadagahawatta to Mahakithula reservoir inlet tunnel.

“Key construction work and the progress achieved up to June 2022 includes canal construction, concreting and backfilling (73.80%), tunnel works (61%), canal structures (43.3%), and construction of transitions (28%),” the report states.

BIZ

Urea price to drop in mid June

Published

on

By

The price of Urea fertilizer is to be reduced.

According to Minister of Agriculture Mahinda Amaraweera, the price of a 50kg Urea fertilizer bag sold to farmers by the two state-owned fertilizer companies will be priced at Rs. 9,000 from June 15.

“A bag of urea is sold by the private sector at Rs. 42,000 during the last yala season, has now been brought down by the private sector to Rs. 11,000. The reason for this was that the government took steps to provide a bag of urea to the farmers at a minimum price of Rs. 10,000,” the minister said.

Continue Reading

BIZ

CBSL names 8 entities that conducted prohibited schemes

Published

on

By

The Central Bank of Sri Lanka (CBSL) has issued a public notice naming 08 entities that have conducted prohibited schemes.

The entities named are :

  1. Tiens Lanka Health Care (Pvt) Ltd.
  2. Best Life International (Pvt) Ltd.
  3. Global Lifestyle Lanka (Pvt) Ltd.
  4. Mark-Wo International (Pvt) Ltd.
  5. V M L International (Pvt) Ltd.
  6. Fast 3Cycle International (Pvt) Ltd (F3C)
  7. Sport Chain App, Sports Chain ZS Society Sri Lanka
  8. OnmaxDT

The CBSL further stated that any person who directly or indirectly initiates, offers, promotes, advertises, conducts, nances, manages or directs a scheme in contravention of the provisions of Section 83C of the Banking Act, No. 30 of 1988 shall be guilty of a punishable offence.

The complete public notice issued by the CBSL in this regard is as follows :

Continue Reading

BIZ

DLB ticket prices to be doubled!

Published

on

By

The prices of Development Lotteries Board (DLB) tickets will soon be doubled following the approval received from the Ministry, DLB Chairman Ajith Gunaratne Naragala said.

He said this during the Gampaha district sales representative meeting of the series of district sales representative meetings being held under the ‘Sanwardhana Abhiman 2023’ programme at the Katunayake Eagle Lagoon Hotel premises yesterday (29).

“With the social and economic setback we suffered along with the covid-19 pandemic, all the businesses in the country were severely affected. Even amidst such an unprecedented economic and political crisis, our sales representatives worked hard to protect the development lottery business.”

“The sales representatives who have been with the DLB for 40 years are engaged in a great service on behalf of the country and the people.”

“In 2022, the DLB recorded a record income of 19 billion rupees. We have given 10 billion rupees to the people and 3 billion rupees to the government as taxes.”

“The daily sale of development lottery tickets of 2.2 million rupees has increased to 3.6 million rupees today. We have decided to make a stronger contribution to the President’s Fund and the Mahapola Trust Fund,” he said.

Continue Reading

Trending

Copyright © 2022 Sri Lanka Mirror. All Rights Reserved