Defence HQ overshoots costs

Thursday, 9 April 2015 00:51 -     - {{hitsCtrl.values.hits}}

  • Cabinet approval for only Rs. 20 b but Rs. 42 b already spent for Phase 1
  • State Defence Minister says after probe, fresh tenders will be called for material supplies
The new Defence Headquarters at Akuregoda currently under construction has seen its expenditure substantially overshoot its target, forcing the Government to initiate a probe and call for fresh tenders for material supplies. State Minister of Defence Ruwan Wijewardene yesterday told an AMCHAM luncheon meeting with Prime Minister Ranil Wickremesinghe that original Cabinet approval was given for Rs. 20 billion expenditure on the sprawling Defence headquarters. However, so far the first phase alone has cost Rs. 42 billion and the estimate for the third phase is Rs. 50 billion. “Construction work and contracts for the supply of materials have been done on an ad-hoc basis without tenders. At present the entire project is being probed and we are re-examining it. After the probe we will explore the best options for continuity in its construction. There will be a cancellation of existing contracts and fresh tenders will be called for to create competitive and transparent sourcing of supplies,” Wijewardene added.