Tuesday, 16 March 2004  
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Sirimavo Bandaranaike hospital Rs. 210 m loss in tender award

by Anura Maitipe

The awarding of the tender for the construction of the Sirimavo Bandaranaike Children's Hospital has resulted in a massive loss of Rs. 210 million to the State coffers, Health ministry sources told the "Daily News".

The National Planning Division of the Treasury has approved the estimated project cost of Rs. 250 million for the construction of the building and fixing of mechanical and electrical equipment.

However in 2002 the Ministry of Health (MOH) has awarded the mechanical and electrical components of the same contract to a foreign contractor to the tune of Rs. 460 million.

Despite the SEC agreeing to complete the project at a cost of Rs. 250 million, the MOH has re-awarded a part of contract to a foreign company for Rs. 460 million resulting in a loss of Rs. 210 million to the State .

The foreign company which has undertaken the fixing of mechanical and electrical fittings has imported a different mode of fittings which were not included in the original design of the SEC. As a result the SEC has been compelled to modify the building to suit the equipment supplied by the foreign contractor.

The awarding of a mechanical and electrical component of the contract to another contractor has resulted in major changes in the original plan. As a result the cost of ratification work has exceeded the estimated cost of Rs. 80 million for the civil construction work of the building.

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