China agrees to write off US$ 30 M from OCR cost

1 April 2015 04:34 pm - 21 - {{hitsCtrl.values.hits}}

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China had agreed to write off US$ 30 million from the total amount which it had lent to Sri Lanka for the construction of the Outer Circular Road (OCR) which connects several highways, the Sri Lankan Government announced today.

The announcement was made by a group of ministers at a media news briefing held last evening. This had been communicated by the Chinese government during the visit of President Maithripala Sirisena to China recently.

Minister of Health Dr Rajitha Senaratne said the project had been over-priced in order that politicians of the previous regime who negotiated the deal on behalf of the Sri Lankan Government would be left with a sizable commission. “The amount which would be written off therefore is a part of a commission which was to go into someone’s pocket,” he said. Responding to a question raised by journalists as to whether the reality is that no one obtained any commission out of the project physically although allegations were still been levelled at ministers of the previous regime, the minister said the usual procedure that was followed was that part of the commission was given as an advance.

In addition Minister Senaratne said the Chinese Government had given a grant worth more than US$ 300 million to the health sector alone including Rs. 11.5 billion to set up a special hospital to treat kidney disease in Polonnaruwa. In addition he said a nine storied OPD unit for the Colombo National Hospital was also to be built with Chinese assistance.

Justice Minister Wijeyadasa Rajapakshe, who was also present, revealed that the Chinese government had offered them a grant of Rs 4 billion to renovate the Supreme Courts Complex in Colombo. Minister of Urban Development Rauff Hakeem also offered his views and said the Chinese President had conveyed to President Sirisena his idea of setting up a Silk Route Fund through which Sri Lanka would also benefit. (Yohan Perera and Piyumi Fonseka)

Pix by Pradeep Pathirana

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Comments - 21

willowsd Thursday, 02 April 2015 08:23 AM

30 mil is nothing

Don Thursday, 02 April 2015 08:51 PM

What is $30 million compared to the $700 million Chandrika borrowed from Japan to construct the Colombo Katunayake Express Way, when she was the President? The Express way never came up and still no one knows what happened to that $700 million. But Sri Lanka is still paying back the loan to Japan.

ferdi Thursday, 02 April 2015 08:43 PM

Bullshit !, the scope was reduced. six lanes became four. elevated became filling the marshes.Now you will get less for more.

Sylvia Haik Thursday, 02 April 2015 06:40 PM

It is incumbant upon China to tell us who was paid this colossal commission.

Rabok Thursday, 02 April 2015 12:48 PM

When bidding for big projects always there are few items like Project Contingencies, Fuel escalation, Project Variations etc. in the BOQ - these items are inserted to cover unexpected costs that may occur during the implementations stage - naming of these items my vary from project to project - however the purpose is same - If the Client and Contractor and Consultants agrees these items can be removed from the BOQ - Regarding taking commissions inflating cost items are a possibility - however that is done by the bidders - if these bidders inflate too much then they might loose the bid so they will carefully study the local political situation and add certain % to the cost items -which will be the commission money - during the technical evaluation stage by Cabinet appointed Evaluation Committee the bidders try to influence various higher ups with promises and concessions to turn the evaluation in their favour When the project are funded by ADB or JICA or WB - the chances

dav Thursday, 02 April 2015 12:41 PM

Good Job by honest politicians

Ajith Kumara Thursday, 02 April 2015 11:07 AM

Well done Rajitha. Now you, Ravi, Ranil, Rahuf can share $50M. How $50M.? Why china reduce it by $80M. You show people $30M right? China will give you cheap work. Chinese have any item for your price. You name the price china is ready to diliver cheap work. Please do the same thing for port city and sell MR and put the money in your pocket.

Kolannawa Kolla Thursday, 02 April 2015 09:48 AM

Hey Simon, Are you a contractor in those projects?

From La La Land Thursday, 02 April 2015 09:48 AM

Good! this saving will cover part of the money lost on CB Bond deal.Please stop playing to the gallery and start doing some constructive work. People are getting fed up of government "talking the talk".Time to "walk the talk". You will not be able to survive only talking about misdeeds of previous government unless you actually bring perpetrators to justice and recover some of the money.

Bala Thursday, 02 April 2015 09:30 AM

Chinese quality of work and goods are not of best quality. Surely.

Man Thursday, 02 April 2015 08:41 AM

The persons who took commissions must be punished as well.

simon Thursday, 02 April 2015 04:01 AM

This means it will be less $30 million quality work !

gune Thursday, 02 April 2015 08:06 AM

Do you think the commissions will be paid as advance of any project.

kumar Thursday, 02 April 2015 07:52 AM

So China knew where this "extra" funds went! Our friends!!

Eds Thursday, 02 April 2015 07:48 AM

Nothing proven. Some one is assuming it is a commission. Prove it!

Bala Thursday, 02 April 2015 07:36 AM

No $30 million commission saved from going to sub-contractors R.Family and Co.

Batangala Thursday, 02 April 2015 07:19 AM

It is not less quality but less corruption.

ranga Thursday, 02 April 2015 06:45 AM

Is it via a mail from chinaocr@gmail.com dear Minister?

ranga Thursday, 02 April 2015 06:36 AM

@Manel

sathish Thursday, 02 April 2015 06:13 AM

Good start....but a long way to go to right size the deals for Ports and highways. USD 30 mn is like a drop in the ocean via DM Android App

Manel Thursday, 02 April 2015 05:46 AM

We have guessed where the money went. Now make everyone in this country aware as to who robbed peoples money.

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China agrees to write off US$ 30 M from OCR cost

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