Colombo south harbour breakwater deal

Hyundai comes with the lowest bid

The controversial tender for the construction of the breakwater for the new South harbour at the Colombo port has finally attracted a low bid from a party that was originally disqualified.

The Bottom Line learns that when the financial bids were opened this week, it transpired that Hyundai, which was originally disqualified due to alleged underhand pressure by the Cabinet Appointed Negotiating Committee (CANC), had submitted the lowest bid of US$ 360 million.

Bidders such as China Harbour and Hanjin which got the green light from the both the CANC and the Technical Evaluation Committee, had submitted exorbitant bids amounting to $ 600 million and $ 760 million. The other contender Hoggard consortium involving Boscalis and Hindustan Construction was disqualified.

The breakwater for the mega new port, that would double Colombo’s capacity, would be constructed with a US$ 300 million loan from the Asian Development Bank (ADB) and around US$ 100 million input from the Sri Lanka Ports Authority.

After alleged irregularities, the ADB had asked the Government as to why certain bidders including Hyundai were rejected. Thereafter the Government agreed to re-include Hanjin.

Following the opening of the financial bids, the Government would take a final decision shortly.