Highways - build in a hurry and repent at leisure
The Government’s ambitious road-building projects are under fire and for good reason. Not only are they spurred on by an unhealthy desire to compete with the previous administration, they blatantly disregard, even violate, due procedures and legal safeguards put in place to protect the environment and people.
The projects which run into billions of rupees will massively inflate national debt. Rather than seek funds from donors like the Japan International Cooperation Agency (JICA) and the Asian Development Bank, the Government is borrowing commercial funds at steeper rates because it is faster and entails fewer conditions. Unlike JICA or ADB, export-import banks are less likely to insist on the long-term interest of the country.
The tenders are not open to all, contrary to what was promised when the Government took over. There is only limited international competitive bidding. In some cases, contractors are even pre-selected in a process that seems open to interference by interested parties.
The Government could go for supplier’s credit where they open up a project – complete with pre-feasibility, preliminary design and road trace to international bidders and invite them to come with credit. This ensures wider competition on a global scale. But this is not being considered.
Instead, agreements are made with various Governments to build roads here on condition that bids are limited to companies in those particular countries.
There is an absurd hurry to build expressways, however important some of them may be, short-circuiting due procedure. Contracts are being rushed into headlong. Families are issued notices under a section of the Land Acquisition Act which will see their properties grabbed overnight without them knowing when (if ever) compensation will be granted and how much.
The Central Environmental Authority (CEA) is pressured into approving half-baked environmental impact assessments (EIA). They know full well their conditions cannot be enforced once the project is underway.
The Road Development Authority (RDA) has a planning division and an environmental and social division which should be initiating projects to improve the road network based on future demand forecasts and availability of land and terrain for construction. However, most expressway programmes are driven top-down, as political decisions.
Feasibility studies have to be examined and accepted by the respective division in the RDA. It is well known that the RDA top management comprises some engineers heading projects and they will operate outside set procedure. This is now widely observed.
China-funded projects have not required rigorous feasibility studies. Many expressways and other road projects have been implemented without due return on investment. There are serious issues with how feasibility studies are also handed out. They are increasingly not advertised to major consulting companies and are handed over, instead, to favoured companies.
It has been proven that, in most cases, the cost estimated in these studies is surpassed during construction. The traffic levels and benefits are not achieved. In this scenario, most recent highway projects built at astronomical costs are unlikely to produce a net benefit to the economy.
These projects are meant to increase the wealth of a country. However, the fact that the Government draws a loan far greater than its actual value is a major problem. The reality that they will probably not produce the benefits required to pay back these loans is another.
Parliament and the Committee on Public Enterprise should initiate a special commission to inquire into all road projects since 2010-- as this Government, had indeed pledged to do. This commission should start with the most recent initiatives and divulge to the public who is behind the current fiasco. Action must be taken before it is too late. These roads are leading to nowhere and nobody can say that the experts didn’t warn them of that. No. 08, Hunupitiya Cross Road, Colombo 02. P.O. Box 1136, Colombo editor@sundaytimes.wnl.lk - 2331276 news@sundaytimes.wnl.lk - 2479332, 2328889, 2331276 features@sundaytimes.wnl.lk - 2479312, 2328889,2331276 pictures@sundaytimes.wnl.lk - 2479323, 2479315 sports@sundaytimes.wnl.lk - 2479311 bt@sundaytimes.wnl.lk - 2479319 funtimes@sundaytimes.wnl.lk - 2479337, 2331276 2479540, 2479579, 2479725 2479629, 2477628, 2459725