Lack of coordination delays foreign-funded projects
Not all is well for Sri Lanka’s foreign- funded infrastructure projects, as most of those under implantation are either delayed or suspended midway due to lack of proper coordination between various public institutions that implement such projects, a progress review report revealed.
Ceylon Electricity Board had been assigned as the implementation agency of 11 projects of which financial assistance was provided by the Asian Development Bank (ADB) in 2017/2018.
Various sections of those projects had been implemented by different divisions of the Board.
The progress inspection report observed in the audit that the presentation of financial statements of the projects had been delayed due to not having a proper coordination between those divisions.
The physical progress of those projects has not being attained up to the intended level, the report said.
The Skills Sector Development Project has been implemented from 2014 through nine institutions under the Ministry of Vocational Training with the loan assistance of the ADB and of the International Development Association.
The main aim of the project was to
improve the quality and the international recognition of the vocational training field in Sri Lanka.
Some functions under the Greater Colombo Wastewater Management Project had to be either suspended or to be altered due to not having a proper coordination between the institutions of the Ministry of Town Planning and Water Supply, Colombo Municipal Council and the Urban Development Authority.
Several other functions planned in the initial stage of the project had been altered due to the Colombo Port City Project and the development activities carried out in the Colombo Fort area.
It has been observed in the government audit that the utilisation of funds for foreign funded projects by the foreign lending institutions remained at a low level.
The audit report noted that an additional interest had to be paid for the funds not utilised as intended and it was observed that adverse effects such as project activities were not being able to execute on the estimated cost due to the risk remaining in the extension of the period of the project.
Physical and financial progress of many projects remained slow due to several reasons such as weaknesses in planning.
The scope of the projects has been revised owing to public protests, delay in acquiring lands, incompetence of the construction contractors, weaknesses in the procurement procedure, not having sufficient inspection and difficulties in recruiting persons with technical knowledge for project management.
Several other functions planned in the initial stage of the project had been altered due to the Colombo Port City Project and the development activities carried out in the Colombo Fort area.