Transport Ministry has incurred a loss of Rs. 258 million by awarding a contract for the procurement of fixing safety systems for 200 unguarded level crossings disregarding the recommendations of the Technical Evaluation Committee.
The department of railways has also disregarded the opportunity to purchase a M-9 Railway engine for Rs. 162 million in 2015. Bids had been awarded for two engines which were not in use for 13 ½ years and apart from those conditions to assure a good performance after the repairs have not been included in the agreement.
Such transactions are not done as FOB but in the CIF system and it give some advantage because shipping charges are not paid and the total number of unguarded level crossings in Sri Lanka is 671 and it is expected to fix both bell and signal light systems in the future.
The tenders had been awarded on the recommendations of the Evaluation Committee and an initial payment had been made and the balance of the payment would be made after inspecting the running capacity and the tender had been awarded subjected to those conditions and there is a 3 year guarantee for that.