By: Staff Writer
December 29, Colombo (LNW): An audit report on the Water Supply and Sanitation Improvement Project reveals that the Sri Lankan Government has incurred losses of approximately Rs. 1.44 billion due to delays, inefficiencies, and mismanagement.
The report highlights significant setbacks in 38 urban and rural water supply schemes, sanitation projects for schools and indigenous communities, and rehabilitation efforts, with time extensions granted up to seven times. Delays ranged from 330 to 2,158 days despite measures to support contractors.
Launched in December 2015, the project aimed to expand access to piped water and improve sanitation in selected districts, alongside building institutional capacity. It was initially slated for completion by December 2020 but extended to December 2023.
With a total estimated cost of $183.9 million (Rs. 27,590 million), $165 million was funded by the International Development Association, while Rs. 2,840 million came from the Sri Lankan Government and community contributions.
Key issues included uneconomical investments, procurement violations, and cost overruns. For instance:
Kotiyakumbura Sand Filter Tank: Rs. 1.7 million was wasted on tanks that were never used.
Kilinochchi Water Supply Project: Rs. 599 million was lost due to improper project subdivision that violated procurement guidelines.
Mulankavil Water Supply Project: Additional work orders and scope changes increased costs by Rs. 267 million.
Community Contribution Shortfall: Rs. 551 million in expected contributions for rural water projects remains uncollected.
Direct Payments to Subcontractors: Rs. 19 million was paid directly to subcontractors in the Kilinochchi District, violating contract conditions.
These inefficiencies, compounded by improper project planning, contractor underperformance, environmental issues, and unforeseen challenges like the COVID-19 pandemic and economic crisis, severely hindered progress.
The National Audit Office has called for immediate action, urging thorough investigations, stricter procurement processes, and enhanced financial oversight to prevent further losses.
Despite the setbacks, a senior official stated that most sub-projects are now substantially completed. The official attributed the delays to unavoidable challenges, emphasizing the need for time extensions to support contractors under the Water Supply and Sanitation Sector Improvement Project (WaSSIP).
