CoPE Exposes Financial Mismanagement in BIA Development Project

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By: Staff Writer

April 15, Colombo (LNW): The Committee on Public Enterprises (CoPE), led by MP Dr. Nishantha Samaraweera, has uncovered significant financial mismanagement in the Bandaranaike International Airport (BIA) Development Project. The committee found evidence of billions of rupees being misused and substantial errors in the execution of vital infrastructure upgrades. This revelation followed a site inspection at BIA on Wednesday, which was prompted by a review of the Auditor General’s Reports for 2022 and 2023 earlier this month.

CoPE members, including MPs M.K.M. Aslam, Samanmali Gunasinghe, Lt. Commander (Retd.) Prageeth Madhuranga, Ruwan Mapalagama, Sunil Rajapaksa, Thilina Samarakoon, and Chandima Hettiarachchi, were part of the investigation.

The committee highlighted that Rs. 344.5 million was wasted on initial planning in 2007, as plans were revised in 2013 to increase the airport’s passenger capacity from 12 million to 15 million annually. The initial consultancy services were outsourced to a Japanese joint venture, but before construction even began, the design was overhauled, leading to further costs.

By 2024, consultancy fees had surged to Rs. 3.88 billion, with payments of $178,589, ¥1,612.4 million, and Rs. 808.6 million made due to plan revisions and contract amendments. The consultancy period, originally set for 47 months, was extended to 131 months, raising concerns about project oversight and accountability.

A particularly troubling finding was the Remote Apron and Taxiways project, awarded to Japan’s Hazama Corporation for Rs. 6.1 billion. Despite an overpayment of Rs. 766.8 million, the infrastructure was deemed ineffective due to operational flaws. AASL admitted that the project could not be used as intended, leading CoPE to question how the project was considered complete without proper technical or operational assessments.

CoPE demanded a full report on the resulting government losses, with Chairman Dr. Samaraweera expressing concern over the project’s continuation despite known weaknesses during the planning phase. “These lapses indicate not just financial mismanagement, but a systemic failure in planning and oversight,” he remarked.

The committee also criticized both AASL and the Japanese consultants for proceeding without adequate feasibility studies or operational reviews. AASL has since proposed corrective measures, but CoPE stressed that future infrastructure projects must prioritize accountability and early-stage evaluations to avoid similar mistakes.

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