Multi-million dollar tender to be awarded to US General Electric: The unanswered questions

Multi-million dollar tender to be awarded to US General Electric: The unanswered questions

Multi-million dollar tender to be awarded to US General Electric: The unanswered questions

Written by Keshala Dias

21 Mar, 2017 | 8:31 pm

Details are emerging of yet another possible malpractice which is on the verge of taking place.

The Sunday Observer has revealed that a multi million dollar tender is to be awarded to American multinational conglomerate, General Electric, to purchase twelve locomotives for service in the upcountry routes.

According to The Sunday Observer, the Sri Lankan railways plans to import 12 ‘7FDL’ diesel engines from General Electric (GE) for use in the upcountry service line.

First built in 1956, the 7FDL diesel engines are no longer manufactured for US railroads since 2003. They are, however, still built for export and are used in countries such as Indonesia, Pakistan and China.

*The Sunday Observer reports that globally the 7FDL engines have experienced “catastrophic failures that have resulted in significant damage and locomotive fires across the globe”.

*The article alleges that the tender specifications were inexplicably weighted towards those of the GE engine to limit the number of eligible bidders.

*The Sunday Observer also notes that the GE engines are considerably more expensive adding that the quoted price for twelve locomotives is at least $10 million more than several other bids that were disqualified during the tender process.

It has also been reported that the locomotives are being sold to Sri Lanka at a price which is around 36% to 64% more than that of similar GE engines that were purchased by Indonesia in 2014.

News1st has also learned that there are issues relating to transparency behind the tender process.

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