Central Expressway: Section three and reasons for rejection of Fujita Corp. bid

Central Expressway: Section three and reasons for rejection of Fujita Corp. bid

Central Expressway: Section three and reasons for rejection of Fujita Corp. bid

Written by Staff Writer

04 Sep, 2017 | 10:29 pm

Today, News1st reveals the reasons why the Project Committee evaluating bids for section three of the Central Expressway rejected the bid made by Fujita Corporation.

According to the requirements of the bid, eight key points of expertise needs to be demonstrated. Fujita Corporation has proved only three items.

Fujita Corporation did not supply the accounts for the period 2015/16.

The company has submitted financial reports for the year 2013/14 and 2014/15, but these accounts were not authorised by auditors.

The bidding document requires experience of one project for the value of USD 600 million within the last five years. Fujita Corporation has completed fourteen projects worth USD 388 million and maximum value of a single project is USD 91 million.

For these reasons, the bid by Fujita Corporation was found to be ”non responsive” and was rejected by the Project Committee.

News1st reveals that the Cabinet Memorandum put forward by Minister Lakshman Kiriella goes against the advice of the Project Committee who stated that the disqualification of Fujita Corporation was inevitable.

The Project Committee report states that the lessening of the requiements in terms of expertise and experience after the bid is made to accommodate any bidder will affect the transparency and the consistency of the evaluation and the selection procedure and will inevitably attract criticism.

Recommendation of Minister Lakshman Kiriella to award the project to Taisei Corporation and to ask Taisei Corporation to enter in to a consortium with the disqualified bidder Fujita Corporation is in violation of National Tender Procurement guidelines.

Minister Kiriella claims that Fujita Corporation has been accommodated because of the recommendation received by the Government of Japan appears to have no basis. In fact the recommendation for Fujita Corporation was received by an advisor to the Government of Japan and the recommendation did not carry any indication that it enjoyed the support of the Japanese Government.

Sources reveal that Fujita Corporation’s entry to participate in this tender was facilitated by a member of the family of a very senior UNP Cabinet Minister who came into parliament via the national list.

News1st has been unable to find any similar instance in a legal tender process of a winning bidder being asked to implement a project with a disqualified bidder.

This is in direct violation of the national procurement guidelines.

Over to you Mr. President.

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