The expressway is to be constructed on a one billion US dollar concessionary credit to be obtained from Japan’s Tokyo Mitsubishi Bank UFJ.

A paper submitted by prime minister Ranil Wickremesinghe to obtain the loan was approved by the cabinet on May 17.

The cabinet paper is given below:

Without calling for open tender, the RDA requested the Japanese ambassador in Sri Lanka in writing on May 24 to name a Japanese company to construct the third phase of the expressway.

Serious doubts have been expressed over this request, the letter of which is given below:

Hiroto Izumi’s role

Pursuant to the request, the Japanese Chamber of Commerce and Industry in Sri Lanka recommended the names of three Japanese companies which have a presence in the island, with the mediation of the Japanese prime minister’s special adviser Hiroto Izumi.

The bidders were Taisei Corporation, Penta-Ocean Construction and Wakachiku Construction.

Izumi works very closely with Taisei Corporation, reports say.

However, Taisei Corporation had not given a bid bond as specified in the tender.

No road construction

Both Penta-Ocean Construction and Wakachiku Construction have not carried out road construction in Sri Lanka, but had engaged in port-related activities only.

Neither made a bid when the tender was opened and the only bidder was Taisei Corporation.

Success fee for the bank

The Tokyo Mitsubishi Bank UFJ will receive a 10 per cent success fee for the successful closure of the transaction.

Several Japanese construction firms are preparing to raise this tender issue with prime minister Wickremesinghe, according to reports reaching Sri Lanka Mirror.

They will also request a fresh calling for tenders.

Bribery charges

Several Japanese ministers have been accused of bribery charges recently, and economic affairs minister Akira Amari resigned following one scandal in January.

Foundation for second phase

The foundation laying for the second phase of the expressway, between Kadawatha and Dambulla, was due to take place at 8.00 am today (06), according to minister Lakshman Kiriella.