Government to check cost overruns in mega projects
By Chathuri Dissanayake
The Government has decided to set up a special Cost Estimate Review Committee, in a bid to avoid cost overruns and discrepancies in Total Cost Estimates (TCE) and actual cost in infrastructure projects.
The Committee is expected to review TCE and contract cost variation variances of infrastructure development projects falling under Cabinet Appointed Procurement Committees (CAPCs) value threshold. The Committee is expected to curtail a recent trend observed, where cost overruns have been accommodated in projects, often without any upper ceilings.
Proposing to set up the Committee, Finance and Mass Media Minister Mangala Samaraweera informed Cabinet that a large number of contracts have been awarded over and above the engineers’ cost estimates, and instances ...