Was the contract for the Uma Oya project awarded to an Iranian company without calling for tenders?
A. The financing for the Uma Oya project comes from the Export Development Bank of Iran. Usually, the agreement in such cases is that the contract has to be handed over to a company from the country providing the financing. The general practice under bi-lateral loan agreements, has been followed here too. Having identified the contractor, the Government has taken the necessary measures to ensure the project is cost effective. They have been able to enter into the contract at a lower price than the estimated value. At the same time, any unexpected costs and adverse movement in prices will also have to be borne by the contractor and no additional payments need to be met by the Government. 3. CRANES FOR COLOMBO PORT Q. There is another allegation concerning the purchase of thirty five SZPMC CRANES for the Colombo port. The original cost of each crane is supposed to be 600,000 U.S. Dollars. Has the price been inflated to 1.2 million Dollars each? A. That is quite different to the figures I
