ADB urged to probe Mahaweli Water Project

Anti-corruption group seeks independent investigation into Stage One implementation

Questions raised over $511 m spent despite major works remaining incomplete

Calls for forensic review of contracts, procurement, and consultant performance

Wants Stage Two funding, procurements and disbursements halted pending inquiry 

A leading anti-corruption watchdog has called on the Asian Development Bank (ADB) to launch an independent investigation into the Mahaweli Water Security Investment Programme (MWSIP), raising serious questions over hundreds of ms of dollars spent on the project while key components remain incomplete. 

The Citizen Power Against Bribery Corruption Waste (CPABCW) organisation has also urged the ADB to suspend major funding commitments, procurements and disbursements under the programme's second phase until a full review is conducted. 

In a letter addressed to ADB’s President Masato Kanda on Monday (1), the organisation raised a series of concerns regarding the implementation of the project, which has been financed through several ADB loans. 

According to the letter, which was shared with The Daily Morning by the organisation's President Kamantha Thushara, the programme was approved in 2015 with an estimated investment of about US$ 675 m, including approximately $ 453 m in ADB financing. The organisation stated that around $ 511 m had been spent by 2025, yet, a considerable portion of the original scope remains unfinished and now requires additional financing under Stage Two. 

The organisation questioned the gap between the expenditure and the physical progress and called for an examination of project planning, implementation, contract management, consultant performance, procurement practices and oversight arrangements. Among the matters cited were the reduction of the original project scope from 21 contract packages to eight, substantial contractor claims and variations, the introduction of a second tunnel boring machine at an additional cost, repeated extensions and contract amendments, rising project costs, concerns over the quality of the completed work, consultant performance, procurement procedures and the handling of contractor delays.

The organisation also referred to concerns relating to the Upper Elahera Tunnel Project and questioned the basis of certain cost estimates and procurement methods proposed under Stage Two. They stated that the investments are financed largely through sovereign loans that will ultimately be repaid by the people of Sri Lanka and called on the ADB to appoint investigators independent of all parties involved in the project. It also requested a forensic review of major financial and contractual decisions made during the implementation.  

It was also urged by the organisation that the ADB make public the findings of any investigation and reassess arrangements proposed for Stage Two before additional expenditure proceeds. The organisation also asked the Bank to consider suspending further major procurements, commitments and disbursements connected to Stage Two until the review is completed.

The letter was copied to several authorities, including President Anura Kumara Dissanayake, the Agriculture, Livestock, Lands and Irrigation Ministry, the Finance Ministry, the Auditor General (AG) and the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

Subject Minister K.D. Lalkantha and Deputy subject Minister Aravinda Senarath were not available for comment. 

Source: The morning