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Controversial Contract of East-West Electric Railway Terminated

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Controversial Contract of East-West Electric Railway Terminated
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September 9: The contract of the Kakadvitta-Inaruwa section of the East-West Electric Railway, which was signed by the Railway Department without completing the basic aspects like land acquisition, distribution of compensation, and site clearance, has finally been canceled.

The Railway Department on Tuesday, September 8, canceled the contract for construction of 106 km track-bed. The department canceled the contract after facing mounting criticism for allegedly awarding the contract to benefit a handful of companies.

A contract worth Rs 28 billion was awarded for the construction of the track-bed of the Kakadvitta-Inaruwa section on June 28 and July 1.

Although the department did not give an official reason for the cancellation of the contract, it was canceled on the basis of suggestions given by the evaluation committee and its sub-committee formed under the department to study the contract, informed a source at the department.

The source added that the decision to cancel the contract was taken after the government faced severe criticism for not following the public procurement regulations.

However, Balram Mishra, director general of the Railway Department, informed that the contract was canceled using the special authority of the department and not for any other reason.

"The director-general of the department has the exclusive right to terminate the contract if it is not appropriate," Mishra informed.

 

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