As Colombo Dockyard wades into uncharted waters, questions over bidding for local tenders

[Dredging360.com]

The Sunday Times

Some local shipbuilding industry stakeholders claim they are restricted from bidding for certain government tenders when much has been said by policymakers about uplifting local industries.

Ironically, the National Export Strategy (NES) published last year by the government had highlighted boat/ship building and backward integration as a focus sector for innovation and export.

The tender in question is for a seagoing dredger, which is being sought by the Sri Lanka Land Reclamation & Development Corporation (SLLRDC).

“The government’s procurement procedure is complicated, but we are looking at how we can accommodate local entrepreneurs,” SLLRDC chairman Roshan Gunawardena explained. At present, the procurement procedure looks for a bidder with ‘prior experience’ in building the specified type of vessel. “We are trying to work within the procedure while taking into account other experience,” Mr. Gunawardena elaborated.

However, the Sunday Times has learned that a local shipbuilder — Colombo Dockyard PLC (CDPLC) — is being considered as a potential bidder to compete for the upcoming tender for a sea going dredger. Mr. Gunawardana said CDPLC made a presentation last week to the SLLRDC on its shipbuilding experience and credentials,

The matter had been brought to the attention of Megapolis and Western Development Minister Champika Ranawaka, and he had instructed the SLLRDC to grant an audience to other local bidders. “We feel that local industries should be encouraged and supported,” the minister added.

The controversy erupted a week after the CDPLC launched the largest vessel with diesel electric propulsion to be produced in Sri Lanka — a 113 meter-long, US$ 60 million high-tech submarine cable-laying vessel for KSC Co of Japan — but faced bureaucratic and procedural red tape when trying to bid for local vessel tenders.

The government should ensure that local industries be given at least an opportunity to bid for domestic tenders, Shippers Academy CEO Rohan Masakorala.

At present the SLLRDC has contracted a foreign-owned dredger to pump ashore sea sand, which the corporation processes and sells in the domestic market, as a cheaper alternative, to the construction sector.

Mr. Gunawardena said the the acquisition of the dredger would be made from SLLRDC funds and would not be a burden on the Treasury. “Cabinet approval has been obtained and a technical committee appointed to draft the vessel’s particulars,” he said.

The CDPLC has built 24 offshore vessels, generating a foreign revenue of about US$ 500 million during a 10 year period and have constructed 170 vessels for local clients and 77 for foreign clients, Managing Director/ CEO D. V. Abeysinghe said.

According to him, CDPLC employs 1,300 permanent staff and about 1,500 subcontracted workers, and already has experience supplying vessels to domestic clients including the Sri Lanka Navy, the Sri Lanka Ports Authority, the Road Development Agency and the Mahaweli Authority.

“The Japanese who contracted CDPLC to build the cable-laying vessel looked at our overall experience, although CDPLC had not built a cable-laying vessel before,” Mr. Abeysinghe said. Being a specialised vessel, “The KDDI Cable Infinity” had her basic designing done by a Norwegian design house with CDPLC doing the rest inhouse. The Japanese clients had appreciated CDPLC’s experience working with European designers and the shipbuilder’s record of delivering vessels on time. The KDDI Cable Infinity was constructed in two years.

According to Mr. Abeysinghe, the shipbuilder is keen to bid for the dredger tender. He added that the relevant authorities need to recognise the capabilities and experience of local industries and encourage them to participate in domestic bidding processes.