Hambantota Port: Not Actually Open

change order original contract

Inside joke among contractors. The yacht is named ‘Change Order’, the dinghy is named ‘Original Contract’. Via Speckysyndr, via The Dish


I remember when the Hambantota Port opened. It was all over the TV. They had dancers symbolizing water coming into the port. I thought it was kinda weird. Turns out the whole thing was symbolic anyways.

Sri Lanka’s Hambantota port needs extra loans of 147.9 million dollars to cover equipment including cranes, cost escalations in building the port, and digging the basin and entrance channel, the island’s state-run ports agency said. (LBO)

This is not entirely new, almost all construction projects suffer from cost overruns.

“Cost overruns in the order of 50 percent in real terms are common for major infrastructure, and overruns above 100 percent are not uncommon,” Bent Flyvbjerg, a professor of major program management at the University of Oxford’s Said Business School, writes in the Oxford Review of Economic Policy. (Bloomber)

Still, definitely not good. What’s especially odd is that the government ceremonially opened the port, despite the port being not at all ready to open. What’s circulating now is that there’s a giant irremovable rock blocking the port. While this doesn’t seem to be entirely true, they are still reporting a lot more ‘hard material’ that needs to be blasted. So, I suppose no rock is irremovable, given a large enough lever or, alternately, budget.

However with more hard material (such as rock) being found in practice the costs had gone up 45 percent for the basin (13.56 million) and 53 percent for the channel (31.02 million dollars) and reduction in soft material causing a net increase of 40.66 million dollars.

Increases in material, labour and equipment based on government price indices and an agreed upon formula had resulted in a total increases of 87.7 million dollars. Loans of 147.7 million dollars were being sought, which would also cover a building and port equipment. (LBO)

Which is like, well, OK, I mean, not really OK, but might as well finish the port. My question is, do we seriously have to build so much stuff in Hambantota? Why not invest $150 million in the natural port of Trinco, for example? Why pitch for a Commonwealth Games to build infrastructure down there?

Anyways, Hambantota Port. Open for cameras. Just not for business. Unless, of course, you’re the Chinese contractor.

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8 Comments »

Annoymouse
2011-08-31 22:46:21

Oh my dear God….did they not do any geologic surveys or an environmental impact report? Is anyone thinking about the fish and other marine animals when this rock is blasted?

Chandana
2011-09-01 08:15:21

planning and thinking are not part of the present regime’s vocabulary

 
 
Mervin Silva
2011-09-01 05:52:12

Actually good point Indi.

The development of areas previously affected by war is a natural starting point in the process of integrating the good citizens of the North and East who are now free from the shackles of the LTTE. To that end why on earth are we not developing the already existing harbour in Trinco? Admittedly its the among the best deep water harbour in the world and the BEST deep water harbour in South East Asia so why the hell not develop the crap out of it?

How come the media isn’t asking THAT question?

Cat
2011-09-02 09:54:27

We’re not in South East Asia you idiot.

 
 
shammi
2011-09-01 06:26:27

There’s nothing but to get it done with now, and at least start recovering the costs as ealy as possible. But they’re saying that the new sea lanes will disturb the whale and dolphin populations in the area.
There’s concern that the proposed new airport will also have an adverse effect on the wildlife in the national parks, as well as affect the native and migratory birds. Sad. Such a high price to pay for progress.

Mervin Silva
2011-09-04 19:21:02

Worries ‘shammi’ putha, the wildlife in that area will be fine as the new airport will go bust if it ever gets the go ahead. I mean Katunayake Airport (Bandaranaike International Airport) is operating at under capacity and is an operating loss, so how on earth is an International airport in the middle of no where with zero connection to infrastructure, hotels, commercial cargo ever going to make a profit? Hahaha! Funny shit!

Mervin Silva
2011-09-04 20:08:41

I mean NO worries….

(Comments wont nest below this level)
 
 
 
Mervin Silva
2011-09-04 00:15:17

So kind of Mr. Hora Pusa to notice…Yes ‘Cat’ I stand corrected, It is SOUTH ASIA not SOUTH EAST AISA.

See even (honorary) Phd’s mess up, am I ashamed? No of course not. I am never ashamed. Not even when I got pelted with rocks and anointed with red dye was I ashamed….

 
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