Press briefing of Cabinet Decision taken on 2018-06-12

Establishment of the Cost Estimate Review Committee

- When contracts are awarded pertaining to infrastructure development projects by the Government, it has been found that most are awarded for a sum that exceeds the Engineer's Estimate and that during the implementation of the projects, frequent cost increases take place. Therefore, the introduction of a proper mechanism to rectify this situation and the guidance of procurement entities in the preparation of realistic cost estimates, have been recognized as a timely need.

As such, the proposal made by Hon. Mangala Samaraweera, the Minister of Finance and Mass Media, to establish a Cost Estimate Review Committee comprised of the relevant officers under the Ministry of National Policies and Economic Affairs to review the total cost estimates and contract price variations of the infrastructure development projects within the authority of the Cabinet Appointed Procurement Committees, was approved by the Cabinet.