Case: SESRIP Project

Challenge: Environmental Challenges from Kappalthurei to Six-Mile Post, Trincomalee District

Under the SESRIP project, We, Ceylon Energy Pvt Ltd have to construct 12Km, 33kV line from Kappalthurai grid substation to Six-mile post in the Trincomalee district. This particular area posed significant environmental challenges and lacked sufficient logistical facilities, which made it difficult for contractors to operate effectively and efficiently.
After inviting bids from local contractors for the construction of this line, we encountered an unforeseen hurdle. All the received bids exceeded the budgeted amount of approximately LKR35 million, with quotes averaging around LKR 40 million. This presented us with a dilemma, as both the client, Ceylon Electricity Board (CEB), and the funding agency, the Asian Development Bank, emphasized the importance of completing the line as agreed.
In light of this situation, our Senior Engineer, Mr. Darshaka, proposed an alternative approach to handle the project. The suggestion involved directly employing laborers and a supervisor for this specific job. The laborers were remunerated based on a daily rate, while the supervisor's salary was linked to the completion of tower foundations.
We are pleased to report that this arrangement yielded remarkable results. The project was completed faster than anticipated, and the total cost amounted to approximately LKR30 million, well below the initially budgeted amount. Notably, a significant number of laborers and the supervisor were selected from the local area, further enhancing the project's positive impact.
Building upon this success, Mr. Darshaka decided to implement the same methodology for subsequent line constructions, namely the Mahawa 25Km line, Puttalam 30Km line, and Mallawapitiya 20Km line. While contractors were available for these projects, we restructured the remuneration of our own line supervisor to align with the contractors' performance. As a result, the monthly output nearly doubled, and the construction progress has been exceptional. The Mahawa and Puttalam lines are nearly completed, while the Mallawapitiya line stands at an impressive 70% completion, overcoming initial delays.
This experience has taught us a valuable lesson: individuals consistently perform at their best when their remuneration is directly tied to their work output. Encouraged by these outcomes, we are currently exploring options to restructure the remuneration of other supervisors within our organization. We firmly believe that this approach will further optimize construction performance across our projects.
We extend our gratitude to both the CEB and the Asian Development Bank for their unwavering support and guidance throughout this endeavor. We remain committed to ensuring the successful completion of the SESRIP project and look forward to delivering exceptional results.

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