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Optimizing Human Resources at the SESRIP Project

CaseChallenge
SESRIP ProjectEnvironmental Challenges from Kappalthurei to Six-Mile Post, Trincomalee District

Under the SESRIP project, Ceylon Energy (Pvt) Ltd undertook the construction of a 12km, 33kV transmission line from the Kappalthurai Grid Substation to Six-Mile Post in the Trincomalee District. The project corridor, stretching from Kappalthurei to Six-Mile Post, presented significant environmental challenges and limited logistical facilities, making contractor mobilization both difficult and costly. When bids were invited from local contractors, all submissions exceeded the allocated budget of approximately LKR 35 million, averaging close to LKR 40 million. With the Ceylon Electricity Board (CEB) and the Asian Development Bank emphasizing timely completion, a strategic and financially viable alternative became essential.

In response, Senior Engineer Mr. Darshaka proposed a human-resource-driven execution model. Instead of awarding the project to external contractors, Ceylon Energy directly recruited local laborers and appointed a dedicated supervisor for the construction work. Laborers were compensated on a daily wage basis, while the supervisor’s remuneration was performance-linked to the completion of tower foundations. This output-based incentive structure fostered accountability, efficiency, and a strong sense of ownership among the workforce, many of whom were recruited from the local community.

The results were remarkable. The 12km line was completed ahead of schedule at a total cost of approximately LKR 30 million, significantly below the initial budget. Encouraged by this success, the same methodology was implemented in subsequent projects, including the Mahawa 25km line, Puttalam 30km line, and Mallawapitiya 20km line. By aligning supervisory remuneration with measurable performance targets, monthly construction output nearly doubled, accelerating overall progress. This experience reinforced a key lesson: productivity improves substantially when compensation is directly tied to performance. Through this strategic restructuring of human resources, Ceylon Energy demonstrated that innovation in workforce management can be as impactful as innovation in engineering.