Exploring avenues to source Rs. 17 b By Maheesha Mudugamuwa Sri Lanka is ready to pay the first instalment of the mobilisation advance due to be paid by the Government to activate the loan facility granted by the Exim Bank of China last year for the construction of Section I of the Central Expressway Project (CEP), The Sunday Morning learnt. Secretary to the Ministry of Roads and Highways Ranjith Premasiri told The Sunday Morning that the Government is ready to pay a total of Rs. 17 billion as the first instalment of the mobilisation advance within next two weeks. However, when contacted, Ministry of Finance External Resources Department Director General Priyantha Rathnayake said discussions are still going on with regard to the funding for the mobilisation advance to activate the already signed Chinese loan. “Several options are currently being evaluated, including whether the contractor himself could finance the loan and carry out the constructions for next four months until the Government passes the difficult period and whether the contractor could obtain a foreign loan or whether state banks could provide the funds to activate the loan,” he noted. As clarified by Rathnayake, the Government had not taken a final decision as of last week. The 37 km Section I of the CEP stretching from Kadawatha to Mirigama was scheduled to be constructed by a Chinese contractor at an estimated cost of Rs. 158 billion obtained as a loan from the Exim Bank of China. The construction work of Section I, which is moving at a snail’s pace due to the delay in dispersing the funds of the already signed agreement covering 85% of the contract price, is yet to properly begin due to the delay on the part of the Government to meet the agreed 15% of the total loan amount. To activate the Rs. 158 billion loan agreed to by the Exim Bank of China, the Government of Sri Lanka needs to make an initial payment amounting to Rs. 31.7 billion. However, the first instalment is being paid as part of that initial payment and the second instalment is also to be paid soon, it is learnt. In the meantime, Prime Minister Mahinda Rajapaksa went on an inspection tour to Section II of the CEP on Friday (19). The Secretary to the Ministry of Finance noted that the Prime Minister had instructed authorities to complete the construction work of Section II by the end of this year. “Still 20% of the construction work has to be completed,” he said, adding that the Ministry is planning to complete the construction of Section II within this year. When queried about other two sections of the project, Premasiri noted that the negotiations are currently being conducted for the construction of Sections III and IV of the CEP. The Cabinet has already given the approval to consider the technical proposal from British consultancy specialist Roughton International Ltd. for the construction of CEP Section IV. Roughton was said to be the management consultant of CEP Stage IV and it will be partnered with a local contractor. Several proposals received from local construction companies are currently being evaluated by the authority to award the construction contract, The Sunday Morning further learnt. It also learnt that as of now, the Government has given priority for Sections I and II, and for Section I, the agreements have already been signed while for Section II, there is only 20% to be completed.