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Central Expressway: Tenders to China and UK

29 Aug 2020

  • Cabinet approval to be sought
  • Funding to be more favourable to Sri Lanka
By Maheesha Mudugamuwa The Road Development Authority (RDA) is to finalise the awarding of the construction contract for the long-delayed Sections III and IV of the Central Expressway Project (CEP), The Sunday Morning learnt. Accordingly, the construction contracts for Section III of the CEP are to be awarded to a Chinese company, while the construction of Section IV of the CEP would be awarded to a UK-based contractor. Highly informed sources attached to the RDA, who wished to remain anonymous, told The Sunday Morning that the finalised documents would be submitted to the Cabinet for approval to proceed. Furthermore, the funding was said to be finalised in a manner which would be more favourable to Sri Lanka, he noted. Once Cabinet approval is granted, the construction of Sections III and IV would begin immediately. Meanwhile, the construction work of CEP Section I from Kadawatha to Mirigama was resumed last week after paying an advance payment of Rs. 16.67 billion to the contractor. The 37 km Section I of the CEP from Kadawatha to Mirigama was scheduled to be constructed by a Chinese contractor at an estimated cost of around Rs. 158 billion obtained as a loan from the Export-Import (EXIM) Bank of China. 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 its construction due to the delay on the part of the Government to meet the agreed 15% of the total loan amount. The Cabinet has already given approval to consider the technical proposal from British consultancy specialist Roughton 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, The Sunday Morning learnt. Initially, the Government’s plan was to complete the construction of the CEP, which consists of four phases, at the end of 2019. The construction of the 37.3 km stretch from Kadawatha to Mirigama under Section I was delayed due to financing issues on the part of Sri Lanka to activate an already committed loan by China. The construction of Section III was delayed by almost four years as the two parties, Sri Lanka and Japan, could not agree on the conditions. However, soon after the new Government came into power in November, Section III of the CEP was opened for fresh bids by cancelling the ongoing discussions between Japan and Sri Lanka that had stretched over many years. Section IV was to be constructed by China but no agreement was signed for the construction. The Sunday Morning, during the past two years, has been reporting on the consequences faced by the people affected by the delay in providing compensation for lands identified for the project, the overall delay in completing projects, as well as impacts on the national economy due to the same, with special focus on the CEP. Secretary to the Ministry of Highways Ranjith Premasiri told The Sunday Morning that a decision on Section III and IV of the CEP would be taken next week.  

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