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Work on Terminal II to resume in 3 months

Work on Terminal II to resume in 3 months

30 Apr 2023 | By Shenal Fernando

  • JICA to release funds, AASL confirms 
  • No information yet on new contractor

Construction work on the Bandaranaike International Airport’s (BIA) Terminal II project is expected to recommence in three months, Airport and Aviation Services (Sri Lanka) (Pvt) Ltd. (AASL) reveals.

Speaking to The Sunday Morning Business, AASL Chairman Maj. Gen. (Retd) G.A. Chandrasiri stated that the Government had informed that the funding from the Japan International Cooperation Agency (JICA) related to the BIA Terminal II project would be released within the next couple of months. Therefore, the AASL was currently preparing to recommence construction work at the BIA, he stated.

The contract for the construction of the BIA Terminal II project valued at $ 564 million was awarded to the Taisei Corporation in 2020.

According to the terms of the JICA funding, the contractor must be Japanese. However, following the stoppage of construction work last year due to the funding freeze imposed by JICA in the wake of Sri Lanka’s default, Taisei Corporation terminated its contract with Sri Lanka.

Chandrasiri stated: “I’m not aware who the new contractor will be. That is a decision that will be made at the national level by the Sri Lankan Government and JICA. AASL is only the company that is in charge of the operation aspect of this project. The technicalities of the funding will be determined at the national level.” 

The construction of this multi-level terminal is part of Package A of the BIA expansion project which is estimated to cost Rs. 133 billion and will be largely funded by the Special Term for Economic Partnership (STEP) concessionary Official Development Assistance (ODA) loan granted by JICA amounting to Rs. 131.5 billion (¥ 74.4 billion) at a 0.1% interest rate per annum. The remaining Rs. 21.5 billion is being funded by the AASL.

With regard to Package A, the AASL entered into two agreements with JICA – the first agreement was entered into in March 2012 for ¥ 29 billion and the second agreement was entered into in March 2016 for ¥ 45.4 billion.


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