• Terminal I expansion works to be completed within a year
• To include 36 check-in counters and lobby area
• Terminal II contractor to be selected and appointed by Dec.

The Government is looking to expand the capacity of Terminal I of the Bandaranaike International Airport (BIA) to 10 million passengers per annum within the next 12 months, even as it finalises the recommencement of the stalled BIA Terminal II project.

Speaking to The Sunday Morning Business, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku said that the Japan International Cooperation Agency (JICA) had informed the Government that the contractor for the Terminal II project would be selected and appointed by December.

“They informed us that the project could be awarded by December, and we can commence the project thereafter,” he said.

Kodithuwakku further revealed that the necessary gap financing required to complete the project following the escalation of costs would also be finalised by JICA before the contract was awarded to the selected contractor.

Meanwhile, the Government has also taken steps to expand Terminal I to address the congestion issues at the BIA.

Accordingly, as part of the Terminal I expansion project, the Government has granted a one-year project to Maga Engineering Ltd., which involves building 36 check-in counters and a fully equipped lobby area.

“The project has been awarded and Maga has started mobilisation,” Kodithuwakku said.

He said that around four additional projects earmarked to expand the capacity of Terminal I were in the pipeline and that the Government was hopeful of awarding them within the next three months.

“These are all one-year projects and will be completed by next year,” he said.

He added that these measures were expected to increase the capacity of Terminal I to 10 million passengers per annum within a year.

The contract for the construction of the BIA Terminal II project, which involves the construction of a multi-level terminal, was valued at $ 564 million and was initially awarded to the Taisei Corporation in 2020. 

However, following the stoppage of construction work in 2020 due to the funding freeze imposed by JICA following Sri Lanka’s default, Taisei Corporation terminated its contract with Sri Lanka.

The construction of this multi-level terminal is part of Package A of the BIA expansion project, which was initially estimated to cost Rs. 133 billion. 

The project was to be largely funded by the Special Terms 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 was to be funded by Airport and Aviation Services (Sri Lanka) Ltd. (AASL).

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