• 2 Japanese firms submit bids for remaining works
• Technical evaluation underway before financial review
• Govt. to seek extra JICA funding to cover cost increase 
• Protective works by Access Engineering now completed

The Government is expected to appoint a new Japanese contractor for the Bandaranaike International Airport (BIA) Terminal 2 project by December and, based on the contractor’s bid amount, will seek additional financing from the Japan International Cooperation Agency (JICA) to cover the funding gap arising from cost escalations.

Speaking to The Sunday Morning Business, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku revealed that, under the terms of the funding facility provided by JICA, Sri Lanka was required to engage Japanese contractors. 

Accordingly, bids were invited from interested Japanese contractors to complete the remaining works of the project.

He further revealed that they had received bids from two Japanese contractors, adding that they were carrying out the technical evaluation with regard to the same at present. 

Commenting on the timeline for appointing the contractor and commencing work under the project, the Deputy Minister stated: “We are still doing a technical evaluation, and we need approximately another one-and-a-half months to complete it. The financial bids will be opened only after the evaluation is concluded, following which we will make a decision.”

Accordingly, he confirmed that they intended to appoint the new contractor for the project by December.

Kodithuwakku further admitted that due to cost escalations, the original financing arrangement with JICA was likely to be insufficient to complete the project. 

He explained that the financial bids of the prospective Japanese contractors would first need to be opened, and once the contractor was appointed, they would have a clearer understanding of the financing gap, after which arrangements would be made with JICA to secure additional funding to cover the shortfall.

The Deputy Minister further revealed that Access Engineering had been contracted to carry out selected works aimed at implementing protective measures to safeguard and preserve the completed sections until construction on the remaining portions commenced. 

He added that these protective works had now been completed as well.

The BIA Terminal 2 project, formally known as the BIA Development Project Phase II Stage 2, aims to boost the airport’s annual passenger capacity from six million to 16 million. Construction on the project was halted in 2022 due to Sri Lanka’s economic crisis.