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BIA terminal construction to resume?

20 Oct 2022

 
  • Nimal Siripala says AASL will fund construction until JICA resumes funding 
  • AASL claims to be unaware of any such decision
  By Imesh Ranasinghe   Sri Lanka plans to continue the work of the second terminal at the Bandaranaike International Airport (BIA) with $ 2.5 million from Airport and Aviation Services Sri Lanka (Pvt.) Ltd. (AASL) until the Japan International Co-operation Agency (JICA) resumes its funding upon the completion of the ongoing debt restructuring, stayed Minister of Shipping and Aviation Nimal Siripala de Silva. Speaking yesterday (19) in Parliament, the Minister said he had submitted a Cabinet paper seeking approval last week to continue the work at the second terminal at BIA to some extent with $ 2.5 million in funding from AASL. JICA provided Sri Lanka with loans totalling $ 550 million for the expansion of BIA under “Package A”, which is the construction of the second terminal and “Package B” the construction of a new apron and taxiways. However, with the announcement by the Sri Lankan Government that it will stop servicing foreign debt, JICA has suspended funding a total of 12 ongoing projects in Sri Lanka including the construction of the second terminal at BIA. “I spoke with JICA several times, and they said that after the debt restructuring is completed, the projects could be resumed, and that they cannot continue giving out loans without a certification from the IMF regarding Sri Lanka’s ability to repay its debt,” the minister said. He said that work on the underground tunnels and piling have been completed for the second terminal, and that he presented a Cabinet paper last week seeking approval to use $ 2.5 million in AASL funds to complete the work to a certain extent until JICA resumes funding. However, speaking to The Morning Business, AASL Director-Chief Operations and Board Member Shehan Sumanasekara said that the AASL board has not been informed about the said decision by Minister de SIlva to use AASL funds to continue the work at the second terminal at BIA. He said the AASL board takes the final decision on such matters, when the funds of the company are concerned.


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