Two phases of Central Expressway at funding crossroads

Wednesday, 4 September 2019 00:24 - - {{hitsCtrl.values.hits}}

Funds from Chinese EXIM Bank delayed for four-and-a-half years
AG’s Department in process of vetting Japanese loan for third phase

By Charumini de Silva

Two phases of the Central Expressway project to expedite traffic between Colombo and Kandy have reached a crossroads with no funds being released to continue the projects, a top official said.

RDA Chairman Nihal Sooriyarachchi Pic by Upul Abayasekara

“We are stuck on Phase One of the Central Expressway as the Chinese Government is still waiting to release the money, and the Phase Three discussions are ongoing with the AG’s Department, to avoid the unfavourable conditions of the Japanese,” Road Development Authority (RDA) Chairman Nihal Ranjan Sooriyarachchi told a forum in Colombo.

Speaking at the ‘Understanding the MCC Compact’ forum organised by the Sri Lanka-US Business Council of the Ceylon Chamber of Commerce, he pointed out that out of the three phases of the Central Expressway project, only one phase has managed to continue with construction, which is done by local contractors.

“The planned Central Expressway comprises of three phases, which includes Kadawatha to Mirigama as the first section, then Mirigama to Kurunegala as the second section, and Pothuhera to Galagedara as the third section. It is unfortunate that only section two is flourishing with local contractors and local consultants,” he added.

According to him, the other two components, i.e. Phase One and Three, are stuck because the Chinese Government has not released the promised funds, and negotiations with the Japanese Government have also dragged on as Sri Lanka attempts to find a more beneficial deal.

“The development of Phase One from Kadawatha to Mirigama in the Central Expressway was delayed for around four-and-a-half years from the Chinese EXIM Bank. With regards to the development of the third phase of the Central Expressway from Pothuhera to Galagedara, which is to be built with funds from Mitsubishi Bank of Japan, it has now been sent to the AG’s Department for consultations to remove any clauses disadvantageous to Sri Lanka,” Sooriyarachchi said.