Chinese company gets Rs. 1.9 b road construction project

The Government has given a Rs. 1.93 billion contract to the State-run China National Technical Import and Export Corporation (CNTIEC) to rehabilitate 11 roads under the Southern Expressway project.

The Cabinet of the Ministers approved the proposal made by Higher Education and Highways Minister Lakshman Kiriella to implement three new projects using the balance allocation of the Southern Transport Development Project. However, the source of the leftover funds was not clear in the Cabinet handout given to reporters.

“The balance allocations of Rs. 1.93 billion of the contract for the construction of the Southern section of the Southern Expressway from Pinnaduwa to Godagama will be used for the rehabilitation of 11 local roads, procuring of four Police cars to be deployed in duties at the expressway and to rectify the slope failure at 114 km of the expressway,” said the short statement handed out by the Media Ministry.

CNTIEC is a subsidiary of the China General Technology Group whose biggest subsidiary is the China National Machinery Import and Export Corporation, which was given a $ 600 m rail project under the Government of former President Mahinda Rajapaksa. 

In March 2010 the previous Government granted China National Machinery Import and Export Corporation the extension of the new railway line from Matara to Kataragama. The project was to be carried out in three phases – Phase I from Matara to Beliatta, Phase 2 from Beliatta to Hambantota and Phase 3 from Hambantota to Kataragama.

In 2010, using the Chinese Government’s preferential buyer’s credit, the company agreed to undertake the first phase of the Southern Railway Line extension project to construct the 28 km segment from Matara to Beliatta with a contract value of approximately $ 278 million.