Chinese Govt. approves $ 278 m concessional loan for Matara-Beliatta railway extension

Hot on the heels of the Daily FT story yesterday regarding a high powered Transport Ministry team is in Beijing to finalise the China’s Exim bank funding for Matara-Kataragama rail track extension, the Finance Ministry said yesterday that the Government of the People’s Republic of China has approved a loan of US$ 278.2 million through its Export-Import Bank of China on concessional terms to finance construction of the Matara-Beliatta Section (Phase I) of the Matara-Kataragama Railway Extension Project.

The Matara-Beliatta section consists of the construction of a 26.75 km long single line broad gauge rail track including construction of structures such as culverts, bridges over rivers, viaducts required over the Nilwala river flood plain, level crossings, underpass boxes, road diversion, four numbers of railway stations and functional requirements including construction of railway quarters for staff, earth embankments, cut embankments and ground treatment, etc.

This is the first phase of the Matara-Kataragama Railway Extension Project. The construction of the railway line from Beliatta to Hambantota and Hambantota to Kataragama under Phase II and Phase III respectively is expected.

The construction of the new railway will provide an efficient and environmentally friendly mode of transport to cater to the increasing demand for transport due to developments in the southern region with the operation of the new port and airport in Hambantota.