Red-faced over Galle Face fiasco CATIC gets new deal

Friday, 4 November 2011 02:57 - - {{hitsCtrl.values.hits}}

China National Aero-Technology Import and Export Corporation (CATIC) is making an appearance in the education sector, this time for a US$ 89.55 million deal to relocate the Technology Institute under the Moratuwa University.

Already under fire for the controversial Galle Face land deal, CATIC has gained Cabinet approval to relocate and develop the Technology Institute of the Moratuwa University. The Cabinet paper in this regard was presented by Higher Education Minister S.B. Dissanayake.

“The project was referred to the Standing Cabinet Appointed Procurement Committee (SCAPC) to sign a commercial contract with CATIC amounting to US$ 91.38 million.

Red-faced...

However, SCAPC negotiating with the assistance of the project committee reduced the amount to US$ 89.55 million,” the Cabinet paper stated.

Cabinet also granted approval for four other Cabinet papers on the same subject in 2005, 2006 and 2010 for revising the original cost estimate, for handing over the land located at Diyagama and to obtain donor financing from China amounting to US$ 60 million.

Media Minister Keheliya Rambukwella said that the Government had identified the project as a “priority” and taken steps to move the venture forward.