Rs. 40 b for H’tota hub

Friday, 14 September 2012 02:56 - - {{hitsCtrl.values.hits}}

By Uditha Jayasinghe

Pushing ahead with Hambantota development, the Government yesterday announced plans to build an infrastructure hub in the town for Rs. 40 billion, with 85% funding from China.

China’s Exim Bank is financing the construction of flyovers and roads in the southern town of Hambantota with the aim of making it a transport hub, Cabinet Spokesman and Media Minister Keheliya Rambukwella said yesterday.

“Cabinet on Wednesday approved the project. The construction will be done by China State Construction Engineering Corporation Limited, with the Sri Lankan Government making up the rest of the cost for the Rs. 40 billion venture,” he said.

The project includes the Mirijjewila-Sooriyawewa Road (23.34km), Embilipitiya Road (18.28km), Wetiya-Andarawewa Road (18.53 km) and flyovers at Wetiya and Narandagaswewa, according to the Cabinet paper.

China’s Exim Bank will provide 85 per cent of the funding in a loan while the remainder will be made by the Sri Lankan Government.

China is already funding a US$ 361 million port, a US$ 209 airport and several other infrastructure projects in Hambantota.

Last month Cabinet also approved US$ 600 million for the second phase of the harbour.

In addition, for the 2011 Cricket World Cup, the town received a brand new stadium costing an estimated US$ 7.89 million. Expansion of highways and railway projects to include Hambantota are also in the pipeline.

Since the end of a three-decade war in 2009 China has become Sri Lanka’s biggest loan provider with US$ 784.7 million being disbursed in 2011.