Two Chinese firms get first stage of $ 1.5 b Northern Expressway
Friday, 12 July 2013 00:01
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By Uditha Jayasinghe
Two Chinese companies were given the first phase of a lucrative US$ 1.5 billion highway deal yesterday that will connect former war-torn north with the southern part of Sri Lanka.
China Merchant Holdings and China Merchants Huajian Investment Company have been accepted by the Cabinet to construct 100km of the proposed Northern Expressway under the recommendation made by President Mahinda Rajapaksa.
“The project is also fully funded by these two companies,” Cabinet Spokesman and Media Minister Keheliya Rambukwella told media, but insisted that he was unable to divulge the cost for the first stage of the highway.
“A Cabinet Appointed Negotiating Committee and a project committee will be appointed to evaluate the project proposals for the planning, designing, financing, construction and operation of stage one and two,” he added.
The first phase will be conducted in four stages.
According to the Finance Ministry Secretary Dr. P.B. Jayasundera the entire highway will cost $ 1.5 billion and will be completed in 2016.
Since Sri Lanka ended a 30-year war in 2009 China has emerged at the island’s largest loan provider with an estimated US$ 8 billion provided in loans since 2008.
Some of the biggest Chinese funded projects include a $ 1.3 billion coal power plant on the north western shore as well as a host of other investments in the south of the country that are estimated to exceed $ 4 billion including a $ 1.2 billion harbour.
