Sri Lankan government to call for investment proposals for the Japanese and Korean funded LRT
The Urban Development Authority (UDA) of Sri Lanka is to shortly call for investment proposals for the Japanese and Korean funded Light Rail Transit (LRT) projects since the pre-feasibility studies are reportedly nearing completion.
“There are two different sets of LRT projects on five different lines. The one supported by Japanese International Cooperation Agency (JICA) is nearing the completion of feasibility study and the Environmental Impact Assessment (EIA) process has also been completed now. We will be calling for investment proposals on detailed design and construction work by January 2019,” UDA Chairman Dr. Jagath Munasinghe has told the media recently.
According to the feasibility study prepared by the JICA, an elevated light railway line will be built on a 16-kilometre stretch from Malabe to Pettah at an estimated cost of US$ 1.7 billion or some Rs. 272 billion by 2024. The Japanese government has reportedly granted this loan package at 1% interest per annum in 40 years with a grace period of 12 years.
Dr. Munasinghe has also told the media that the other project which involves three different lines had also completed pre-feasibility studies.
In November 2017, the Cabinet of Ministers had approved awarding a consultancy service contract to the South Korean firm Seoyoung Engineering Co. Ltd. (SYE), Saman Corporation for a cost of Rs. 202 million to carry out the pre-feasibility studies prior to the construction of the LRT lines.
“On completion of the pre-feasibility studies, we had a meeting on Wednesday (15). They have already called for Expressions of Interest (EOIs) from different interested parties, where six parties have responded. Now it is open for detailed feasibility and investment proposals. They have been given time till January next year,” the Chairman has added.
OSL take:
The construction of the LRT is part of Sri Lanka’s ongoing development programme and is an investment opportunity that would undoubtedly attract much interest from among foreign businesses. Since the government of Sri Lanka is expected to call for investment proposals shortly, interested foreign businesses/investors could then submit their proposals for the project. Funding for the project is already earmarked since it will be financed by the Japanese and Koreans.
| Article Code : | VBS/AT/21082018/Z_5 |