Chinese companies get Sri Lanka’s canal construct project under Mahaweli water security programme
Sri Lanka’s Cabinet of Ministers has granted approval for China CAMC Engineering Company Limited and China State Construction Engineering Corporation Limited to construct canals as part of the US$ 675 million Mahaweli Water Security Investment Programme, which is funded by the Asian Development Bank (ADB).
Sri Lanka’s Government Information Department has recently announced that the ADB has agreed to secure US$ 675 million for the first phase and the feasibility study of the second phase of the Mahaweli Water Security Investment Programme.
Ten out of the 17 contract packages planned have already been awarded and the Cabinet of Minister has recently approved two proposals presented by Sri Lanka’s Mahaweli, Agriculture, Irrigation and Rural Development Minister Chamal Rajapaksa.
Under the first proposal, China CAMC Engineering Company Limited, which has already submitted bids for the construction of the Mahakithula Access Tunnel, Mahakithula Storage Reservoirs, and construction of the feed canal from Mahakithula Reservoir to Mahakiru Reservoir, will be given the contract, it has been reported.
“It was decided to take measures to award this contract to the said company at the prices agreed upon by the negotiating agreement with the institution,” the Government Information Department stated.
In addition, the 95.86 km long North Central Main canal project designed to supply drinking water and water for cultivation in the country’s North Central Province and up to the Vavuniya District in the Northern Province, as well as a 28 km long tunnel that has been planned across the Minneriya, Girithale and Hurulu nature reserves and sanctuaries under the North Central Main Canal Construction Project will be awarded to the China State Construction Engineering Corporation Ltd.
“It was decided to award this contract to China State Construction Engineering Corporation Limited at an amount agreed upon in consultation with the company,” the statement has added.
OSL take:
Sri Lanka’s ongoing development programme has opened up many business/investment opportunities in the country. Foreign businesses/investors could also explore business opportunities in providing supplementary infrastructure facilities in Sri Lanka. Also, Sri Lanka’s geographical positioning in the Indian Ocean, ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country have made it a business hub in the South Asian region.
| Article Code : | VBS/AT/09/10/2020/Z_1 |