Chinese company wins US$40.84 million Muthurajawela aviation fuel contract
Daily Mirror: China Petroleum Pipeline Engineering Company Limited has been awarded a major contract worth US$40.84 million and Rs. 8,548.75 million to develop a new aviation fuel storage and distribution facility at Muthurajawela.
The Cabinet of Ministers approved the contract following an international competitive procurement process in which three bids were submitted. The decision was based on the recommendations of the High-Level Procurement Committee.
The project includes the construction of a 92,000-cubic-metre aviation fuel storage tank complex and related facilities at Muthurajawela. It will also include a dedicated fuel pipeline connecting the storage facility with the fuel filling terminal at Bandaranaike International Airport.
In addition, the existing fuel terminal at Muthurajawela will undergo necessary modifications as part of the project.
The Cabinet had initially approved the overall project at its meeting on July 29, 2024. The contract award was subsequently approved following the evaluation of the bids.
OSL take:
Sri Lanka’s growing energy requirements and efforts to strengthen critical infrastructure are creating new business/investment opportunities for foreign businesses and investors, particularly in fuel storage, distribution, logistics, renewable energy and related infrastructure. The award of US$40.84 million and Rs. 8.55 billion contract to China Petroleum Pipeline Engineering Company Limited for a new aviation fuel storage and distribution facility at Muthurajawela highlights the scale of infrastructure investment emerging in the sector. Beyond conventional petroleum infrastructure, opportunities are expanding across renewable power generation, energy storage, transmission, fuel logistics and other technologies needed to support Sri Lanka’s economic growth. The country’s strategic location in the Indian Ocean, proximity to major South Asian markets and developing port and transport infrastructure add to its potential as an investment base. For international companies, Sri Lanka offers scope for infrastructure partnerships, technology transfers, engineering services and long-term investment in energy-related projects. Continued improvements in investment facilitation and regulatory certainty will be important as the country seeks to attract greater foreign capital and strengthen its position as an emerging business and investment destination in South Asia.
| Article Code : | VBS/AT/20261005Z_2 |