Sri Lankan government enters into a PPP with CHEC Port City Colombo Ltd. to build a tunnel
The government of Sri Lanka has reportedly approved a proposal by the Ministry of Megapolis and Western Development to enter into a public-private partnership (PPP) with Port City developer CHEC Port City Colombo Ltd. to build a tunnel linking the road network of the mainland and the Port City.
The proposal to enter into a PPP to carry out the underground Marine Drive extension work with the developer was presented by Minister Champika Ranwaka.
The Cabinet of Minister has approved the PPP proposal where the government will enter into an agreement with the Port City developer, a subsidiary of China Harbour Engineering Company managed by State-owned China Communication Construction Company Ltd. (CCCC) Group.
Ranawaka has reportedly informed Cabinet in his proposal that the tunnel will contribute to Colombo “by way of a North-South link connecting the Airport Highway to Marine Drive, while increasing the width of the Galle Face Green without disturbing the heritage buildings of the Old Parliament Building, Galle Face Hotel building, etc.”
Further, the Minister has envisaged that the tunnel can also provide an underground road connection to the Shangri-la Hotel area.
The proposal to set up the PPP comes as a result of a request made by the Ministry of Megapolis and Western Development for a proposal on a Build Operate and Transfer (BOT) basis for undertaking the required studies and financing of the construction of the underground Marine Drive Extension Project from Chaithya Road to Marine Drive near Kollupitiya Railway Station, with access to the Port City.
The company in response has reportedly informed the Ministry that it would be willing to “consider sponsoring the technical feasibility study cost of the Marine Drive Extension up to the tunnel’s connection point” provided that the company is given first preference in the undertaking, Ranawaka informed Cabinet in his proposal.
According to reports, the company has already commenced technical feasibility studies on the project, while the Road Development Authority (RDA) has started an Environmental Impact Assessment as well.
OSL take:
The PPP agreement entered by the Sri Lankan government and the Chinese developer of the Colombo Port City indicates an opening up of a host of opportunities for foreign investors. Parties interested in investing in Sri Lankan projects could have a close look at the Port City project to identify the many investment opportunities in the area.
| Article Code : | VBS/AT/18122017/Z_1 |