Sri Lanka’s Bandaranaike International Airport expansion project to commence this month
The key component of the expansion project of Sri Lanka’s Bandaranaike International Airport (BIA) worth Rs. 108 billion is to commence later this month.
The commissioning of this major expansion follows the impending completion of the Rs. 6 billion worth improvements made at BIA, local media reports stated.
The two-part project consisting of ‘Package A’ and ‘Package B’ is funded by Japan International Cooperation Agency (JICA).
Accordingly, the Japanese Government has provided a loan of Japanese Yen 74,397 million, while Airport and Aviation Services (Lanka) Ltd. will invest Rs. 21,645 million for the project.
The contract relating to the Phase II ‘Package A’ of the BIA, was awarded to Taisei Corporation for a total value of Japanese Yen 41.55 billion and Rs. 35.15 billion in March this year.
“The total cost of the ‘Package A’ is estimated around Rs. 108 billion and is scheduled to be completed within three years,” Tourism Ministry Additional Secretary Aviation Tourism Sunil Gunawardene has told the Daily FT.
He has further said that both projects are being carried out under the consultation of Japan Airport Consultants Inc.
According to him, the improvements of ‘Package A’ include; buildings connected to the main terminal building, passenger bridges, storm water drainage system, elevated roads, electricity, water supply and sewage disposal system, combustion engines, integrated machinery, and a five-storey car park will be constructed.
Despite signing agreements with Japanese contractor Taisei Corporation in March, the Additional Secretary has pointed out that the delay in mobilisation was due to the pandemic.
In addition, the ‘Package B’ improvements include; machinery, access road, retention pond and storm water drainage system.
“Around 80% of ‘Package B’ construction work is already completed and the rest of the associated work will be completed within next month,” Gunawardene has told Daily FT.
OSL take:
The expansion of Sri Lanka’s main airport would increase business opportunities in Sri Lanka’s aviation sector. Foreign businesses/investors could explore the possibilities of setting up supplementary infrastructure facilities. 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/20200915/Z_3 |