Sri Lanka’s US$ 91.27 million northern railway line upgrade awarded to India’s IRCON
The government of Sri Lanka has reportedly awarded a US$ 91.27 million contract to upgrade the country’s northern railway line to India’s IRCON International Ltd.
According to reports, Sri Lanka Railways, which is under the purview of the Ministry of Transport and Civil Aviation, has awarded the contract to the public sector undertaking (PSU) under the Government of India to upgrade the northern railway line from Maho to Omanthai.
“The company has been awarded an international railway contract worth approximately $ 91.27 million – equivalent to INR 6,350 million – from Sri Lanka Railways,” IRCON has stated in a news release.
IRCON has stated that this is an item rate contract, financed through Exim Bank of India as per Indian lines of credit.
The release has further stated that under the contract, IRCON will upgrade the single line broad gauge track from Maho to Omanthai – around 128 km – including associated infrastructure works.
“The project is to rebuild the rail track to make it capable of carrying trains at speeds of 120 kmph with heavier loads and to ensure efficient, safe, and comfortable transport services for passengers and freight,” IRCON has stated.
IRCON had previously completed the upgrade of the 114 km Colombo-Matara coastal railway line under the Indian line of credit, the reconstruction of Medawachchiya to Madhu Road railway line in the Northern Province, and the restoration of the northern railway line from Omanthai to Jaffna.
OSL take:
Sri Lanka is currently engaged in an aggressive development programme. Therefore there are many business/investment opportunities in almost every key sector in the country. Roads, highways and railways are one such area that has potential business/investment opportunities since building connectivity is given prominence in Sri Lanka’s development programme.
| Article Code : | VBS/AT/06052019/Z_1 |