The agreement to initiate constructing a pipeline to supply aviation fuel from Muthurajawela to Bandaranaike International Airport (BIA) has been signed at Ceylon Petroleum Corporation (CPC), headed by CPC Chairman Dammika Ranatunga.
The construction contract for the long delayed project was obtained by Singapore companies, which are WEC Engineers and Constructors Pte Ltd, PT Wijaya Karya (Persero) Tbk and China National Chemical Engineering No. 14 Construction Co. Ltd.
The construction of the aviation fuel supply pipeline and development of the aviation fuel terminal facilities in the ‘E’ yard have been vested on CPC since 2013.
Relying on the approval of the cabinet on November 5, 2013, the previous government decided to consider volunteer suggestions to initiate this project. But the present government decided to request international bids in March 2015 to initiate the project to reduce the loss caused by volunteer suggestions. It was delayed due to some obstacles.
After Petroleum Resources Development Minister Arjuna Ranatunga informed the cabinet the urgent need to initiate this project, CPC has been advised to commence this project.
CPC could be able to select a suitable contractor with foreign investments within 45 days by following a transparent and competitive procedure.
Dammika Ranatunga stated that they could save a huge amount of money because of the new procedure.
“If we chose the contractor according to the initial plan, it would have been a great loss to the corporation and to the country. According to the initial plan, the corporation would have to spend US $ 74.2 million to settle the long-term debt. But we could reduce it to US $ 71.1 million by choosing a suitable contractor under the required procedure.
It saved US $ 3 million for the corporation and for the country. This project initiation was stopped for a few years. But as a result of the dedication, we were able to achieve this target in a short period of time.
Similarly, there are many more projects which have been delayed. But we are working hard to begin those projects soon under the instructions of our minister. We will be able to stabilize the fuel protection and to provide an effective service for the country. We have achieved our goal to some extent,” Ranatunga added.
He believed that CPC would be able to supply high standard aviation fuel to fulfil the future demand in the Asian region.
A new aircraft manipulation track is constructed parallel to the second stage of the development project of BIA.