Central Expressway Further delay adds Rs.21 mn daily to outstanding bill

Govt. now in arrears of Rs.56 billion

The first agreement for the project was signed in 2015

By Kelum Bandara

The government’s total dues for the company selected for the construction of the Kadawatha-Mirigama stretch of the central expressway have soared to US $ 189.513 million (Rs.56 billion) and further delay involves daily addition of Rs. 21 million to the outstanding amount, a minister said yesterday.
Deputy Transport Minister and Highways Dr. Prasanna Gunasena told Daily Mirror that though the project is at a standstill, there are costs involved in various aspects including payment for the company’s machinery lying idle.
He said the government should restart work on the project as early as possible to prevent further escalation of the cost. “The more the project is delayed, the higher the amount we have to pay,” he said. Metallurgical Corporation of China (Ltd) has been awarded the contract for the project.
The loan agreement for Section 1 was signed in March 2019 between the China EXIM Bank and Sri Lanka: US$ 989 million to cover 85 per cent of the contract price. Besides, the estimated construction cost of phase 1 of the Central Expressway (Kadawatha-Mirigama stretch) has more than doubled since 2015 when the project agreement was originally signed. The first agreement for the project was signed in 2015 and the second in 2016, but successive governments failed to realise it during the last ten years.