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Colombo Outer Circular Highway given to Chinese company

 

The first Cabinet meeting since the reshuffle appeared to be a lowbrow affair, with approval given only for two large-scale infrastructure projects.

Colombo Outer Circular Highway given to Chinese company

The first Cabinet meeting since the reshuffle appeared to be a lowbrow affair, with approval given only for two large-scale infrastructure projects.

 
The Outer Circular Highway Project consisting of a loan of Rs. 66.7 billion was awarded to a Chinese company named Metallurgical Corporation of China Ltd. The Chinese company, which is listed on both the Shanghai and Hong Kong Stock Exchanges, is also engaged in copper mining in Afghanistan and nickel mining in Papua New Guinea.
 
The loan is provided by China’s Exim bank under a turnkey policy. The entire project is 29.22 km in length and is to be completed in three stages, according to a statement handed out at the Cabinet briefing. The Rs. 66.7 billion is only for the first 9.3 km of the highway, which means that each km will cost Sri Lanka Rs. 7.1 billion.
 
The Cabinet paper was submitted by President Rajapaksa as the Ports and Highways Minister.  
 
Cabinet also approved a water supply project for Anuradhapura costing Rs. 7.4 billion, which is funded by the Government of Japan. Under Phase I of the project, water will be provided to Medawachchiya, Rambewa under the Mahakandarawa water supply scheme.
 
Last week Cabinet gave approval for the Government to obtain Rs. 53.8 billion in loans from the Japanese Government for a range of infrastructure projects, including power transmission, bridges, and road construction.
 
http://www.ft.lk
 
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