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CPC resurrects aviation fuel supply project stuck for over 3 years


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An agreement to initiate aviation fuel supply project which was delayed over the years has been signed at the premises of CPC. The ceremony was chaired by CPC Chairman Dammika Ranatunga. 

Contract of construction of the aviation fuel supply project was obtained by Singaporean companies WEC Engineers and Constructors Ltd., PT Wijaya Karya (Persero) Tbk and China National Chemical Engineering No. 14 Construction Co. Ltd.

A new aircraft manipulation track is being constructed parallel to the second step of stage 2 of the BIA development project. Construction of the aviation fuel supply project and development of the aviation fuel terminal facilities in ‘E’ yard have been vested with CPC from 2013. 

Relying on approval of Cabinet on 5 November 2013, the previous Government decided to consider volunteer suggestions to initiate this project. However the current Government decided to request international bids in March 2015 to initiate this, to reduce the loss caused by volunteer suggestions. This was delayed due to some obstacles. 

After Minister of the Petroleum Resources Development Arjuna Ranatunga informed the urgent need of initiation this project to Cabinet, CPC was advised to commence the project. CPC selected a suitable contractor with foreign investments within 45 days by following a transparent and competitive procedure. 

CPC Chairman Ranatunga stated that they were able to 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 $ 74.2 million to settle the long-term debt. But we could be able to reduce it in to $ 71.1 million by choosing a suitable contractor under the required procedure. It saved $ 3 million for the corporation and for the country. This project initiation was stopped for a few years. But as a result of our dedication, we were able to achieve this target in 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 stabilise fuel protection and to provide an effective service for the country. We have achieved our goal to some extent,” Ranatunga added.

He opined that CPC would be able to supply high standard aviation fuel to fulfill the future demand in the Asian region.


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