Two Chinese companies bag contracts in $ 675 m ADB canal project

Wednesday, 30 September 2020 00:25 - - {{hitsCtrl.values.hits}}

Contracts given based on negotiations with companies
Project includes 28 km canal through Minneriya, Girithale and Hurulu sanctuaries

China CAMC Engineering Company Limited and China State Construction Engineering Corporation Limited have received Cabinet approval to construct canals as part of the $ 675 million Mahaweli Water Security Investment Program, which is funded by the Asian Development Bank (ADB).

The ADB has agreed to secure $ 675 million for the first phase and the feasibility study of the second phase of the Mahaweli Water Security Investment Program, according to a hand-out given on Cabinet decisions by the Government Information Department yesterday.

Ten out of the 17 contract packages planned have already been awarded. Therefore, Cabinet on Monday approved two proposals presented by the Mahaweli, Agriculture, Irrigation and Rural Development Minister Chamal Rajapaksa.

Under the first proposal, China CAMC Engineering Company Limited, which has already submitted bids for the construction of the Mahakithula Access Tunnel, Mahakithula Storage Reservoirs, and construction of the feed canal from Mahakithula Reservoir to Mahakiru Reservoir, will be given the contract.

“It was decided to take measures to award this contract to the said company at the prices agreed upon by the negotiating agreement with the institution,” the hand-out said.

In addition, the 95.86 km long North Central Main canal project designed to supply drinking water and water for cultivation in the North Central province and up to the Vavuniya District in the Northern Province, as well as a 28 km long tunnel that has been planned across the Minneriya, Girithale and Hurulu nature reserves and sanctuaries under the North Central Main Canal Construction Project will be awarded to the China State Construction Engineering Corporation Ltd.

“It was decided to award this contract to China State Construction Engineering Corporation Limited at an amount agreed upon in consultation with the company,” the statement added.

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