Govt. signs deal on BIA expansion; Chief says delay caused major loss

Airport and Aviation Services (Sri Lanka) Ltd. Chairman G.A. Chandrasiri exchanges agreement with TAISEI Corporation Managing Executive Officer Keiji Hirano Pic by Upul Abeysekara

By Charumini de Silva

The Government yesterday signed a landmark expansion deal on the Bandaranaike International Airport worth $ 564 million, previous delays on which had allegedly caused major loss.

The Airport and Aviation Services (Sri Lanka) Ltd., (AASL) Chairman Major General (Rtd.) G.A. Chandrasiri said the Government suffered a serious loss, as the expansion was not commenced in due time.

“The good governance Yahapalanaya Government that came to power did not carry out its activities. As of 30 November, the AASL had to pay Yen 200 million (Rs. 117 million) as unpaid debts and Yen 90.85 million (Rs. 53 million) as the initial lease fee,” Chandrasiri said.

He made these remarks at the agreement yesterday with Japan’s Taisei Corporation to build a multi-level terminal building at the Bandaranaike International Airport (BIA).

The $564 million agreement was signed by AASL Chairman Major General (Rtd.) G.A. Chandrasiri, AASL Vice President Rajeewasiri Sooriyaarachchi, Taisei Corporation Managing Executive Officer Keiji Hirano, and Taisei Corporation Head of International Business Development Tatsuia Sugawara.

It was pointed out that this project was funded by the Government of Japan in 2012 and 2016. The preliminary work was done in 2012. The foundation stone was laid in September 2014, when President Mahinda Rajapaksa assumed duties as the President.

“If the good governance Government started the BIA expansion project on time, it should have been completed by 2018. However, with the intervention of President Gotabaya Rajapaksa, the project has now been expedited,” Chandrasiri said.

According to the agreement, Taisei Corporation should complete the construction within three years.

Under the $ 564 million project, a new multi-level terminal building, two new piers and a link course will be built. The ‘Package A’ consists of construction of new multilevel terminal building (Terminal 2) with an approximate floor area of 180,000 m2, where arrivals and departures are separated vertically, Pier No. 2 and Pier No. 3 with a link concourse, new parking apron and taxiways, elevated access roads, multi-story car park and public utilities.

The BIA currently handles over six million passengers, though it was built to handle around five million persons a year. The expansion will add the capacity to handle nine million more passengers a year.

Speaking at the event, Taisei Corporation Managing Executive Officer and Chief of International Operations Headquarters Keiji Hirano said being able to be a part of BIA will enable them to add value to the aviation industry in Sri Lanka.

“We have built major infrastructure in Japan, and have been able to play a significant role in the modernisation of Japan. Taisei has played a major role in airport infrastructure and terminal buildings, and has been involved in almost all Japan’s major airport construction projects. We are glad to be able to serve the people of Sri Lanka and the aviation industry,” he added.

The Government embarked on the major infrastructure development project, as it was imperative to increase the capacity of BIA’s passenger terminal of to accommodate the expected increase in the annual passenger capacity to 20 million passengers by 2025.

Ambassador of Japan Akira Sugiyama and Tourism and Aviation Ministry Secretary Marina Mohamed were also present at the occasion.