China firm wins Rs. 22 b Muthurajawela fuel terminal contract

Wednesday, 23 September 2026 05:23 - - {{hitsCtrl.values.hits}}

China Petroleum Pipeline Engineering Company Ltd., has been awarded a contract worth $ 40.84 million and Rs. 8.5 billion to develop a new aviation fuel storage and distribution facility at Muthurajawela, Cabinet Spokesman Dr. Nalinda Jayatissa said yesterday. The total project is valued at approximately Rs. 22.2 billion.

The Cabinet of Ministers approved the contract following an international competitive procurement process in which three bids were submitted, based on the recommendations of the High Level Procurement Committee, Dr. Jayatissa said.

The project includes the construction of a 92,000-cubic-metre aviation fuel storage tank complex and related facilities at Muthurajawela. It will also include a dedicated fuel pipeline connecting the storage facility with the fuel filling terminal at Bandaranaike International Airport.

The existing fuel terminal at Muthurajawela will also undergo necessary modifications as part of the project.

The Cabinet had initially approved the overall project at its meeting on 29 July, 2024, with the contract award approved following the evaluation of bids.