Govt. awards Rs.135 b elevated highway to China Harbour

• Cabinet nod for 4-lane pillared expressway connecting Athurugiriya interchange and new Kelani Bridge
• CHEC to design, build, finance, operate, maintain and transfer (DBFOMT) for 18 years, after which it will transfer to Govt.
• Rs. 14 b allocated to compensate and resettle affected people within next year
• Co-Cabinet Spokesman says minimal number of years for transfer was key variable in awarding contract

By Charumini de Silva

The Government yesterday said the Rs. 135 billion contract for the construction of the four-lane elevated expressway, connecting the Athurugiriya interchange and the new Kelani Bridge, has been awarded to the China Harbour Engineering Cooperation (CHEC) Ltd.

Cabinet this week approved the proposal presented by Highways Minister Johnston Fernando, which proposed that the tender be

Co-Cabinet Spokesman  Udaya Gammanpila

awarded to CHEC on a design, build, finance, operate, maintain and transfer (DBFOMT) basis for a period of 18 years, as recommended by the Cabinet-appointed Negotiating Committee.

“Three years have been agreed for construction and 15 additional years to cover the cost and earn a profit. After 18 years, the expressway will be transferred back to the Government,” Co-Cabinet Spokesman Udaya Gammanpila told journalists at the weekly Cabinet media briefing yesterday.

The Daily FT learns that a total investment of Rs. 135 billion has been allocated for the project, which covers costs of construction, maintenance and operation, routine maintenance, utility shifting, independent engineers and resettlement. 

The Government has also allocated Rs. 14 billion for compensation and resettlement of people affected by the project within next year.

When asked about the arrangement to award the project to the CHEC, Minister Gammanpila said the minimal number of years to transfer the project was the key variable. 

“Cost was not the variable factor, but the operating number of years and lowest transferable years,” he said.

On 8 April, Cabinet approved the construction of the 17 kilometre, four-lane expressway on pillars, in a bid to minimise traffic congestion. 

The project extends from the still under construction new Kelani Bridge, which runs along Baseline Road for 300 meters and, thereafter, mostly along Dematagoda canal. An access to Baseline Road has been proposed at Dematagoda. The proposed expressway passes through Kolonnawa, Madinnagoda, Rajagiriya, Buthgamuwa, Battaramulla, Kottawa, Pothuarawa and Hokandara, and connects to the Outer Circular Expressway in Athurugiriya.

The new expressway has been identified as a key priority project under the ‘Vistas of Prosperity and Splendour’ policy framework.