- Renewed negotiations underway with China’s Exim Bank
Phase 1 of the Central Expressway Project (CEP), initially stalled for years, is now under renewed negotiations with the Export-Import (Exim) Bank of China to ensure that it can be recommenced at an affordable rate which reflects contemporary costs, according to Deputy Minister of Transport and Highways Dr. Prasanna Gunasena.
Dr. Gunasena told The Sunday Morning that the first phase of the project, covering Kadawatha to Mirigama, had been delayed for three to four years, leading to a demand for significant compensation by the contractor, Exim Bank.
“Due to cost escalations, President Anura Kumara Dissanayake convened discussions with Exim Bank representatives during his visit to China, who have committed to sending a delegation to Sri Lanka for negotiations.
“The Government aims to finalise these discussions within the next two to three months and secure an agreement that accommodates modern economic realities,” he stated.
A major concern for the Government is the deterioration of pillars near Magalegoda and Bemmulla, which suffered damage after a beam collapsed upon it last year.
Dr. Gunasena warned that further delays could lead to severe structural damage, increasing the financial burden. To mitigate this, the Government has allocated Rs. 7.5 billion from State funds to repair the affected pillars.
While CEP Phase 2 had been successfully completed, work on Phase 3, covering Pothuhera to Rambukkana and Rambukkana to Galagedara, was also progressing well, Dr. Gunasena claimed. The Pothuhera to Rambukkana section is nearing completion and is expected to be finished by next year.
Land acquisition for the Rambukkana to Galagedara stretch is 95% complete, paving the way for construction, which the Deputy Minister estimated would be completed within the next three to four years.
Dr. Gunasena stated yesterday (15), that the fourth phase of the CEP, which extends from Kandy to Dambulla, had been abandoned for the time being.
The Government is unable to commit to Phase 4 of the CEP owing to financial constraints. Dr. Gunasena stated that while the Government was not entirely abandoning the project, the lack of resources made it infeasible at present.
“The focus remains on completing the first three phases to ensure that the significant public funds already invested yield tangible benefits. A decision on proceeding with the Kandy-Dambulla section will be made once the other phases are completed,” he said.