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New BIA terminal: Contract set for SL-China JV amidst controversy

New BIA terminal: Contract set for SL-China JV amidst controversy

30 Jun 2024 | By Maheesha Mudugamuwa


  • Cabinet decision pending
  • TEC/SCAPC designate Sanken
  • PAB overrules TEC/SCAPC decision
  • Sanken files writ petition
  • CAA Chair says PAB process independent 


The tender for the construction of the new terminal at the Bandaranaike International Airport (BIA) is to be awarded to the controversial Sri Lanka-China Joint Venture (JV) company, as per the decision given by the Procurement Appeal Board (PAB), Ministry of Ports, Shipping, and Aviation Secretary K.D.S. Ruwanchandra told The Sunday Morning yesterday (29).

The Sri Lanka-China JV company involves Consulting Engineers and Contractors Ltd. (CEC), a local company, and China National Aero-technology International Engineering Corporation (CAIEC), a foreign entity.

However, according to the Secretary, the final approval depends on the decision of the Cabinet and potentially the Court of Appeal, which could alter this outcome.

As learnt by The Sunday Morning, the bids for the construction of a new facility at the BIA had been solicited on or around 4 December 2023 under the International Competitive Bidding category by the Standing Cabinet-Appointed Procurement Committee (SCAPC).

The construction of BIA Terminal 2 was commenced by Airport and Aviation Services (Sri Lanka) Ltd. (AASL) in December 2020 with Japan International Cooperation Agency (JICA) funding and the project was expected to be completed in 2023.

The new terminal was to be designed for the provision of barrier-free access with many environmentally-friendly initiatives. The new remote apron was to consist of 23 aircraft parking stands, Ground Support Equipment (GSE) roads, and three stub taxiways. 

The new terminal building will feature an additional 96 check-in counters, eight baggage claim belts, seven baggage make-up carousels, 16 contact boarding gates with 28 Passenger Boarding Bridges (PBBs), and six bus gates.

The construction of the terminal has been stalled since 2022 as a result of the prevailing economic crisis.  

It is also reported that following the evaluation conducted by the Technical Evaluation Committee (TEC) of the bids submitted, the committee’s report dated 15 March recommended awarding the contract to Sanken Construction Ltd., a local civil engineering company. 

As further learnt, the SCAPC had accepted the TEC’s recommendation, designating Sanken Construction Ltd. as the ‘successful bidder’.

“The unsuccessful bidders had the right to appeal to the PAB. Following the conclusion of the appeal process, it was recommended that the tender be awarded to the CEC and CAIEC JV,” Secretary Ruwanchandra said.

“With their decision, we have processed it and now submitted it to the Cabinet. We are awaiting the Cabinet’s response,” he said.

In response to a question about the ongoing court case, the Secretary noted: “There has been no court determination on the case yet. If the court decides otherwise, we will abide by its decision.”

Meanwhile, it is reported that Sanken Construction Ltd. has filed a Writ Application (No.343/2024) with the Court of Appeal, challenging the decision of the PAB to overturn the recommendation of the SCAPC and the TEC to award it the contract for the BIA project.

Sanken Construction alleges that the PAB’s decision to recommend awarding the contract to the CEC and CAIEC JV was made without granting them a hearing and despite the JV being found nonresponsive to technical specifications according to the TEC report dated 15 March.

However, when contacted, Civil Aviation Authority (CAA) Chairman G.S. Withanage, who has also served as the Chairman of the PAB, emphasised that the processes were independent and transparent. He declined to provide further details about the appeal process, citing the ongoing case at the Court of Appeal.



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