- Tender set to close in December
- Ministry uncertain of more bidders
Three companies have submitted bids for an international tender to resume Phase II of the Bandaranaike International Airport (BIA) expansion project, according to Ministry of Transport, Highways, Ports, and Civil Aviation Secretary K.D.S. Ruwanchandra.
The tenders were solicited as part of the BIA Development Project Phase II Stage 2, which aims to complete key infrastructure for the airport’s expanding passenger capacity.
Airport and Aviation Services (Sri Lanka) Ltd. (AASL) released tender number 105/T/2024 last month, detailing the extensive construction required to finalise Package ‘A1’.
This includes completion of the Main Terminal Building, Pier No.2, and Pier No.3, along with additional associated facilities.
Notably, the package also calls for the completion of an elevated roadway and essential utility systems, such as power supply, sewage disposal, and water supply.
The current tender deadline is set for December and although three companies have submitted bids thus far, Ruwanchandra stated that additional bidders were anticipated.
However, he also expressed uncertainty about whether additional companies would join the competition.
The Secretary explained that following the submission deadline, an evaluation process would begin, with a final selection expected within three months from December.
“The designed capacity is six million persons per annum. However, last year, we handled 7.2 million and we expect around 8.5 million this year,” he noted.
Once the bidding period closes, an evaluation process will follow and a final contractor is expected to be selected within three months.
The BIA’s development has been a gradual but crucial project for Sri Lanka’s aviation infrastructure.
To meet rising passenger demand, the Japan International Cooperation Agency (JICA) agreed to finance the Terminal 2 expansion under a concessionary loan scheme, committing Rs. 170 billion to the project.
This partnership aims to elevate the BIA’s annual passenger capacity to 16 million upon the terminal’s completion, significantly reducing air traffic congestion.
The new package requires a construction period of 30 months, aligning the final completion for 2027. While the project was initially launched in December 2020 with an estimated cost of Rs. 145 billion, Sri Lanka’s economic crisis in 2022 halted progress, leaving only 6% of Phase II complete.
However, this latest tender process under Japanese Official Development Assistance (ODA) guidelines is open to eligible international bidders, with a pre-bid meeting scheduled for 12 November and bids closing on 23 December.
The project has faced numerous challenges since breaking ground in 2007, with various stages of development and redesigns. The expansion aims to not only modernise Sri Lanka’s largest airport but also improve its capability to serve the growing demand for air travel across the region.