• Chinese Exim Bank released $ 1 b for CEP in 2018
• Proposal for release of Rs. 7.5 b sent to Cabinet in Oct.

The Road Development Authority (RDA) is still struggling to mobilise Chinese funding approved and released for the construction of Section I of the Central Expressway Project (CEP).  

In October, the former Ministry of Transport and Highways put out a Cabinet paper seeking approval for Rs. 7.5 billion to be received for Section I. 

Nevertheless, as reliably learnt by The Sunday Morning, the RDA is yet to receive the funds to re-commence the project.  

In 2018, Chinese Ambassador to Sri Lanka Cheng Xueyuan informed then Prime Minister Ranil Wickremesinghe that the Chinese Government had approved $ 1 billion in funding for the first phase of the CEP.

The 36.5 kilometre stretch from Kadawatha to Mirigama, initially contracted to the Metallurgical Corporation of China in 2015, was expected to cost approximately Rs. 158 million, funded primarily through a loan from the Export-Import (Exim) Bank of China. 

As reliably learnt by The Sunday Morning, prolonged delays in finalising loan conditions and the Government’s inability to meet its share of 15% of the total loan amount had resulted in substantial cost overruns.

As a result of the delays, the projected expenditure for Section I has escalated from $ 158 million to $ 194 million by 2020, resulting in the Government having to pay an additional Rs. 8 billion advance, which had been paid in 2020, to activate the Chinese loan. 

The planned four-year project began in 2020 but was quickly suspended due to Sri Lanka’s economic crisis.

The RDA yesterday (21) said that it had no plans to abandon any of its ongoing expressway development projects, despite issues raised by sparse funding.

When contacted by The Sunday Morning, RDA Director General S.M.P. Suriyabandara attributed the delay in expressway construction to the lack of investors.

At present, the authority is seeking to finalise the existing funding arrangement for the CEP.

“In order to reap the maximum benefit from this project, we must complete all four links,” Suriyabandara said. “As such, CEP’s Section I (CEP1) is our number one priority at the moment.”

As of now, CEP’s Section II from Mirigama to Kurunegala remains the only section that has been completed out of the four main sections. The construction of the Pothuhera to Galagedara section (Section III) is also currently progressing.

The ‘Proposed CEP: Final Environmental Impact Assessment Report’ (May 2016) highlights the details of the CEP. The report was submitted to the Central Environmental Authority (CEA) and Ministry of Mahaweli Development and Environment by the RDA. 

The total length of the expressway from Kadawatha to Dambulla is 136.9 km and goes through four districts – Gampaha, Kurunegala, Kegalle, and Matale. There will be 14 interchanges within the expressway, including three system interchanges (Kadawatha, Wilwatta, and Pothuhera) and 12 service interchanges, including Ambepussa Junction.

Suriyabandara said that the RDA was struggling with the construction of CEP1 due to issues with Chinese funds and that the Pothuhera to Galagedara section was being funded by the Government of Sri Lanka.

He said that the RDA was also working on other projects such as the construction of the Port Access Elevated Highway funded by the Asian Development Bank, which was almost completed, while the Ruwanpura Expressway Project was under suspension.

At present, the RDA has around 16 ongoing projects, including initiatives such as the Extension of Southern Expressway Project (ESEP), Outer Circular Highway Project Phase III, and the World Bank-funded Transport Connectivity and Asset Management Project.

According to Suriyabandara, the authority is extending its full focus towards completing development projects commenced earlier.

President Anura Kumara Dissanayake had stressed the importance of completing the unfinished sections of the Central Expressway under Chinese management during a meeting with Chinese People’s Political Consultative Conference (CPPCC) National Committee Vice Chairperson Qin Boyong, held last week at the Parliamentary Complex.

He expressed hopes of expediting the commencement of these projects, underscoring their significance for Sri Lanka’s development. 

Qin reaffirmed China’s commitment to strengthening ties with Sri Lanka and noted plans to collaborate on advancing infrastructure projects like the Central Expressway.