brand logo

BIA’s Terminal 2 expansion project: Controversy over selecting subcontractor 

03 Jul 2021

By Maheesha Mudugamuwa    While the construction work of a new apron and taxiways (referred to as Package B) of Phase II of the Bandaranaike International Airport (BIA) Terminal 2 expansion project has been delayed by more than a year, issues have now surfaced over the selection of subcontractors for the construction of a new passenger terminal building and associated works (referred to as Package A of the project), The Sunday Morning learnt.  It is learnt that the issues regarding the contractor and subcontractors would lead to a delay in Package A of the project. In a letter dated 30 April 2021, the consultants of the project, JV Japan Airport Consultants Inc. and Nippon Koei Co. Ltd. Project Manager Saa Isakovic, confirmed to the contractor, Taisei Corporation, via its representative Takahiro Furuse, that China State Construction Engineering Company (CSCEC) was rejected as the proposed subcontractor for earthworks, concrete works, etc. This was based on, among other major reasons, it not having key project staff in Sri Lanka, which meant that the CSCEC had to bring down Chinese staff, which is not advisable given the current Covid-19 travel restrictions; and also because there are skilled Sri Lankan managers and engineers locally available. Alternatively, the CSCEC can subcontract the work, but if that is done, the Japanese JV stressed that it is questionable whether Taisei can manage and monitor the subcontractor and various subcontractors. It further highlighted the fact that the CSCEC has not employed any local staff and are waiting to be awarded the contract to commence this procedure, which could pose the risk of running into time constraints if it were to hire staff unsuitable for the size of the project being executed.  Furthermore, it highlighted that the CSCEC is planning to rent all major equipment from a local company named Advantis, which is a risk, as it would be completely dependent on the subcontractor/supplier without having full control over the required resources. However, despite that, the Japanese JV has taken the decision, based on the engineer’s recommendations.    Progress so far The construction of the BIA Terminal 2 was launched by Airport and Aviation Services (Sri Lanka) (Pvt.) Ltd. (AASL) in December 2020 and the project is expected to be completed by 2023.  According to the AASL, the preliminary work and soil investigations for pile foundations have been completed. Clearing the areas for the main terminal building by root-balling existing trees and replanting them, hoarding for the construction area, boring and concreting pile foundations for the main terminal building and viaduct (overhead entry and exit to main terminal building), etc. are in progress.  Under Package B, construction work commenced in 2017, and it was expected to be completed in February 2020.  However, work was delayed due to the Covid-19 pandemic situation that prevailed during the latter part of its completion. The contractor has been able to complete 94% of the work and the remaining polymer-modified asphalt overlaying will be completed within the next four months. Once completed, 23 new aircraft parking bases will be added to the new terminal.    Details of the project A concessionary loan agreement of Japanese yen (JPY) 45,428 million was signed in March 2016 between AASL and Japan International Co-operation Agency (JICA) for the construction of a new multi-level terminal building (Terminal 2) with an approximate floor area of 180,000 square metres, where arrivals and departures are separated vertically, consisting of two pier buildings, namely Pier 2 and Pier 3.  The new terminal would be designed for the provision of barrier-free access with many environmentally friendly initiatives. The new remote apron shall consist of 23 aircraft parking stands, GSE (ground support equipment) roads, and three stub taxiways. The new terminal building would feature 96 additional check-in counters, eight baggage claim belts, seven baggage make-up carousels, 16 contact boarding gates with 28 passenger boarding bridges, and six bus gates.  The scope also includes capacity enhancement of the incinerator, water treatment plant, and sewerage treatment plant.  The detailed design of the airport has been completed by utilising part of the previously signed loan amounting to JPY 28,969 million (approximately Rs. 36 billion). Altogether, JICA financing for the expansion of the BIA is JPY 74,397 million (approx. Rs. 92 billion) with 0.1% p.a. interest and a 40-year repayment period.  The new passenger terminal building was scheduled to be open in 2020.  A year prior to the commencement of the project, the BIA handled 8.5 million passengers in 2015, and exceeded its capacity of six mppa (million passengers per annum) and received 28 airlines serving some 45 destinations.  In February this year, Sri Lanka had decided to take up with the Japanese Government the inordinate delay in the completion of the expansion and modernisation of the airport by the Japanese company.  However, when contacted by The Sunday Morning, AASL Chairman Maj. Gen. G.A Chandrasiri said nothing had been discussed between the Government and the Japanese Embassy regarding the project, and like many other projects, it had been delayed due to the issues prevailing in the country.  He, however, denied having major issues regarding the delay of the construction and the Chairman also refused to comment on the alleged disputes between subcontractors.  Meanwhile, when contacted by The Sunday Morning, Ministry of Tourism Secretary S.Hettiarachchi said a decision was supposed to be made by the AASL on the rejection of the Chinese subcontractor for earthworks and concrete works for Package A of the BIA expansion project Phase II.  "We held a discussion a few days ago too with the participation of JICA members and all other relevant parties. The rejection of the subcontractor was merely due to some documentation issues and therefore, they were supposed to discuss it further with AASL and take a final decision," he said.  Commenting further on the delay of completing Package B, Hettiarachchi said there was a clear delay and necessary arrangements have been made to avoid further delays and complete the project as soon as possible.  


More News..