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Terminal project to restart post debt restructuring 

14 Aug 2022

  • Project suspension temporary: AASL  
  • Notes Taisei Corp. will recommence work after obtaining JICA approval
By Tanya Shan  The suspended Terminal II project at the Bandaranaike International Airport (BIA) will be recommenced by the same contractor after Sri Lanka successfully restructures its debt, according to the Airport and Aviation Services Sri Lanka (AASL).  Speaking to The Sunday Morning Business, AASL Chairman Maj. Gen. (Retd) G.A. Chandrasiri stated that the contractor, Japan’s Taisei Corporation, was not abandoning the project but only temporarily suspending work.  “Once our IMF restructuring work is completed, it will start the project once again. Before starting the project, Taisei will have to get approval from JICA, the funding agency for this project,” he stated.  Further, he noted that the AASL was working on different options as it was their duty to keep the project going until Taisei recommenced its operations. However, he refused to divulge these plans, stating that they were at the discussion stage and that implementation of these plans would require Cabinet approval.  Taisei initiated its plans to exit Sri Lanka last month amidst the ongoing economic crisis. With the Terminal II project nearing just one-fourth of its completion, AASL appeared hesitant to let the contractor go and was in the process of convincing Taisei to stay onboard. Taisei is one of the two contractors that bid for the Terminal II project that is being funded by the Japan International Cooperation Agency (JICA). The loan agreement of Rs. 56 billion was signed over four years ago on 24 March 2016. The project was long delayed due to issues between Sri Lanka and JICA, as the bid made by the Japanese contractors was significantly higher than the engineers’ estimate.  Since both Sri Lanka and JICA took years to settle the issue, an interim terminal for the interim period was planned, but that too hit a dead end due to legal issues, eventually leading the Government of Sri Lanka and JICA to settle bidders’ price issues. The project was finally commenced in November last year.   


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