Another Sri Lankan construction project goes to a Chinese firm

Sri Lanka has awarded a contract to build an important expressway in its capital Colombo to a Chinese firm, China Harbor Engineering Cooperation, the same firm which is set to build the controversial Port City Colombo

May 26, 2021
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Construction project

Sri Lanka has awarded a contract to build an important expressway in its capital Colombo to a Chinese firm, China Harbor Engineering Cooperation, the same firm which is set to build the controversial Port City Colombo. The firm will build the expressway, which will be elevated type, connecting the Athurugiriya Interchange and the New Kelani Bridge in its capital. 

“The Cabinet approval was granted to award the contract for the construction of the elevated highway to Kelaniya New Bridge (NKB) via Rajagiriya connecting Outer Circular Highway at Athurugiriya to the China Harbour Engineering Company (CHEC),” Udaya Gammanpila, the country’s energy minister and co-spokesperson of Cabinet. 

China Harbor is a subsidiary of China’s majority state-owned firm, Chinese Communications Construction Company (CCCC). 

The project will be built on a BOT ( Build, operate, and transfer) basis.  

“Project will be completed in 3 years. They have been given another 15 years to operate and earn their revenue. After 18 years, the company has to hand over the elevated highway to the Sri Lanka government” Gammanpila, was quoted as saying by Daily Mirror said. 

This is the second major project that went to a Chinese firm in recent months. Earlier, the Sri Lankan government had awarded a renewable energy project on three islands in the Palk Strait of the Jaffna peninsula also to a Chinese firm. 

However, the move hadn’t gone down well with India, which later raised objections on awarding sensitive projects to the Chinese firm in places with close proximity to Indian territory. Later, the Indian government had even offered grant assistance as an alternative for the projects. However, it is not clear yet if the Sri Lankan government had taken up the offer. 

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