Sri Lanka seeks massive Chinese loan for Southern Expressway extension
View(s):The Sri Lankan government is seeking a massive Chinese loan for the Southern Expressway extension project up to Hambantota, much more than the money spent for the first phase of the Expressway from Kottawa to Galle, official sources revealed.
China’s EXIM Bank has agreed to provide funds for the construction work which will be carried out on the directions of the Ports and Highways Ministry, a senior government official said.
Agreement was reached on the funds during the President’s visit to China last year.
The President as the Minister in charge of Ports and Highways Ministry has submitted a cabinet memorandum recently seeking cabinet approval for a massive Rs.52.15 billion to extend the Southern Expressway from Mattala to Hambantota via Andarawewa (25 km)
This estimate was very high and unrealistic compared to the total cost for the completion of the first phase of the project from Kottawa to Galle, a senior official who wished to remain anonymous told Business Times adding that this 96 km stretch of road was built at a cost of Rs. 65.67 billion. The money spent to pay compensation for lands taken over from people in the area was also included in this total cost, he added.
The cost for the construction of one km of road under the first phase was Rs. 684 million whereas the estimated cost for one km of the stretch of road from Mattala to Hambantota is Rs. 2086 million.
The Southern Expressway extension from Matara to Hambantota will be done in three stages: the first stage from Matara to Beliatta (30 km), second stage from Beliatta to Wetiya (26 km) and the last stage from Mattala to Hambantota via Andarawewa (25 km).