Japan to invest again in Central expressway Phase III
Japan has expressed interest in investing again in Sri Lanka’s Central expressway Phase III project from Pothuhera to Galagedara although the then government had rejected the Japanese contractor selected for the project in 2020, Minister of Transport and Highways Bandula Gunawardene said.
The government will be seeking Japan’s assistance in constructing the stretch of highway from Kurunegala to Galagedara with a plan of extending the highway up to Katugastota, he added.
The government needs foreign funding for the project which is being carried out by local contractors at an exorbitant cost which is more than Rs.52 billion, he disclosed.
The Central expressway Phase111 spans 33 km in distance and has four interchanges at Pothuhera, Polgahawela, Rambukkana and Galagedera.
The Pothuhera to Rambukkana stretch now being constructed by local contractors is due to be completed by next year. The Central expressway Phase III project is expected to be completed in July 2026.
The Government secured a loan equivalent of US$ 1 billion from the Bank of Tokyo-Mitsubishi UFJ Ltd (BTMU) in 2019 for the project. But during discussions with the Japanese team Sri Lanka pushed to obtain more favourable terms from BTMU.
The procedure for selecting a consultant and a contractor for the phase I, II and III of the Central Expressway had been contravened to the Section 1.1 of the Public Procurement Guideline, the Auditor General’s report revealed.
Fujita Corporation, the Japanese construction company which offered a lower bid to build the stretch of road in Central Expressway phase III, has been rejected by a tender evaluation committee on grounds that it was unqualified to implement such a massive project.
Only the bid offered by another Japanese company, Taisei Corporation has been awarded the contract. Taisei’s price is Rs. 159 billion while Fujita quoted lower at Rs. 147 billion.
The expressway project saddled with irregularities and malpractices dragged on amidst disparities on loan conditions between Sri Lanka and Japan since 2016.
Finally the then Government removed Japan from funding the Phase III of the Central express way in 2020 awarding the contract to a local consortium of contractors.
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