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More Chinese funds sought for Mattala airport
View(s):Over Rs. 26 b already spent; Rs. 9 b more needed to complete project
Sri Lanka will ask China’s Exim Bank for US$ 72 million or Rs. 9.1 billion more to complete the new showpiece Mattala International Airport in Hambantota.Now under construction, the airport has already cost the Government US$$ 209 million or Rs. 26.6 billion, of which US$ 190 million or Rs. 24.2 billion has come from the Exim Bank of China.
According to a memorandum submitted to the Cabinet by Civil Aviation Minister Priyankara Jayaratne, extra money is required for two purposes. One is the “cost on additional works” amounting to US$ 45.5 million or Rs. 5.7 billion.
The other is described as “price escalation” amounting to US$ 26.5 million or Rs 3.3 billion.
Mr. Jayaratne has sought approval from his ministerial colleagues to request a proposal from the China Harbour Engineering Company Limited to “design and build additional work”. Whilst recommending that the contract value of the project be enhanced, he has also asked to “obtain supplementary loan from China Exim Bank” to meet the additional financial commitment.
Minister Jayaratne has said additional work would include the construction of a hangar and taxiway for SriLankan Airlines, an external access road and the building of a cargo apron and taxiway.Whilst pointing out that additional costs due to inflated escalation costs of plant, material and labour would be US$ 20 million or Rs. 260 million, cost on variation work related to the expansion of the passenger terminal building and other facilities, work related to runway, additional turfing work related to runway, airfield gardening, costs due to increase of power supply and navigational aid would cost $ 26.5 million or Rs. 3.3 billion.
The Civil Aviation Minister has told the Cabinet that SriLankan Airlines has “committed to establish a Maintenance, Repair and Overhaul (MRO) facility at the international airport and requested to construct a four-bay hangar and apron and connect an additional taxiway on the southern part of the aerodrome.”
The SriLankan Airlines has been making colossal losses annually. In 2011/12 it recorded a Rs. 17 billion loss. This was in marked contrast to the loss of Rs. 175 million in 2010/11. Minister Jayaratne has said the extent of the passenger terminal building at present is 10,000 square metres and the cargo building is 5,000 square metres. He adds, “At the design review stage, it was highlighted by the Design Review Consultant that the terminal building should have a segregated passenger flow and required to be widened to facilitate for the forthcoming aviation growth.”
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