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Chinese, US firms vie for oil pipeline project
View(s):By Damith Wickremasekare
Chinese and US companies are bidding for a multi-billion rupee fuel pipeline project which is to begin next month and completed within five months. The Petroleum Ministry has called for bids for the installation of two pipelines connecting the Colombo Port and the Sapugaskanda Refinery. Minister Susil Premajayantha said five international firms — three from China and two from the United States — had shown interest in the project.
The cost of the project is estimated to be US dollars 45 million (Rs. 5.6 billion). Mr. Premajayantha said a long-term loan would be obtained from the same company, to which the tender would be awarded, and the loan would be repaid within 10 to 15 years. The minister said the present pipelines were more than 40 years old and three leaks were reported recently.
The project is to begin next month and has received approval from the Cabinet Sub Committee. These pipelines will be laid underground without causing hindrance to the people. The 18-inch pipelines will be laid for an eight kilometre distance. According to the tender, the company should complete the laying of pipelines within five months.
The tender will be awarded within the next two weeks.
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