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Multibillion road project for Access
View(s):Access Engineering PLC has won Government approval for a near seven billion rupee project to rehabilitate 23 kilometres of highway from Kadawatha to Nittambuwa on the Colombo-Kandy Road.
The move came after the company, which is undertaking a number of projects under the Government, submitted a proposal.
President Mahinda Rajapaksa, who is also Minister of Ports and Highways, told his Cabinet colleagues “that the Government had decided to select domestic contractors for the rehabilitation of national highways with the intention of developing their capacity.”
In its proposal, Access International PLC has estimated that the project would cost Rs. 7,122,434,713.22 excluding VAT. The Standing Cabinet Appointed Procurement Committee (SCAPC), President Rajapaksa pointed out “requested the contractor to offer a reasonable discount as the contract sum offered by them is higher than the engineer’s estimate. But the representatives of the contractor explained their difficulty to offer a further discount as they have already agreed to absorb the risk of price escalations that could occur beyond the provisions stated in the negotiated contract price.”
Under the programme funded by the local banks, Access Engineering PLC will receive the negotiated Rs 6,956,047,225.24 excluding VAT. The Department of External Resources will negotiate the terms and conditions of the funds with the local bank.
The Road Development Authority is to borrow the contracted amount on a Treasury guarantee in consultation with the Department of Treasury Operations to implement the project.
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