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Chinese company gets huge railway contract
A Chinese company will be awarded the second and third stages of the railway line extension project from Beliatta to Kataragama to be constructed at a cost of US$ 600 million or Rs 7.7 billion, Transport Minister Kumara Welgama said yesterday. He said the funding would come as a loan from the Exim Bank of China and the construction would be done by the China National Machinery Import and Export Corporation (CNMIEC). The first phase of the project from Matara to Beliatta to extend the railway line by 28 kilometres is already under construction by CNMIEC at a cost of US$ 272 million (Rs. 3.5 billion).
“We have decided on the Chinese company as the Exim Bank has agreed to grant a loan for the project,” Mr. Welgama said. Matara-Kataragama Railway extension project director V. Amaratunga said that the first phase would be completed in 2016. “Another reason to decide on the Chinese company is that it was the same construction company which carried out the harbour and airport projects.”
He said the railway line beyond Matara would go in parallel with the southern express way, though the initial plan was to build the track along the coast.
Mr. Amaratunga said Rs. 22,000 million had been paid as compensation for the land acquired.