News
Fresh proposals, bids called for New Kelani Bridge and Central Expressway
The Presidential Secretariat this week instructed the Highways Ministry and Road Development Authority (RDA) to call for fresh proposals for the New Kelani Bridge to Athurugiriya and to also accept bids for section III and IV of the Central Expressway.
The Government will not encourage debt-funded projects, annuity (a series of payments made at equal intervals) payments to meet revenue shortfalls or guaranteed traffic as these options are not affordable, says a letter from Secretary to President Gotabaya Rajapaksa P B Jayasundera, to the Highways Ministry and Board of Investment (BOI).
A new request for proposals (RFP) was, therefore, floated by the Highways Ministry on Friday for the New Kelani Bridge, indicating a continuing investor battle for these lucrative projects.
Mr Jayasundera observes that several parties have submitted letters of intent or interest to the BOI for the two initiatives on a build, operate and transfer (BOT) basis. Most of them were “largely of an unsolicited nature”. The BOI had maintained that these proposals were inadequate for serious follow-up unless “substantive technical and financial content,” were included.
On Wednesday, Mr Jayasundera instructed the Highways Ministry and RDA to issue a detailed RFP for the New Kelani Bridge to all parties who submitted letters of interest to the BOI or the Ministry and who were present at a meeting that was convened on the matter.
The proposals must strictly comply with the RFP and be presented within 90 days from November 5, 2020. The financial bid must be a firm commitment supported by a funding pledge from reputed international banks.
In the case of CEP III and IV, parties are requested to submit their proposals in both BOT and EPC contract basis supported with technical and financial proposals confirmed by international institutions and banks regarding the bankability of the project.
Earlier this year, the Highways Ministry said it had accepted an unsolicited proposal from China Harbour Engineering Company (Ltd) for the elevated expressway from Athurugiriya to New Kelani Bridge via Rajagiriya, even though bid documents had already been finalised to call an open tender. The latest development has put paid to that strategy.
Separately, negotiations were opened with a consultancy company called M/s Roughton International (Pvt) Ltd for a section of the Central Expressway with financing purportedly from United Kingdom Export Finance (UKEF).