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Elevated highway, transport ministry responds: We stand by our story – Right of Reply
View(s):The Secretary of the Ministry of Transport R.W.R. Premasiri has drawn attention to a news item published in the Sunday Times of August 28, 2022 under the title “Elevated Highway – Top officials push for Chinese Company on Unfavorable terms.”
“I wish to state that the content in the article mentioned does not provide right information to the general public in respect of the proposed project.
“The proposed elevated highway will connect recently build new Kelaniya Bridge (NKB) to the Aturugiriya interchange on the outer circular expressway via Rajagiriya. This proposed highway will be built as an elevated structure throughout the length of 16.4km having four lane configuration and four interchangers. Once build this highway, it will be a strategic highway providing connectivity between two sea ports in Colombo and Hambantota and between two airports at Katunayake and Mattala, this highway will facilitate traffic to enter through whole expressway network.
“The proposed elevated highway consists of two sections, namely, section 1, from new Kelani Bridge to Rajagiriya – interchange from 0+000 to 6+900 KM and Section II , Rajagiriya to Athurugiriya interchange from 6+900 to 16+400km. Road Development Authority has already received the approval for the Environmental impact Assessment ( EIA) for section I from the Central Environmental Authority (CEA) and draft final Environmental Impact Assessment report for section II has been submitted to (CEA) on 09/05/2022. The final report of the EIA is being analyzed by the consultancy of the University of Kelaniya incorporating the first Technical Evaluation Committee (TEC) comments of the Central Environmental Authority, moreover once the final EIA report is received from the consultancy team, Road Development Authority expects submit it to the CEA to open for public review and get CEA approval.
“Although RDA wants to construct this strategic highway connecting entire highway network to Colombo city no assured funding was available. Therefore, government decided to build this high way as a Foreign Direct Investment( FDI) project in order to attract eligible foreign investors and to build this highway based on design, build, operate, maintain and hand over to the RDA 15 years after commercial operation starts. In this model RDA will collect toll fee during the operation period of 15 years while government pay semi – annuity payment throughout the operation period. Since the investor finance the project borrowing money by the government does not arise at present.
“Accordingly, RDA invites bids through international competitive bidding process and selected M/S China Harbor Engineering Corporation of China as the preferred bidder since CHEC submitted the lowest evaluated substantially responsive bid. The Cabinet of Ministers approved the selection of CHEC as the preferred and cabinet appointed Negotiation Committee (CANC) started negotiation with the preferred bidder with the assistance from project committee comprising nine officers from RDA, BOI and Ministry of Finance to finalize concession agreement. After negotiation RDA submitted the concession agreement to Hon Attorney General for approval and Hon Attorney General provided his comments suggestions and advice while granting approval, by the time five parties filed petitions in the Hon Court of appeal seeking an injunction to suspend the planning and construction of section II citing reasons as section II crosses through environmentally protected area (EPA) at Thalangama [3.5 km stretch]. After considering petitioners submission Hon Court of Appeal issued an interim injunction preventing RDA in planning and construction of section II of the highway until EIA approval is received. On this background Ministry of Highways and the RDA will honour the interim order of Hon Court of appeal and there is no hurry to push through the project as your article stated.
Reporters note: The Ministry of Highways through its response to our report has merely confirmed the facts published therein. We stand by our story, including that efforts to tie up the final contract have been expedited by certain officials in the Ministry. While the statement has referred to the DBOFMT model, the Ministry has revealed neither the current cost of the project nor repayment figures (in numbers). In the case of most mega projects, whatever the model, the devil has always been in the detail. The Ministry is welcome to publish the details, online or otherwise, in the interest of full transparency. This includes the quantum of financial risk that CHECH will be factoring into its agreement in monetary terms and what the expected earnings (returns on investment) and semi-annuity payments will be. These must be in concrete numbers, projections included.
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