New five-year financial policy plan for mega projects

The Government has introduced a 5-year financial policy plan for all mega projects undertaken by the Road Development Authority (RDA) and the Urban Development Authority (UDA). 

Normally, the investor would finance 85% of the project while the Government would finance the balance 15%. As per this policy plan however, investors who undertake a mega project will have to finance 100% of the project by themselves, explained R.W.R. Premasiri, Secretary to the Ministry of Roads & Highways. 

Under the new plan, the Government will also not be paying capital for the completed project for a period of five years, lessening the burden on the Treasury. A percentage of the interest will however, be paid after a period of two years. 

Mr Premasiri said the policy plan will be implemented for three upcoming highway projects, namely Section III and IV of the Colombo-Kandy Expressway (Pothuhera-Galagedara and Kurunegala-Dambulla), as well as all 3 sections of the Ruwanpura Expressway.