President Anura Kumara Dissanayake says China’s Export–Import Bank (EXIM) has agreed to provide a new concessionary loan in Chinese Yuan for the resumption of the Mirigama-Kadawatha section of the Central Expressway.
Delivering a special statement in Parliament today, President Dissanayake said that the proposal on the new Chinese loan will be approved at the Cabinet meeting scheduled for next Monday.
“Work on the Mirigama-Kadawatha section of the Central Expressway was halted due to the failure to continue with the previous loan repayment due to bankruptcy. The construction work is contracted to a Chinese firm. Our agreement is with the Chinese firm. Due to the suspension of the construction work, all their machinery and equipment have become dilapidated and unusable,” he said.
The President said, however, the Chinese company had proposed recommencing the construction work if the government pays compensation for their ruined machinery and equipment.
“We can’t grant the compensation overnight. Several discussions must be held. Both sides have submitted proposals on the compensation value. We must conduct an estimation for the compensation,” he revealed.
President Dissanayake pointed out that the loan provided by China’s EXIM Bank previously for the project was insufficient at present, under the current circumstances, adding that a higher loan was required.
“Due to this requirement, we need to conduct more rounds of discussions. We are happy to announce that China’s EXIM Bank has agreed to provide a loan in Yuan with many concessions. Once we get the loan, we can settle the contractor’s compensation and recommence the project,” he said.
The President also revealed that plans are underway for the construction of the Galagedera – Kandy stretch of the Central Expressway.
He said discussions are underway to secure foreign investments for the development project.
“If we are unable to get foreign investment, then the government will look at constructing the road using local investments. We intend to commence construction work by next year,” he added.
President Anura Kumara Dissanayake went on to note that several other development projects that were halted previously due to Sri Lanka’s bankruptcy cannot be completed under the previously offered loans.
“These projects need loans offering more money. They cannot be restarted immediately. These can be worked out only through fresh discussions, and it will take at least one to two years,” he said.
The President further assured that all development projects that were halted will be recommenced by this year, such as the Katunayake Airport and Expressway projects. (Newswire)
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