EXCLUSIVE: Moves to cancel local contracts already offered for Sri Lanka’s Northern Expressway

February, 23, 2015

The former government has selected local contractors for the Northern Expressway project, considered the largest such projects in Sri Lanka, not on a competitive and open basis and hence action would be taken to cancel these contracts, Deputy Minister of Highways and Investment Promotion Eran Wickramaratne told www.adaderanabiz.lk.

The Minister said that when the suspended construction work of the Northern Expressway project is resumed, instead of the current contractors, the new government would pick a team of local contractors through a open and competitive process.

“These contracts have been offered without any transparency. We will cancel these contracts,” said Wickramaratne.

The Northern Expressway project was begun in haste by the former government when the Presidential election was drawing closer. The estimated cost for this project was nearly Rs. 400 billion.

The first phase of this expressway was to be constructed beginning from the Enderamulla intersection of the Colombo outer circular highway, via Gampaha, Veyangoda, Mirigama, Pothuhera, Kurunegala and ending at Galewela. The distance is some 120 kilometres.

While five local contractors were selected for the construction of nearly 90 kilometres of this expressway, they have already made preparations to obtain loans from local as well as overseas banks.

The initial section of this expressway up to Veyangoda was planned to be constructed through a World Bank loan facility.

The Colombo-Kandy Expressway is also included in the first phase of the Northern Expressway. The Kandy Expressway was planned to link with the Northern Expressway at Pothuhera and up to Gannoruwa via Rambukkana and Galagedara. This is a stretch of some 55 kilometres.

In terms of investment and complexity, this could be considered the largest development project undertaken in Sri Lanka and has been fully planned by the engineers at the Road Development Authority.