The Government this week decided to rehabilitate 20 national highways at a cost of Rs. 58 billion over a three-year period.
The project will include 20 highways of about 4,300 km, according to Highways Minister Lakshman Kiriella, who proposed the project at this week’s Cabinet meeting.
The Government plans to rehabilitate 20 highways of A and B classes of a total length of 564.53 km at an estimated cost of Rs. 58 billion within the next three years.
With the aim of developing the capacity of local contractors, the Highways Ministry has decided to call for proposals from any interested local parties. The ministry has decided to call for proposals from local contractors who are capable of channelling funds from local banks with Grades C2 and above registration with the Construction Industry Development Authority (CIDA) for highway construction under the Swiss Challenge procurement method where counterproposals from interested parties will be invited by publishing a Request for Proposals. However, one particular local contractor will be eligible to undertake only one road under this project.
The ministry expects the bidding companies to make the necessary arrangements with a local bank to provide the required financing for the implementation of the project and submit, along with their proposals, the necessary documents from a local bank giving its terms and conditions and consent for providing the required funds to the RDA on a Treasury Guarantee.
The ministry notes that financing arrangements with a repayment period of a minimum of 15 years, inclusive of a grace period of 2.5 years at an interest rate of Average Weighted Prime Lending Rate (AWPLR) plus 2 to 2.5% would be acceptable, as this has been the practice with similar projects conducted by the Road Development Authority in the past.
Cabinet approves proposal for four-lane roadway
Cabinet this week approved a proposal to construct a 5.56-km-long four-lane roadway with two tunnels extending 4.36 km and 1.2 km in length, connecting Tennekumbura and Suduhumpola in an attempt to reduce traffic congestion in Kandy town.
The estimated cost is $ 252.30 million. $ 199.27 of the total cost for the construction will be granted by the Economic Development Cooperation Fund of Korea.