Colombo, Aug 30: Despite an official freeze on costly mega projects, Sri Lanka Highway Ministry officials are pressurizing the country's Road Development Authority (RDA) to finalize a USD 550 million worth elevated highway, to a Chinese company. The reports were brought in by Sri Lanka's local media.

 

 

 

 

The officials, who are now holding closed-door discussions with the China Harbour Engineering Corporation, are promoting the New Kelani Bridge (NKB) as a "means to attract dollars into the country" despite the fact that the terms of the financing agreement are "deeply unfavourable" to the RDA. Due to the debt default, Sri Lanka cannot borrow from China Exim Bank or other sources immediately, so CHEC will secure a loan for the project, which will be repaid by the RDA.

 

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The full arrangement is described as an "unusual type of BOT [build, operate and transfer] deal", that will require the authority to pay significantly more for the 17km four-lane expressway which will run the entire distance on pillars. The mandatory environmental impact assessment is also not complete. Efforts to try and award the final contract contravene at least one court order to suspend the process pending the final determination of a judicial challenge against the Rajagiriya to Athurugiriya section on environmental grounds. More than 3km of this stretch will cross the Averihena Tank and surrounding paddy fields which are part of the Thalangama wetland.

 

In February of this year, the Appeal Court issued an interim order preventing the construction of the expressway until it concludes hearing a petition filed by another resident. It was observed that the Environmental Impact Assessment (EIA) pertaining to the project had not been obtained. The case will be taken up on Dec 5.