BIA expansion project to be spearheaded by Japanese firms

The Cabinet has decided to award the expansion of the Bandaranaike International Airport (BIA) to Japanese firms after negotiations ended over a disagreement about the figures quoted for the project, which began under the former Government.

In view of the high cost of the project, negotiations began between the Cabinet Negotiating Committee and the Japanese companies Taisei and Obayashi Corporation in August last year, to reduce the quoted figure of Rs 37. 9 billion.

The former Government had proposed for the quoted figure to be reduced to accept the tender.

Accordingly the companies had quoted a figure of Rs 2.8 billion less than the earlier figures quoted, enabling the Government to go ahead with the project.

The former Government realised the engineering cost quoted was much higher than the average cost, Airport and Aviation Services Ltd Former Chairman Dhammika Ranatunga told the Sunday Times . Mr Ranatunga said the companies were advised to re-evaluate their figures and resubmit the project's proposal which was being funded by the Japan International Cooperation Agency (JICA). He said the companies were told international bids would be called if the figures were not revised.

Airport Aviation Authority Chairman H.M.C. Nimalasiri told the Sunday Times the expansion of the air port was urgent as the current capacity was for six million passengers a year, but 10 million passengers were being handled annually.

He also said the project is already overdue by about seven years.