Central Expressway: How is the construction moving ahead if the Govt. has no funds?

Central Expressway: How is the construction moving ahead if the Govt. has no funds?

Written by Lahiru Fernando

22 Oct, 2017 | 10:41 pm

Construction work on Central Expressway’s Phase 1 continues to move ahead despite delays in obtaining the required funding for the project, said the Road Development Authority.

The Sunday Times however has reported that the work has been put on hold due to continuing delays in gettin funds from the Exim Bank, China.

Phase 1 construction is being financed through a loan of US$ 1.1 billion.

But the Sri Lankan authorities are yet to receive the funds from the bank. So how is the project moving ahead?

The contractors are working with their own money until the government receives the required funds from Exim Bank, RDA Chairman Nihal Sooriyarachchi told News 1st.

This phase of the expressway was supposed to begin in June 2016 and conclude by 2020.

The RDA Chairman says that there is no stoppage in work. However, he did say that the rate of progress is ‘not what was expected’.

He added that the Exim bank is in the process of finalizing the loan and that the loan agreement is yet to be singed.

Also the Sunday Times quoted an official from External Resources Department today (October 22), saying “the government is keen on obtaining the loan from the Exim Bank as it had a fixed interest rate and was repayable in 20 years with a 5 year grace period.”

Sunday times also reports that the negotiating another loan for the project could delay the entire process and the project itself.

Finances are yet to be obtained.

How is the construction work on Phase 1 of the Central Expressway is moving ahead with Cabinet approval?

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