Vinci Construction to launch work on US $ 200 m Colombo - Katunayake Expressway

Hiran H.Senewiratne

EXPRESSWAY: The world’s largest construction company, Vinci Construction Grands Projects SAS (Vinci) signed a Memorandum of Understanding (MOU) with the Road Development Authority (RDA) last year and subsequently submitted the technical proposal on February 15, which was accepted by the RDA on March 20 to launch work on the Colombo- Katunayake Expressway (CKE) .

“This is a US$ 200 million project scheduled to commence mid this year and would be completed in 36 months,” Vinci- Sri Lanka Coordinator Shriani Rambukwella said.

She said HSBC was mandated as Lead Arranger for the project. HSBC worked with several banks and export credit agencies to bring in a competitive funding structure.

The structure took into account the construction period and brought in extended grace periods and longer tenors to match the repayments of the loans with the expected toll revenues, she said.

Rambukwella said the Sri Lankan Government would not have to begin repayments, until the project is completed and opened for traffic.

Vinci have begun discussions with leading construction companies and other service providers, as they are keen to use the maximum of local resources.

Vinci Construction have designed and built, some of the largest projects in the world, which include the tunnel between the UK and France, the longest bridge in Portugal/Europe, airports, dams and is the world leader in building and managing expressways.

She said just two months ago, they were awarded the 368 kms project of highways in Greece.

“The vision of President Mahinda Rajapaksa to place infrastructure projects on a high priority, is now a reality, with this and other major projects taking off ground,” Rambukwella said.

She said that Vinci Group was impressed by the speed at which the administration process in the relevant Ministry and agencies has progressed and the vision of the Minister of Highways Jeyaraj Fernandopulle in encouraging public/private partnership in road development.

Vinci Grands Projects have also been nominated to undertake the Matara-Weerawila Feasibility Report, which is expected to be funded by the French Government and is scheduled to commence shortly.