Cabinet decision - Clarification

Subject: Outer Circular Highway (OCH) Project - Award of contract for the construction of 9.32 km long section from Kadawatha to Kerawalapitiya (Northern Section II) to Chinese Company.

The press release said that the proposal made by the President, in his capacity as the Minister of Ports and Highways, to award the above contract to Metallurgical Corporation of China Ltd, of the people's Republic of China at a contract price Rs 66.69 billion as recommended by the Standing Cabinet Appointed Procurement Committee, was approved by the Cabinet.

However, in the second paragraph, it was inadvertently mentioned that the total 29.22 kms of the project is planned to be constructed in three phases on turnkey basis with funding from China EXIM Bank.

Only the third and the last phase of this outer circular road has been entrusted with China.

The Southern section from Kottawa to Kerawalapitiya and the Northern Section - 1 from Kaduwela to Kadawath are under construction with funding assistance from JICA and not with funding from China Exim Bank as inadvertently reported in the release.