Tuesday, March 3, 2020

Government awards LKR 4.2 billion Road Connectivity Project tender to MAGA Engineering


Sri Lanka has an approximately 120,000-kilometer road network sufficient to meet 90% of transportation demand. The Road Development Authority (RDA) is responsible for the maintenance and development of national roads of the A and B classes and 4,480 bridges over the total length of highways. The regional councils were responsible for about another 15,000 kilometers of C and D-class highways. Local governments and other government and private institutions maintain and develop the balance.  

MAGA Engineering (Pvt) Ltd of Sri Lanka has won an international bid of 4.2 billion rupees to develop the roads from Kirulapone to Godagama, and from Pamankada to Pokunuwita in the Western Province, the cabinet office said in a statement.
The tender called under the Southern Road Connectivity Project of the Asian Development Bank and MAGA Engineering's bid chosen as the most competitive by the standing cabinet appointed commission on procurement.
Minister of Roads and Highways Johnston Fernando had submitted a proposal to provide the tender to MAGA Engineering, which had been approved by the firm.
The road improvements would include sub-base, aggregate foundation, and asphalt concrete overlay, concreting drainage maintenance and upgrades, culvert repair and installation, bridge building and expansion, traffic signals repairing, and street lighting, and service relocation.
OSL Take: The LKR 4.2 billion tender awarded by the Ministry of Road & Highways is indicative of the continuous growth of Sri Lanka’s economy. It is also indicative of the growing business potential in the country.
Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country, and the many trade agreements, as well as trade concessions enjoyed by the state, have made Sri Lanka the ideal business destination in the South Asian region. Therefore foreign businesses/investors could confidently explore business/investment opportunities in Sri Lanka.
The newly elected government aims to improve the following roads in the coming months:
  • Colombo-Kandy Expressway and the Port city elevated highway project will be extended and finished without further delays. The network will also connect Kottawa, Battaramulla, and Peliyagoda.
  •  The Northern and Ratnapura expressway will also complete, while feasibility studies will conduct to explore the possibility of having an elevated highway at 1000 feet connecting Kandy to Nuwara Eliya.
  •  They will also incorporate an overtaking lane at intervals of 3-5KM to ease the traffic congestion in areas identified as bottlenecks.
  •   The island-wide network of roads amounting to 120,000 KM, which includes all rural roads, has neither been developed nor maintained. Therefore, the entire road network that has fallen into a state of disrepair and neglect will be resurfaced and modernized to conform to international standards.

OSL, as the pro-active FDI generator to the island, now calls upon Chinese investors to partner with OSL to bid for Road network-related Projects open for investment through the PPP model. Have a free consultation with the biz-friendly OSL Team today to learn more about the scope available and the way to move forward.
VBS/AT/20200303/Z_TB7

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