The Bandaranaike International Airport (BIA) Terminal II project is expected to take a further 30 months to complete once awarded to the prospective Japanese contractor, according to the Ministry of Ports and Civil Aviation. Only about 30% of the project was completed under previous administrations.
Deputy Minister Janitha Ruwan Kodithuwakku stated that the technical evaluation of the two Japanese firms that submitted bids has been completed, and authorities are awaiting the Japan International Cooperation Agency’s (JICA) concurrence, which is expected within six weeks. Once approval is received, financial bids will be opened and the contract awarded to the lowest responsive bidder.
The project is divided into two packages: Package A, which covers the terminal, car park, and access roads, has only 15% completed, while Package B, involving a hangar, is largely finished.
The $564 million project was originally awarded to Taisei Corporation in 2020 but was halted due to a JICA funding freeze after Sri Lanka’s default, leading to the termination of the contract.
The Terminal II construction, part of Package A, was initially estimated at Rs. 133 billion, mostly funded by a Special Terms for Economic Partnership (STEP) ODA loan from JICA of Rs. 131.5 billion (¥74.4 billion) at 0.1% interest per annum, with the remaining Rs. 21.5 billion provided by Airport and Aviation Services (Sri Lanka) Ltd. (AASL).
AASL had entered into two agreements with JICA for Package A financing: one in March 2012 for ¥29 billion and another in March 2016 for ¥45.4 billion. Once the new contractor is appointed, the Terminal II project is projected to be completed in approximately 30 months.
