Chinese company to get 600 mln USD railway project in Sri Lanka
A Chinese company is to be awarded the second and third stages of a railway line project valued at 600 million U.S. dollars in Sri Lanka, an official said on Tuesday.
The project in southern Sri Lanka will be between the towns of Beliatta and Kataragama, according to Transport Minister Kumara Welgama.
Funding would come as a loan from the Exim Bank of China and the construction would be conducted by the China National Machinery Import and Export Corporation (CNMIEC).
The first phase of the project from Matara to Beliatta to extend the railway line by 28 km is already under construction by CNMIEC at a cost of 272 million U.S. dollars.
“We have decided on the Chinese company as the Exim Bank has agreed to grant a loan for the project,” Welgama told reporters.
The first phase of the railway line is expected to be completed by 2016.
The railway line will run parallel to a highway also built mostly with Chinese funding.
Since Sri Lanka ended a 30-year war in 2009, China has emerged as the island’s largest loan provider, granting 1.2 billion U.S. dollars in 2009 and 821 million U.S. dollars in 2010. Last year alone, China accounted for more than a quarter of all foreign funding coming into Sri Lanka, according to the Sri Lankan Finance Ministry.
China remains involved in almost all the large scale projects taking place. Some of the biggest projects include a 1.3-billion-U. S.-dollar coal power plant on the northwestern shore and a 1.2- billion-dollar harbor in the south. (Xinhua)
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I am happy that The country’s infra-structure is being built expertly by Chinese companies rather than Indian, who are bloody rogues. China also provide loans at low interest.
I hope Hon President consider 99 year lease of the Trinco port to China to develop it and build a naval base to counter ever increasing threat from India and USA. It should be on terms favourable to us, such as, China to provide us ships and aircraft for our defence and also be our ally in our defence if attacked by foreign forces.
The Chinese are building 3rd class infrastructure in Sri Lanka on Chinese loans at 3 times the commercial interest rates.
Our future generations will pay heavily for these loans, long long after ND and AUJ are safely 6ft under ground !!!
No wonder, ND is thrilled at the prospect of riding on rattling new rail tracks and living in darkness caused by Power Stations that never work.
Hands off Trincomallee. it is a God’s gift, a natural harbour.
Just as we do not want the yankees there, we do not need the Chinks there, as well.
I beg to differ in my views from blog 2 and 3.
Blog 2: It is rail tracks laid by India at high cost that is defective along with their rolling stock. Indian loans were at high rates while Chinese loans were on very favourable rates. Trade with India is to our loss because of high costs for defective goods. This is not so with China.
China has developed in leaps and bounds. China has become an economical marvel in the world today. China will help us also to develop on fast track. Hence cut trade links with India and open new trade links with China as the West does. Chinese goods are now sophisticated and of high standard.
Blog 3: We need an ally as powerful as China to counter impending invasion by India and USA plus NATO, following sanctions etc in order to help TNA and Tamil nationalists to gain power over the whole island, not just the N and E. That is just hog wash! The imperial USA and Britain are doing this due to their hidden agenda for US supremacy in SE Asia, to dominate India and the whole world.
Bravo, well said. It will be the Samsudeens’, Thanabalasingams’ and Podi Menikes’ grand children and great grand children left behind to pay off the enormous loans and not the likes of the ones you have mentioned who will well be in gaga land by then. Any country that builds infrastructre at this rate on borrowed money will leave the burden of repaying the loans to eternity. Politicians will change but the loans will still be there to be paid off back. It is unwise. The only benefitiary in this whole epizode will be the chinks.
50% for their pocket,
I am fascinated by comments of Blogger 4, Nicholas Dias. he appears to be a typical Sri Lankan social leader who has no idea what benefit-cost analysis means.
These leaders have no rational thought; they build harbours, airports, roads etc that are never wanted by potential users. Sri Lanka is creating a white elephant infrastructure which is incapable of providing a just return to the investors in the grandiose projects.
The investors happen to be the amude-wearing farmer (and taxpayer) who toils 20 hrs a day for survival. The Pakse leadership is in the doldrums and the end is near.