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BIA Terminal I expansion project commences

The project to expand the check-in counters and lobby area of Terminal I of the Bandaranaike International Airport (BIA) has commenced, with three further connected projects due to be awarded within the next two months.

The commencement comes as the Government moves to increase the capacity of BIA Terminal I to 10 million passengers per annum.

Speaking to The Sunday Morning Business, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku said that the Government had granted a one-year project to Maga Engineering Ltd., which involved building 36 check-in counters and a fully equipped lobby area.

He said that Maga had now commenced mobilisation for the project.

The Deputy Minister further noted that there were three more connected projects related to the BIA Terminal I expansion that were scheduled to be awarded, with one expected to be awarded within this month and the remaining two before the end of next month.

“All of these projects are expected to be completed within 12 months,” Kodithuwakku stated.

Commenting on the new BIA Terminal II project, which remains stalled after the previous contractor abandoned it during the payment freeze precipitated by Sri Lanka’s sovereign default, he said that they were at the final stage of selecting the contractor from the two bids received.

The contract for the construction of the BIA Terminal II project, which involves the construction of a multi-level terminal, was valued at $ 564 million and was initially awarded to the Taisei Corporation in 2020.

However, following the stoppage of construction work in 2020 due to the funding freeze imposed by the Japan International Cooperation Agency (JICA) following Sri Lanka’s default, the Taisei Corporation terminated its contract with Sri Lanka.

The construction of the multi-level terminal is part of Package A of the BIA expansion project, which was initially estimated to cost Rs. 133 billion and was to be largely funded by the Special Terms for Economic Partnership (STEP) concessionary Official Development Assistance (ODA) loan granted by JICA, amounting to Rs. 131.5 billion (¥ 74.4 billion) at a 0.1% interest rate per annum.

The remaining Rs. 21.5 billion was to be funded by Airport and Aviation Services (Sri Lanka) Ltd. (AASL).

With regard to Package A, AASL entered into two agreements with JICA. The first agreement was entered into in March 2012 for ¥ 29 billion and the second in March 2016 for ¥ 45.4 billion.