Construction mobilisation of BIA Terminal II faces delays

• Ministry awaits JICA concurrence on technical evaluation of 2 Japanese bidders
• Financial bids expected to be opened by end-Dec. 
• Construction mobilisation likely to take place only by June 2026

Construction mobilisation at the Bandaranaike International Airport (BIA) Terminal II project site is expected to be delayed until June 2026 as Sri Lanka needs to negotiate gap financing with the Japan International Cooperation Agency (JICA), according to the Ministry of Ports and Civil Aviation. 

Speaking to The Sunday Morning Business, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku revealed that they were currently awaiting the concurrence of JICA on the technical evaluation of the two prospective Japanese contractors who had submitted bids to serve as the main contractor for completing the BIA Terminal II project.

He added: “We have to first gauge their technical qualifications. We have sent our evaluation of the technical qualifications of the two bidders and are waiting for JICA concurrence. The contractor will be chosen after the financial bid is opened.”

Accordingly, Kodithuwakku noted that they expected to receive JICA’s concurrence and subsequently open the financial bids by the end of December.

However, he pointed out that while the chosen contractor could be identified once the financial bids were opened, executing agreements with the selected contractor and commencing construction mobilisation would take time. 

He attributed this to Sri Lanka needing to negotiate with JICA to secure additional funding in order to cover the anticipated financing gap for completing the BIA Terminal II project. 

“We can’t complete this project using the previous loan. Once the contractor is chosen, we will be able to identify the financing gap. We will then have to obtain funding to cover the gap. Without additional funding, we can’t sign an agreement with the chosen contractor,” he stated.

Accordingly, Kodithuwakku noted that construction mobilisation was likely to take place only by June 2026.

The BIA Terminal II project, formally known as the BIA Development Project Phase II Stage 2, aims to boost the airport’s annual passenger capacity from six million to 16 million. Construction on the project was halted in 2022 due to Sri Lanka’s economic crisis. 

Source: The morning