Chinese contractor strongly denies Outer Circular Highway cost is inflated
Posted on May 25th, 2015


A spokesman for the Metallurgical Corporation of China Ltd. (MCC), which is the main contractor which has undertaken to construct the Outer Circular Highway Phase III, firmly rejected certain media reports over the weekend alleging that the project’s costs have been inflated.

The spokesman said that MCC which is the contractor for the Colombo-Katunayake Expressway is one of the top ten global contractors and hence highly treasures its reputation. It has also completed all its contracts world-wide to high quality standards with its professional knowhow. The company has always honored its contract with those who have hired it.

Pointing out to the Outer Circular Highway Northern Section II, the spokesman said the particular contract was signed on 22 February 2013 and not on 31 January 2013 as mentioned in the news report. Also, the loan agreement with Exim Bank was for 494 million USD ant not 66.7 Billion Rupees (520million USD).

The cost of this project is reasonable and competitive when compared to other sections of the Outer Circular Highway. The contract was reached after many rounds of very hard negotiations between MCC and the Road Development Authority (RDA) of Sri Lanka. MCC respects the RDA negotiators’ professionalism and loyalty to their country. Sri Lankan negotiators tried their best to cut the cost of the project in order to save every single rupee for their country,” the spokesman said.

He also-pointed out that it is unrealistic and unscientific to compare the costs of this project with that of Colombo Katunayake Expressway (CKE) in a simple way since the geographical conditions and scope of these two projects are completely different and the rates for material and manpower have heavily increased during the past two years.

The initial design of this Project was made by the RDA with the objective of avoiding high costs and delays due to land acquisition as the project would cross a large area of marsh and swampland. However this design concept has proved to be reasonable, economic and efficient by the professional institutions of the RDA and China’s EXIM Bank which provided the loan after a very detailed evaluation.

The MCC honors its contract with the Sri Lankan Government and the RDA and hopes that they too would do the same, the spokesman firmly reiterated.

3 Responses to “Chinese contractor strongly denies Outer Circular Highway cost is inflated”

  1. Ratanapala Says:

    It is obvious that the Yahapalana idiots and the ‘waiter’ who heads everything haven’t got a clue as to what they are talking about. Obviously making a motorway spanning paddy fields and marshy land cannot be the same as going over solid ground. It cannot be same as having to go through heavily populated areas where so many provisions have to be provided for existing roads, culverts and even take into account environmental considerations. The constructions in Sri Lanka cannot be compared to those in other countries like India, Kenya or Australia as most of the conditions as well as topography is entirely different.

    It was all slander and false allegations and more slander that brought these Yahapalana traitors into power. We highly appreciate this effort of Metallurgical Coroporation of China (MCC) to clear the misconception created in the minds of the public by the traitorous United Christian Party (aka UNP) government.

    Now they are squirming like the proverbial cat that crapped on stone and got crap all over its face.

    We sincerely hope that the days of these imposters will soon be at an end. Patriotic people of Sri Lanka will give their verdict to make them vanish into oblivion.

    At the same time we apologise to the Chinese government, MCC and the people of China regarding the attempts by the Yahapalana donkeys to bring them to disrepute.

  2. Metteyya_Brahmana Says:

    When you defame the reputation of the largest investors in Sri Lanka, it is a self-inflicted wound that ultimately harms Sri Lanka. It is unfortunate that ANY investor has to tolerate this foolishness from Ranil and the UNP, and Mahinda should showcase ‘investor defamation” and ‘arbitrary action’ by the UNP as the CHIEF cause of investors staying away from Sri Lanka.

  3. Kumari Says:

    This Yahapalana puppets took control of the government (with the help of External Elements) not to progress the country. But to make it a failed state. Examples are the back tax on corporations, Arjuna Mahendran saga to put up interest rates to all businesses, 19th Amendment (for some luck sanity prevailed when the real opposition managed to water it down), now blaming the biggest investor in the country.

    It is high time, the ordinary man/woman demand a fresh election as the Jan 8th was based on a lie.

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