Monday, July 18, 2011

A CHINESE DEATH TRAP

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Monday, July 18, 2011
The cabinet memorandum signed by the Presidentand Mahinda Rajapaksa--A9 Road and Hu Jintao

On June 21 this year, Mahinda Rajapaksa as Minister for Ports and Highways signed a Cabinet Memorandum stating that the Government had signed a Memorandum of Understanding (MOU) with China Development Bank Co Ltd., (CDB) to the tune of 15 billion rupees.
Accordingly Rs. 15 billion worth of contracts the cabinet paper says have already been awarded to China.
Therefore, CDB has now agreed to finance a further USD 500 million for road projects for which negotiations are currently being held.
Another USD 1.5 billion has been promised by China Development Bank as financial assistance within three years for the construction of roads, bridges, water supply and irrigation schemes.
The government has planned to upgrade 2,510 kilometers of national roads in the next two years.
This will include the construction of two flyovers in Hambantota at an astronomical cost of Rs. 6 billion. One is to be constructed at Mattala airport and the other at a bypass road junction in Hambantota. They will cost Rs. 3,090 million and 2,890 million rupees respectively.
Director General for the Department of External Resources has informed the Secretary, Ministry of Ports and Highways to call for quotations from three Chinese contractors nominated by CDB. Read More »
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