This is a very bad move. CMB Airport really need more gates and passenger handling capacity to cater the demand. Already its full with the current capcity, its already too late, because current project also planned to complete 2017. But if its getting further delayed, it will be a disaster.

No frills for Mihin, no frills at BIA

By Sunimalee Dias
View(s): 65

While SriLankan Airlines and Mihin Air would merge according to state plans, the budget carrier would however operate mainly to carry pilgrim traffic, Ports and Aviation Minister Arjuna Ranatunga said in Colombo on Wednesday.

Speaking to the Business Times on the sidelines of a media briefing, he noted that while the merger would take place Mihin Air would primarily cater for pilgrim traffic adding that the carrier had performed better than the national carrier.

The report on the merger would be released on March 31, he said without indicating the manner in which this merger would be carried out.
Minister Ranatunga observed that in respect of the route planning for SriLankan Airlines, the routes that were not feasible would be removed in future, though no decision was taken on the specific routes yet.
The minister declined to comment on the interim report submittedby the senior lawyer J.C. Weliamuna-led committee. The full report is scheduled to be ready by March 31.

Further, addressing the media he said the VIP lounge at the Bandaranaike International Airport (BIA) would in future be restricted without allowing any person with influence to use it.

The minister explained that in the past even top businessmen were found using this VIP lounge by simply calling a politician and allowed its use without any formal papers.

He added that this trend would be stopped and no one’s relatives either could use the lounge except for those it is catered for.
The air strip at the BIA has to undergo development, he said, adding that would be carried out at a reduced cost of US$30 million. The minister noted that the Japanese government had provided a loan for the infrastructure development activities at the airport.

Some of the additional costs involved in construction would be cut down, he said like the lotus flower roof that was simply a showpiece as a result of which around $4-5 million would be saved on expenditure.



Damn, really liked that Lotus roof!

Sri Lanka to call fresh bids for runway repair

Mar 20, 2015 13:45 PM GMT+0530 | 0 Comment(s)

COLOMBO (EconomyNext) - Sri Lanka will invite fresh bids to upgrade the runway at its main airport after cancelling a deal given by the former regime to a local firm that was 25 percent higher than government estimates.

Ports and Aviation Minister Arjuna Ranatunga has recommended that bids be obtained from "reputed international construction contractors" and request for proposals to be sent to three firms directly.

They are Al Naboodah Construction Group LLC Dubai, UAE, Colas Ltd. of Birmingham, UK and China Harbour Engineering Company, according to a proposal accepted this week by the Cabinet of Ministers.

Funding for the project to repair the runway at the island's international airport at Katunayake will have to be obtained by the contractor as a soft loan, according to the aviation ministry proposal.

The government has cancelled an 85.8 million US dollar contract awarded by the former Rajapaksa regime to local construction firm Access Engineering.

This was because no competitive tender procedure had been followed in the award of the contract and Access Engineering lacked experience for the runway work, Ports and Aviation Minister Ranatunga told the Cabinet of ministers.

No major repair work has been done on the runway after it was opened to air traffic in 1986.

The International Civil Aviation Organization has recommended in their audit observation of Sri Lankan airports that an overlaying of the runway to improve surface condition has to be done.

This was to ensure "the safe operation of aircraft as some cracks have appeared on the runway surface," according to the proposal.

Access Engineering's original proposal in August 2014 was 103.6 million US dollars but this was negotiated down to 85.8 million dollars, which still "was 25 percent over the engineer's estimate," it said.

That original bid was subject to renegotiation with Access Engineering to reduce the final bid price.

But the then-Cabinet of ministers was told the negotiations were not successful and contract awarded o Access at 85.8 million dollars,

Ranatunga has said Access Engineering's "quoted price is also comparatively high" as revealed by inquiries from Al Naboodah Construction Group LLC of Dubai, UAE and Colas Ltd. Birmingham, UK which done similar overlay work on runways in Dubai International Airport and London Gatwick International Airport.

Sri Lanka Access Engineering explains runway deal

Mar 21, 2015 16:33 PM GMT+0530 | 0 Comment(s)

COLOMBO (EconomyNext) - Sri Lanka's Access Engineering has explained that a runway repair contract cancelled by the new government was awarded to it by the former regime after local contractors were encouraged to bid to acquire expertise despite not having experience.

The company said in a stock exchange filing that five local contractors invited to bid for the deal had explained they do not have the required experience and would not meet the required pre-qualification to carry out the work.

"The local contractors were informed that they could collaborate with foreign contractors to meet with the relevant pre-qualification and experience criteria and was invited to submit their proposals,” it said.

The government this week said it had cancelled the 85.77 million US dollar contract to repair the runway at the international airport at Katunayake the former Rajapaksa regime awarded to Access Enginering.

This was because no competitive tender procedure had been followed in the award of the contract and Access Engineering lacked experience for the runway work, Ports and Aviation Minister Ranatunga told the Cabinet of ministers.

The Access statement said two bids were received from two international contractors, Lagan Construction Ltd. of Northern Ireland and China Harbour Engineering Company Ltd. of China in May 2013.

Five local contractors were called to attended a meeting called by the Secretary, Ministry of Finance on 11th and 13th December 2013: Nawaloka Construction Company, Maga Engineering (Pvt) Ltd., Tudawe Brothers Ltd., Sierra Construction (Pvt) Ltd., Access Engineering.

“The contractors present were informed that the government has decided to use local bank finance to carry out work with respect to the project and the tender called in January 2013 for carrying of the project where finance was from overseas, would not be pursued.”

The local contractors were told that if they were unable to form a suitable consortium and submit a proposal, the government would be compelled to proceed with the international contractor selected through the tender.

AEL said it submitted its preliminary proposal on 28 January 2014 together with the Louise Berger Group of USA, Katahira & Engineers International and World Kaihatzu Kogyo Company of Japan.

Thereafter, having ascertained the exact scope of work and parameters of the project, and site visits, in consultation with Airport and Aviation Services of Sri Lanka, AEL submitted its detailed proposal incorporating the changes and new requirements of AASL on 24th April 2014.

After further discussions with the Cabinet Appointed Negotiation Committee and the Procurement Committee, AEL submitted the final revised proposal on 18th August 2014,

After further negotiations, ending on 31st October 2014, AEL said it agreed to the contract at US$ 85.77 million and AASL awarded the contract to AEL on 10th December 2014.

Yep, Taiwan has Taipei 101, KL has the Telekom Tower, so Sri Lanka should have a Lotus tower, with .. actually nobody will use it other than for tourist purposes, as the days of 'tall' telecom towers are over ..

Right, Sumal has gained a lot of expertise, going from an Ad Agency to tanks, Fighter planes, specialised weapons, bridges, Runway lighting .. hang on, didn't Access do most of the engineering works for Mattala ?

next to Softlogic, Sumals forays beggers belief, which I wonder if any other businessman wold have succeeded in, without strings being pulled. And the other businessmen including professional engineers and experienced people have been totally shut out.

And there are business houses, extremely experienced and diversified but never even allowed to participate in most of the past regime's projects ! Truth be told .....

AASL to review Colombo airport project, size it down


Airport Aviation Services (AASL) has decided to review the second stage of the Colombo airport project and size it down.

“We have decided to do some structural changes to the project, an official from the AASL said.

MRs overspending is coming back to hurt now I guess

Maybe should vote MR in again, and see how he will pay back the rampant borrowings

I'm talking about the lotus roof on the proposed terminal, not the Lotus Tower. In any case, the tower is half completed so construction might as well continue.

I can't comment on the guys history, but if he has tied up with international companies and won the runway tender validly, then there should be some valid concerns arising from the cancellation of such contract.

Is it good move?

Leasing HRI

I think leasing HRI is the only option to make a use of this airport. But has it been confirmed Qatar is going to lease HRI from Sri Lanka? What Qatar is going to do with this HRI? Flight Traning School, Make a base for LCC Carrier ?

i think this was a hypothetical scenario written by an "CONSULTANT" ....

Why not moving SLAF Airbase to Mattala. This will give more space for civil Aviation at BIA too.

SLAF does not want to move from BIA as SLAF Katunayake is a historical base but if they do, it will give more space for expansion at BIA

Mattala free for all