Sri Lanka Airports

Stalled BIA development commences amid COVID challenges

The construction activities of the Bandaranaike International Airport (BIA) Terminal 2 Development Project which were stalled has commenced despite the challenges of the COVID-19 global pandemic.

Airport & Aviation Services Sri Lanka (AASL) commenced the construction of the BIA terminal 2 in December 2020 and the construction activities are underway. The total cost of the project, comprising Construction Cost of Package A and Package B, Contingencies (10%) and Consultancy Services, is US$ 550 million and the funding is from Japan International Cooperation Agency (JICA).There are few other matters and they too will be completed in less than two months and the project will start in June and complete in 2023 August increasing the present passenger handling capacity from 6.5 million to 15 million per annum,” said AASL Chairman G. A. Chandrasiri.

The construction work of the new terminal 2 commenced on December 15, 2020, and was expected to be completed in December 2023. “Project Management Unit, AASL together with the JV Japan Airport Consultants (JAC)/Nippon Koei Co., Ltd, the consultants of the project and TAISEI Corporation, Japan, the contractor are working towards the achievement of the objectives of the project.”

“The Contractor has been able to complete 94% of the work and the remaining Polymer Modified Asphalt overlaying will be completed within the next 4 months’ time. Once completed, 23 new aircraft parking bases will be added to the new terminal.”

Preliminary works and soil investigations for pile foundations have been completed. Clearing the areas for the main terminal building by root balling existing trees and replanting, hoarding for the construction area, boring and concreting of pile foundations for Main Terminal Building and viaduct (overhead entry and exit to the main terminal) are in progress.

“Since the development activities are taking place in an operational airport it requires special prior approvals by Aviation Authorities with operational impact, safety and security studies concerning the effect of construction activities on airport operations which are being carried out by the contractor and the project consultant,” the Chairman AASL said.

In addition to increased cargo capacity in line with other developments, the government will invest Rs. 2 billion to boost cargo capacity by 100%. This will help to increase the current Cargo Village capacity from 250,000 MTs to 500,000 MTs per annum.

Meanwhile, explaining the environmental aspects, AASL Director Aviation Projects/Director Aruna Warushahennadige said that the BIA Terminal 2 development project has a special program on ‘Tree Planting’ with a special focus on highly efficient Oxygen emitting trees such as mango and sandalwood.

“Because of this project, around 1,200 trees are affected. However, we are preserving 200 trees onsite and 300 trees are root balled. This program commenced on March 27, 2021.” (SS)

Construction projects at BIA to be expedited

The construction work on large-scale projects at the Bandaranaike International Airport (BIA) in Katunayake is to be expedited, The Morning learnt. According to Minister of Tourism Prasanna Ranatunga, two large-scale projects are currently underway at the BIA.

One project concerns the construction of a second passenger terminal at the airport.

The Government of Japan has provided Japanese yen 41,553,891,286 for this purpose.

Meanwhile, the Government of Sri Lanka (GoSL) is spending Rs. 35,135,843,333 for this project.

Although the project was launched in 2014, construction work resumed in 2020 after the current Government came to power.

The construction of the new terminal will increase the annual passenger capacity of the airport to 15 million passengers, it is learnt. At present, the annual passenger capacity of said airport is six million.

The construction of the new terminal, which will have multi-storey car parks, a new airport lounge, a passenger lounge, and interconnected multimodal transport services, is expected to be completed in 36 months. The Minister also instructed the airport authorities to report to him on the progress of the construction, every two weeks.

The other construction is of a tarmac ramp to allow for the parking of aircraft and a taxiway, and it is scheduled to be completed in September this year.

A total of Japanese yen 1.1 billion and Rs. 4.4 billion has been spent on this project.

Snail’s pace BIA expansion irks aviation industry


The snail’s pace expansion at the Bandaranaike International Airport (BIA) is irking the aviation and tourism industry, with the delay also costing the Government dearly.

Dubbed the largest construction project of the Government, the BIA Terminal 2 development phase is being done at an extremely slow pace, with industry insiders alleging that the project, which began in December last year, has only progressed to 10% of the expected target after four months of work.

The two-part project consisting of ‘Package A’ and ‘Package B’ is funded by the Japan International Cooperation Agency (JICA). Japan’s TAISEI holds the contract for this project.

The Government of Japan has provided a loan of Yen 74,397 million (Rs. 131.5 billion) for the project. The Airport and Aviation Services Company is spending Rs. 21.645 billion.

The cost of the ‘A’ package is Rs. 108 billion. At the time of the award, the contractor had promised to complete construction in three years.

Phase one of ‘Package A’ consists of constructing a new multilevel terminal building (Terminal 2) with an approximate floor area of 180,000 square metres, where arrivals and departures are separated vertically, Pier no. 2 and Pier no. 3 with a link concourse, new parking apron and taxiways, elevated access roads, passenger bridges, electricity, water supply and waste disposal system, combustion engines and integrated machinery, and a five-storey car park.

Under the second phase (package A) the machinery, access road, retention pond and storm water drainage system will be constructed, and about 80% of the development work has been completed up to now.

The estimated cost for this is Rs. 6 billion. Four-and-a-half months have elapsed since the beginning of phase one of this project, and according to the contract agreement 200 piles should have been installed by now. Sources said however that only 21 of them have been installed to date. According to the project proposal, 1,200 internal piles and 96 external piles need to be installed.

“It has become increasingly difficult to calculate the time taken for the completion of the project with such a disappointing start. In the contract it states that within the first month all obstacles for the project should be identified and necessary steps should be taken to overcome them. After four months an underground cable has been found and the constructions have been halted halfway,” sources allege.

The inordinate delay has exposed the project management expertise of TAISEI as well as the technical competence and capability of local sub-contractors used.

“Although 12 cranes are needed for initial constructions, only four are there at the construction site, and it is evident that the local contractor does not have the necessary strength to carry out this project,” sources claimed.

The aviation and tourism sectors were among the first to get attention in the economic aspect after the impact of COVID-19, given their ability to rebound faster once the pandemic eased.

“The Government must be commended for taking the necessary steps to broaden the country’s aviation resources amidst a pandemic. However, it is also the Government’s responsibility to get the projects done without undue delay,” sources opined.

Parallel runway at BIA in the offing

A parallel runway which is well spaced from the existing runway at Bandaranaike International Airport (BIA) will be constructed at an appropriate location, paving the way for independent and simultaneous operations of both runways, aiming at enhancing handling capacity, efficiency and productivity of aircraft movements of the international airport, according to the National Policy on Aviation.

This will be among several measures that will be taken for the development of airport infrastructure and to develop and maintain all existing and proposed domestic and international airports in Sri Lanka according to required standards and the foreseeable demand based on traffic forecasts.

It states that BIA will be promoted as a hub airport, whilst developing other local airports based on market demand.

The policy paper says that in the development of new airports or renovation or expansion of existing airports, the Government of Sri Lanka will ensure that systematic planning, designing, development, implementation, operation and maintenance will take place through close coordination and proper dialogue with the statutory service provider, Airport and Aviation Services (Sri Lanka) Ltd. (AASL) and all other parties concerned.

It adds that the Government will work towards setting up and operating four regional airports covering the north, east, south and west of Sri Lanka with a view to improving connectivity both internally and externally.

Other than at domestic airports, which are exclusively used by the Sri Lanka Air Force (SLAF) for security reasons, all domestic airports will be made available for joint civil/military use with clear segregation of civil and military activities. In this context, areas for civil and SLAF operations will be clearly separated and demarcated.

Allocating land in the civil area on long-term lease for prospective investors will be optional for the purpose of setting up and operating civil aviation infrastructure. In all civil/military joint airports, civil standards will be applied and maintained.

AASL denies it gained approval for lotus shape

• Discussions underway
• Approval yet to be sought

Amidst reports that the Government has decided to change the external appearance of the ongoing Terminal II project at the Bandaranaike International Airport (BIA) to the shape of the lotus flower, Airport and Aviation Services (Sri Lanka) Ltd. denies obtaining any such approval.

Nevertheless, speaking to The Sunday Morning Business, AASL Chairman Maj. Gen. (Retd.) G.A. Chandrasiri stated that there is a plan to change the external appearance of the new terminal to the shape of the lotus flower, yet added that it is “not a necessity”, as they are to go ahead even with its currently proposed shape of the banana leaf.

“So far, we have not received approval from the authorities for the lotus flower shape. It is an option that we are considering at the moment. Discussions are underway to obtain the approval and we are preparing the required documents for it,” Chandrasiri added.

Furthermore, he stated that since the change in the proposed shape is just a plan, reports stating that the change would cost an additional Rs. 35 million are baseless.

It is learnt that the lotus flower was the initial shape of the terminal that was planned under the Government led by current Prime Minister Mahinda Rajapaksa in 2012, which was then changed to the shape of a banana leaf under the Government led by Maithripala Sirisena.

After years of delay due to various issues, the Terminal II project began late last year and is expected to be completed within three years to cater to a combined passenger capacity of 15 million per year.

The Japan International Co-operation Agency (JICA) is the concessionary loan provider for the new terminal at BIA. The loan agreement of Rs. 56 billion was signed five years ago on 24 March 2016 even though this project was part of a lengthy expansionary project that kicked off under the Government of Mahinda Rajapaksa.

The new terminal building would feature the addition of 96 check-in counters, eight baggage claim belts, seven baggage makeup carousels, 16 contact boarding gates with 28 passenger boarding bridges, and six bus gates. The scope also includes capacity enhancement of the incinerator, water treatment plant, and sewerage treatment plant.

The BIA has been in dire need of another terminal for years now. It had more than 170 aircraft movements per day, including an average of more than 60 movements of heavy aircraft per day in 2018. The existing six million-passenger terminal handled 10 million passengers in 2018, resulting in hours of delays, particularly as passengers were trying to collect their baggage.

According to the annual reports of AASL, the airport experienced heavy congestion in the arrival and departure zones, as well as vehicular traffic, particularly during peak hours; all while passenger arrivals grew 5-6% year-on-year (YoY).

BIA Project B contractor to pay penalty to SL Govt.


The Japanese contractor, which has been significantly delaying the completion of Project Package B at the Bandaranaike International Airport (BIA), is expected to pay penalties to the Sri Lankan Government for the delay, The Sunday Morning Business learns.

The penalty comes amidst the fund provider of the project, Japan International Co-operation Agency (JICA), remaining somewhat firm in not delaying the recovery of the loan it provided the Sri Lankan Government to undertake the said project.

Airport and Aviation Services Sri Lanka Ltd. (AASL) Chairman General G.A. Chandrasiri told The Sunday Morning Business that Sri Lanka does not have to pay any penalties to JICA due to the delay in completing the project.

“Why should we pay compensation to them? The contractor is paying compensation to us. As per the contract agreement, they have already passed the deadline. So we are getting penalties from them for not doing it in time,” Chandrasiri added.

We learnt that it is highly unlikely that JICA would waive the commitment fee that Sri Lanka is currently paying and would continue to pay until the completion of Package B, even though the delay in completion is not from the side of the Sri Lankan authorities. Yet, Sri Lanka might use the penalty the Japanese contractor would pay to them, to settle these late charges.

“This is a set of loans. If we are to delay recovery, everything has to be scheduled back. If JICA is to reschedule, it should go to the Paris Declaration as well. This matter has already been explained to the Sri Lankan authorities. It is unlikely this will be rescheduled,” our sources at the JICA local office told us two weeks ago.

Expansion Project B of the BIA, which includes new aircraft parking bays, a retention pond and stormwater drainage system, and an access road, was initially scheduled to be completed in October last year. Nevertheless, due to a number of reasons, the project is a couple more months away from being completed.

Speaking to us, Ministry of Tourism Secretary S. Hettiarachchi two weeks ago stated that BIA Project Package B is already four months behind schedule, yet they gave the Ministry until August this year to complete the project.

“What happened here was there was an independent Sri Lankan consultant for this project. The contractor had not obeyed or followed instructions provided by this consultant. As a result, they had to demolish certain constructions they already completed. In addition to this, some sort of polyethylene sheets they bought for construction had also expired and they informed us that they need some time to import them again,” Hettiarachchi added.

He added that even though the demolishing and rebuilding do not have a financial impact on Sri Lanka, as the cost of the project is fixed, the delay in completing Project Package B is weighing down the progress of the other expansion project packages at BIA, which are going in parallel to Package B.

“We feel like this particular Japanese company is not taking this project seriously, as for them this project is like a ‘peanut’, given the history of their big infrastructure projects globally,” Hettiarachchi further noted.

According to a media spokesperson of the Ministry of Tourism, the cost of Package B is $ 6 billion and it was started in 2017.

The loan agreement is JICA’s 45th loan package to Sri Lanka. JICA is the executing agency for official development assistance (ODA) of the Government of Japan and is one of the largest contributors towards development assistance in Sri Lanka.

The project would be developed based on the concept of eco-airports with the utilisation of Japanese advanced technology and knowhow. In order to promote technology transfer and economic co-operation between Sri Lanka and Japan, JICA’s loan is provided under the Special Terms for Economic Partnership (STEP), with 0.1% p.a. interest and a 40-year repayment period.

In March last year, the JICA office in Sri Lanka confirmed to us that the Sri Lankan Government has been paying commitment charges every six months for eight years for a loan agreement signed in 2012 with JICA. It has also been paying a front-end fee every six months for another loan agreement with JICA signed in 2016. Both of these loans were obtained for the development of BIA, Sri Lanka’s main airport.

A commitment fee is a fee that is charged by a lender from a borrower to compensate the lender for keeping a credit line open. The fee also secures a lender’s promise to provide the credit line on the agreed terms at specific dates, regardless of the conditions of the financial markets. A front-end fee is paid to a banker for setting up a transaction. It is usually calculated as a percentage of the value of the loan.

Japan's JESCO to install electric gear for Sri Lanka airport expansion

Japanese engineering and construction company JESCO Holdings Inc. has won a contract worth some 3.5 billion yen ($32.9 million) to install electrical equipment for the expanded portion of a terminal building at Bandaranaike International Airport in Sri Lanka. JESCO said Wednesday its wholly owned subsidiary, JESCO Co., has been awarded the contract by Japanese construction giant Taisei Corp., a main contractor for the airport improvement project involving the expansion of the existing terminal.

JESCO will be responsible for a main electrical network, outlets for lighting and a lighting protection system.

The expanded portion, a four-story building with a total floor space of 180,000 square meters, is scheduled for completion in December 2023


Bandaranaike International Airport terminal 2 scheduled for completion in December 2023

Sri Lanka to complain to Government of Japan on delay in Airport Development Project



Feb 21, Colombo: A decision has been made to lodge a complaint with the Government of Japan regarding the Japanese contractor who continues to delay the completion of the B package of the Bandaranaike International Airport Development Project.

Tourism Minister Prasanna Ranatunga instructed the Secretary to the Ministry to inform the Japanese Ambassador to Sri Lanka regarding the delay in completion of the work at the progress review meeting of the Airport Development Project.

The progress review meeting of the project which commenced in November last year under the patronage of the Prime Minister Mahinda Rajapaksa was held Friday (19) under the patronage of Minister Ranatunga at the Katunayake Bandaranaike International Conference Hall.

At the meeting, the Minister advised the relevant contractor that the work on this project should be completed on time and emphasized that the benefit of such development projects should be given to the country and the people and necessary steps should be taken for that.

The two-part project consisting of ‘Package A’ and ‘Package B’ is funded by Japan International Cooperation Agency (JICA). In 2014, the Government of Japan provided a loan of 74,394 million Japanese Yen (131.5 billion rupees) for the Bandaranaike International Airport Development Project following an agreement reached between then President Mahinda Rajapaksa and the Prime Minister of Japan Shinzo Abe.

The Airport and Aviation Services (Sri Lanka) (Private) Limited will spend 21.645 billion rupees. The cost of the 'A' package is 108 billion rupees and the estimated cost of the B Package is Rs. 06 billion.

Under the first phase (Package A), buildings connected to the main terminal building, passenger bridges, storm water drainage system, elevated roads, electricity, water supply and sewerage system, combustion engines and integrated machinery, and a 5-storey car park will also be constructed. Under the second phase (Package B), the machinery, access road, retention pond and storm water drainage system will be constructed.

A Japanese contractor is in charge of the construction of this B package, which was launched on April 27, 2017. It was scheduled to be completed in October 2019.

Its construction was delayed due to various reasons and on several occasions the Airport and Aviation Services took steps to give it extra time. After the last extension, the project is expected to be completed and handed over in February this year.

During the discussion with the Minister, the Japanese contractor requested further time citing various reasons and the Minister refused the request.

"This is not an aid. It is a loan. We have already been given one and a half year to complete this project. We have to pay the debt without any income. We told several times to speed this up. But it’s being delayed citing various other reasons. This is public money. Therefore, we have a responsibility to see it is done properly. Therefore, we will lodge a complaint with your government. We will take further action accordingly,” the Minister strongly emphasized.

S. Hettiarachchi, Secretary to the Ministry of Tourism, Madhava Devasurendra, Secretary to the State Ministry, Sunil Gunawardena, Additional Secretary, Major GA Chandrasiri, Chairman, Airport and Aviation Services, Rajiv Sooriyarachchi, Vice Chairman, and representatives of the Contractor and advisers were also present at the discussion.