Sri Lanka Selects IRCON International India to Reconstruct Northern Railway Line from Medawachchiya to Thalaimannar

17th August 2010, www.colombopage.com

Sri Lanka signed a commercial agreement with India today for Indian assistance to reconstruct the Northern Railway Line from Medawachchiya to Thalaimannar that was destroyed during the three decades of conflict.

S.L. Gupta, General Manager of IRCON International, an Indian company constructing the railway line signed the commercial agreement on behalf of India while Chairman of Sri Lanka Railways P.P. Wijesekara signed for Sri Lanka in the presence of Sri Lankan Minister of Transport Kumara Welgama and Indian High Commissioner in Sri Lanka Ashok K. Kantha.

The reconstruction will be carried out in two phases. In the first phase the 43 kilometer track from Medawachchiya to Madhu will be reconstructed at a cost of US $ 81.3 million. Madhu to Thalaimannar segment will be built at a cost of US $ 149.74 million.

Speaking at the occasion, High Commissioner Kantha has noted that the line of credit of USD 81.3 million is part of a larger package of assistance directed at the rehabilitation of railway infrastructure in the Northern Province of Sri Lanka, for which Government of India has committed a total amount of US $800 million in lines of credit on highly concessional terms.

The Indian High Commissioner said the reconstruction of the Medawachchiya-Thalaimannar railway line is a symbol of the friendship between India and Sri Lanka.

The construction work will be carried out by the Indian Railway Construction Company Limited (IRCON). Work on the Northern Railway Line is expected to start from October 2010.

The Indian government last year extended a US $ 425 million credit line to Sri Lanka to develop its war-damaged rail tracks in the northern region. Under the credit IRCON will be laying tracks on the Omanthai-Pallai sector of the Northern railway line and Madhu- Thalaimannar sector.

According to the Chairman of the Railways the railway line from Omanthai to Pallai will be constructed after the area is cleared of landmines.

India is also assisting in the rehabilitation of the Colombo-Matara rail link through a US $167.4 million line of credit. Work on the Colombo-Kalutara sector of this line is already at an advanced stage and the work on the 42 kilometer Galle- Matara Section is likely to be completed by December 2010.

Sri Lanka has also signed a contract with China National Machinery Import and Export Corp to build the first phase of the 110-kilometer Matara-Kataragama line along the south coast.

In the first phase of the project a 30-kilometer segment of the rail line from Matara to Beliatta along with four stations will be built with Chinese financial assistance. The first phase is to be completed by the end of this year.

The second phase will extend the rail line to Hambantota and the final stage will complete the line to Kataragama.

China is also funding the reconstruction of a 56- kilometer segment of the rail line between Pallai and Kankasanthurai.