Talks finalised for $ 170 m loan to upgrade Southern rail track
The Ministry of Transport has finalised negotiations with Rites of
India Ltd., a subsidiary of the Indian Railway Department to obtain a US
$ 170 million loan to upgrade the Southern railway line up to Matara.
The project which will be implemented in two stages is scheduled to
be completed by the end of next year. Material to upgrade the railway
track from Colombo to Aluthgama, 16 power sets for long distance travel
and three engines to maintain tracks will be provided by Rites of India
under the first stage of the project.
Four long distance power sets to upgrade the Galle-Matara railway
track will be provided by Rites of India under the final stage of the
project. The loan for the project will be granted under a credit line
facility.
Secretary, Ministry of Transport, Nihal Somaweera said the Ministry
is awaiting approval from the Cabinet to obtain the support of the
private sector to improve the standard of railway stations in the
country.
Chevron Lubricants Lanka PLC has agreed to maintain and improve the
Kandy railway station. The Ministry of Transport will seek the support
of the private sector to improve the services of all railway stations.
The Secretary said tenders will be called next month to procure 15
engines. The Ministry has allocated Rs. 3 billion to purchase the
engines. An agreement has been signed with the China Exim Bank to obtain
a loan to secure 15 power sets. The first consignment will arrive in
March next year.
He said of the 100 railway carriages purchased from China, seventy
five have arrived and the others are due to arrive by the first week of
January.
The bus fleet will be increased to 6,000 next year with more
facilities to provide a better transport service. The Ceylon Transport
Board (CTB) has a fleet of 5,000 buses.
"The services of professionals will be obtained to improve the
management of the transport sector. The aim of the Ministry of Transport
is to make the transport system the best in the region", Somaweera said.
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