The Cabinet of Ministers has approved the award of a major contract for the construction of an aviation fuel storage and distribution facility at Muthurajawela, aimed at strengthening fuel supply infrastructure for Bandaranaike International Airport.
The project was initially approved at the Cabinet meeting held on July 29, 2024. It includes the construction of a 92,000-cubic-metre aviation fuel storage tank complex and associated facilities at Muthurajawela, along with a dedicated fuel pipeline connecting the storage facility to the fuel filling terminal at Bandaranaike International Airport.
The project also involves making the necessary modifications to the existing fuel terminal at Muthurajawela. International competitive procurement procedures were followed, with three bids submitted for the project.
Following an evaluation of the bids and recommendations from the High Level Procurement Committee, the Cabinet approved the proposal submitted by the Minister of Energy to award the contract to China Petroleum Pipeline Engineering Company Limited.
The contract is valued at US$40.84 million and Rs. 8,548.75 million, inclusive of taxes.
The project is expected to enhance aviation fuel storage and transportation infrastructure while providing a dedicated supply connection between the Muthurajawela storage facility and Bandaranaike International Airport.
