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Breakwater Contract

Sept 28, 2007 (LBO) – Sri Lanka has picked Hyundai, a Korean firm, to build a breakwater in Colombo that will allow terminal operators to nearly double the container handling capacity at the Port, an official said. The 320 million dollar contract will be awarded to Hyundai if Asian Development Bank, the concessional lender to the project, accepts the government’s recommendation.

The Manila based ADB is lending 300 million dollars to finance a breakwater extending the Colombo port southwards in to the sea where private sector companies will build three large container terminals.

The tender board has picked the bid offering the lowest construction cost and the recommendation was forwarded to the ADB on Thursday,” an official close to the deal told LBO.

Hyundai Engineering Construction of Korea was the lowest bidder at 36 billion rupees (320 million dollars) for the civil works.

Its largest components are the breakwater which is an undersea wall protecting the port from tides and bad weather and the dredging to deepen the new port to accommodate large ships.

The project will also fund a new marine operations center, relocate an underwater oil pipeline and provide navigational aids. <

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