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It listed the project as one of the under-performing projects in 2008 as 29.2 million dollars of the disbursement target of 30.5 million for the year was not used.
"The civil work contract was not awarded due to high bid prices," the report said.
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"Re-tendering is being done."
The project is meant to mitigate traffic congestion in the Colombo Metropolitan area and enhance connectivity with other regions, contributing to strengthening economic infrastructure of the country.
The funds will be used to construct part of a road around Colombo that will connect to expressways leading to outlying regions.
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