Sri Lanka water supply expansion contract to Chinese firm

Jan 10, 2010 (LBO) - A contract to upgrade the water supply in Sri Lanka's capital Colombo valued at 1,895 million rupees has been awarded to China Geo Engineering Corporation, the government's information office said. China Geo will construct ground reservoirs at Maligakanda and Elie House, a water tower at Gothatuwa, a transmission lone from Ambatale and a distribution main from Kotikawatte-Mulleriya.

China is a top lender and builder of Sri Lanka's infrastructure.

The Sunday Times newspaper quoting government documents said last month that contracts worth 6.1 billion US dollars were planned with China in post war reconstruction largely with financing from the Export Import Bank of China.

The construction of a series of roads in the north has been given to four Chinese firms after a cabinet decision on October 06, for completion within 30-months The Sunday Times said.

China National Aero Technology Import and Export Corporation, China Harbour, China Railway No 5 Engineering Group Co.

Ltd. and Synohydro Corporation would get contracts with 94.2 billion rupees.

A Chinese loan of 245 million US dollars (about 27.9 billion rupees) would finance a 56 kilometre railway track running