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Press Release

March 24, 2016

JICA Supports the Bandaranaike International Airport (BIA) Expansions-
Capacity from 6 to be 15 Million Passengers per Annum

A concessionary loan agreement for JPY 45,428 million (approx. Rs. 56 Billion) was signed on 24th March 2016 between the Airport and Aviation Services (Sri Lanka) Limited and Japan International Cooperation Agency (JICA) for the construction of a new multi-level terminal building (Terminal 2) with an approximate floor area of 180,000 m2, where arrivals and departures are separated vertically, consists of two pier buildings namely Pier 2 & Pier 3. The new terminal would be designed for the provision of barrier free access with many environmentally friendly initiatives. New remote apron shall consist of 23 nos. aircraft parking stands, GSE roads and three stub taxiways. New terminal building would feature additional 96 check-in counters, 8 baggage claim belts, 7 baggage make-up carousels, 16 nos. contact boarding gates with 28 nos., Passenger Boarding Bridges, 6 nos. bus gates. The scope also includes capacity enhancement of the incinerator, water treatment plant and sewerage treatment plant. Bandaranaike International Airport Development Project (Phase 2) (II) was welcomed by the Joint Declaration on Comprehensive Partnership between Japan and Sri Lanka announced during Prime Minister Wickremesinghe's visit to Japan.

The detail design of the airport have been completed by utilizing part of the previously signed loan amounting Yen Million 28,969 (approximately LKR billion 36). Altogether, JICA financing for the expansion of Bandaranaike Airport is JPY 74,397 million (approx. Rs. 92 billion)

The Project would be developed based on the concept of Eco-Airport with Japanese advanced technology and know-how. The concept includes rain water harvesting for the landscaping works and recycled water from the sewerage treatment plant for flushing of toilets, photovoltaic power generation, solar energy harvesting, LED lighting, energy efficient glazing etc. Japanese technology is to be used for constructing this land mark terminal building which will become the International gateway to Sri Lanka. In order to promote technology transfer and economic cooperation between Sri Lanka and Japan, JICA's loan is provided under the Special Terms for Economic Partnership, with 0.1% p.a. interest and 40 year repayment period. The new passenger terminal building is planned to be open in 2020.

Sri Lanka as an island, airport is the gateway to the country and has paramount importance in the aspects of economic, social and cultural development. It will contribute to the economic development by increasing speed of trade with possible increase in amount of imports & exports due to faster means of transportation, and supporting the tourism industry. It will also contribute to the social and cultural development by bringing in foreign culture and promote local culture to visitors, create faster enabling environment for more communication with rest of the world, enable more information inflow & outflow, and increase in people's mobility. After completion of the project, the airport will be able to handle 15 million passengers per annum (mppa) and eventually ease the air traffic movement. The Bandaranaike International Airport handled 8.5 million passengers in year 2015 and exceeded its capacity of 6 mppa. BIA receives 28 airlines serving some 45 destinations. The BIA experience congestion during peak hours thus causing hardship to passengers and airliners and the new passenger terminal building is greatly awaited.

The loan agreement for the Bandaranaike International Airport Development Project (Phase 2) (II) is JICA's 45th loan package to Sri Lanka was signed on 24th March 2016 between Eng. S.S.Ediriweera, Chairman, Mr. K V P Ranjith De Silva, Vice Chairman of Airport and Aviation Services (Sri Lanka) Limited and Mr. Hidetoshi Irigaki, Vice President of JICA. This is JICA's fourth concessionary loan to support development of the Bandaranaike International Airport. The project is implemented by the Airport and Aviation Services (Sri Lanka) Limited under the guidance of Ministry of Transport and Civil Aviation. JICA is the executing agency for Official Development Assistance from the Government of Japan, and is one of the largest contributors for development assistance in Sri Lanka.

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