US$3.04m fuel tank project cleared for Muthurajawela

A contract worth US$3.04 million and Rs. 2.796 billion, excluding VAT, has been awarded for the construction of three new fuel storage tanks at the Muthurajawela terminal.

Funded by Ceylon Petroleum Storage Terminals Limited (CPSTL), the project will comprise two 15,000-cubic-metre storage tanks and one 10,000-cubic-metre tank.

Approval for the project was initially granted on June 2, 2025. However, a subsequent decision on July 20, 2026 required discussions with relevant stakeholders to determine the procedures needed to meet environmental, legal and other requirements before the project could proceed.

Energy Minister and Environment Minister have informed the authorities that recommendations and conditions imposed by the Central Environmental Authority (CEA) have been incorporated into the procurement contract.

They also confirmed that the project would be implemented in accordance with provisions governing the protection of wildlife and flora.

The contract was awarded following an international competitive bidding process to the joint venture of Indo-East Engineering & Construction (Lanka) (Pvt) Ltd and Ceylex Engineering (Pvt) Ltd.

The joint venture was selected as the lowest substantially responsive bidder on the recommendation of the High-Level Procurement Committee.

The contract is valued at US$3.04 million and Rs. 2,796.14 million, both excluding VAT.