The Cabinet has approved awarding the contract for the construction of three new fuel storage tanks at the Muthurajawela Terminal.
Approval had previously been granted at the Cabinet meeting held on June 2, 2025, to construct two fuel storage tanks with a capacity of 15,000 cubic metres each and another tank with a capacity of 10,000 cubic metres, using funds of the Lanka Bulk Storage Terminals Limited.
Necessary measures have also been taken to ensure compliance with environmental and legal requirements in implementing the project. The recommendations and conditions stipulated by the Central Environmental Authority have been incorporated into the procurement contract, while the Ministers of Energy and Environment have informed the Cabinet that the project will be implemented in accordance with the provisions of the Fauna and Flora Protection Ordinance.
Following an international competitive bidding process, approval has been granted to award the contract to M/s Indo-East Engineering & Construction (Lanka) (Private) Limited and Ceylex Engineering (Private) Limited Joint Venture, the lowest substantially responsive bidder recommended by the High-Level Procurement Committee.
Accordingly, the Cabinet approved a proposal submitted by Minister of Energy Anura Karunathilaka to award the contract at a total cost of USD 3.04 million and Rs. 2,796.14 million, excluding Value Added Tax (VAT).
