The Government has decided to establish a separate Special Infrastructure Company to develop and manage important infrastructure projects, with powers to independently lobby for financial assistance.
This company will be fully owned by the government and will be managed by the Treasury Secretary and the Road Development Authority (RDA).
The proposal for the establishment of the company was presented to the Cabinet by Minister of Finance Ravi Karunanayake stated that this company would function as a ‘transitional vehicle’ to accelerate critical development projects enabling local capital market investors to provide funding through a Takeover, Operate and Transfer (TOT) basis or other internationally accepted investment modalities.
The Ministers of Finance and Highways will have the authority to appoint directors to the new entity and authorise the Efficiency and Management Unit of the General Treasury to support day-to-day financing of the company.
It has been reported that, the company will own all the assets of expressways – the Southern, Outer Circular, Colombo which Katunayake valued at $ 1.65 billion – and would also undertake future development and recently commenced projects which require $ 4 billion within the next four years.
It is also reported that the revenue from the expressways earned will be used to repay the loans.