Jan 31, Colombo: The Sri Lankan government will award the contract for the construction of the second phase of the Colombo Outer Circular Highway to a Chinese Company.

The construction of the 9.32 km long section from Kadawata to Kerawalapitiya in the second phase has been awarded to the Metallurgical Corporation of China Ltd, at a contract price of 66.7 billion rupees (approximately US$ 528 million).

Standing Cabinet Appointed Procurement Committee has recommended awarding the contract to the Chinese company and the Cabinet has approved the proposal put forward by the President, in his capacity as the Minister of Ports and Highways.

The construction of the 29-km expressway will be carried out in three phases on Turnkey basis with funding from China's EXIM Bank.

The work on the first phase of construction from Kottawa to Kaduwela has already commenced.

The outer circular highway will start from Kerawalapitiya along the Colombo - Katunayake Expressway to link Southern Expressway crossing A-4 highway at Kottawa and the main A-1 Colombo-Kandy highway at Kadawata.

The highway is expected to provide a circular beltway to bypass the city of Colombo and reduce traffic congestion.