The Cabinet has approved the award of a contract worth US$3.04 million and Rs. 2.796 billion, excluding VAT, for the construction of three new fuel storage tanks at the Muthurajawela terminal.

The project, funded by the Ceylon Petroleum Storage Terminals Limited (CPSTL), involves the construction of two 15,000-cubic-metre fuel storage tanks and one 10,000-cubic-metre tank.

Cabinet approval for the project was initially granted on June 2, 2025. A subsequent Cabinet decision on July 20, 2026 called for discussions with relevant stakeholders to determine the procedures required to meet environmental, legal and other requirements before proceeding with the project.

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

They also confirmed that the project will be implemented in compliance with provisions relating to 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) (Private) Limited and Ceylex Engineering (Private) Limited.

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

Cabinet approved the proposal submitted by the Minister of Energy to award the contract for US$3.04 million and Rs. 2,796.14 million, both excluding VAT. (Newswire)

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