Cabinet approves construction of three new fuel storage tanks at the Muthurajawela terminal

On June 2, 2025, the Cabinet of Ministers approved the construction of three new fuel storage tanks at the Muthurajawela terminal. The project entails building two tanks with a capacity of 15,000 cubic meters each and one tank with a capacity of 10,000 cubic meters. These tanks will be constructed using the funds of Ceylon Petroleum Storage Terminals Limited.

Following the meeting, the Cabinet of Ministers expressed the need to seek guidance from the Minister of Energy and the Minister of Environment regarding the methodologies for meeting environmental, legal, and other requirements associated with the project. Consequently, both ministers informed the Cabinet that the project would be carried out in accordance with the Fauna and Flora Protection Ordinance and the recommendations and conditions set by the Central Environment Authority. These requirements have been incorporated into the contract agreement.

Based on the International Competitive Bidding Procedure recommended by the High-Level Procurement Committee, the Cabinet of Ministers approved the resolution to award the contract to M/s Indo – East Engineering and Construction (Lanka) (Private) Limited and Ceylex Engineering (Private) Limited Joint Venture. This joint venture was identified as the minimum substantially responsive bidder among the submitted bids.

The contract awarded is valued at Three Million Four Hundred Thousand International Dollars (without value added tax) and Two Thousand Seven Hundred And Sixty Six Point One Four Million Sri Lankan Rupees (without value added tax).