Aug 18, 2010 (LBO) – Sri Lanka has given another deal to an Indian company to rebuild part of the northern rail track destroyed by war using a soft loan from the Indian government, officials said. The Indian government-owned IRCON International signed the contract with the island’s transport ministry, Tuesday, to rebuild the Medawachchiya-Madhu Road rail track in the north-west at a cost of 81.3 million US dollars.
The project, which includes six railway stations, is expected to be completed by end-2011, Transport Minister Kumara Welgama told a news conference.
IRCON is rebuilding the 110 kilometre rail track from Medawachchiya to Talaimannar in two phases.
It had signed two agreements earlier for similiar type of track work between Omanthai and Pallai on the northern line and a section from Madhu Road to Talaimannar on the north-west tip of the island.
The Madhu-Talaimannar section is expected to cost 149.7 million dollars.
Sri Lanka’s northern rail track was destroyed or neglected by the 30-year ethnic war which ended in May 2009.
“Our railways are in poor condition,” Welgama said. “We have 1,200 km of track, excluding the north, which needs to be repaired and upgrad