Govt. reviews feasibility of Colombo Port city project
The new Sri Lankan government is seriously considering the controversial US$900 million Colombo Port city project and could scrap it if it fails to fulfill environmental impact, administration and other connected legal issues.
Minister of Highways and Investment Promotion Kabir Hashim told the Business Times on the sidelines of the ceremony organized in connection with his assuming duties, that the project implementation is lacking transparency and the Sri Lanka Ports Authority has no mandate to implement it.
He noted that “haphazard” land reclamation near the Colombo harbour would cause environmental damage to immaculate beaches on the island’s western coast and a proper environment impact assessment should be done before starting the project which will change Sri Lanka’s map.
The proposed port city is located in a strategic position near the Colombo harbour, Central Bank and other strategically important places like the Presidential Secretariat and Finance Ministry, he said, adding that the government will have to scrap the whole project if it is not feasible. Some 233 hectares of water front sheltered by a 3,300 metre long breakwater will be reclaimed under the project.
China Harbour Engineering Company Ltd, a partnership of the China Communication Construction Co. Ltd is the main contractor with works like reclamation, breakwater construction, connected road network and supply of services.
The company will invest $2 billion to create other facilities.
The port city will also have Sri Lanka’s first 100-storeyed skyscraper under Phase II of its work.
This phase would include the construction of the planned hotels, high rise buildings, and recreational facilities, shopping complex, golf course, office buildings and business centres.
According to the agreement, except for 125 hectares out of the total land area of 233 hectares which will be owned by the Government of Sri Lanka, the rest will be retained by the Chinese company to cover their costs of expenditure
The balance 108 hectares will be handed over to Chinese company under a 99-year lease basis. The company, at the initial stage, owns only the seabed.
Legal experts said that granting approval for the project with a complete ownership of the seabed for a considerable period of time with a view of significantly and permanently altering the marine landscape was against the statutory obligations of the Coast Conservations Act which restricts the use and occupation of the seabed.
They also noted that all statutes, laws and regulations and the associated legal and judicial structure and systems of Sri Lanka should apply for the Port City project and the reclaimed sea area.
| JKH, Crown casino projects under review The Sri Lanka government will not permit mixed development projects with casinos as it is strictly to adhered to religious and cultural values, ethical practices, good governance and the rule of law, according to Deputy Minister of Highways and Investment Pomotion Eran Wickremaratne. He told the Business Times that the ministry will have to review the agreement on John Keells Holdings’ (JKH) US$850 million mixed development project to ascertain whether it includes a casino or not. The project which has got underway is at the group’s 17 acre property at Glennie Street property inclusive of the old Elephant House land and a Beira Lake front. The project has been approved by the Board of Investment of Sri Lanka (BOI). He noted that James Packer’s $400 million Sri Lanka hotel and casino resort will alsohave to be re-negotiated due to the casino factor. Addressing the BOI officials following his assumption of duties on Friday, Minister of Highways and Investment Promotion Kabir Hashim emphasised the need to attract more Foreign Direct Investments (FDI), increasing production and exports. He noted that more attention should be focused on Information Technology and Business Process outsourcing and service sectors and the BOI has a vital role to play towards this end. Mr. Wickremaratne told the gathering that the previous regime resorted to borrowing rather than promoting investment and this practice should be changed giving more priority to FDIs. He noted that the country should strive to climb up in economic ratings which are essential to attract investments. |