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New Port City deal within weeks
View(s):New Port City deal within weeksThe Government will go ahead with the Chinese-funded Colombo Port City but is negotiating with the Chinese builders to reduce the scale of the reclamation site to reduce environmental damage, a Minister said.
“We are having discussions,” said Malik Samarawickrama, Minister of Development Strategies and International Trade. “The Government has decided to go ahead with it. There are minor changes to the agreement.”
“One is that land will not be given out on a freehold basis but on a 99-year lease. I think both parties have agreed to this,” he explained. “We are also looking at reducing the extent so that there will not be an environmental impact. This is being discussed and we hope to finalise it in a couple of weeks.”
China Harbour Engineering Company Ltd, the builder, was receptive to the idea of reducing the scope. “But it is also looking at how practical it is because the designs have been done on a certain basis so they also have to see what effect it will have if the extent is reduced,” the Minister said.
“They are discussing it and looking at how they can revise it,” he added. “Within a couple of weeks we should find a solution.”
The construction of the Colombo Port City was suspended in March last year amid questions over its environmental impact and the geopolitical implications of giving out land to the Chinese investor on a freehold basis.
Minister Samarawickrama indicated that the Government was also pursuing other projects with China, including a 1000-acre economic zone in Hambantota. He said he would visit China next week.
“These are things that should have been done concurrently with the port and airport,” he said. “You don’t set them up and then look and see what’s going on. At the moment we are just repaying loans and interest on these huge white elephants which we are now trying to convert to useful operations.”
“We will probably have a 1000-acre economic zone there,” he explained. “Then we can use the port and the airport. We are also looking at how we can make the airport commercially viable. We are looking at whether we can have a joint venture tie-up where the people can use the airport, make it a hub.”
“Similarly, we are discussing with the Government of Singapore to develop the City of Trincomalee where we can use the port,” he revealed. “There, again, we want to have an economic zone with Singapore, Japan, India and other countries. Those are the areas we are concentrating on at present, in addition to regaining the GSP Plus which we should get by the end of the year.”
There was tremendous goodwill towards Sri Lanka among the international community, Minister Samarawickrama said. “It is just about five months since the new Government was formed,” he said. “With the background that had been there for the past 10 years or so, it’s not easy to change the mindset of the people. But I can say that when we visit Europe or any other country now, there’s a huge goodwill factor.”“People are very receptive, people welcome Sri Lankans and there’s a huge goodwill factor,” he reiterated. “But that goodwill must now transform into economic benefits. It won’t happen overnight but over a period of time. I’m sure that we will reap the benefits.”