Port City project resumes

By Sulochana Ramiah Mohan-2016-05-01

The long awaited resumption of the US$ 1.4 billion mega Port City Project got under way last week under the direction of the Urban Development Authority (UDA), which comes under the Ministry of Megapolis.
According to a senior official of the China Harbour Engineering Company Limited (CHEC), the contractor for the China Communications Construction Company Ltd,. (CCCC) , they have begun recruiting workers for the project. The recruitment process would continue over the next two to three months.

The official confirmed that a couple of legal issues relating to the project are now being handled by the Ministry of Megapolis, coordinated by the Sri Lanka Ports Authority, which was handling the project during the Rajapaksa regime.
The Chinese official declined to comment on what arrangement has been agreed to in connection with the US$ 125

million financial penalties the contractors were entitled to by the suspension of the project by the GoSL on 6 March 2015.
Secretary to the Ministry of Megapolis Nihal Rupasinghe told Ceylon Today that the penalty commitments will not be met because the subsequent Environmental Impact Assessments indicated lapses in adhering to stipulated criteria which are prerequisites for approval of such projects. The project was put on hold expressly because of those lapses, he said.
"Our client CHEC is negotiating with us and within the next month we will come to an amicable settlement on penalty matters" he added.

The CHEC official said they have already about 30 personnel working on the project and they have also begun recruiting local labourers. "Gradually we will accelerate the work and as the monsoon is nearing we are only doing the preparatory work," he added.

He added that reclamation of land will be completed within the next three years and thereafter the reclaimed areas will be handed over to the government so that it can lease it out to local or international investors. He added that they have obtained a USD 100 million loan from the Chinese Development Bank for the reclamation of the land. That loan approval would however be now revised with responsibility passing on to the UDA .
However, Secretary Rupasinghe added that the government has not agreed to pay the penalty but lifted the suspension of the project to work under the Ministry of Megapolis. "On the penalty matter, he said they are still negotiating and will soon derive to a healthy amicable settlement."

He also added that there are 74 conditions both parties will have to agree upon and that is in progress. "Once those concession agreements are studied, will sign the agreement," he said. However, he added, "the work has resumed and in three months times the project will accelerate and within next three years the land reclamation will be completed." He said the project will employs about 4,000 locals.
Pic Laksiri Rukman