Q&A: CHEC speaks to LBO on Port City project
Oct 16, 2015 (LBO) – Sri Lanka’s much talked port city project is still under water as the new administration has questioned project approvals.
The builders of Sri Lanka’s Chinese-funded port city project say discussions are ongoing and they await a positive reply from the government after the suspension of work.
Sri Lanka’s cabinet last month approved an extension of the Colombo port city agreement for further six months. The agreement signed between the government and the relevant project company, CHEC Port City Colombo (Pvt) Ltd, on 16th of September 2014 expired on 15th of last month.
The 1.4 billion US dollar Chinese Port City was to be constructed between the Southern edge of the new Colombo South Port and the Fort Lighthouse.
The total area of sea to be reclaimed is 252 hectares.
The Minister for Megapolis Champika Ranawaka told LBO on Thursday that a port city is included in the Megapolis design, in close proximity to the China Port City, and plans would be harmonized.
Some basic legal and environmental issues need to be addressed, and the government is revisiting it, he said.
LBO spoke to Liang Thow Ming, Chief Sales and Marketing Officer, of CHEC Port City Colombo (Pvt) Ltd to find out the current scenario of the port city project.
Q: Sri Lanka's government extended the port city agreement for further six months. What are your comments?
Ming: The agreement was extended to give more time to iron out the agreement.
Q: In an earlier interview with LBO you said discussions were positive. What is the current situation?
Ming: The discussions are still in a positive direction. There were some delays along the way due to the parliamentary elections and related matters. But now it is on track.
Q: Are you losing money due to this delay?
Ming: Yes. We are losing about 380000 US dollars per day as estimated earlier.
Q: Have you submitted the necessary documents to gain approvals from the government of Sri Lanka?
Ming: We have submitted all the documents and approvals granted to us by the previous government to the current government way back in March. There are certain areas that the government want us to relook and we are working on it.
Q: You said that you are opening your plans to public. When will that be?
Ming: Once the project is formally approved by the government of Sri Lanka, we will be prepared to reveal our plans to the public.
Not all FDIs are beneficial to the recipient nation. Most of them benefit only the nation of origin. If Sri Lanka is to benefit from the concessions extended to FDIs then there must be strong processes in place that ensure that transfer of technologies and process know how occur as a result of the FDI. I have not as yet met any government officials who are aware of this asymmetry arising within the guest/host relationship that governs FDIs and unless this changes Sri Lanka will gain hardly anything in return for granting access to its resources. While I would not like to see this happen there appears to be very little that private citizens can do to ensure that processes that ensure transfer of technologies and process know how are formulated, initiated, supported, sustained, driven,guided and constantly developed.
This project has been dragging for months and months. either we should not permit it or go ahead with it. Why the government cannot take a proper decision ? Is this good governance? if it is not worth enough to approve , then work out a way out of it. Dragging projects like this will effect badly on the FDI’s.
A little bird discreetly whispers………. hush…hus….h…… going back to the Chinese..Why?
Is the President of GOSL & his Politiccos who indulge in China bashing o ridicule & humiliate the Ex-President or vice versa now turning to China ?
We either say Yes or No instead blowing hot and cold with the same breath on CPC Project.
We must remember the Colombo PC project was innaugarated by none other than His Excellency Xi Jing Ping the President of China
Whom are trying to appease ??
Certainly not our Western backers as they are the major beneficiaries of Chinese Investments. Then what is it ????????????
Even more, our Minister of Ports and a Delegation is SHAMELESSLY visiting Hong Kong and on Monday (19/X/2015) are expected to be present at a presentation by the China Merchants with a view to engage them in further improvements to the Colombo Port development…………Wonder whether they are already engaged in shopping in that paradise for shopping and getting ready for the Monday presentation.
Sri Lanka must realise though shamelessly that Chinese have the expertise of building ports all over globally.
Sooo…. the shameless YAHAPALANAYA reverts back to a China Company and China for loans instead of the Western or Indian backed Companies.
Nirmalan Das its would have been better had you suggested way GOSL could benefit from the FDI. These modalities can be workedout. But the question remains whether its a YES or a NO for the CPC Project.
It looks like with only one entry-exit point into colombo that traffic there will be terrible!