PM to intervene on North housing tender dispute

Prime Minister Ranil Wickremesinghe is expected to discuss the housing projects for the North with both Indian and Chinese representatives in Sri Lanka to iron out the issues raised on awarding the latest construction project to a Chinese construction company, Cabinet Co-spokesperson Rajitha Senaratne said yesterday.

The decision to discuss the matter with both parties was taken at the Cabinet meeting this week when the issue was raised by Resettlement, Rehabilitation, Northern Development and Hindu Religious Affairs Minister D. M. Swaminathan, Senaratne told reporters at the weekly Cabinet briefing.

The Indian High Commission raised concerns over the Sri Lankan Government’s decision to award a contract to a Chinese company for construction of 40,000 houses in the Northern Province.

India has raised concerns over the “opaque” awarding of tender to China Railway Beijing Engineering Group Co., which has no experience in construction in the northern region.

Indian representatives met Minister D. M. Swaminathan to raise concerns after the Cabinet decision was announced over a month ago.

Senaratne said that the decision was taken as the Chinese Company’s bid to build the houses was lower than the Indian estimate.

“The Chinese company has taken a project to build 40,000 houses for the northern district at a cost of Rs. 1.3 million per unit, but Indian Government is not happy about the decision. They have already built 40,000 houses, but their estimate for the project is Rs. 2.2 million per unit, which is very high,” he said.

“So, the Minister is questioning why he should give the job to India when China can build for a cheaper price.”

However, the discussion at the Cabinet meeting focused on the diplomatic relations the decision may affect, Senaratne told reporters.

Prime Minister Ranil Wickremesinghe has then told the Cabinet of Ministers that he will discuss the issue with both parties and report to the Cabinet next week.

“What we said was that the people should get housing as soon as possible. There is a need and the people will say that we did not do anything for them. It doesn’t matter which country is building the houses, all people want is housing,” Senaratne claimed.

Mattala, Hambantota balancing acts between India and China: Rajitha

Making a compelling case for the Hambantota Port and Mattala Airport, Cabinet Co-spokesperson Rajitha Senaratne yesterday said the joint venture agreements for the two ‘white elephant’ entities are also balancing acts between China and India.

“The real issue here is the diplomatic issue. It really doesn’t matter who we give as they are investment,” he said. “We are trying to balance. When we have given one to India and the other to China,” the Minister said when asked if aligning with Chinese investment will pose diplomatic issues for the country.  

Insisting that the Port will make profits after the new investors start oil bunkering, Senaratne said that the initial business plans for the two investments also included elements that would have made the ventures profitable.

“Mattala and Hambantota became white elephants. Mattala, only one airline came. Ships were forced to berth in Hambantota. I stand by the decisions to build them, but they should have carried out the plans properly. The plan for Hambantota was to have an oil bunkering facility to attract the ships. If we had started oil bunkering, then Hambantota would have been a busy now. Mattala should have had an investment zone built at the same time, and then flights would have landed there,” he said.

“But, oil bunkering was delayed, and the investment zones never came. That is why it became unprofitable.”(CD)