Cabinet approves BOT system for public buildings

Thursday, 24 May 2018 01:04 - - {{hitsCtrl.values.hits}}

Cabinet yesterday approved a proposal by Prime Minister Ranil Wickremesinghe to call for private sector investors to construct public buildings under the Build, Own and Transfer (BOT) system.

Wickremesinghe, presenting the Cabinet paper as the National Policies and Economic Affairs Minister, had pointed out that construction and maintenance of large public buildings including schools, universities, hospitals and vocational training centres required substantial public funds.

In the Cabinet paper he had noted that if these projects were given to the private sector to construct and maintain through a Public-Private Partnership (PPP) process, the Government would find it much easier to manage its capital expenditure. Such a process would also allow the public to avail themselves of the services provided by the institutions to be housed in the buildings.

As such it was proposed that the Cabinet give approval for the Government to call tenders for private companies willing to engage in PPP projects.

The buildings would be taken over by the Government after the lapse of 15-20 years, said a short release, detailing the Cabinet paper released by the Government Information Department. During the time the building is with the private company the Government would make pre-agreed payments.

The Cabinet paper had emphasised that a PPP system would reduce the pipeline for new buildings, which at times takes years to get off ground even after Government approval, and would ensure that buildings were completed on time and maintained properly.