Friday Nov 15, 2024
Friday Nov 15, 2024
Wednesday, 17 January 2018 00:00 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
The Government will sign the joint venture agreement with Thai-based Rojana Industrial Park Public Ltd, which will attract about 200 factories, by the end of next month, with operations slated to commence by the end of this year.
“We have got Cabinet approval to release land to the Board of Investment (BOI) and to commence essential infrastructure facilities. We hope to sign the joint venture agreement by the end of February and have the industrial park up and running by December,” International Trade State Minister Sujeewa Senasinghe told the Daily FT.
Upon obtaining approval from the Cabinet, 244 acres of land under Phase I and 166 acres of land under Phase II in Neuchattlewatte will be released as a free grant on a free cost basis to the BOI for the establishment of the Milleniya Export Processing Zone (EPZ).
The State Minister said he was putting a lot of effort into speeding up the process.
“Generally it takes about three years to get the land released and another five years to get the essential infrastructure facilities. However, with my personal intervention, I managed to get the lands released and by 17 January will commence the road construction,” he added.
The Cabinet also gave approval to pay compensation for the resettlement of families affected by the project, a move which has been carried out by the respective management companies of the estates based on the valuation of the Chief Government Valuer via the Divisional Secretary of Milleniya through the budgetary allocations made to the ministry in 2017 and 2018.
According to the Minister, 150 families will be resettled while setting up the EPZ and it is expected to employ around 10,000 people.
“Except for one or two incidents from the plantation companies, there weren’t many issues in obtaining the required lands. Now everything is sorted,” he stressed.
He also said that he was in discussion with Rojana to set up a vocational training centre in the EPZ, which will help investors absorb skilled labour into the new factories being established.
A budgetary allocation amounting to Rs. 1 billion has been granted to the Development Strategies and International Trade Ministry for 2017 and Rs. 2.5 billion has been granted for 2018 to develop the initial infrastructure related to the establishment of new EPZs.
The Ceylon Electricity Board (CEB), National Water Supply and Drainage Board (NWSDB) and Road Development Authority (RDA) are entrusted to provide essential infrastructure facilities such as electricity, water and access roads up to the zone boundaries initially for Phase I. The cost of this infrastructure has to be borne through the annual budgetary allocations during 2017-2019.
Insisting that the economic returns of the major infrastructure development initiatives of the country could effectively be reached through stimulating appropriate private investment, Senasinghe said it will in turn boost economic activities and business which ensures the maximum utilisation of such infrastructure.
“This profit-sharing venture will be on a partnership for a duration of 40 years. Upon reaching 40 years, the Government will get the full project,” he explained.
According to the Minister, the proposed EPZ will attract around 200 factories that are involved with the manufacture of modern electronic equipment and appliances chiefly from Japan.
Rojana is a Thai-Japanese joint venture which develops industrial land complete with international standard infrastructure and utilities.
The firm is expecting to bring in around $ 500 million during the first phase of the project, while aiming to be ready by the end of the year with a fast-track development program under the guidelines of Prime Minister Ranil Wickremesinghe.
Following the signing of the agreement, Rojana Industrial Park will build, manage and promote the zone for enterprises from Japan, Korea, Hong Kong and the UK to set up investments.
