Govt. looks for fresh investment proposals to boost logistics

The Government has called for investment proposals for the Hambantota port and a logistics project in Muthurajawela under the Megapolis project as the latest effort in boosting growth. 

The two initiatives come as the Government attempts to accelerate local private investments. The proposals for the logistics project in Muthurajawela advertised by the Land Reclamation and Development Corporation under the Megapolis and Western Development Ministry offers three blocks of land of about 33 perches in total for a lease period of 30 years. “Close proximity to Colombo Habour and international airport,” and “all infrastructures available,” have been highlighted as incentives for investors. The Government also said a new Outer Circular highway entrance is proposed to accommodate the logistics project. Proposals need to be submitted by 13 May 2016.

For the Hambantota port, each proposal must be accompanied by a bid bond for $ 50,000 and in the format given in the forms that can be picked by at the Sri Lanka Ports Authority (SLPA), according to the advertisement.  Proposals will be accepted until 16 June 2016.

 SLPA said the Cabinet Appointed Negotiating Committee (CANC) is seeking proposals from interested parties to establish port related business ventures in the allocated land area and operate enjoying the benefits of port facilities, which include deep draft berths, shortest distance to main routes, neighbouring international airport and quick connections with hinterland.

Interested parties have been requested to obtain further information on the RFP process and inspect the document at the office of the Chairman to the Project Committee of SLPA. Companies can purchase a complete set of RFP documents upon submission of a written request on its letterhead and upon payment of a non-refundable fee of Rs. 50, 000 along with all applicable taxes per copy from the office of SLFPA Chief Manager. 

The call for proposals from locals comes in the wake of Prime Minister Ranil Wickremesinghe’s visit to China last month where both sides signed a landmark agreement titled the Comprehensive Implementation of Investment, Economic and Technological Agreement (CIIETA). 

Under the CIIETA agreement, Chinese companies can also submit proposals including feasibility studies and commercial documents to the Sri Lankan Government. Projects to be implemented will be picked on priority and will depend on feasibility studies carried out by both sides. A joint taskforce will be established to oversee the projects listed in the agreement. The advertisements published did not rule out joint ventures with international companies.  

The priority projects listed under the agreement include ‘Hambantota integrated development projects’, including the second phase of the Hambantota project, an industry park for Chinese companies, a dockyard, Mattala airport integrated development, and an LNG plant (also in Hambantota). The fresh proposals at Hambantota habour are expected to be large-scale, as per the requirements listed in the advertisement.