Monday, 15 September 2014 00:00
-
- {{hitsCtrl.values.hits}}
The last two weeks have been busy for the Government. With Japanese Prime Minister Shinzo Abe’s visit barely wrapped up, officials are now scrambling to put the finishing touches on the short but zippy visit of Chinese President Xi Jingping.
Despite Japan having traditionally had much stronger relations with the Sri Lankan Government, especially in the last decade where it engaged proactively on human rights concerns and demining, there is far more enthusiasm in Colombo over Xi’s visit. Weeks ahead of the date, Cabinet rubberstamped a slew of projects and hints of even more agreements were being written by local journalists on a tour of Beijing where they met with key lenders to Sri Lanka including China Exim Bank.
Key projects include funding for the construction of Outer Circular Highway – Northern Section II running from Kadawatha to Kerawalapitiya. Tagged as the most expensive highway built in Sri Lanka to date in January, the Northern Section II contract from Kadawatha to Kerawalapitiya (length of 9.2 km) was awarded to China Metallurgical Group Corporation Ltd. by the Sri Lankan Cabinet for a value of Rs. 66.69 billion. The signing of the agreement is expected during President Xi’s visit.
Construction of roads and flyovers in the Hambantota International Hub Development Project, which is covered under the Southern Expressway Extension Project, were also approved. The roads will cover a total distance of 96km running thorough Matara-Mattala-Hambantota. Arranging funding for the fourth section of the Southern Expressway spanning Mattala to Hambantota via Andarawewa is also expected to be signed.
In addition Cabinet also approved over $ 500 million from China Development Bank for three projects. One loan will upgrade roads in Matara and Hambantota ahead of the ‘Deyata Kirula’ exhibition in 2015.
Cabinet nod was also given to begin feasibility studies on the proposed Ruwanpura Expressway spanning from the Kahathuduwa interchange of the Southern Expressway to Pelmadulla. The total length of the highway will be 71km and a Cabinet Appointed Consultancy Procurement Committee will select a service for the study.
Ahead of President Xi’s visit, Chinese Assistant Foreign Minister Liu Jianchao told reporters in Beijing that both sides would discuss the implementation of the second phase of the Hambantota Port Project along with the proposed $ 15 billion Port City and Colombo City Railway Project.
Investment Promotion Minister Lakshman Yapa Abeywardena also expressed intentions to sign a Free Trade Agreement (FTA) between the two countries during Xi’s visit. The Chinese President will also open the completed $ 1.2 billion Norochcholai coal power plant on 16 September. China Exim Bank will also sign a jaw dropping 21 proposals valued at $ 1.6billion this week.
The massive number of projects together with their focus has galvanized critics as well. United National Party (UNP) MP Dr. Harsha de Silva last week slammed the Government for concentrating only on infrastructure projects when the drought hit areas continue to suffer. He called on the Government to reduce its indebtedness and concentrate on other aspects of development, particularly education and health budgets that have been trimmed over the past few years.
Many others are wary of the secrecy and alleged kick-backs surrounding these deals along with other Chinese policies such as the ‘String of Pearls’ strategy. Repayment of these loans is also likely to become a burden over the short term with commercial rates being lodged for unsolicited projects as the port city is. President Xi’s visit as welcomed as it is brings with it many questions over Sino-Lanka relations and their cost in the future.
