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By Ashwin Hemmathagama – Our Lobby Correspondent
Prime Minister Ranil Wickremesinghe yesterday, in a special statement in Parliament, clarified that the biggest ever foreign investment project – the Colombo Port City – had not been given the go-ahead as yet but was still under review.
The statement was in response to a question raised by JVP MP Anura Dissanayake. The answer by Prime Minister came after Cabinet Spokesman and Health Minister Rajitha Senaratne on Thursday disclosed to the media that the $ 1.4 billion project, to be funded and built by Chinese, had been given the green light.
“During our initial assessment, we found that all the necessary documentation was not there. There was a shortcoming in the environmental assessment report too. We have appointed a special committee to look into this. In addition to that a Cabinet subcommittee too has been appointed under my leadership. It is after this report is ready that decisions will be taken,” Premier Wickremesinghe told Parliament.
He said that the Port city was “a massive project” and has the sponsorship of the Chinese Government . “We are not taking the stance that this project should be completely stopped. We cannot abruptly stop such projects. We will make a decision after taking a look at the reports,” Wickremesinghe said.
It was emphasised that irrespective of the significance of the project or the party involved, the environment safeguards cannot be compromised and that proper rules and regulations must be followed.
The Prime Minister said once the committee report is ready, a final decision will be made by the Cabinet.
In response to JVP MP’s specific question, Wickremesinghe said that the Government had not taken up the position that this agreement should be torn up but was continuing its inquiry into it.
He also told Parliament that when he met the Chinese Government’s special envoy yesterday he was briefed about the status quo.
“It will take two weeks for their report to be ready. A copy of it will be given to the Chinese Ambassador and then we will discuss it. This matter will be also discussed in the House,” Premier Wickremesinghe assured.
JVP MP Dissanayake, who indicated that the project must be terminated, said as per reports Cabinet has decided to continue the Port City project, which plans to reclaim 575 hectares. “We don’t have reclaiming laws and no environmental impact assessment was done. The financial transactions are also questionable. During the past election campaign this project was criticised, building public disagreement. The current Prime Minister also talked about this project on stage. Having won the election why have you decided to continue the project? We like to know the reasons for such a decision,” inquired Dissanayake.
On Thursday Cabinet Spokesman Senaratane said: “We are satisfied with the Environmental Impact Assessment (EIA) done by the Moratuwa University.”
He told reporters that the second EIA would be needed to assess construction once the reclamation of land from the sea was completed. “There is time for that,” he said adding “Funding is by the Chinese company so we see no reason why it cannot go ahead.”
However, ownership of land by foreigners is illegal in Sri Lanka and Dr. Senaratne acknowledged the Government would have to look into proprietorship details.
“At the moment foreign companies can only hold land on a lease basis up to 99 years. As far as we can ascertain the State does not own this land as its being reclaimed by the Chinese company. We will rectify the shortcomings,” Senaratne added.
He also insisted no concerns have been officially raised by the Indian Government and Sirisena will likely visit China after overseeing a visit by Indian Prime Minister Modi in March.
Multinational China Communications Construction Company (CCCC), a subsidiary of the China Harbour Engineering Company, is creating the new island off Colombo’s harbour which was started during former President Mahinda Rajapaksa’s decade in power.
Known to be the single largest investment project in Sri Lanka, the port city will also have Sri Lanka’s first 100-storey skyscraper under Phase II of its work. This phase would include the construction of hotels, shopping malls, a golf course as well as a F1 track.
The site is on 233 hectares of reclaimed land along the iconic coastline of Colombo. Under the proposed deal, 108 hectares would be given to the Chinese firm, including 20 hectares on an outright basis and the rest on a 99-year lease.
