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Sri Lanka China City company says will stop work; furnish approvals

Mar 07, 2015 18:25 PM GMT+0530 | 8 Comment(s)

COLOMBO (EconomyNext) – A Chinese firm which was ordered to halt a 1.4 billion US dollar sea reclamation project said it will comply, but will take "all necessary steps" to provide the approvals asked, but warned that it had a signed agreement from the previous regime.

The agreement had been signed in September 2014, China Communications Construction Company Limited (CCCC), the parent of the Colombo incorporated CHECK Port City Colombo (Pvt) Ltd aid in a statement.

The full statement is reproduced below:

COLOMBO PORT CITY COMMENTS

China Communications Construction Company Limited (CCCC), the ultimate investor in the Colombo Port City Project, clarifies the following facts

07 March, 2015, Colombo: CHEC Port City Colombo Private Limited, a company incorporated in Sri Lanka which is fully owned by CCCC has received official communication from the Secretary to the Minister of Ports, Shipping & Aviation, communicating a decision taken by the Cabinet Ministers of Sri Lanka, directing the suspension of the ongoing work for the Port City Project, with immediate effect.

The official communication further directs CHEC Port City Colombo (Pvt.) Ltd to submit valid permits and approvals issued by the relevant government authorities. The company will be taking all necessary steps to provide these requested documents as instructed by the Ministry of Ports, Shipping & Aviation to abide by the notification received, without prejudice to the legal rights of the company under the Agreement entered into with the Government of Sri Lanka on 16th September 2014, to develop the Port City Project.

China Communications Construction Company Limited (CCCC), is a responsible corporate and is a global Fortune 500 public listed company. The company will fully cooperate with the Sri Lankan Government and continue to adhere to the procedures and conditions stipulated in the said agreement entered into with the Government of Sri Lanka, including the commitments contained in the approved Environmental Impact Assessment study and addendum thereto. Further, CCCC will continue to comply with the laws of the country and follow the necessary guidelines issued by the Government for a mega development project of this nature.

The foreign direct investment by CCCC for the creation of the Colombo Port City Project is USD 1.4 billion and the project is estimated to generate 83,000 local jobs. The project when fully completed is expected to attract international investments with a total value estimated at USD 13 billion. The complete commercial risk of this project will be borne by CHEC Port City Colombo (Pvt) Ltd. The technical partners of Port City are world-class companies such as AECOM, one of the world’s largest design firms for urban development based in USA, while ATKINS is the world’s largest engineering consultancy firm based in the UK. SWECO of Sweden is the master planning consultant for the project.

The vision for Port City is to establish Colombo as the ultimate business and tourist destination in South Asia. The land created will attract local and international investments for shopping malls, hotels, apartments, an exhibition center, educational institutions, healthcare facilities, theme parks, restaurants etc. Port City is planned to be very much a city for the people of Sri Lanka to be shared and enjoyed by all Sri Lankans.

 


 

8 Comments

  1. Sam March 08, 11:57 AM

    We have not learn anything from our past failures. The former gvernment invested in so many failed projects, and they all promised billions of dollars earnings projects and thousands of jobs. Can anybody see what is happening now. The government is finding difficult to pay back the loans that the previous governemnt obtained to collect their commissions by pawning the country. In addition, the goverenment has to maintain these projects at a very high cost to the soiciety. If we go ahead with this project, we are doomed. You need only an avergae inteligence to understand that this project is not going to bring any benefits to this country.

  2. rita March 08, 08:28 AM

    Don't you see some outside forces working behind the scene to stop this project?.

  3. Crana March 08, 07:03 AM

    I hope this issue will be resolved soon so that construction can go ahead. If this SL government ends up antogonizing China, which is one of SL's most faithful friends, that would indeed be a really stupid act on the part of this government.

  4. Aruna March 08, 03:39 AM

    My questions are followings 1.Can a Chinese company warn the sovereign right of the Citizens of Sri Lanka to question about the project? 2.What is the nature of property right? The land ownership etc.? 3.After completion who is going to allocate the resources and infrastructure facilities and to whom? What is the procedure? 4. If it it a FDI, how the Chinese company target to return on the investment? What benefits the Sri Lanka Govt receive? 5.Are the conditions of agreement between previous regime and CCCC comply all the mandatory requirements including socio-cultural, economic and environmental provisions in Sri Lanka legal system? 6. Including above clarifications there are many more gray areas that need to be explained. The above explanation is only a mask of black & white to guide us away from the real debate. 7.Moreover, if the previous regime has agreed with CCCC jeopardized articulation of TOR then isn't there a room for corrective or mitigatory measurements by now or later?

  5. sg March 07, 10:31 AM

    Sri Lankan need this city project.

  6. teewee March 07, 09:10 AM

    These idiots and mentally retarded politician do things on their own wish and blames previous regime. If this present pickle regime go ahead and cancel the contractual obligation for cancel the ongoing project there could be a penalty of course breaching contract. And the difference is the xxxx in these politicians head.

  7. Desapriya March 07, 08:57 AM

    The agreement to sell 49 acres to china should be abolished. And hundreds of acres to lease for 99 years should have more conditions. Then Port City project can go ahead.

  8. Raja March 07, 08:29 AM

    The new regime may not have the same in depth vision and drive as the previous regime, which worked within their goal to make Sri Lanka the Wonder of Asia. Hopefully th new regime will see the benefits and if there is anything not favourable to Sri Lanka, then, they should rectify such deficiencies but go through this development program asap.

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