Govt to sign development projects worth $2000m in 2007 -Dy Finance Minister

by surekha Galagoda

The govenment expects to sign development projects worth US $ 2000 million this year, said Deputy Minister Ranjith Siyambalapitiya addressing journalists at the Finance Ministry on Friday.

The projects will be signed in the sectors of water and sanitation, port development, road development, power and energy, health, railways and education. The main projects the government plans to develop are the second stage of the Kandy water project, second stage of the Kalu Ganga project, Ratmalana and waste water treatment in the Ja-ela and Ratmalana Industrial zones and the third stage of the Ampara water project.

In addition the Colombo Port expansion project, construction of the Oluvil port, development of the Hambantota port and the KKS port are also in the pipeline.

The major power projects planned for this year are the Trincomalee power project and the hydro power projects at Umaoya, Moragolla and Ginganga.

Treasury Secretary Dr P.B. Jayasundera said the government is targeting a growth rate of 7.5% for 2007. The contribution for each quarter may vary sector wise but we are confident of achieving this target.

He said that official remittances may exceed US$ 2.7 billion, FDI one billion, tourism US$ 500 million and revenue to GDP ratio 18.5%.

He said that in 2006 except for inflation all the other indicators reported positive growth compared to the previous years including exports which grew at 8% amidst stiff competition faced from other countries specially apparel and garments. Even the unemployment rate was reduced to 6% last year.

The cost estimated for the road development projects in 2006 was Rs. 40,165 million and the budgetary allocation for the project this year is 46,965 million. The cost forecasts for 2008 and 2009 are Rs.56,286 million and Rs.61,499 million. The total cost of the project from 2006 to 2009 will be Rs.197,656 million.

The cost estimated for the Highway development projects in 2006 was Rs.7,690 million and this year's allocation is Rs. 46,965 million. The forecasts for 2008 and 2009 would be Rs. 23, 880 million and Rs. 30, 790 million. The total cost of the project from 2006 to 2009 will be Rs. 76, 264 million.

The Southern transport development project under the Ministry of Highways was funded by the Asian Development Bank, SIDA and NORDIC.

The cost estimated for the Southern Transportation Project in 2006 was Rs.6,517 million and the allocation for the project this year is Rs. 7,956 million. The cost forecasts for 2008 and 2009 are Rs.7,132 million and Rs. 5,867 million. The total cost of the project from 2006 to 2009 will be Rs. 27, 472 million.

The project will reduce the travelling time by 50 percent, the traffic congestion on the Colombo-Galle Road and bring about more development in the area with construction of the 132 kilometre Colombo-Matara highway.

The cost estimated for the Colombo-Katunayake highway development project under the Ministry of Highways in 2006 was Rs. 534 million. The allocation this year is Rs. 2,870 million. The cost forecasts for 2008 and 2009 are Rs. 11, 135 million and Rs. 12,385 million. The total cost of the project from 2006 to 2009 will be Rs. 26, 924 million.

As a result of the Colombo- Katunayake highway project a 25 kilometre super highway with four inter-lanes on the Colombo-Puttalam A3 Road will be constructed to reduce the traffic congestion and increase the speed of vehicles up to 80kph.

The cost estimated for the roundabout projects under the Ministry of Highways in 2006 was Rs. 626 million. The allocation for this year is Rs. 2,935 million. The cost forecasts for 2008 and 2009 are Rs. 5, 410 million and Rs. 11, 135 million. The total cost of the project is Rs. 20, 106 million.

The construction of the 28 kilometre highway from the Colombo city will ease traffic congestion on the Colombo city and increase the average speed of vehicles from 30kph to 80kph.

The cost estimated for the alternative Colombo-Kandy highway under the Ministry of Highways in 2006 was estimated to cost Rs.13 million. The allocation for this year is Rs. 43 million. The cost forecasts for 2008 and 2009 are Rs. 203 million and Rs. 1, 403 million. The total cost of the project is Rs. 1, 662 million.

The Western and Sabaragamuwa Provinces will benefit from the project.

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Sri Lanka Development Forum 2007

The Sri Lanka Development Forum 2007 will be held on January 29 and 30 at the Light House hotel, Galle.

The theme of the forum is Mahinda Chinthana Nava Sri Lankavak Kara Dasa Avurudhu Dakma Sanvardana Prathipathiramuva 2006-2016.

It is expected that donors from over 50 countries will participate in the forum. It is organised by the Ministry of Finance and Planning.

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