Resumption of KKS factory will ease cement shortage

The shortage of cement will ease as steps have been take to recommence work at the Kankesanthurai Cement factory shortly, said Minister of Construction and Engineering Services Dr. Rajitha Senaratne.

He was speaking at the inauguration the ‘Construct’ Exhibition 2008 on Friday at the BMICH.

“There will be sufficient cement in the country and the possibility of exporting to the Maldives and other countries in the region could be looked into”, Dr. Senaratne said.

A program has been launched to purify river sand for construction work with assistance from foreign countries. There was an acute shortage of sea sand in the recent past due to measures taken by the Government to check illegal sand mining.

“Steps have been taken to train school-leavers and absorb them into the construction industry. The first Sisu Nana pola to train school-leavers will be held in Kandy next month”, he said.

The Minister said that a SAARC construction conference could be held to share expertise and new technology which would help to develop the construction sector in several countries.

The construction industry plays a major role in the development of the country. The industry contributed Rs. 145,000 million to the GDP with a growth rate of 9 per cent last year. The construction industry provides direct employment to over 550,000 people and 600,000 indirect employment.

Country Director, Asian Development Bank (ADB), Richard Vokes said the Bank is reviewing the possibility of adopting the price adjustment formula of the Institute for Construction Training and Development (ICTAD) for contracts exceeding six months but less than a year.

“The ADB agreed to review the ICTAD price adjustment formula following a request by the National Construction Association of Sri Lanka (NCASL)”, he said.

Vokes said that ADB is aware of the many challenges faced by the domestic construction industry due to high inflation. The delay in payments is one of the major challenges that domestic contractors face.

The ADB makes direct payments to contractors for their interim payment certificates if the value exceeds US$ 60,000. Payments are processed within 5-6 days.

“The ADB will support the speedy implementation of projects and train personnel for employment. The ADB has approved US$ 4.5 billion in loans, US$ 180 million in project grants and US $ 94 million for technical assistance.

ADB’s current support for Sri Lanka is 50 loans with a net loan of US$ 2.1 billion. Contracts have been awarded for US$ 1.2 billion which means another US$ 1 billion worth of contracts are yet to be awarded”, Vokes said.

Deputy Ambassador, French Embassy, Jacques Villeman said there is a need for more housing and infrastructure development in tsunami affected areas where French financing is focused.LF