Northern Expressway, vital to fast track development - CCI
President
Inclusive development of Provinces is timely. The Southern and
Katunayake Expressways and the outer Circular Highway under construction
will become catalysts to achieve this objective, said Chamber of
Construction Industry - Sri Lanka (CCI), President Dr. Surath
Wickramasinghe said at the inauguration of Build SL Construction and
Regenerating Expo at the BMICH recently.
He said that to accelerate the mega development projects, proposed
for the Central, North and East of Sri Lanka, the proposed Northern
Expressway has now become a pre-requisite.
Extracts of Dr. Surath Wickramasinghe's speech:
One way of achieving this objective, is to focus development activity
off the Northern Expressway with attractive incentives in targeted
locations in the Provinces where the provisions of the Strategic
Development Act can be used by the Board of Investment to set up mega
industries and other commercial activities, in addition to tourism
development which is already under way.
There may be critics who would say that the cost of the Northern
Expressway will not justify its investment.
On the other hand, the returns from its construction will catalyse
the development taking place not only in the Central, North and Eastern
Provinces, but also capture the development in the Mahaweli Program
which will then trigger its optimal potential that has not been possible
to date due to lack of connectivity.
Building the Northern Expressway immediately will prevent escalated
costs in another five years or more. If the local consultancy and
construction inputs are harnessed the construction of the Expressway
could be undertaken in sections to enable multiple contractors to
participate in its construction.
The CCI could assist the the Government to 'fast track' this
development Program on a PPP Model with the BOI and the RDA.
The urgency is acute as globalisation is rapidly taking place, and
all countries are competing to attract foreign investment, especially
developing countries in Asia. If Sri Lanka, lags behind, foreign
investment will go elsewhere, and the justifiable loans taken by the
Government will not bear fruit.
Tourism based activity is a lead sector driving the economy in Sri
Lanka. However, it's success will depend on providing world-class,
leisure, recreation and entertainment facilities.
Several Asian countries have considered these as a prime need for
sustainable tourism development.
In 2013, Singapore had 15.5 million visitors, Malaysia - 26 million
and Thailand - 26.7 million, while Sri Lanka had less than 2 million
visitors. Their success is that they cater to different types of
tourism. Sports tourism which would includes sailing and water sports,
golf, polo, horse racing, adventure tourism including hiking, biking,
climbing, casino tourism, agri-tourism (horticultural and farm based)
and tourism such as audio, educational, heritage, garden, health,
ecological, ancestry, rural, bookstore, creative, music and dance,
mystical, winter, wild life, commercial and business, wellness,
religious, conventions and conference tourism.
The way forward for an island country such as Sri Lanka, is to select
at least five provinces, where about 1,000 acres of land could be
obtained, to promote integrated resort tourism to meet the Government's
tourism promotion agenda through the development of infrastructure to
spur economic growth.
Asia's booming resorts use this concept.
To be competitive among other Asian countries and capture a variety
of high spending tourists, the BOI, should direct the private sector by
using a policy framework and attractive incentives to harness the
potential of the connectivity with other Provinces.
Resorts of this type can be implemented, with Government facilitation
and private sector funding, and the benefits to Sri Lanka would be
enormous as much needed foreign exchange, employment generation in large
numbers will be possible.
The bonus would be that Sri Lanka will preserve and protect the
environment in the rest of the country including the beaches for present
and future generations to enjoy.
For further development of the country at a rapid pace, it will not
be feasible for the Government to continue to obtain loans from
different sources. CCI has been promoting the setting up of our own
Infrastructure Development Fund to support members and to provide funds
for infrastructure projects in the country with foreign and local
investment. Several countries in Asia such as South Korea, China,
Singapore, Malaysia and even India have used this model to fast track
development of infrastructure.The CCI and Ceylon Asset Management (CAM)
are discussing with the DFCC regarding the modalities of setting up this
fund. We have obtained the support of several Ministries allied to the
construction industry and from the Central Bank Governor.
The CCI will be the integral stakeholder in the equity structure and
its primary promoter.
To fast track this process, it is essential that the Government
empower financial institutions which hold capital, such as the EPF, NSB
and even the Insurance Corporation, to invest in the equity of this
venture.
When this fund is set up, contractors will benefit and will bid for
multi-lateral funded projects in Sri Lanka and overseas. We initially
hope to raise around US $ 200 million and are confident of increasing
the capital within a short period.
Finally, the construction industry which will be a primary
beneficiary, will also need to harness it's own human resources.
We face great difficulty in attracting young talent to join the
construction industry, despite it being attractive with potential for
working not only in Sri Lanka but also in other countries.
We feel that at least at the GCE Ordinary Level stage leading up to
the Advanced Level, the syllabus under the technology subject can
include theory and practicals in construction work. It will enable
students to learn the basic skills of fabricators, carpenters,
electricians, plumbers, welders, crane drivers, machine operators to
rise up to the level of Master Craftsman in these fields. Today, some of
them earn around Rs 100,000 per month and if they are overseas, it will
be much more.
The Chamber of Construction Industry was founded in 2001, at a time
when the construction industry was recording minus growth as against the
construction industry growth rate of between 17-20 % today.
The industry has progressed rapidly, under the Mahinda Chintana
policy over the post-2005 period, particularly in road infrastructure,
airport and port development in Colombo and Hambantota.
The Colombo City and the Sri Jayewardenapura urban beautification and
the facilities provided for the public for recreation and leisure
activities has transformed the cities. Over 50 tourists hotels in Sri
Lanka have been completed this year. Sri Lanka will soon move into a new
league in development.
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