Port City project: Implications on environment should be studied

By Lalin Fernandopulle

The business community said that the government should leave no stone unturned in carrying out a comprehensive study on the implications of the Port City project on the environment.

They said that the safety of the environment and the protection of livelihood should not be compromised for short-term economic benefits.

Ceylon Chamber of Commerce President Suresh Shah said that the Chamber has no issue with the project as long as there are no serious environmental issues which should be ascertained through a proper environment impact assessment study. “The economic returns should be equitably shared between the developer and the government. Sri Lanka's legal jurisdiction must apply to the newly created land without any compromise. We believe that China would welcome appropriate checks and balances in place for major projects such as this and, therefore, don’t foresee any repercussions to the relationship arising from the outcome of the project,” Shah said.

National Chamber of Exporters President Sarada de Silva said that according to available information the responsibility of obtaining assessments and approvals regarding the environmental and conservation issues and related impact was the responsibility of the several State authorities.

Accordingly the EIA had been carried out by the University of Moratuwa and approvals had been obtained before implementation. “There is no clear evidence to apportion the blame entirely on the former President, since the approvals had apparently been granted by the Cabinet of Ministers based on the reports of the Cabinet appointed Technical Evaluation Committee,” de Silva said.

Apart from Sri Lanka-China relations, Chinese investments will be affected if the project is stalled. It would have a serious impact on the credibility of agreements with other investors in the future. The prudent approach is to examine legal and other issues related to this project and correct shortcomings through negotiations, the NCE President said.

National Chamber of Commerce of Sri Lanaka (NCCSL) President Thilak Godamanna said that the Chamber is for the project but the implications to the environment should be be studied scientifically. If there are serious consequences to marine resources, coastal conservation and natural resources, steps should be taken to check and rectify them.

Development should not be at the expense of environmental catastrophe.

"The port city is a new concept to Sri Lanka. Port cities are found in Dubai, Mumbai, Singapore and Hong Kong which are a boon to the economy. Scrapping the project altogether will have adverse consequences to foreign direct investments and relations with other countries," he said.

"It would erode business confidence and create negative perceptions about the country. We should go ahead with the project taking measures to minimise implications to the environment," Godamanna said.

Work on the project has been temporarily stopped following protests from fisher organisations, environmentalists and civil society organisations who claim that there was no scientific and authentic environmental impact assessment before launching the project late last year.

They accused the former Government of rushing through approvals without consulting experts and civil society organsiations. At a media briefing last month environmentalists, legal experts and fisher society representatives came down hard on the previous regime for overlooking the implications of the project to marine life, ports and livelihood of fishermen.

The Movement Against the Port City project pinned the entire blame on former President Mahinda Rajapaksa for whose vested interest the project was launched.

The US$ 15 billion project to be built on 230 hectares of reclaimed land, on completion, will comprise shopping and commercial areas, water sports, mini golf courses, communication and entertainment facilities.

Chevron Lubricants Lanka PLC, Managing Director Kishu Gomes said that its important for any country to keep investing on commercially viable projects to generate revenue to expand the economy to benefit all stakeholders. As the country moves forward to be a commercial hub within the region and to take tourism to the next level, the Port City project in theory sounds a sensible commercial decision.

"We have number of examples in this region where reclamation of land has been proved to be viable with zero or tolerable environmental impact and Sri Lanka exploring such opportunities as a little island arguably makes sense that props our economic model," he said.

“If due diligence in all aspects has been conducted and found to be in order and the project has been taken through a transparent approval process and the transaction is above board, stopping it halfway will send negative messages to prospective foreign direct investors," Gomes said.

"A quick check and balances and re-commencement of the project, provided there is no environmental impact would be the way to go. If the country can generate revenue through a mega project of this nature on the long term, there is no basis to object,” he said.

Shippers’ Academy CEO Rohan Masakorala said that the environmental impact assessment factor (EIA) should be mandatory before embarking on mega projects.