UDA takes over Port City
By Uditha Kumarasinghe and Rukshana Rizwie
Finance Minister Ravi Karunanayake said the Government was prepared
to resume the Port City Development Project if the Chinese Company
agrees to launch the US$1.4 billion project on a 99-year lease. Ports
and Shipping Minister Arjuna Ranatunga yesterday said the Cabinet had
decided to hand over the Port City Development Project to the Urban
Development Authority which comes under the purview of the Ministry of
Megapolis and Western Region Development.
Responding to a question raised by UNP Colombo District MP
S.M.Marikkar, Minister Ranatunga said that after obtaining the approval
on legal, environmental and administrative requirements, the Cabinet
would make the appropriate decision to launch the project.
The Ministry of Megapolis and Western Development has already taken
action to obtain the feasibility report. It was suggested that advice
from internationally qualified experts should be obtained.
Minister Ranatunga said the Government had to temporarily suspend the
project as there were many problems regarding the agreements. If this
project is re-launched, it should benefit the country. The project will
provide a solution to the scarcity of land areas for systematic
development in the Colombo city.
Prime Minister Ranil Wickremesinghe who also responded told the House
the Government would not give outright ownership when the Port City
Project is launched. The Government would not leave room for any damage
to the coastal environment due to the project.The Port City Project
would begin if the Company agrees to 'leasehold' land
The Finance Minister said the Government had decided to change the
clause in the Agreement from freehold land to leasehold, citing that the
decision was now with the Chinese Company.
In the initial agreement, the Company was to hold 108 hectares,
including 20 hectares on a freehold basis and the rest on a 99-year
lease while Sri Lanka would own the rights to the other 125 hectares.
This is the provision which the Government now hopes to change. |
