Gateway International to invest US $ 4 b on Sampur

by Naalir Jamaldeen reporting from Trincomalee

Singapore based Gateway International (Pvt) Ltd will invest US$ 4 billion on a heavy industry complex in Sampur, Investment Promotion Minister Lakshman Yapa Abeywardane said.

The complex will be built on 818 hectares of land. It is a fifty-year agreement and a Bill in this regard was presented to Parliament for approval last week, the Minister said.

He said that all development work would be completed in seven years. Under the first phase, a jetty and a coal yard will be constructed at a cost of US$ 700 million. Other basic facilities will also be developed.

The first phase is due to be completed in two years. Infrastructure facilities including water supply and electricity will be developed under the second phase at a cost of US$ 1,300 million.

US$ 2,000 million will be spent under the third phase to construct factories and set up machinery. After completion of the third phase, a coal refining system will be set up while carrying out other construction work.

All the development work will be carried out by the investor, the Minister said.

He said that the Government plans to launch various development projects in the Trincomalee district under the Mahinda Chinthana national development concept.

The support of the media is vital to attract more foreign investments to achieve the goal of sustainable development, Abeywardane said.

The Trincomalee district has the resources for development. It contributes in a major way to the national economy next to the Colombo district and has achieved self-sufficiency in fish, paddy and milk production, he said.

Minister Abeywardane said that Sri Lanka still depends on cement imports. Nearly 25 percent of the country's requirement is imported. US$ 40 is paid as import tax on each ton.

The tourism sector has also begun to blossom in the Trincomalee district. Ten out of 14 hotels have already been completed in Pasikkudah, the Minister said.

Mega Line recently opened a garment factory in Vavuniya which will provide 3,000 jobs. It has already given 300 jobs. The company will provide the remaining jobs soon," he said.

"The Board of Investment (BOI) has taken steps to identify new locations to set up industrial zones. They will be set up without harming the environment. The chemical waste produced by factories should not be released into the environment. Industrialists should maintain a waste management system within the factory premises," the Minister said. The Government has taken steps to encourage local and foreign investors willing to invest in various parts of the country.

"If the economic standard of the country is to be improved further, the inflow of foreign investment is crucial," Minister Abeywardane said.

The Government will leave no room to discourage investors, he said. "We have taken steps to set up five industrial zones in Hambantota including Sooriyawewa and Mirijjawila," the Minister said.

"Under the Strategic Development Act (SDA), investors will be given all basic facilities. The SDA was formulated by the Government to attract more foreign and local investors," he said.

If the investment exceeds US$ 250 million the Government will provide all basic facilities for them.

"John Keels has invested US$ 600 million on a mixed development project. The have been given all facilities under the SDA," Abeywardane said.

"Investors have been given a timeframe to complete the projects they undertake.

They can't be compelled to complete the project before time. Sometimes due to financial or other problems a project may get delayed," he said. "The Government has spent Rs. 179 billion to develop infrastructure facilities in the Eastern province," the Minister said.

"Plans are afoot to set up an industrial zone in Vakarai. Several investments will be made in Mullaitivu too," he said. The Government has taken steps to bring large investments to the North on a par with the South, Minister Abeywardane said.

Investment Board Chairman, Dr. Lakshman Jayaweera, Health Ministry, Additional Secretary, Amal Harsha de Silva were also present.