this is not what the government said
China Port City company in Sri Lanka expects "mutually beneficial solution"
Mar 16, 2016 03:00 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - CHEC Port City Colombo (Pvt) Ltd, a Chinese state-run firm which was allowed to resume sea reclamation ahead of a visit by Prime Minister Ranil Wickremesinghe to China in April said it was expecting a "mutually beneficial solution."
Sri Lanka's current administration suspended work on the project in early 2015 after coming to power.
Sri Lanka's ports agency which has an interim concession agreement with CHEC Port City informed the firm in writing that the suspension of its work was lifted this week.
CHEC Port City is operating on an interim agreement with Sri Lanka's ports agency which was extended for six months by the cabinet of ministers earlier this month.
The firm however still has to sign a long term deal with Sri Lanka. The new administration has said the port agency has no capacity to contract with company to reclaim land and such powers have not been conferred to it.
"The Project Company recognised this positive step in moving forward, appreciating the efforts of the Government in working towards a mutually beneficial solution," the firm said in a statement.
The new administration has said it will not give the company freehold land and there has also been a move to make trim the size of the project, which some observers say may not be feasible if the project is to be completed in time.
It is not clear whether Sri Lanka will have to compensate the firm in some way for the losses caused. it is have been revealed compensation for looses due to abrupt closer order is not the question.Question is how much Some even sale the freehold land are has been increase as government has no funds formonatary compensations
CHEC Port City said "the suspension and the lengthy process taken to resume work have resulted in significant losses" to both the firm and the government of Sri Lanka.
"This is a result of the huge financial and resources commitment that is required for a project of this scale, the firm said.
"With the resumption of work now approved, the Project Company will commence with preparatory work as soon as feasible to ensure that the project can be completed in the expected timeframe."
International Trade Minister Malik Samarawickreme who visited Beijing earlier this month said Sri Lanka and China may incorporate a joint venture to run the project.
Under the earlier plan, Sri Lanka was to get some of the reclaimed land.
The Chinese are expected to spend 1.4 billion US dollars to reclaim the land and bring in up to 20 billion Us dollars investments over the next decade.
Sri Lanka's current administration suspended work on the project in early 2015 after coming to power.
Sri Lanka's ports agency which has an interim concession agreement with CHEC Port City informed the firm in writing that the suspension of its work was lifted this week.
CHEC Port City is operating on an interim agreement with Sri Lanka's ports agency which was extended for six months by the cabinet of ministers earlier this month.
The firm however still has to sign a long term deal with Sri Lanka. The new administration has said the port agency has no capacity to contract with company to reclaim land and such powers have not been conferred to it.
"The Project Company recognised this positive step in moving forward, appreciating the efforts of the Government in working towards a mutually beneficial solution," the firm said in a statement.
The new administration has said it will not give the company freehold land and there has also been a move to make trim the size of the project, which some observers say may not be feasible if the project is to be completed in time.
It is not clear whether Sri Lanka will have to compensate the firm in some way for the losses caused. it is have been revealed compensation for looses due to abrupt closer order is not the question.Question is how much Some even sale the freehold land are has been increase as government has no funds formonatary compensations
CHEC Port City said "the suspension and the lengthy process taken to resume work have resulted in significant losses" to both the firm and the government of Sri Lanka.
"This is a result of the huge financial and resources commitment that is required for a project of this scale, the firm said.
"With the resumption of work now approved, the Project Company will commence with preparatory work as soon as feasible to ensure that the project can be completed in the expected timeframe."
International Trade Minister Malik Samarawickreme who visited Beijing earlier this month said Sri Lanka and China may incorporate a joint venture to run the project.
Under the earlier plan, Sri Lanka was to get some of the reclaimed land.
The Chinese are expected to spend 1.4 billion US dollars to reclaim the land and bring in up to 20 billion Us dollars investments over the next decade.
