Sri Lanka approves construction on stalled Chinese port project

[Rawalpindi88]

India, Sri Lanka agree to extend ongoing project assisting war-affected women in East

 

[Gibbs]

India, Sri Lanka agree to extend ongoing project assisting war-affected women in East

Do you think these projects are recent ?? Indian investment and rehabilitation projects are nothing new to the island.. Indians were involved in building 8000 homes destroyed in the civil war, They rebuilt the destroyed northern railway line, They are involved in a coal power plant in the East all mega projects initiated by the previous Rajapaksa govt with the Indian govt.. I suggest you update your self about Sri Lankan internal affairs before posting stuff in bold italics.. Tks

 

[Gibbs]

Sri Lanka clears the decks for controversial Chinese project | South China Morning Post

The Sri Lankan government has cleared the decks for the controversial Colombo Port City project to resume, the country’s finance minister told theSouth China Morning Post.

Executives at the related Chinese companies who cannot be identified separately told the Post that the project was expected to restart around February, after all the final details had been worked out.

“We have given all the necessary clearances. Now it is up to the investors to sort out the minor details,” said Ravi Karunanayake. “On our part, the government is happy with the environmental impact assessment [EIA] report for the project. It is now under public consultation.”

The absence of a proper EIA was cited as a major reason for pulling the US$1.4 billion project – which will see a spanking new business district the size of Monaco rise from the ocean – that was cleared by former China-friendly president Mahinda Rajapaksa. Colombo Port City is among the several big-ticket Chinese-backed infrastructure ventures put on hold after Rajapaksa lost in January’s election.

Inaugurated by President Xi Jinping in September and financed by state-controlled and Hong Kong-listed China Communications Construction Co (CCCC) and executed by its subsidiary CHEC Port City Colombo, the project has driven a wedge between Beijing and Colombo, once one among China’s strongest allies in the region.

The site of the proposed Port City project. Photo: Debasish Roy Chowdhury

Karunanayake said the government had asked the Chinese project company to agree to a change in provision of freehold land into leasehold land to enable the project to resume.

“This is in accordance with the law of the land. Foreigners can’t own land in this country and everyone has to abide by it,” the minister said.

Under the original agreement, CCCC would reclaim 233 hectares off Colombo coast. It would keep 108 hectares, including 20 hectares on a freehold basis and the rest on a 99-year lease. Sri Lanka would own the rights to the other 125 hectares.

Apart from potential environmental damage ranging from coastal erosion to loss of marine life, this provision of giving freehold land to a Chinese state company became a political hot potato at home and abroad.

MORE REPORT: Sri Lanka promises to end deadlock over mega Chinese project
In March, Sri Lanka’s Civil Aviation Authority warned in an internal memorandum to the government that the airspace over the Chinese-held area in the development would be controlled by China, drawing heavy criticism from Beijing.

“India is pressuring the government not to give us freehold land,” a senior Chinese executive, who refused to be identified, told the Post, adding that negotiations on the leasehold condition would begin in two weeks.

India has been concerned about increasing Chinese presence in its relatively less guarded southern flank since two Chinese submarine calls in Colombo last year. The incident is understood to have been the final straw in India’s relations with Rajapaksa, whose pronounced China tilt had already strained his ties with New Delhi.

The public consultation on the environment report will end around the middle of January. Several high-level sources have told the Post that Colombo has been trying to put the project back on track with a sense of urgency.

This is in accordance with the law of the land. Foreigners can’t own land in this country and everyone has to abide by it
SRI LANKAN FINANCE MINISTER RAVI KARUNANAYAKE

In October, China rushed Vice-Minister of Foreign Affairs Liu Zhenmin as special envoy to Sri Lanka to meet the leadership and urge them to restart Chinese projects, especially Port City.

“Sri Lankan leaders have expressed commitment to moving forward the project. I am confident Colombo Port City will be completed in three to five years,” he said at the end of his trip, expressing hope that the government’s decision to restart the project would ease the mounting losses for the Chinese companies as a result of the delay.

Since the unity government of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe put the brakes on Port City, China has been treating the fate of this project as an indicator of the new regime’s commitment to continue strong bilateral ties.

Inaugurated by Xi in September last year, Colombo Port City was a major election issue in the campaign against Rajapaksa. Like many other big-ticket infrastructure projects across the country, it was alleged to have been cleared without due diligence and by subverting procedural norms to favour Chinese companies.

Moving away from Rajapaksa’s China focus, the new government has vowed to follow an equidistant foreign policy.

Wickremesinghe on Wednesday announced that Sri Lanka would not sign the proposed Comprehensive Economic Partnership Agreement with India. Instead, a new agreement on economic and technological cooperation with its northern neighbour was being worked out.

@Azizam @Shotgunner51 @Beidou2020 @Chinese-Dragon

 

[Shotgunner51]

Sri Lanka clears the decks for controversial Chinese project | South China Morning Post

The Sri Lankan government has cleared the decks for the controversial Colombo Port City project to resume, the country’s finance minister told theSouth China Morning Post.

Executives at the related Chinese companies who cannot be identified separately told the Post that the project was expected to restart around February, after all the final details had been worked out.

“We have given all the necessary clearances. Now it is up to the investors to sort out the minor details,” said Ravi Karunanayake. “On our part, the government is happy with the environmental impact assessment [EIA] report for the project. It is now under public consultation.”

The absence of a proper EIA was cited as a major reason for pulling the US$1.4 billion project – which will see a spanking new business district the size of Monaco rise from the ocean – that was cleared by former China-friendly president Mahinda Rajapaksa. Colombo Port City is among the several big-ticket Chinese-backed infrastructure ventures put on hold after Rajapaksa lost in January’s election.

Inaugurated by President Xi Jinping in September and financed by state-controlled and Hong Kong-listed China Communications Construction Co (CCCC) and executed by its subsidiary CHEC Port City Colombo, the project has driven a wedge between Beijing and Colombo, once one among China’s strongest allies in the region.

The site of the proposed Port City project. Photo: Debasish Roy Chowdhury

Karunanayake said the government had asked the Chinese project company to agree to a change in provision of freehold land into leasehold land to enable the project to resume.

“This is in accordance with the law of the land. Foreigners can’t own land in this country and everyone has to abide by it,” the minister said.

Under the original agreement, CCCC would reclaim 233 hectares off Colombo coast. It would keep 108 hectares, including 20 hectares on a freehold basis and the rest on a 99-year lease. Sri Lanka would own the rights to the other 125 hectares.

Apart from potential environmental damage ranging from coastal erosion to loss of marine life, this provision of giving freehold land to a Chinese state company became a political hot potato at home and abroad.

MORE REPORT: Sri Lanka promises to end deadlock over mega Chinese project
In March, Sri Lanka’s Civil Aviation Authority warned in an internal memorandum to the government that the airspace over the Chinese-held area in the development would be controlled by China, drawing heavy criticism from Beijing.

“India is pressuring the government not to give us freehold land,” a senior Chinese executive, who refused to be identified, told the Post, adding that negotiations on the leasehold condition would begin in two weeks.

India has been concerned about increasing Chinese presence in its relatively less guarded southern flank since two Chinese submarine calls in Colombo last year. The incident is understood to have been the final straw in India’s relations with Rajapaksa, whose pronounced China tilt had already strained his ties with New Delhi.

The public consultation on the environment report will end around the middle of January. Several high-level sources have told the Post that Colombo has been trying to put the project back on track with a sense of urgency.

This is in accordance with the law of the land. Foreigners can’t own land in this country and everyone has to abide by it
SRI LANKAN FINANCE MINISTER RAVI KARUNANAYAKE

In October, China rushed Vice-Minister of Foreign Affairs Liu Zhenmin as special envoy to Sri Lanka to meet the leadership and urge them to restart Chinese projects, especially Port City.

“Sri Lankan leaders have expressed commitment to moving forward the project. I am confident Colombo Port City will be completed in three to five years,” he said at the end of his trip, expressing hope that the government’s decision to restart the project would ease the mounting losses for the Chinese companies as a result of the delay.

Since the unity government of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe put the brakes on Port City, China has been treating the fate of this project as an indicator of the new regime’s commitment to continue strong bilateral ties.

Inaugurated by Xi in September last year, Colombo Port City was a major election issue in the campaign against Rajapaksa. Like many other big-ticket infrastructure projects across the country, it was alleged to have been cleared without due diligence and by subverting procedural norms to favour Chinese companies.

Moving away from Rajapaksa’s China focus, the new government has vowed to follow an equidistant foreign policy.

Wickremesinghe on Wednesday announced that Sri Lanka would not sign the proposed Comprehensive Economic Partnership Agreement with India. Instead, a new agreement on economic and technological cooperation with its northern neighbour was being worked out.

@Azizam @Shotgunner51 @Beidou2020 @Chinese-Dragon

Good progress!

 

[Gibbs]

Good progress!

They unnecessarily politicized this whole project.. If not it could have resumed much earlier, But unfortunately thats how third world democracies work

 

[Shotgunner51]

They unnecessarily politicized this whole project.. If not it could have resumed much earlier, But unfortunately thats how third world democracies work

Well if that's how their political system work, can't comment my friend, whatever it is it should better serve interests of their own nation.

Stunning pic, let's do it together Lankan bros!

 

[war&peace]

Very good for the stability of the region and expanding trade relation between the countries of the region.

 

[aliaselin]

I don't think there is any hope for the project. The Lanka government is not credible.

 

[Providence]

I don't think there is any hope for the project. The Lanka government is not credible.

Can YOU define credibility first ?

 

[Beidou2020]

I don't think there is any hope for the project. The Lanka government is not credible.

Exactly. This month they approve, next month they stop the project.

No certainty in the pro-American puppet regime currently running Sri Lanka.

 

[Beast]

They unnecessarily politicized this whole project.. If not it could have resumed much earlier, But unfortunately thats how third world democracies work

The project is only resume becos of poor economy performance worldwide that affect SL too. I am not a fan of current SL government, clearly they are pro India. I am sure, many Chinese investors will have a bitter taste after this experience. The current SL government is dumb thinking India is really some superpower that can push their economy? India herself even needs overseas investment for her infrastructure. A pro India strategy is really delusion strategy. The SL government only come back to Chinese after India fail to deliver all promise for arrange undertable for being pro India.

I am sure this USD 1.4 billion project will be the last government to government arrange until the current SL government collapse.

 

[aliaselin]

Exactly. This month they approve, next month they stop the project.

No certainty in the pro-American puppet regime currently running Sri Lanka.

This is exactly what I'm concerned. I do not oppose our government invest there but not like this project with billions of dollar. A few project with millions of investment would be much wiser.

 

[Gibbs]

The project is only resume becos of poor economy performance worldwide that affect SL too. I am not a fan of current SL government, clearly they are pro India. I am sure, many Chinese investors will have a bitter taste after this experience. The current SL government is dumb thinking India is really some superpower that can push their economy? India herself even needs overseas investment for her infrastructure. A pro India strategy is really delusion strategy. The SL government only come back to Chinese after India fail to deliver all promise for arrange undertable for being pro India.

I am sure this USD 1.4 billion project will be the last government to government arrange until the current SL government collapse.

This is exactly what I'm concerned. I do not oppose our government invest there but not like this project with billions of dollar. A few project with millions of investment would be much wiser.

I'd agree on the part of the Lankan establishment on their lack of a national policy regards to the economy and foreign relations, but on the other hand China also have to learn lesson on not banking on putting all their eggs in to one basket, I think in that aspect China is an amateur when you compare with the West but i think they're quickly realizing that and making the right amendments

The thing is unlike Sub Saharan Africa where dictatorial rule may run in to decades and usually it takes military coups or armed rebellions to remove rulers, Relatively mature democracies like Sri Lanka change governments quite frequently with popular mandates of the people, Much like how it happens in the West, So china made a blunder by banking solely on the Rajapaksa regime in some cases in absurd white elephant projects to satisfy the regime, So they inadvertently got caught up in the post election rhetoric

China has been a steadfast ally of Sri Lanka for decades, ever since the 1950's when she was one of the first countries to recognize the peoples republic,And that was before the Rajapaksa's and definitely will be after the Rajapaksa's.. So dont agree on that notion that SinoLanka ties depend on one govt

 

[aliaselin]

I'd agree on the part of the Lankan establishment on their lack of a national policy regards to the economy and foreign relations, but on the other hand China also have to learn lesson on not banking on putting all their eggs in to one basket, I think in that aspect China is an amateur when you compare with the West but i think they're quickly realizing that and making the right amendments

The thing is unlike Sub Saharan Africa where dictatorial rule may run in to decades and usually it takes military coups or armed rebellions to remove rulers, Relatively mature democracies like Sri Lanka change governments quite frequently with popular mandates of the people, Much like how it happens in the West, So china made a blunder by banking solely on the Rajapaksa regime in some cases in absurd white elephant projects to satisfy the regime, So they inadvertently got caught up in the post election rhetoric

China has been a steadfast ally of Sri Lanka for decades, ever since the 1950's when she was one of the first countries to recognize the peoples republic,And that was before the Rajapaksa's and definitely will be after the Rajapaksa's.. So dont agree on that notion that SinoLanka ties depend on one govt

I think your government did not understood what is the meaning of globalization. Maybe they thought they broke their promise having nothing to do other countries except China, however, for businessmen, all they want is earning money, and finding reliable cooperative partner, while politics is less considered. So it is not a issue of putting all their eggs in to one basket, and no matter how much Lanka government has talked, they have broke their faith in the business world, and everyone will think twice before any investment, especially this is state behavior but not personal behavior. Moreover, at the background of dollar appreciation, our pocket becomes tight, too; so I think our government should be more careful with our investment, especially considering more about return and security of investment.

For the Port City project , I don't think it will be a project even with moderate return: Firstly, we can not be ensured by finishing this project normally, as the contract may be scraped once again by any excuse; secondly, even if this project is finished, can it really be a economical center of South Asia? With a bad record of credibility for the country, why will the businessmen invest there? As I have said, for the businessmen, investment security is one of the most important thin they should consider. So at the moment, it seems that this project has become meaningless, and it is lucky we have not invested much there. Personally, our government should be more focus on Bagamoyo port project in Indian Ocean area, which should be more reliable and with high return.

As to the friendship between China and Lanka, now that we have a good relationship before this project, we can maintain it even without it.

 

[Beidou2020]

The project is only resume becos of poor economy performance worldwide that affect SL too. I am not a fan of current SL government, clearly they are pro India. I am sure, many Chinese investors will have a bitter taste after this experience. The current SL government is dumb thinking India is really some superpower that can push their economy? India herself even needs overseas investment for her infrastructure. A pro India strategy is really delusion strategy. The SL government only come back to Chinese after India fail to deliver all promise for arrange undertable for being pro India.

I am sure this USD 1.4 billion project will be the last government to government arrange until the current SL government collapse.

Sri Lanka had good relations with India and China under Rajapaksa but the current regime has become anti-China while maintaining its relations with India.

US NGO's and Indian intelligence had a big role to play in toppling Rajapaksa and installing an anti-China regime to diminish Chinese influence.

The current regime stopped all Chinese submarines visits, cancelled all Chinese projects and their foreign minister went to Japan and trash talked China.