Hambantota Port project: Committee to finalise agreements

Joint venture agreement to be signed end January:

PM to open Ruhunupura Development Zone on Jan.7 :

Two ministers cut short press conference to attend committee meeting:

Port ownership to Be vested with joint company:

A Ministerial Committee headed by Dr Sarath Amunugama has been appointed to finalise the agreements related to the Hambantota Port joint venture, Strategic Development and International Trade Minister Malik Samarawickrema said.

The Cabinet Sub-Committee on Economic Management which met on Wednesday appointed this six member Committee which comprises of Ministers Dr Amunugama (Chair), Ravi Karunanayake, Arjuna Ranatunga, Sagala Ratnayaka, Nimal Siripala de Silva and Malik Samarawickrema.

Addressing a press conference jointly with Finance Minister Karunanayake yesterday at the Finance Ministry premises, Minister Samarawickrema said three agreements were being negotiated to give effect to the Public-Private Partnership (PPP) of the Hambantota Port with the China Merchant Port Holdings Company Ltd.

He said a Concession Agreement, Shareholding Agreement and a Lease Agreement would be signed between the Chinese Company and Sri Lanka Ports Authority (SLPA) by the end of January. He said the newly appointed committee was having discussions with both these parties at present. Minister Samarawickrema further clarifying said the ownership of the port would go not to China by way of the proposed agreements, but to a joint company set up by the SLPA and China Merchant.

Responding to a question by a journalist, the minister said President Maithripala Sirisena was not opposed to the move. “The President is of the view that these agreements should be discussed at the Cabinet and sent for Attorney General’s approval prior to signing” he said.

The minister said the Ruhunupura Development Zone would be ceremoniously commenced on January 7 with Prime Minister Ranil Wickremesinghe as the Chief Guest. He said the Chinese Ambassador would also attend this ceremony.

The minister dismissing the Joint Opposition criticism on the Economic Zone in the South reiterated that no private land, property or place of religious worship would be taken over forcefully for the purpose. “Out of the proposed 15,000 acres, we can find about 4,000-5,000 acres from Hambantota and the rest from areas such as Monaragala, Embilipitiya and Matara. As a percentage less than 5 percent of private lands will be used for the purpose with the consent of their owners and after paying due compensation” he said.

Minister Karunanayake bolstering this position reminded that about 1,600 families were evicted to construct Magampura Port. “Another 610 families were evicted for its second phase and 455 families were evicted for its third phase. About 500-600 families were evicted to construct the Mattala International Airport. The Joint Opposition objects when we are trying to make these ventures commercially viable while generating thousands of jobs” he said.

The Finance Minister explaining on the debt burden created by the Hambantota port, said the country lost Rs 90 million in 2011, Rs 718 million in 2012, Rs 1925 in 2013, Rs 9141 million in 2014, Rs 9,887 million in 2015 and Rs 9,629 million in 2016 to settle loan installments and interests of the loan obtained to construct the port. He added the Rs 10,656 million is needed to service this debt in 2018.

Minister Karunanayake further said the State Revenue in 2016 was Rs 1660 billion, adding that this was Rs 1461 billion in 2015, Rs 1,205 billion in 2014, Rs 1153 billion in 2013 and Rs 1068 billion in 2012. He added curbing of waste and corruption helped to increase the state revenue. He pointed out the Auditor General in his latest report has estimated a loss of Rs 15 billion from rice importation in 2014. The two ministers however cut short the press conference to attend the ongoing meeting of the ministerial committee discussing the Hambantota Port agreements, despite the calls by journalists, who were over loaded with questions, to remain and take up their questions.