Tamil Information Centre
User Name:   
Password:   
  Remember Me  
Sign up  |  Forget password
Home   
Search
    Contact us
Hambantota project: Chinese firm holds back US$ 585m
Published Date: 10/06/2018 (Sunday)

By Bandula Sirimanna

CMPort wants to set up artificial entertainment zone, but SLPA says no

The Chinese company involved in the Hambantota Port project has put on hold the last tranche of US$ 585 million to Sri Lanka over a dispute involving infrastructure facilities.

The China Merchants Port Holdings Company (CMPort) Ltd is insisting that in accordance with the existing Concession Agreement, an artificial entertainment zone on reclaimed land is among the issues it wants resolved.

However, Sri Lanka Ports Authority (SLPA) Chairman Parakrama Dissanayake said the port area had been gazetted (under the SLPA Act) and would only be used for marine and port related activities. No land would be used for entertainment or tourism purposes, he said.
Until the issues are resolved, the money due to Sri Lanka in US dollars will lie at the CMPort’s Standard Charted Bank account, a source said yesterday. “It will only be transferred to the Central Bank after the issues in dispute are resolved.”

Ports Minister Mahinda Samarasinghe, when contacted for details of the disbursement of the last tranche, said he was unable to comment as he was in hospital.

SLPA Chairman Dissanayake said the money would be transferred to the SLPA account and transferred to Central Bank after meeting certain conditions in the agreement.

He noted that the whole Hambantota Port area had been gazetted under the SLPA Act and it would be utilised for marine and port related activities and no land would be used for entertainment or tourism purposes.

Declining to comment or clarify on the commitments or obligations relating to infrastructure that has to be fulfilled by the Government, he said that no artificial land in the port area would be earmarked for entertainment or tourism purposes.

He said no permission would be given to any party to set up casinos or introduce tourism-related activities as the whole area has been declared for port and marine-related activities.

Several rounds of talks were held between top Finance Ministry officials, relevant ministries, state agencies and CMPort representatives to arrive at an amicable settlement on conditions that are to be fulfilled by all parties to the agreement recently without much progress, a senior official involved in the discussions said.

He disclosed that according to the concession agreement, “The parties agreed the Company shall not be required to pay (by itself or through its affiliates) Tranche 3 of the consideration under the Concession Agreement until all of the original conditions precedent have been fulfilled or waived by parties signatories to the agreement”.

Therefore, he pointed out, it is essential to arrive at a settlement on the fulfillment of conditions through consultation, compromise and consensus without dragging the issues as the country could not afford to lose much needed foreign exchange.

“Objections have been raised against the unusual structure of the deal where infrastructure including breakwater, utilities and the islands are handed over to a third-party operator instead of the port agency as landlord only leasing out terminal and revenue generating sections, as is the international practice’, he added.

Once the land reclamation has been completed, the President would have to officially include the Port premises in the Sri Lankan territory and vest it in the relevant local authority making a declaration in special gazette notification, a senior legal official said.

Source: The Sunday Times

Share on Facebook


 Latest 25 News/ பிந்திய 25 செய்திகள்:
China projects steam ahead
Published Date: 10/06/2018 (Monday)
Now, Wiggy locks horns with Reggie Allegation about a plan to build Buddhist temples in K’nochchi:
Published Date: 10/06/2018 (Monday)
Glyphosate: First shipment due in October ‘No scientific proof it can cause cancer’
Published Date: 10/06/2018 (Monday)
Return to the Rural
Published Date: 10/06/2018 (Monday)
Mannar and Thalaimannar ‘miss’ the strategic advantage drive The train to nowhere
Published Date: 10/06/2018 (Monday)
Controversy over media reports of China printing currency notes for Sri Lanka
Published Date: 10/06/2018 (Monday)
Clashes at Welikada Prison: 11 injured and 52 inmates transferred
Published Date: 10/06/2018 (Monday)
Don't tell me it's a 'fact' that all Muslims in South Asia are descended from rapists Some Pakistanis and Indian Muslims claim Arab ancestry, which is often a huge source of contention.
Published Date: 10/06/2018 (Monday)
CID manhunt for fugitive ‘Navy Sampath’ ends
Published Date: 10/06/2018 (Sunday)
Grave secrets: Behind the skeletal excavations in Mannar
Published Date: 10/06/2018 (Sunday)
Sri Lanka’s Democracy: Very critical challenges ahead
Published Date: 10/06/2018 (Sunday)
MR in three weddings and three-hour CID interrogation
Published Date: 10/06/2018 (Sunday)
Action against Vijayakala: AG advises Speaker
Published Date: 10/06/2018 (Sunday)
Open economy destroyed Lankan values: Cardinal
Published Date: 10/06/2018 (Sunday)
Possibility of Mahinda Rajapaksa contesting next presidential election
Published Date: 10/06/2018 (Sunday)
Water supply to Vavuniya District increased by 30%, says Minister Hakeem
Published Date: 10/06/2018 (Saturday)
Sri Lanka replaces 'Siva's footprint' board to 'Buddha's footprint'
Published Date: 10/06/2018 (Saturday)
Sri Lanka Searching for Mum, Series 1 Episode 1 of 2
Published Date: 10/06/2018 (Thursday)
Japan shifts focus of its development assistance to Indo-Pacific
Published Date: 10/06/2018 (Wednesday)
No need for military aid from US when there is no war – Nalaka Thero
Published Date: 10/06/2018 (Wednesday)
Celebrated war hero now sells fish
Published Date: 10/06/2018 (Wednesday)
Keith Noyahr Incident: Mahinda summoned by the CID
Published Date: 10/06/2018 (Wednesday)
HALO expects to free Jaffna from mines by late 2019
Published Date: 10/06/2018 (Wednesday)
‘Navy Sampath’ remanded until August 29
Published Date: 10/06/2018 (Wednesday)
Sri Lanka navy chief funded mass-murder suspect: CID
Published Date: 10/06/2018 (Wednesday)
Donate
Support our work to bring rights to life in any way big or small
 Amount:

Donate using PayPal

Select dates to view
past and future events
<<<Aug - 2018>>>
SunMonTueWedThuFriSat
   1
2
34
56789
10
11
1213
14
15161718
19
2021222324
25
262728293031 
 Stand up for Rights and Justice
Call to Ban Monsanto’s pesticide
Read more...
Take Action
Trump’s child hostages
Set Noura Free -- sign now!
Tamil men accuse continuing torture in Sri Lanka Take a stand against torture and urge UN Human Rights commission for human rights to investigate
Latest Publication
Armament for Repression: Militarisation of Sri Lanka Conference Report:

Armament for Repression: Militarisation of Sri Lanka

Read more...

Thiruvalluvar
About us
Site Help
Getting in touch
Other
Facebook Youtube twitter
Sitemap  |  Privacy Policy  |  Terms and Conditions
Copyright © 2018 ticonline.org, All rights reserved.