Govt. to suffer massive suspension loss from Port City project?
Posted on March 21st, 2015

By  Azhar Razak and Arthur Wamanan Courtesy  The Nation

CHEC Colombo Port City (Pvt) Ltd, a subsidiary of China Communications Construction Company Limited (CCCC) assigned to undertake all activities for the Colombo Port City, last week told The Nation that the company has a legal right for compensation by the Government for losses suffered due to the current suspension of the project”.
In a recent statement, CCCC, whilst noting that they had stopped work on the project on March 6, 2015 following a Cabinet decision to suspend the project, had pointed out that Sri Lanka’s decision was likely to cause an estimated loss of US$ $380,000 per day (approximately Rs.50 million). With fifteen days being passed as of today (21) since the project was suspended, the contingent liability for the government has already touched a staggering US$5.7 million or Rs. 750 million.

Colombo Port City is a 100% privately funded Foreign Direct Investment of US Dollars 1.4 billion by the Company and is not a grant or loan to the Sri Lankan Government. The project is fully funded by CCCC’s internal financial resources. CCCC will provide 30% equity while 70% will be financed with the land.”

The loss of USD 380,000 per day, incurred due to the on-going suspension on the project is therefore initially borne solely by CHEC Port City Colombo (Pvt) Ltd. However, the contractual obligation to obtain all key applicable permits for project commencement lies with the Government of Sri Lanka (GoSL) and Sri Lanka Ports Authority (SLPA). CCCC commenced reclamation work after being informed that the contractual obligation on the part of GoSL and SLPA had been fulfilled. The Project Company has a legal right for compensation by the Government for losses suffered due to the suspension,” the company told The Nation in an email response.

Meanwhile, CCCC said that CHEC Port City Colombo (Pvt) Ltd has written to the Secretary of Ministry of Ports, Shipping & Aviation seeking permission to carry out vital protective work to the existing site, as over 200 meters of the breakwater constructed thus far has been damaged or is likely to be damaged due to the suspension.

The Secretary has also directed CCCC to submit valid permits and approvals issued by the relevant government authorities and have responded to this request by submitting the requested documents to abide by the notifications received, without prejudice to the legal rights of the Company. Further, in its communication to the Secretary of Ministry of Ports, Shipping & Aviation and in subsequent communications sent to the Honourable Prime Minister, CCCC has volunteered to share any additional information required by the Government to reach a final decision concerning the project,” the CCCC statement said.

12 Responses to “Govt. to suffer massive suspension loss from Port City project?”

  1. Cerberus Says:

    One day when all these clowns have gone home it is the poor of Sri Lanka who will have to pay for their bungling with their tax money earned by blood, sweat and tears. Does RW or My3 understand the enormity of the problems they have created for Sri Lanka by their ill thought of actions. Why is the Parliament keeping silent on all these issues? Have they all been bought over by RW?

  2. Mr. Bernard Wijeyasingha Says:

    Well this is a good opportunity for India to show her goodwill. Since the BJP and Modi wanted Rajapakse removed on the specific grounds of the threat to Indian security when 2 Chinese submarines were allowed by the former administration to dock in Sri Lankan ports to the protest of India and the US

    and

    Nareendra Modi is the first Indian Prime Minister to visit Sri Lanka in 28 years (or to put it another way no Indian Prime Minister visited Sri Lanka when the Rajapakse government ended the war with the Tamil Tigers ensuring the security for both Sri Lanka and India)

    and

    Narendra Modi promised the relations between India and Sri Lanka will now take on a new stand without the explicit role of China, it is then the goodwill of India to keep her new found alliance with Colombo by paying this fee. The Sirisena Coalition would not have suspended such an important deal if not for India’s security interests and that of the Tamils both in India and in Sri Lanka. SO FAR SRI LANKA HAS DONE EVERYTHING INDIA WANTED HER TO DO.

    INDIA TO DATE HAS GIVEN NOTHING TO SRI LANKA EXCEPT PROMISES AND STERN COMMANDS THAT AMENDMENT 13 BE IMPLEMENTED. IF THIS WAS THE US WE WOULD PAY THIS FEE IN EXCHANGE FOR THE NEW FOUND ALLIANCE WITH SRI LANKA. SRI LANKA SHOULD EXPECT NO LESS FROM INDIA FOR DOING HER BIDDING.

  3. NAK Says:

    Ranil Wickremasinghe and his clan of cronies must be made to pay these collosal amount ot of wasted money. There is no justifiacation what so ever for the government coughout public money to pay compensation for this idiotic action.

    Look what this idiot Ranil Wickremasinghe did to the 45000 flower pot that were at the Temple Trees. He ordered them to be transprted to the Gampaha botanical garden without finding out if they can accomodate it and his equally idiotic hench men loaded the pots one on top of the other destroying the plants. Then it was found that there was no room in Gampaha and reloaded and sent to Peradeniya. By the time it reached peradeniya only some of the pots survived and that is that.

    If those 45000 pots were sold at the premises at Rs.100/-each Rs.4.5Mn could have been raised and that could be used for something.
    Now after spending for trucking loading and unloading only a few unbroken pots are there to be shown.
    And this is our PRIME MINISTER!!!

  4. Hiranthe Says:

    Jokers having Yaha Palanaya!!

    It is MR’s fault that these jokers came to power. MR is also in the same boat. He will not abolish 13A. No one talks about 13A now.. We should all jump to see after giving the country to Eealamists!!

  5. Lorenzo Says:

    At last both camps in the SLFP are listening to what we have been telling them.

    A compromise. Make CHAMAL RAJAPAKSHA the PM candidate.

    Good move.

  6. Fran Diaz Says:

    The present illegal new govt of Lanka has let down the People badly in the Economic field. The Sri Ranil/CBK camp who are caught up in Cold War type political mind set have torn the country apart with all sorts of mainly false charges against the former President and his govt. and also made a mess of the massive Port City project, offending the lender China.
    In addition, the Central Bank bond insider information business has the present govt in a bind. So, the new govt is in trouble on two fronts of the Economy.

    All this was done for what ? It was done to turn the country Westward Ho ! – hook or by crook. And lookee ! Westward Ho is coming Eastward Ho now – they are all wooing the Chinese Investment Bank. Lanka is falling between the cracks ? Yes, CHANGE IS NECESSARY, and soon.

    Humble Pie on the menu for RW/CBK/MY3 & Co ?

  7. Leela Says:

    Lorenzo, What have you being smoking of late to believe Chamal will accept the PM candidature? I thought you’re smarter than the stupid gossip mongers of My3 and co. The entire yahapalana gang will be in a political quicksand when they decide to have elections. Situation will be so bad, hora hora hora sellan will be out of fashion by that time.

  8. Mr. Bernard Wijeyasingha Says:

    Lorenzo

    I read both articles in the LW. I do not see why Rajapakse would even want to hold office when China has taken legal action AGAINST COLOMBO.

    CHINA IS NO LONGER PLAYING THE FOOL. SHE IS NOT EVEN WANTING TO BE AN ALLY. BEIJING HAS ALLOWED THIS PRIVATE COMPANY TO PURSUE LEGAL ACTION AND ONCE THE LAWYERS START THEY WILL NOT STOP. THAT MEANS COLOMBO AND SRI LANKA CANNOT WIGGLE OUT OF THIS. WHY SHOULD RAJAPAKSE BECOME PART OF THE POLITICAL SYSTEM NOW? WHY SHOULD HE ENTER SRI LANKAN POLITIC JUST WHEN THE PROVERBIAL SH*T HAS HIT THE FAN?

  9. Fran Diaz Says:

    We warned Sir Ranil not to tuss with the Big Boys.
    Do RW/CBK/MY3 thinks they are in the 1950s ??

    BW,

    We agree that MR should not contest if there is a serious court case on re the Port Project.

  10. Mr. Bernard Wijeyasingha Says:

    Fran Diaz: Been through lawsuits personally. I have initiated them. Once it gets to this level SRI LANKA HAS A LAW SUIT.
    IT IS NO “IF” IT IS ALREADY HAPPENING.

    THIS POSSIBLY MAYBE THE WAY BEIJING WILL GET TO INDIA AND THE US FOR SIDELINING HER IN SRI LANKA. BEIJING ALLOWED THIS PRIVATE COMPANY TO TAKE IT THIS FAR. THEIR LEGAL TEAM WILL INCLUDE PEOPLE FROM ALL OVER THE WORLD.
    ONE OF THE ISSUES OF A LAWSUIT IS A THE “WAR CHEST”. WHO HAS MORE MONEY TO PURSUE THIS? CHINA DOES AND CHINA HAS A LEGITIMATE LEGAL REASON. THE PRICE COLOMBO NOW WILL PAY WILL FAR EXCEED ANYTHING THAT SRI LANKA EVER UNDERWENT IN THE POST WAR ERA WITH CHINA OR ANY OTHER NATION.

  11. Mr. Bernard Wijeyasingha Says:

    Fran Diaz:

    Outside of my personal experience mighty MULTI BILLION DOLLAR CORPORATIONS HAVE BEEN GUTTED BY LAWSUITS. THEIR EARNINGS FAR EXCEED THE SUM TOTAL OF SRI LANKA’S GDP SUCH AS THE TOBACCO INDUSTRIES IN THE US.

    ONCE CHINA IS THROUGH WITH SRI LANKA USING THE INTERNATIONAL COURTS SHE WILL PRACTICALLY OWN SRI LANKA BY THE MASSIVE DEBT OWED TO HER BY SRI LANKA BY SUCH LAWSUITS.

    WHEN SIRISENA AND WICKREMSINGHE HAVE TO GO FOR A DEPOSITION IT WILL BE HELL.

  12. Fran Diaz Says:

    BW,

    It is because of the troubles that the Parliament has grown ! Says Crobe : “Now, we would have 44 ministers, 28 deputy ministers and 19 state ministers for a total of 91 ministers. You can put lipstick on a pig but its still a pig”.

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