{"id":42487,"date":"2015-03-21T00:34:37","date_gmt":"2015-03-21T06:34:37","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=42487"},"modified":"2015-03-20T15:01:25","modified_gmt":"2015-03-20T22:01:25","slug":"govt-to-suffer-massive-suspension-loss-from-port-city-project","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2015\/03\/21\/govt-to-suffer-massive-suspension-loss-from-port-city-project\/","title":{"rendered":"Govt. to suffer massive suspension loss from Port City project?"},"content":{"rendered":"

By\u00a0 Azhar Razak and Arthur Wamanan\u00a0<\/span><\/span><\/em>Courtesy\u00a0 The Nation<\/span><\/em><\/span><\/h2>\n

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\u201d.
\nIn 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\u2019s 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.<\/p>\n

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\u2019s internal financial resources. CCCC will provide 30% equity while 70% will be financed with the land.\u201d<\/p>\n

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,\u201d the company told The Nation in an email response.<\/p>\n

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.<\/p>\n

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,\u201d the CCCC statement said.<\/p>\n","protected":false},"excerpt":{"rendered":"

By\u00a0 Azhar Razak and Arthur Wamanan\u00a0Courtesy\u00a0 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 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-42487","post","type-post","status-publish","format-standard","hentry","category-forum"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/42487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=42487"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/42487\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=42487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=42487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=42487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}