{"id":92893,"date":"2019-09-07T14:06:55","date_gmt":"2019-09-07T21:06:55","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=92893"},"modified":"2019-09-07T14:06:55","modified_gmt":"2019-09-07T21:06:55","slug":"yahapalana-and-the-united-states-of-america-part-9a-section-2","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2019\/09\/07\/yahapalana-and-the-united-states-of-america-part-9a-section-2\/","title":{"rendered":"YAHAPALANA AND THE UNITED STATES OF AMERICA Part 9A (SECTION 2)"},"content":{"rendered":"

KAMALIKA PIERIS<\/em><\/span><\/h2>\n\n\n

The MCC grant represents the largest grant Sri Lanka has ever received\nfrom a single source, said Advocata. The grant is a huge one, USD 480 million. The failure to utilize the MCC grant would be an\neconomic loss to the country. It is about improving the country\u2019s transport\nsystem and land registration system, explained Jehan Perera. <\/p>\n\n\n\n

USA embassy has provided some basic information on the MCC Compact\nat  Htps:\/\/lk.usembassy.gov\/wp-\ncontent\/uploads\/sites\/149\/MCC-Land-Project-with-GOSL.pdf. <\/em><\/p>\n\n\n\n

The stated aim of the MCC  is to   \nreduce poverty and stimulate economic growth, said MCC.  In Sri Lanka we have identified transport\ninfrastructure and weak land administration  \npractices as the binding constraint on economic growth in Sri Lanka.This is   nonsense. Sri Lanka\u2019s \u2018constraints to\neconomic growth\u2019 cannot be   removed by\ntackling traffic jams and listing  land\nparcels. Sri Lanka\u2019S economic problems lie\nelsewhere.<\/p>\n\n\n\n

The transport project will improve connectivity between the\neconomically backward central region \nwith ports and markets in the western provinces, continued MCC. Getting transport right is the key to mark Colombo as a\nregional hub for finance, trade and investment.<\/p>\n\n\n\n

That is doubtful. The Compact does not address\nthe primary transport  need in Sri Lanka\ntoday, the need for mass transit, by bus and train, for both persons and goods.\nThe Compact  remedy  instead,  \nis to introduce ICT controls \nfor  private transport.  The \nMCC Transport project  was\ndescribed in  detail by an official of\nthe Road Development Authority, at a seminar I attended. The audience gave a\nhearty laugh at the end of the talk. <\/p>\n\n\n\n

Here is the transport project . It is in three parts. Part one is an\nAdvanced Traffic Management System (ATMS) for the Colombo Metropolitan Region, covering approximately 205 kilometers of existing road\nnetworks , concentrating on the  eight heavily traveled corridors that link\ncentral Colombo with its suburbs   and \nincluding  improvement of  132 junctions in Greater Colombo. <\/p>\n\n\n\n

The ATMS will be controlled by a\nhuge Traffic Managment Center with real time analysis of traffic flow\ndata,  interconnected traffic signal\nsystem and vehicle detection using modern technology. The project will also\ncreate more pedestrian crossings, improve sidewalks and introduce \u2018road safety\nmeasures\u2019. <\/p>\n\n\n\n

The Advanced Traffic Management System had been\ndiscussed with other donors. The discussions had stalled because the other\ndonors  had refused to pay certain extra\ncosts relating mainly to land. But  MCC\nreadily  agreed to pay   that too, said RDA gratefully.<\/p>\n\n\n\n

Part two is bus service modernization in greater\nColombo. This will consist of automated\nfare collection with smart cards, centralized control of bus schedules and GPS\nbus tracking to see whether buses are operating according to schedule. These measures would also improve the safety of women,\nsenior citizens and disabled persons. Funds will be also provided for the\npurchase of new state-of- art buses. <\/p>\n\n\n\n

Part\nthree  is the  upgrade of \napproximately 131 kilometers of roads in Sabaragamuwa, Uva and Cenral\nProvince which are in between the more developed roads. This would include the\nroad from Ratnapura to Beragala and Dambulla to Naulla. The Compact is offering\na  super asphalt mix which will provide a\nbetter  road surface. <\/p>\n\n\n\n

The   land\npart of the  Compact seems to have  undergone drastic  change. There is no mention now  of giving deeds to  those occupying state lands so that they can\nsell the land and become  destitute. The\nfocus now is on creating a cadastral map of land parcels and creating a\ncomplete digital inventory of state land.<\/p>\n\n\n\n

Surveyors are not impressed.  This is exactly what the American firm,\nTrimble was going to do, at the start of Yahapalana rule, surveyors said. They\nalso said that this mapping  which the\nCompact is talking about  could be done\nby the Land use Planning Department. The Land use Planning Department has\nalready mapped out all sorts of land, they said.   They have mapped out protected areas,\nunutilized lands,    underutilized lands,\nabandoned paddy lands, river basins, water sheds. The data will   be fed into ICTA\u2019s National Spatial Data\nInfrastructure. <\/p>\n\n\n\n

The Compact is now focusing on under-utilized state land\u201d   held by government Departments, such as the\nGovernment Railway. The Compact is eyeing these lands, which it says can\ngenerate better revenue in the hands ofindustrial\ninvestors.  Sri Lanka will have a place\nin these industrial ventures. The MCC compact will provide opportunities for\nSri Lankan companies to compete and win multi- million dollar projects,”\nthe US embassy said. We want private sector\nexpertise and we pay really well.” <\/p>\n\n\n\n

The MCC Compact has come in for considerable\ndiscussion in the last few months. Several organizations have held seminars on\nthe subject and the US embassy has attended and contributed information. <\/p>\n\n\n\n

The project negotiations for the Compact\ncommenced in 2004 during the Kumaratunga-Wickremesinghe tenure and continued\nduring the Rajapaksa government until the project was terminated by MCC in\n2008, said Pathfinder Foundation.<\/p>\n\n\n\n

 During\nthis period, the local Compact team and MCC specialists had extensive\ndiscussions with the departments responsible for transport and land\nadministration. They also had discussions with the private sector,   think tanks, and civil society\norganizations. The present Compact is based on a\nfull-fledged proposal submitted by the government in November 2017, said\nPathfinder Foundation. <\/p>\n\n\n\n

Sri Lanka completed negotiations with MCC in\nOctober 2018. The government team was led by the Secretary to the Ministry of\nFinance. The team included senior officials from the External Resources\nDepartment, Attorney General\u2019s Department, Policy Development Office in the\nPrime Minister\u2019s Office, Ministry of Highways and Road Development, Ministry of\nLands and Parliamentary Affairs, Ministry of Megapolis and Western Province\nDevelopment, Ministry of Transport and Civil Aviation, and Sri Lanka Survey\nDepartment. <\/p>\n\n\n\n

The agreement was to be signed in December 2018\nbut was delayed due to the political events of the time. However, MCC\u2019s Board\nof Directors approved the Compact again at its Board meeting in April\n2019. The Compact now awaits approval by\nthe Cabinet and signing of the agreement by the government, said Pathfinder.\nBut there is hesitation on the part of the government and a reluctance to sign.<\/p>\n\n\n\n

Sri Lanka is now at risk of losing the grant, if\nit does not receive Cabinet approval and fails to sign the agreement prior to\nthe September 18th MCC Board meeting, said Advocata institute, because Sri\nLanka has now  graduated to\nupper-middle-income status and MCC  only\nhelps low and lower-middle-income countries. <\/p>\n\n\n\n

MCC\u2019s Board of Directors is due to meet in\nmid-September 2019. And may decide to disqualify Sri Lanka, if the country\ndoesn\u2019t appear to want or need the $480 million grant, said Pathfinder\nFoundation. <\/p>\n\n\n\n

But the US embassy said that   instead of disqualifying Sri Lanka, MCC\ndirectors may decide to extend the US$ 480 million grant term if Cabinet\napproval is further delayed. Because the US is very keen that this Compact is\nsigned and is keeping it fingers crossed.<\/p>\n\n\n\n

 The United\nStates has expressed hope that Sri Lanka will eventually approve the $ 480\nmillion Millennium Challenge Corporation (MCC) grant, said the embassy.\nMeasures will be taken to create awareness on the MCC programme among the\npeople,  the embassy said.<\/p>\n\n\n\n

It is most unusual to have a\ndonor running behind a recipient like this. It is usually the other way round.\nWhile the donor (USA) is keen on the compact, the recipient, (Sri Lanka)\nhowever, is suspicious and reluctant. Sri Lanka is wondering why USA is so\nanxious to push this through. Is this simply a grant to   avoid traffic jams and prepare   maps or is it something more. What is behind\nit all, they ask.<\/p>\n\n\n\n

 The MCC is not the independent,\naltruistic  US foreign assistance agency\nit claims to be.  The Millennium\nChallenge Corporation Board is chaired by the Secretary of State.\nThe  Board members are a) Secretary of\nthe Treasury, b) USAID administration ,c) US trade representative, and d) four\nprivate sector representatives. This\nBoard  therefore represents  the \npolitical interests and trade interests of the USA. Advocata  Institute  \nhowever, says, although heads of the U.S. State Department and U.S.\nTreasury sits on its board, the MCC operates independently as a separate\nentity. <\/p>\n\n\n\n

The Compact program was proposed by Sri Lankans, developed by Sri\nLankans and will be managed and supervised by Sri Lankans, said the US embassy. Not quite. The project proposal was neither proposed\nnor developed by Sri Lanka. It is unlikely that Sri Lankan economists will\nproduce such a  lopsided proposal.<\/p>\n\n\n\n

 The  Compact issues  were first examined  by Harvard University\u2019s Centre for International\nDevelopment in a year long study in 2016. This was followed  by studies from World Bank, Asia\nFoundation,  Trimble and Center for Policy Alternatives, Colombo. These are  organizations which have a strong link with\nUSA.<\/p>\n\n\n\n

The MCC has no intension to impose any condition\nforcibly in implementing MCC compact, said the US embassy, adding that they are\nflexible to accommodate any suggestions of the government before signing it. We\nwill accommodate your needs,  we  can modify the Compact as government wishes,\nsaid  USA embassy . At least two\nyears  is needed after signing the\nCompact to work out the details. <\/p>\n\n\n\n

Certain changes have already been made. Attorney\nGeneral\u2019s Department raised objections to the clause in the original draft\nwhich brought the Compact under International law. MCC was asked to remove any sentence which excluded\ndomestic law and the MCC agreed, reported the media. <\/p>\n\n\n\n

This is your project. We are not forcing it on\nSri Lanka, said MCC. Implementation will be supervised by a local body staffed\nby Sri Lankans. This body will be accountable to a Sri Lankan Board of\nDirectors comprised of eight government officials and three representatives\nfrom the private sector and civil society. <\/p>\n\n\n\n

Money will be reflected in the national accounts\nand national budget and spent by line ministries and supervised by COPE, COPA\nand Parliament. Grant funds are usually not channeled through the Treasury, but\ncontractors and vendors are directly paid by the donor. Budgetary provisions\nwill be made in the national budget to account for this expenditure. Therefore,\nit is clearly not outside Government,\u201d said the embassy. <\/p>\n\n\n\n

Unfortunately, this Millennium Challenge Corporation grant has been\nseen as part of a threefold US package of MCC, ACSA and SOFA.  ACSA and SOFA are military agreements; MCC\ngrant is about economic interests,  said\nMCC supporters.  But they look like a\npackage, replied said critics. All three were to be signed in  2018, one after the other. <\/p>\n\n\n\n

Pathfinder Foundation concluded its statement on the Compact, saying that a sovereign nation has every right [and] obligation to turn down foreign assistance, if there is reasonable suspicion that this support is not in the interest of the country. ( Continued) <\/p>\n","protected":false},"excerpt":{"rendered":"

KAMALIKA PIERIS The MCC grant represents the largest grant Sri Lanka has ever received from a single source, said Advocata. The grant is a huge one, USD 480 million. The failure to utilize the MCC grant would be an economic loss to the country. It is about improving the country\u2019s transport system and land registration […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[104],"tags":[],"class_list":["post-92893","post","type-post","status-publish","format-standard","hentry","category-kamalika-pieris"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/92893","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=92893"}],"version-history":[{"count":0,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/92893\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=92893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=92893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=92893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}