Former Sri Lanka Ports Authority (SLPA) top officials and then ruling party politicians blocked several local and foreign entrepreneurs from investing in the Hambantota Harbour, due to vested interests, Walkers Colombo Shipyard Managing Director Dr. Sarath Obeysekera lamented.
Speaking to Daily News Business he said that if the then SLPA allowed other local investors with or without foreign collaboration to proceed with their investments, the Hambantota Port would have been a self funding and a viable venture.
“There would have been no reason for the government to seek Chinese interests to run it, if they allowed local companies who wanted to be part of the investment in the Magampura Port during the past few years to invest there.”
Cosco Ship Builders, China Harbour Corporation together with a local investor was ready to invest US$ 400 million to build a 300,000 DWT Dry Dock (with four berths, Quay Length 1.5 km, land occupation on a 50 hectare land) and also a Floating Dock. The project proposal also included a ship repair and conversion under the first phase and ship building facility under phase II.
The Sri Lankan company even placed the order for a floating dock to be placed in Hambantota for ship repairs and the SLPA under the previous regime turned down these proposals.
Dr. Obeysekera said that during the previous regime also a private public partnership with a company which operates a mega oil tank farm in the Middle East wanted to invest in the oils storage and bunkering operations. “But due to the influence from the same young politician in the area it too was shelved by the then Chairman.”
“This was done most probably because the then SLPA Chairman and also the subject Minister was influenced by a VVIP to retain the business so that they can benefit from oil purchases.”
“This was the reason SLPA got involved in bunkering operations which was beyond their mandate and it was never a successful business operation.”
One local entrepreneur wanted a piece of land in the harbour to install a grain processing plant and the SLPA turned this down as well.
“The then SLPA called RFP’s for various investments for bottling plants, sugar bagging factories, ware housing and they were never processed. “After the change of the regime, the SLPA again called RFP for bunkering and it was never processed due to influence from the current regime,” he said.
Few other investors were keen in install refineries and oil tank farms and both governments were not interested.
Under the privatisation of the Magampura Port, SLPA having 20% equity should entertain some local companies to invest in various ventures and show the presence to the Chinese rather than just holding one seat in the Board of Directors.
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