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SUMMARY OF CABINET DECISIONS - JULY 24, 2008

24.7.2008


Multi storied office and commercial development at Transworks Square, Colombo 01


H.E. President Mahinda RaJapaksa Cabinet granted approval to a joint memorandum submitted by H.E. President Mahinda RaJapaksa in his capacity as the Minister of Finance and Planning and Dinesh Gunawardena, Minister of Urban Development and Sacred Area Development for the construction of a Twin Tower building complex on the land in extent of 4 acres and 37.10 perches at Transworks Square, Colombo 01.

The building is expected to consist of 103,000 square meters of office, apartment and commercial space with about 1400 parking bays in 10 basements. The Central Bank of Sri Lanka (CBSL) has expressed its willingness to be the initiator to develop the block of land, while the Urban Development Authority (UDA) would be the main facilitator of this project, together with private sector investors and developers.

The construction cost of the project is estimated to be approximately Rs. 22.0 billion. The total project cost will comprise of the following in addition to the construction cost of the building.

• Cost of relocation (Postal Department, Fort Police, Press Club, Publication Bureau and parking)
• Cost of improvements to the Secretariat Halt Railway Station, including the overhead bridges.
• Cost of external infrastructure. (external electricity, water, drainage, sewerage etc)
• Cost for preliminaries (soil testing, surveymg, valuation, advertising etc.)

 

Infrastructure facilities for Badulla Hospital

ImageCabinet granted approval to a memorandum submitted by the Minister of Healthcare and Nutrition, Nimal Siripala de Silva for the construction of units for mental and chest illnesses, wards, rooms for Medical Officer's on-call duty, and quarters for Special Grade nursers at the Badulla Hospital.

The General Hospital Badulla is the main facility of its kind in the Uva Province and caters to a large number of people in the Badulla District and people in neighboring districts as well. However the lack of a permanent building complex for the Mental Unit and the Chest Clinic of the hospital has been a severe handicap while the absence of on-call duty rooms for medical officers and an official quarters for the Nursing Officer Special Grade too has badly effected the smooth functioning of patient care services.

The contract will be awarded to the Central Engineering Consultancy Bureau for Rs.166,267,829.67(with VAT) to be completed on a turn-key' basis, subject to approval of the Technical Committee.

The building is to comprise of four storys and the relevant units are due to be established within the building.

 

Bi-lateral electricity power exchange between India and Sri Lanka

ImageCabinet granted approval to a memorandum submitted by the Minister of Power and Energy W.D.J. Seneviratne, for the construction of an India-Sri Lanka electricity transmission interconnection for bi-lateral power exchange between the two countries.

The construction of an electricity transmission interconnection between India and Sri Lanka via Dhanushkody Palk Strait, and Thalaimannar connecting the CEB Power system of Sri Lanka and Southern Region Grid of India is now a project acceptable to governments of both countries, and once completed, is expected to bring maximum economic benefits to both countries through the exchange of 1000 Mw of power.

 

Development of the Jayatilake Sports Ground in Nawalapitiya, Kandy

ImageCabinet granted approval to memorandum submitted by the Minister of Sports and Public Recreation, Gamini Lokuge for the development of the Nawalapitiya Sports Ground at a cost of Rupees 26.9 million.

The programme of modernizing the Nawalapitiya Sports Ground was commenced at the series of ceremonies organized on 08.12.2007 in the Nawalapitiya Electoral Division by the Minister of Power, Hon. Mahindananda Aluthgamage to mark the second anniversary of the inauguration of His Excellency, President Mahinda Rajapaksa.

This ground is expected to be developed in the District of Kandy under the programme of providing a fully fledged sports ground to every district. The Central Engineering Consultancy Bureau which is a state institution possessing technical abilities and experience in planning, estimating and landscaping has prepared necessary plans for construction activities and submitted its proposals. Under this estimate an amount of Rupees 26.9 million is earmarked for the development of the playground as the first stage of the project. However, no allocations have been made for this project in this year.

An allocation of Rupees 139.5 million has been made in the Budget Estimates of 2008 for the construction of the Sports Complex in Nuwara Eliya. The amount expected to be spent for the construction activities during this year is about Rupees 112.6 million. Accordingly, it is considered a most productive move to set aside a sum of Rupees 26.9 million out of the allocations made for the Nuwara Eliya Sports Complex in 2008 for the construction of the Nawalapitiya Sports Ground.

Moreover, in view of the fact that a long delay may be experienced in the event of following formal tender procedure in carrying out the above construction work, it would be difficult to complete the task within this year itself.

Construction work will be assigned to the Central Engineering Consultancy Bureau without following the formal tender procedure.

 

Implementation of rural electrification project

Cabinet granted approval to a memorandum submitted by the Minister of Power and Energy, W.D.J. Seneviratne for the implementation of rural electrification project with assistance from the Islamic Republic of Iran.

The 10 year Horizon-Development Framework -2006-2016 envisages the expansion of coverage of electricity in the country up to 96% by 2016 of which 88% from grid connected electricity and 8% from off grid connected electricity with the aim of reducing total generation, transmission and distribution losses (of the CEB network ) up to 12% of net generation by 2015. (at present it is 15.77%). By 2010 it is expected that coverage of electricity in the country increase to 85% to 90%.

The above project proposal envisages the following physical outputs during the Period of 2008 to 2011 with a total investment of US$ 65.8 Million. (Rs 7237.6 Million)

Electrifying 600 remote villages, which includes;

(i) Construction of 600 Nos. 100/160 KV A33/0.4KV substations.
(ii) Construction of600 Km of33/11KV new medium Voltage lines.
(iii) Constructions of 3000 Km 3 phase new low voltage lines of 3000KM.
Construction of 400 new low voltage extensions, which includes;
(i) Construction of 400Km of 3 phase new low voltage distribution lines.
(ii) Conversion of200 KM single phase low voltage lines into 3phase Itnv voltage lines

Service connections for 100.000 consumers living in rural areas

The above costs include a contribution of Rs 1000 million (US$ 9.09) from prospective consumers as service connection costs of local material and labor. Therefore lending agency is expected to fund a component of US$ 50.56 Million (Rs 5562 million) All Taxes and Duties amounting to Rs 671.6 (US$ 6.11 million) will be borne by the Government.

 

Kankesanthrai Cement Factory to recommence operations

ImageCabinet granted approval to a memorandum submitted by the Minister of Industrial Development Kumara Welgama for the recommencement of Kankesanturai Cement Factory after selecting a suitable investor to form a joint venture with the Sri Lanka Cement Corporation (SLCC) and Lanka Cement Limited (LCL).

Two cement manufacturing plants belonging to two state owned enterprises manufacturing and dealing in the sale of cement namely the Sri Lanka Cement Corporation (SLCC) & Lanka Cement Limited (LCL) coming under the purview of Ministry of Industrial Development, are located in the same premises in Kankesanturai.

Production and operation of these two factories was disrupted due to the conflict and remained closed since 1990. The premises of the two factories is located within the area controlled by security forces and is being currently used by the forces.

After the closure of the two factories SLCC and LCL have been supplying cement to the market with local purchases and retaining a reasonable margin as well. They have also made arrangements to import cement from the international market.

Though the two state owned enterprises should have ideally played a dominant role in supplying cement to the market, in reality these two institutions haven't been able to achieve their objectives mainly due to the fact that cement production hasn't been recommenced.


Anusha Palpita
Director of Government Information