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By Chamitha Kuruppu

Advisor to Prime Minister R.Paskaralingam yesterday said that public sector agencies should not get involved in development projects of the country any more and pointed out that the private sector performance could be far better.

"Deliberately and knowingly, the government is standing in the way of the development of the country," he said.

He told a seminar yesterday on the 'Role of the Domestic Contractor in the Development of the Road Sub-Sector' that it is the common belief that public sector agencies will provide quality and cheap work rather than the private sector in development projects.

Speaking through experience over the past years, every development project performed by state sector agency has deficiencies," Paskaralingam said. He said that most of the public sector construction agencies do not have work due to insufficient funds. The government is unable to provide funds for the agencies to carry out development projects. " All these institutions should get into private sector hands," he said.

He said that he has convinced Prime Minister Ranil Wickremesinghe to privatise the State Development Construction Corporation immediately. "PERC has already commenced work," he said. " This should be done soon to other institutions as well," he added.

He said that the private sector will not be able to carry out development projects due to the large amount of money the government owes them. "This runs into billions of rupees," he said.

A program was launched recently to settle the money due to local contractors for the work that has been already completed by them. This will be carried out district wise. The first program commenced four months ago in Vavuniya. We had to settle Rs. 200 million," he said. The next district will be Mannar.

Paskaralingam said that the need of the hour is to take corrective steps whereever it needs to be addressed.

There will be no point in investing money on any development projects. "In another five or ten years' time they too will face the same situation," Paskaralingam said.

A tender procedure in the country takes more than a year, he said. People on Tender Boards try to promote their own interest. Sometimes the Chairman of the Tender Board himself is involved in corruption. This is why people do not trust such procedures at present. Over the past few years things have got even worse, he said.

Though the government speaks highly about private sector development some people still think they should not make profits. Not only for the private sector but even the public sector should make profits. "It is time to change the culture and minds-sets of the people," he said.

He called upon the Asian Development Bank (ADB) to grant a 'big loan' to settle all money due to local contractors. He also called upon the Country Director of the ADB John Cooney to provide financial assistance to settle the large amount of money the government owed to local contractors as well as to develop private sector contractors. It is impossible to carry out development projects without settling existing debts. After settling pensions, salaries and interest hardly any money is left with the government for any development work.

"We ask the ADB to give us a 'big loan' so that we can overcome all these problems," Paskaralingam said.

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