Cabinet decisions

Uma Oya Multipurpose Development Project

Cabinet granted approval to a memorandum submitted by Chamal Rajapaksa, Minister of Irrigation and Water Management, for the Uma Oya Multipurpose Development Project, which is one of the priority items in the water and power sector in the Mahinda Chintanaya- 10 Year Development Framework.

Accordingly, a project director will be appointed and a project office will be opened in Colombo. A National Steering Committee with representation from the relevant Ministries/Institutions will be appointed for this project.

The work includes 2 dams across Uma Oya and a tributary at Welimada, a 23 km long trans-basin diversion tunnel, 90 MW hydropower plant with an annual energy output of 312 GWH and diversion of approximately 150 MCM of water to irrigate about 5000 ha in the Hambantota and Moneragala districts and other downstream benefits.

Industries to be set up in regional industrial estates and other state lands

Cabinet granted approval to a memorandum submitted by Kumara Welgama, Minister of Industrial Development, for the allocation of land blocks to set up industries from regional industrial estates and other state lands.

Under the regional industrialization strategy of the present Government, investors are encouraged to set up industries in the rural areas.

However, lack of suitable lands with adequate infrastructure facilities has become the major constraint to attract investment into the regions. As a remedy the Ministry is implementing a project to set up several Small and Medium Industrial Estates in different parts of the Island.

So far 18 Regional Industrial Estates have been established under this programme and most of the land plots are now occupied. Further, construction of four Industrial Estates in Puttalam, Buttala, Trincomalee and Galigamuwa are now under way. Initial work has been commenced to set up three more industrial Estates at Matugama, Embilipitiya, and Millewa.

Several proposals received recently requesting blocks of land from Industrial Estates namely Kalutara, Templeburg (Homagama), Nalanda (Matale), Ulapane, Lakshauyana (Polonnaruwa), were evaluated and it was found that 16 of them are suitable to be allocated blocks of land from the said Industrial Estates and state land (Kandakkuwatta) at Bingiriya.

Direct employment opportunities anticipated by these 16 proposals are 989 with a total investment of Rs. 356.5mn.

The Domestic Industries Approval Committee appointed as per Cabinet Decision dated 08.03.2006 has granted approval to allocate blocks of land from the state lands/industrial estates as stated in Annex II, to set up six new industries under “Gamata Karmantha” 300 Industries Programme. Direct employment opportunities anticipated from these 06 projects are 1,304 with a total investment of Rs. 472 mn.

The lands will be allocated under the “50 Year Term Lease” scheme at rentals to be determined by the Government Chief Valuer subject to the condition that the allotees should agree to abide by the rules and regulations stipulated by any relevant Government Agency, the Ministry of Industrial Development and / or any other agency authorized by the Ministry with regard to the respective Industrial Estate/State Land, where the block of land has been allocated to each investor / company.

Meanwhile the Government has the power to withdraw the block of land so allocated and cancel the Lease Agreement if no meaningful action is taken by the respective allottee to set up the industry within the stipulated period of six months from the date of such allocation.

Enactment of “National Thoroughfares Bill” (NTB)

Cabinet granted approval to a memorandum submitted by Jeyaraj Fernandopulle, Minister of Highways and Road Development, to present the draft bill for the “National Thoroughfares Act” (NTA).

The Thoroughfares Ordinance enacted in 1861 is the principal enactment relating to the planning, designing, construction, maintenance, improvement and protection of all roads designated as Public Thoroughfares.

It was found out that with the rapid changes in the country’s economic and social lifestyle that has taken place during the past few decades, the provisions in the Thoroughfares Ordinance are inadequate to meet the present day needs of the road infrastructure and for its administration.

Occupational Safety and Health Law

Cabinet granted approval to a memorandum submitted by Hon. Athauda Seneviratne, Minister of Labour Relations and Man Power, to refer the proposed Occupational Safety and Health Law to the Legal Draftsman without referring to the National Labour Advisory Council once again.

Both Employer and Trade Union Members and other stakeholders of the National Labour Advisory Council were involved throughout the process of the drafting the said law, and the nominees of the Trade Unions and the Employers were members of the sub-committee appointed to supervise and monitor the drafting of the proposed law.

Amendment to the tea, rubber and Coconut Estates (Control of fragmentation) Act

Cabinet granted approval to a memorandum submitted by D.M. Jayaratne, Minister of Plantation Industries, for the Amendment to the Tea, Rubber and Coconut Estates (Control of fragmentation) Act.

Under the provisions of Tea, Rubber and Coconut Estates (Control of Fragmentation) Act NO.02 of 1958 amended by the Act No:20 of 2005, approval of the Board appointed under the said Act should be obtained for transferring of the ownership of the coconut land of more than 4 hectares as a single unit or subdivisions.

The above provisions have been made in the Act owing to the decline in the coconut production of the country and the unfavorable impact on the coconut related industry due to the fragmentation of coconut lands.

Since approval of the Board should be obtained for fragmentation of coconut land of more than 4 hectares under current provisions, fragmentation of such lands is restricted to some extent. However, 96% of the total coconut lands in extent of 3, 94,836 hectares are less than 4 hectares.

It is apparent that coconut lands up to 4 hectares are subject to further fragmentation. In this context, it is intimated to make proposal in the Budget 2008 that it is opportune to suspend the fragmentation of coconut lands of more than 5 acres and thereby, to make legal provisions.

Formulation and Usage of Alternative Fuels in Sri Lanka

Cabinet has granted approval to a memorandum submitted by H.M.Fowzie, Minister of Petroleum and Petroleum Resources Development, for the formulation and usage of alternative fuels in Sri Lanka.

A Project Committee was formed by this Ministry comprising officers from the Ministry of Petroleum and Petroleum Resources Development, Ceylon Petroleum Corporation, Public Utility Commission of Sri Lanka, Central Environment Authority and Automobile Association of Sri Lanka in order to develop guidelines for the formulation and usage of alternative fuels in Sri Lanka.

This Committee obtained the assistance of officials from relevant institutions for developing the guidelines. The selection of an agency to issue licences for the potential investors should be determined after the receipt of the recommendations of the Project Committee.

The Project Committee was of the view that drafting of regulations in respect of formulation and usage of alternative fuels should be undertaken by the agency authorized to issue licences. Therefore the committee confined only to develop policy guidelines to be implemented for the formulation and usage of alternative fuels in Sri Lanka.

ADB Funded Tsunami Affecte1d Areas Rebuilding Project (TAARP) - Civil Works Contract NCB/ NRC5 (Potuvil - Panama Road 0 - 17.8 Km)

Cabinet granted approval to a memorandum submitted by Jeyaraj Fernandopulle, Minister of Highways and Road Development, to award of contract NCB/NRC 5 Potuvil - Panama Road (0 - 17.8 km) in the Tsunami Affected Areas Rebuilding Project to the lowest evaluated bidder, M/s Consulting Engineers and Contractors (Pvt) Ltd.

The contract sum is Rs 694,568,705.80 excluding V A T subject to the bidder fulfilling deficiencies under personnel and equipment. The Government of Sri Lanka (GOSL) has received a Loan No 2/67 SRI (SF) and a Grant No 0006 SRI (SF), from the Asian Development Bank (ADB) towards the Tsunami Affected Area Rebuilding Project (T AARP).

The main objective of the project is to improve the living conditions and well-being of a significant number of people in the tsunami affected areas by restoring basic infrastructure, community and public services and livelihoods. GOSL intends to use a part of this financing to road rehabilitation under Component C of the Project.

Under this component it is envisaged to rehabilitate approximately 650 km of National Highways, and rehabilitate/ reconstruct identified bridges therein, in the Northern, Eastern and Southern Provinces. The procurement of civil works was originally intended to be done through eight (08) contracts consisting of four (04) contracts through International Competitive Bidding and four (04) contracts through National Competitive Bidding.

Now the procurement is intended to be done through ten (10) contracts consisting of two (02) contracts through International Competitive Bidding and eight (08) contracts through National Competitive Bidding.