Cabinet decisions

Urban Development Plan for Hatharaliyadde

The Cabinet has approved a memorandum submitted by Urban Development and Sacred Area Development Minister Dinesh Gunawardana for the implementation of an urban development plan for Hatharaliyadde.

The Hatharaliyadde Service Centre located in Galagedera Electorate has been declared by the UDA as an Urban Development Area and a series of projects have been identified for implementation by the National Physical Planning Department (NPPD) Construction of a bus stand, public toilets and weekly fair with other buildings such as post office, banks, police station and a fuel filling station projects have been identified for implementation.

Construction of Bandarawela and Haputale Divisional Secretariat buildings

The Cabinet has approved a memorandum submitted by Public Administration and Home Affairs Minister Karu Jayasuriya to award the construction contract of Bandarawela and Haputale Divisional Secretariat buildings to the Central Engineering Consultancy Bureau (CECB).

Concerning the fact that the land in which the Haputale Divisional Secretariat located is prone to landslide, a decision has been taken to establish the office in a suitable alternative land. A crown land situated adjoining the Badulla-Colombo main road within the Haputale town has been selected for this and Rs. 7.44 million allocated in 2008.

The building in which the Bandarawela Divisional Secretariat is located belongs to the Education Department. This building is not spacious enough to suit the present office requirements while having no proper access road, the memorandum states.

The Haputale Divisional Secretariat building construction contract will be awarded to the Central Engineering Consultancy Bureau (CECB) for Rs. 23.19 million (Rs. 23,193,283/- excluding Value Added Tax) under direct contract procedure.

The construction contract of Bandarawela Divisional Secretariat building to the Central Engineering Consultancy Bureau for Rs. 47.78 million (Rs. 47,788,728/- including Value Added Tax) under direct contract procedure.

Restructuring of National Paper Company Limited

The Cabinet has approved a memorandum submitted by President Mahinda Rajapaksa as the Minister of Nation Building and Estate Infrastructure Development to restructure National Paper Company Limited.

The Cabinet at the meeting held on January 16 after having considered Cabinet Paper No. 07/1954/357/019 dated 31-10-2007, titled "Liquidating the National Paper Company Limited and obtaining Funds to pay the salaries for the employees" submitted by the Industrial Development Minister decided to complete the process of liquidation within three months from the date of the Cabinet decision.

The Government's policy is not to liquidate State Institutions but to explore the possibility of looking for a joint venture partners as liquidations are likely to lead unrests situation if political parties and members of trade unions resort to oppose such an action which is also against the Mahinda Chintana.

Also, the Strategic Enterprises Management Agency (SEMA) which studied the proposals of the Management of the National Paper Company Limited, is of the opinion that there is strong possibility of restructuring the Company in a profitable manner with minimum labour in view of the quality and demand for the Paper/Board items manufactured by the National Paper Company Limited, especially the Valaichchenai Paper Mill.

It is now proposed to convert the Embilipitiya Paper Mills into a Joint Venture by finding a suitable Investor and the Valaichchenai Paper Mills to continue functioning as a separate entity and the emoluments payable to the employees after the restructure to be made out of the profit earned by the Company without being a burden to the General Treasury.

It is recommended to terminate the employment of staff at the Embilipitiya Paper Mills and the employees of the Head Office currently in service under the National Paper Company Limited on a Compulsory Retirement Scheme (CRS) without liquidation while the employees of Valaichchenai Paper Mills allowed continue in service.

Rs. 65.95 Million will be allocated to pay the salaries, arrears of salary and gratuity payments for the employees.

Completion of construction of Awasa building at Situlpawwa

The Cabinet has approved a memorandum submitted Urban Development and Sacred Area Development Minister Dinesh Gunawardana for the completion of construction work of the Awasa building at Situlpawwa.

The Awasa building project was estimated to be built at a cost of Rs. 40 million and the Cabinet approved the National Physical Planning Department to select Central Engineering Consultancy Bureau as a design and built contractor. Consequently an agreement was signed for one wing of the building and concrete frame was completed and payment of Rs. 10 million has already been made.

While the construction was in progress, on the request of the High Priest of Situlpawwa Temple, the scope of this project was changed to include the entire building.

Consequently the project cost was increased and now it is necessary to replace the first agreement signed for this project by the National Physical Planning Department with Central Engineering Consultancy Bureau and sign a new agreement to complete the building work.

Accordingly, a Rs. 49 million fund will be allocated to the NPPD under the Situlpawwa Planning Scheme for this year.

Nawalapitiya development programme

The Cabinet has approved a memorandum submitted by Urban Development and Sacred Area Development Minister Dinesh Gunawardana for a development programme for Nawalapitiya.

At the progress review meeting held on February 13 at the UDA regarding the Nawalapitiya Development Programme chaired by Power and Energy Minister Mahindananda Aluthgamage and attended by the Chairman Nawalapitiya Urban Council, officers of the Railway Department and the Urban Development Authority, the subject of vesting the CGR land with the UDA and the allocation of shops in the proposed shopping complex to be constructed by the Nawalapitiya Urban Council was discussed.

After completion of the Project, properties (shop units) will be built and handed over to the Nawalapitiya Urban Council for allocation and maintenance and management thereafter.