PORT CITY TO GET SAND FROM SLLRDC

The paper stated that 40 million cubic meters of sand could be obtained from the sand pit allocated for the SLLRDC

Approval was granted to allow the Colombo Port City project company to dredge sand from the sand pit allocated for the Sri Lanka Land Reclamation and Development Corporation (SLLRDC).

A recent Cabinet paper stated that while reclamation of land for the project was on schedule, the sand remaining in the sand pit allocated for the project was insufficient to complete the project. Therefore, discussions were held with the SLLRDC regarding the possibility of obtaining sand from the pit designated for the projects of the corporation.

Technical studies for the borrowing of sand were undertaken by the project company and a supplementary environmental impact assessment report was completed and paid for by the company.

The paper stated that 40 million cubic metres of sand could be obtained from the sand pit allocated for the SLLRDC and double that quantity will be left in the pit for future activities of the Corporation.

The agreement signed between the government and project company stated the government should provide the sand, free of charge to the project company.

However, the SLLRDC had requested an administrative fee and the cost of loss of opportunity for the sand that is to be extracted. A lump sum of USD 2 million was negotiated from the initially offered USD 750,000 during discussions between high ranking government officials and officers from the project company.

During the discussions, it was pointed out that under the tripartite agreement the government had agreed to provide sand for the reclamation of the project for free and therefore the company was of the view that no payment was necessary.

However, it was pointed out that the project company that obtaining sand from the pit allocated for the SLLRDC would save costs due to the decrease in travel time.