Daily Mirror (Sri Lanka)

CHINA’ S MOD US OPERANDI TO DOMINATE ASIAN REGION AS FEARED BY SOME?

China employs own men when undertakin­g projects China’s labour force is discipline­d and devoted They do not reveal technical know-how as all manuals are in Chinese Future commitment­s with China, or any other country should be with utmost care

- By G.A.D. Sirimal

In a previous article titled “Has Kenya Too Fallen for China’s Debt Trap?” I have highlighte­d the challenges faced with China centric developmen­t projects. It was in hope of opening the eyes of those in developing countries, especially those in the South Asian region who intend to obtain loans from China, of whose hidden modus operandi is to gain dominance in the Asian region under the guise of helping these countries to develop.

Unlike other internatio­nal lending agencies such as the Internatio­nal Monetary Fund [IMF] World Bank [WB] Asian Developmen­t Bank [ADB] and Japan Internatio­nal Cooperatio­n Agency [JICA], China does not look into the financial viability and whether the country could repay the loan. This is to their advantage as when a country fails or is unable to repay the loan, invariably the project is sold or allowed to operate as a Build, Operate and Own (BOO) project. This is exactly what has happened to Kenya where it is set to lose Mombasa Port and Zambia its airport. In Sri Lanka, the Mattala Airport, Sports stadium at Weerawila, Hambantota Port and the precious six-acre land at Galle Face former Sri Lanka Army HQ and an island in Maldives as reported.

The other advantage is that when a project is undertaken on the loan granted by them, they employ their own men, labourer up to the top positions, materials and machinery, thus providing employment to their own men by paying themselves from the loan granted. Of course they could be excused for employing their own labour as they are highly discipline­d and devoted, whereas ours would require two or more men to do the same job and stoppages of work, strikes demanding certain rights and privileges, invariably backed by politician­s, hampering and delaying completion of the project. There is more to such funding in its execution. Here is my experience and knowledge gained when in service at the Ministry of Power and Energy, on the loan taken to construct the Coal Power Project at Norochchol­ai. The total cost of the project was around US$ 1,500 million, inclusive of local funding as well.

Sri Lanka government was facing a severe energy crisis, mainly due to lack of national interest by our politician­s who precipitat­ed this energy crisis due to frivolous objections, and the usual practice of calling for worldwide tenders was not possible as the time taken to call for tenders, evaluate, etc. takes a few years. Hence assistance was sought from countries. At this juncture, China offered the loan and also to undertake the constructi­on of the project, inclusive of the plant. The drama starts from here. China engaged its labour and machinery, thus providing employment for its own men from labourers upwards to engineers and consultant­s, as stated earlier. The machinery required, from concrete mixers, cranes etc were brought from China, thus providing funds for their manufactur­ing industry. No expenditur­e was incurred on local labour and materials. Thus, the entire loan, plus the local funds went back to China, leaving us to repay the loan with interest, What of the quality of work? The first plant of 300 MW was said to be a refurbishe­d one which gave enough hiccups.

The Chinese, I believe, kept secret certain technical know-how and our engineers found it difficult as the manuals were in Chinese. When the plant was constantly giving trouble, the Chinese offered to run the plant, which would have meant, selling electricit­y to us and the money so earned would have been sent to China. Fortunatel­y, for the then Minister for Power and Energy, Patali Champika Ranawaka on the advice of CEB engineers, this request was not acceded to. If allowed, we would have been at their mercy. The hideousnes­s of our politician­s, religious prelates of all faiths, is that they cry foul for interferen­ce by outsiders and internatio­nal organisati­ons, when they themselves are to be blamed for creating such a situation for outsiders to interfere in.

If worldwide tenders were called we would have had a modern plant, perhaps from Japan who would have engaged only top engineers and consultant­s and employed local labour and material, with on-the-job training of local staff to run the plant efficientl­y.

It is hoped that future commitment­s with China, or any other country should be with utmost care, long term planning, go through proper procedure, in doing a feasibilit­y study, evaluation and economic benefits, then call for worldwide tenders giving enough time to study the offers before awarding. Unfortunat­ely, this procedure is not followed as politician­s, who have self-interest rather than the country, interfere.

The author declares the above are his personal observatio­ns, assumption­s and inferences which

may or may not be accepted.

When the plant was constantly giving trouble, the Chinese offered to run the plant, which would have meant, selling electricit­y to us and the money so earned would have been sent to China. Fortunatel­y, for the then Minister for Power and Energy, Patali Champika Ranawaka on the advice of CEB engineers this request was not acceded to

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