PPP infrastructure opportunities in Sri Lanka

Wednesday, 13 November 2013 00:09 - - {{hitsCtrl.values.hits}}

By Cheranka Mendis With Sri Lanka making progress towards becoming a middle income country, it offers a host of opportunities for investment, National Planning Department Director General Chandani Wijayawardhana said during a networking lunch hosted by her department, supported by Asian Development Bank.

Under the Mahinda Chinthana Policy Framework, with strong policy inputs, the Government had planned out and completed mass infrastructure development over the past four years, leaving room for the private sector to invest. With major projects in the sectors of telecom, IT, power and road development undertaken by the Government, it has created a number of opportunities for those interested in contributing, she said. Wijayawardhana listed urban development, water, roads and civil aviation as key areas of focus of the Government. A ‘slum-free city’ Under urban development, a sizable sum has been injected into the country to beautify the metro Colombo area. What we see today is the first level of input in making Colombo a ‘clean and green city’, and under urban regeneration programs, Colombo will become a ‘slum-free city’, she said. “There are 15,000 slums in a total area of 850 acres in the city. We plan to allocate 500 acres of this for commercial purposes while building suitable accommodation for the dwellers on the rest of the acres. The total value of the commercial area is estimated at US$ 1.5 billion,” Wijayawardhana said. Green economy The energy sector will play a crucial role in building a ‘clean and green’ country. The Government is targeting to increase the share of non-conventional renewable energy production to 22% by 2020. Investment opportunities have risen in supporting this through different energy options. “The Government is inviting the private sector to bring in additional capacity. We invite large scale power producers to take this opportunity. The Government has established many mechanisms in order to develop this area.” Water also plays a critical role in promoting a green economy. Keeping in line with the accelerated development, the Government plans on providing sewerage and water management facilities in areas such as metro and strategic cities, newly emerging cities, industrial areas and other special areas. The ADB has undertaken the construction of a US$ 450 million, non revenue water operation and waste water treatment, a three-year project. Fresh opportunity “There is a critical need to expand the water supply and sewerage system. There is a public enterprise monopoly on water; however, there is potential in looking at business opportunities in water treatment or sewerage systems for cities,” she asserted. Only a limited area of Colombo is covered by the sewerage system. “There is fresh investment opportunity in building a sewerage system in Sri Jayawardenapura Kotte. We are open to a good PPP.” The National Planning Department will issue a publication on all potential development and investment areas in December.