Friday, 13 March 2015 01:10
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Tata Housing committed to Slave Island project ‘One-Colombo’
Disappointed with negative media coverage
Warns of adverse impact to overseas investor confidence
Reiterates that all land acquisition was handled directly by UDA
All work, investments initiated on assumption that UDA followed due process
Tata Housing in a statement yesterday expressed deep disappointment over allegations appearing in media reports in connection to the ‘One-Colombo’ Slave Island Project.
The statement took issue with reports quoting Government authorities regarding the new regime’s decision to review the One-Colombo project, which Tata Housing claims are allegations which are not factual in nature.
The company further alleged that such statements worked to discredit authorities in Sri Lanka who had engaged with Tata Housing over the past three-and-a-half years to grant multiple approvals for the project based on its merit while warning that such arbitrary actions could have an adverse impact on the confidence of overseas companies seeking to invest in Sri Lanka.
Tata Housing went on to provide factual details of the project with a view to refuting the allegations reported by various media outlets over the last two weeks quoting various Government authorities and reiterated its commitment to the Slave Island Project.
The statement thereafter explained that the One-Colombo Project Ltd., an ultimate subsidiary of Tata Housing Development Company Ltd., was the result of a partnership with the Urban Development Authority (UDA) with a view to improved participation in the vision of the previous Sri Lankan Government to uplift the standards of living for inhabitants of the underserved areas in Colombo city and provide better infrastructure to the city of Colombo.
The company stated that under the partnership, One-Colombo had been entrusted with the redevelopment of eight acres of land located in Slave Island, Colombo.
The redevelopment project was said to focus on developing approximately three acres of land for rehabilitation of the inhabitants in lieu of which, around four acres of land, net of areas for roads and public infrastructure, had been granted for a mixed use development project to One-Colombo.
The company stated that the entire process of land acquisition including negotiating with the inhabitants, payment of rental and compensation, signing of the agreements and demolition of earlier buildings was handled solely by the UDA. In accordance with the terms of the contractual understanding with UDA, One-Colombo had thereafter reimbursed the rental and compensation payment to the UDA and given guarantees to ensure completion of the redevelopment buildings.
Prior to commencement of construction, Tata Housing had closely coordinated its efforts with the UDA over the past two years in order to finalise a design for the redevelopment building which has been reviewed by the UDA multiple times. Tata Housing reiterated that it had taken into account the requirements of the inhabitants as communicated by the UDA.
The company stated that redeveloped buildings, encompassing nearly 100 commercial units and 550 homes in three towers were aimed at providing dwelling areas that would be larger than the original homes of those residents targeted by the project in addition to improved amenities, parking, safety and hygiene with a view to significantly improving the living standards of the inhabitants of the area while generating additional commercial income which would contribute to maintenance and upkeep of the building.
The company further noted that it had proceeded with the project based on the assumption that the UDA had followed due process when executing project agreements which would include securing necessary approvals from relevant Ministries, the Cabinet, Board of Investment, Chief Valuer, and all other relevant authorities.
Tata Housing went on to explain that it had also proceeded with the project on the understanding that land acquisition for One-Colombo had been carried out as per the provisions of the Land Acquisition Act, including the publication of various gazette notifications and vesting orders to transfer title of the land to the UDA.
The company further stressed that only once titles for the land in question was vested in favour of the UDA was the land for the redeveloped building and mixed development projects handed over to One-Colombo in June 2014.
Reiterating its factual position on the matter, a company spokesperson stated that the project had been identified as a Strategic Development Project with the agreement of Board of Investment wherein it had made a commitment to invest $ 429.5 million over a period of 8-10 years with Foreign Direct Investment of $ 130 million over this period. To that end, Tata Housing had already infused significant capital into the project in order to commence the construction work for the redevelopment of buildings.
The spokesperson further added: “Tata Housing is committed to its flagship project in Sri Lanka that promises to be a model project to uplift the high density underserved areas of the city, provide the inhabitants with better healthy life and transform the urban areas. In line with the Tata group ethos, Tata Housing abides by a strict code of conduct and always acts in accordance with the laws and procedures laid out by the country it operates in. As a responsible company, we are keen to cooperate with the new Government and the UDA for ensuring the long-term success of this project.”
