Parliament SOC flags Rs. 52 b Port City project delays and voting rights for residents

• Cost of Port Access Elevated Highway nearly doubles from Rs. 28 b estimate in 2015
• Officials unable to provide timelines, expected returns or economic and social impact estimates
• Three of four ramps remain stalled in planning and land acquisition stages
• Port City’s primary land use revealed as residential at 51%; Committee presses for clarity on Local Government jurisdiction, voting rights and CMC services
• Port City expects $ 700 m FDI this year, but officials unable to detail pipeline

Parliament’s Sectoral Oversight Committee (SOC) on Infrastructure and Strategic Development has raised concerns over delays, rising costs, and gaps in economic assessment of infrastructure serving Port City Colombo, after officials were unable to provide timelines or expected returns for key components of the Port Access Elevated Highway project.

The Committee, chaired by MP S.M. Marikkar, was told that the project, estimated to cost Rs. 28 billion when its cost and feasibility were last studied in 2015, is now estimated at Rs. 52 billion.

Officials were unable to provide the Committee with timelines for the overall project, expected returns on investment, or detailed assessments of its economic and social impact, despite the project being intended to improve connectivity to Colombo Port and Port City Colombo, ease congestion, and generate travel-time and fuel savings.

Marikkar questioned the absence of updated assessments given that the Rs. 52 billion cost would ultimately be borne by the public. He also argued that the Road Development Authority’s (RDA) monopoly over the project was an obstacle to ensuring timely implementation, due diligence, and transparency, contrasting it with Asian Development Bank (ADB)-funded phases where greater accountability was required.

The project comprises four ramps, including an undersea tunnel connecting Port City Colombo with Marine Drive.

Ramp three, connecting the New Kelani Bridge to Colombo Port, is expected to be completed this year and is projected to reduce access time to the Port from several hours during congestion to under 30 minutes. However, officials could not provide estimates of the wider economic and social benefits or expected returns from the investment.

The other three ramps remain stalled at planning and land acquisition stages, with final permission from CHEC Port City also pending for relevant components.

The Committee instructed officials from the Colombo Port City Economic Commission, RDA, Colombo Municipal Council (CMC), and electricity and water utilities to submit detailed reports on the progress of infrastructure and utility development serving Port City Colombo.

The Committee also questioned Port City Colombo’s administrative status after it emerged that 51% of its land area has been allocated for residential use, with commercial and retail activities accounting for the balance.

Colombo Port City Economic Commission officials said the residential allocation had always formed part of the development plan and acknowledged that the marketing strategy may have created a different impression given Port City Colombo’s positioning as a financial and commercial hub.

Marikkar said that if Port City Colombo was primarily residential, the Commission needed to quickly establish the applicable Local Government jurisdiction and residents’ voting rights, while finalising agreements with the CMC for services required by the development.

Commission officials said Port City Colombo does not fall under the CMC, although it is located within Grama Niladhari Division 120, Colombo Fort. Asked whether residents of Port City Colombo would be eligible to vote in Local Government elections, officials said they would revert to the Committee with a clarification.

The Committee also questioned how CMC-provided services, including garbage disposal, sewage disposal, and firefighting, would be priced for Port City Colombo.

“The majority of households in Colombo are poor, don’t forget that. So when you discuss how to cost these services like bringing garbage into Colombo from the Port City, ensure that you make a profit and not just cover costs,” Marikkar told CMC officials.

“We are developing this for high-net-worth individuals and to attract foreign direct investment (FDI), an area with a Special Economic Zone (SEZ) and rules, so we must ensure that the benefits promised to citizens are delivered,” Marikkar said.

Officials estimated that Port City Colombo could attract about $ 700 million in FDI this year, but were unable to provide the Committee with specific details of the investment pipeline.